The Brothers that just do GuttersFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Brothers that just do Gutters franchise requires a total initial investment of $144K – $511K, including a $50K franchise fee. Per the 2025 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 21.4% charge-off rate across 76 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $144K – $511K
- 56th pct Cleaning & Ma…
- Avg gross sales
- $1.2M
- 39th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 101
- 62nd pct Cleaning & Ma…
- SBA default
- 21.4%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.7x in gross revenue, well above the typical 1.5-2.5x range.
21.4% of SBA loans charged off across 76 loans, above the 16% franchise average.
Franchised units fell from 100 to 91 over 3 years. Investigate why operators are leaving.
100% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $144K – $511K including a $50K franchise fee.
- Average unit revenue of $1.2M/year (median $1.1M), with an estimated 100% cash-on-cash return (based on P&L Bottom Line).
- Verdict D (Below Average) with a risk score of 70/100. SBA loan charge-off rate of 21.4% across 76 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 7 units terminated last reporting year (6.9% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Brothers Parsons Franchising LLC
- Parent company
- EHC Holding Company, LLC
- Ultimate parent
- Riverside Micro-Cap Fund VI-A, L.P. (managed by The Riverside Company)
- CEO title
- Chief Executive Officer
- Ryan Parsons
- CEO experience
- 2014 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- AZ
- HQ
- 8100 E. Indian School Road, Suite 201, Scottsdale, Arizona 85251
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $7.2M
- vs $25.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate gutter cleaning, installation, and repair services for residential and light commercial properties. Day-to-day operations involve managing crews, scheduling customer appointments, performing on-site gutter work, and handling customer service. The business is weather-dependent and seasonal, with peak demand in spring and fall.
- CEO
- Ryan Parsons
- Headquarters
- AZ
- Founded
- 1999
- FDD year
- 2025
- States available
- 35
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $45K | $60K |
| Equipment, build-out, other | $49K | $401K |
| Total initial investment | $144K | $511K |
Source: The Brothers that just do Gutters 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$133K
11.0% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $144K – $511K
- Near category avg vs category
- Liquid capital req'd
- $45K – $60K
- Below avg, review vs category
- Franchise fee
- $50K – $343K
- Near category avg vs category
- Royalty
- Greater of 6% of Gross Sales or Minimum Weekly Royalty Fe…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 1.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Greater of 6% of Gross Sales or Minimum Weekly Royalty Fee based on territories (starts after 12 months) |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.1M
- Avg p&l bottom line
- $326K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 99.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 66 units
- vs category median 31 · large
- Range (low → high)
- $326K→$3.0M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 204 Cleaning & Maintenance brands
vs Cleaning & Maintenance averages
How The Brothers that just do Gutters Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 101
- Opened
- 9
- Last reporting year
- Closed
- 16
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 15.8%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- -6.5%
- Net unit change last year
- 3-yr CAGR
- +9.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 11
- Transfer rate
- 10.9%
- Owners selling to other franchisees
- Continuity rate
- 86.2%
- Units that stayed open
- Termination rate
- 6.9%
- Franchisor-initiated terminations
- Ceased ops
- 8.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 76
- Loan volume
- $13.9M
- Median loan
- $182K
- average
- Charge-off rate
- 21.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 21.4%
- Loans approved 2021+
- Active lenders
- 20
- Defaults
- 3
Explore lender portfolios on Bank Reports or regional data on State Reports.
A 21.4% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchise system with litigation history, undisclosed financial performance, and royalty structure misaligned with seasonal revenue volatility creates elevated risk despite moderate unit count and protected territories.
Litigation (Item 3)
1) Settlement Order (Jan 2016) with Virginia SCC against predecessor The Brothers Franchising, Corp. for unregistered franchise territory sale; $2,500 penalty imposed; 2) Executive Home Care Franchising LLC v. Marshall Health Corp. et al. (filed Feb 2015) - dual filings in District Court and AAA arbitration; arbitrator awarded Marshall Defendants $215,386 in damages (concluded July 2016); 3) Executive Home Care Franchising LLC v. Specialized Home Care Providers LLC et al. (filed Feb 27, 2015) - dual filings in District Court and AAA arbitration; document appears incomplete regarding final status.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 rating
- 01MINORUnit count declining 6.5% YoY (101 units) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHLitigation history across multiple affiliated brands (Executive Home Care, Assisted Living Locators) indicates pattern of legal disputes around non-compete and trademark enforcement—raises questions about franchisor governance
- 03MINOR2016 Virginia unregistered sales settlement suggests past compliance issues with state regulations
- 04MINORRoyalty structure with minimum weekly fee requirement creates fixed costs regardless of revenue—problematic for seasonal gutter business with weather-dependent demand
- 05MEDNo Item 19 (financial performance representations) disclosed—cannot independently verify claimed $1.2M avg revenue or $326K net income figures
- 06MINORRelatively high initial investment range ($143K–$510K) combined with declining unit growth increases franchisee risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Household count |
| Protected territory | Yes |
| Territory population | 75,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York County, New York |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 5 |
View Item 3 litigation summary
1) Settlement Order (Jan 2016) with Virginia SCC against predecessor The Brothers Franchising, Corp. for unregistered franchise territory sale; $2,500 penalty imposed; 2) Executive Home Care Franchising LLC v. Marshall Health Corp. et al. (filed Feb 2015) - dual filings in District Court and AAA arbitration; arbitrator awarded Marshall Defendants $215,386 in damages (concluded July 2016); 3) Executive Home Care Franchising LLC v. Specialized Home Care Providers LLC et al. (filed Feb 27, 2015) - dual filings in District Court and AAA arbitration; document appears incomplete regarding final status.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 42 hrs
- Training location
- Poughkeepsie, New York
- POS system
- Service Bridge
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Service Bridge
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Brothers that just do Gutters · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Brothers that just do Gutters franchise?
The total investment to open a The Brothers that just do Gutters franchise ranges from $144K – $511K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Brothers that just do Gutters franchise owners earn?
According to Item 19 of the The Brothers that just do Gutters FDD, the average gross sales per unit is $1.2M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Brothers that just do Gutters's franchise failure rate?
Based on SBA 7(a) loan data, The Brothers that just do Gutters has a charge-off rate of 21.4% across 76 loans, meaning 21.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many The Brothers that just do Gutters franchise locations are there?
As of their most recent FDD filing, The Brothers that just do Gutters has 101 total units in the United States, including 100 franchised units and 1 company-owned units. 9 new units were opened in the latest reporting year.
Is The Brothers that just do Gutters a good franchise to buy?
FranchiseVerdict rates The Brothers that just do Gutters as a D-grade franchise with a risk score of 70 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.