USA Insulation Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
USA Insulation is a home-services franchise installing wall-injection foam and attic insulation to improve home energy efficiency. Franchisees run a crew-based operation handling assessments, installs, and scheduling in a territory.
FranchiseVerdict summary · 2026
A USA Insulation franchise requires a total initial investment of $304K – $477K, including a $45K – $55K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 2.6% charge-off rate across 39 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $304K – $477K
- 83rd pct Home Services
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 97
- 59th pct Home Services
- SBA charge-off
- 2.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $304K – $477K including a $45K franchise fee.
- RETURNSItem 19 also reports, for each disclosed franchise, Cost of Proprietary Foam Products, Cost of Goods, Cost of Sales Commissions, and Cost of Labor each as a % of Gross Sales - these are cost ratios, not additional revenue metrics.
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). SBA loan charge-off rate of 2.6% across 39 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG21 units terminated last reporting year (21.6% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- USA Insulation Franchise, LLC
- Parent company
- HS Group Holding Company, LLC
- Ultimate parent
- Riverside Micro-Cap Fund V-A, L.P. / RMCF V AIV I, L.P. (managed by The Riverside Company)
- Predecessor
- USA Insulation Franchise Corporation
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Theodore Demarino
- Incorporated in
- Ohio
- HQ
- 17700 Saint Clair Avenue, Cleveland, Ohio 44110
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $44.7M
- vs $46.2M prior year
Overview
About
- CEO
- Theodore Demarino
- Headquarters
- Ohio
- Founded
- 2006
- FDD year
- 2026
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 74% above the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $40K | $60K |
| Equipment, build-out, other | $219K | $372K |
| Total initial investment | $304K | $477K |
Source: USA Insulation 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $304K – $477K
- Bottom third — review vs category
- Liquid capital req'd
- $40K – $60K
- Bottom third — review vs category
- Franchise fee
- $45K – $55K
- Top 40% of category vs category
- Royalty
- Greater of 5% of Gross Sales from prior month or $1,000 p…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Minimum $1,000 per month if 5% of Gross Sales is less |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $400 |
| Transfer fee | $14K |
| Renewal fee | $11K |
| Inventory (initial) | $14K – $30K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
USA Insulation did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one USA Insulation unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 19 also reports, for each disclosed franchise, Cost of Proprietary Foam Products, Cost of Goods, Cost of Sales Commissions, and Cost of Labor each as a % of Gross Sales - these are cost ratios, not additional revenue metrics.
- Item 19 type
- historical gross sales by quartile
- Sample size
- 37 franchisees
- vs category median 32
- Quartile band
- $456K→$3.1M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% — below the Home Services average of 8.9%.
Disclosure
Item 19 reports historical gross sales by quartile rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -5.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How USA Insulation Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 97
- Opened
- 8
- Last reporting year
- Closed
- 0
- Terminated
- 21
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 21.9%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (3-yr)
- +6.4%
- Net unit change over 3 years
- 3-yr CAGR
- -5.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 0
- Terminated (3yr)
- 21
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 9
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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
- 39
- Loan volume
- $10.2M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 2.6%
- 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)
- 97.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 1
- Typical loan rate
- 7.8%
- avg rate to borrowers
- vs industry
- 15.9%
- brand is below its industry ↓
- Jobs supported
- 523
- 5.1 per loan
- Lender concentration
- 28%
- top lender's share
Borrower mix: 71% went to startups / new businesses, 29% to established operators
Top lenders financing USA Insulation franchisees
Showing 3 of 14 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into USA Insulation's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 2.6% — 84% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Parent-level financials (net worth $56.5M) show a net loss of -$13.0M on $7.6M revenue, but the brand's own equity is not disclosed so operations are judged instead. One minor affiliate regulatory matter (MaidPro consent order, small fine) and 110 units with 19.8% growth. Litigation is affiliate-only and immaterial to USAI.
Litigation (Item 3)
Franchisor sued former franchisee Paxson Enterprises/Chris Paxson for breach of non-compete and trademark infringement after Paxson's successor business competed post-termination; Paxson and his LLC each filed Chapter 7 bankruptcy and Paxson filed counterclaims alleging fraud and statutory violations. Separately, affiliate MaidPro Franchise, LLC entered a Consent Order with the Maryland Securities Commissioner over inadvertent franchise-fee deferral violations in 2 sales, paying a $15,000 penalty.
Largest disclosed settlement: $15,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 verdict
- 01MINORFinancials are parent-level; parent net loss -$13.0M on $7.6M revenue
- 02MINOROne affiliate (MaidPro) consent order, minor fee-deferral violation
- 03MEDNo bankruptcy/going-concern; audited; Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory sizeℹ | Up to 150,000 (Large Market) or up to 100,000 (Small Market) homes built before 1990 |
| 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 | 60 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 90 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 16 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | American Arbitration Association location closest to franchisor's principal office (Cleveland, Ohio) |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 2 |
View Item 3 litigation summary
Franchisor sued former franchisee Paxson Enterprises/Chris Paxson for breach of non-compete and trademark infringement after Paxson's successor business competed post-termination; Paxson and his LLC each filed Chapter 7 bankruptcy and Paxson filed counterclaims alleging fraud and statutory violations. Separately, affiliate MaidPro Franchise, LLC entered a Consent Order with the Maryland Securities Commissioner over inadvertent franchise-fee deferral violations in 2 sales, paying a $15,000 penalty.
Items 10, 11
Training & Operations
- Classroom training
- 130 hrs
- On-the-job training
- 36 hrs
- Training location
- Corporate Headquarters in Cleveland, Ohio, or other designated training facility (some remote/virtual)
- Ongoing training
- Required
- Site selection
- Franchisor provides site selection guidelines and approval
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
54 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
USA Insulation · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a USA Insulation franchise?
The total investment to open a USA Insulation franchise ranges from $304K – $477K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do USA Insulation franchise owners earn?
USA Insulation does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the USA Insulation FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the USA Insulation FDD and qualifies whose outlets they describe.
What is USA Insulation's franchise failure rate?
Based on SBA 7(a) loan data, USA Insulation has a charge-off rate of 2.6% across 39 loans, meaning 2.6% 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 USA Insulation franchise locations are there?
As of their most recent FDD filing, USA Insulation has 97 total units in the United States, including 96 franchised units and 1 company-owned units. 8 new units were opened in the latest reporting year.
Is USA Insulation a good franchise to buy?
FranchiseVerdict rates USA Insulation as a A-grade franchise with a verdict score of 79 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent USA Insulation, you can request corrections or provide updated information.
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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.