USA InsulationFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A USA Insulation franchise requires a total initial investment of $266K – $410K, including a $55K franchise fee. Per the 2024 FDD, average unit revenue was $8.8M[2]. SBA 7(a) loans show a 2.6% charge-off rate across 39 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $266K – $410K
- 75th pct Home Services
- Avg gross sales
- $8.8M
- 53rd pct Home Services
- Royalty
- N/A
- Units
- 101
- 54th pct Home Services
- SBA default
- 2.6%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services 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 26.0x in gross revenue, well above the typical 1.5-2.5x range.
The system grew 70% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $266K – $410K including a $55K franchise fee.
- Average unit revenue of $8.8M/year.
- Verdict B (Above Average) with a risk score of 62/100. SBA loan charge-off rate of 2.6% across 39 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 150.0% CAGR over 3 years with 101 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- USA Insulation Franchise, LLC
- Parent company
- Threshold Brands, LLC
- Incorporated in
- OH
- 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
USA Insulation franchisees manage residential and commercial insulation installation and removal services. Day-to-day operations include customer acquisition/sales, job estimation, crew scheduling and supervision, material procurement, and quality assurance on insulation projects (spray foam, fiberglass, cellulose, etc.). Most franchisees operate as owner-operators with 5–15 employees.
- CEO
- Theodore Demarino
- Headquarters
- OH
- Founded
- 1985
- FDD year
- 2024
- States available
- 26
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $181K | $305K |
| Total initial investment | $266K | $410K |
Source: USA Insulation 2024 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
$877K
10.0% margin
Unlevered ROIC
232%
EBITDA / total invested capital
Payback
5 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $266K – $410K
- Below avg, review vs category
- Liquid capital req'd
- $30K – $50K
- Near category avg vs category
- Franchise fee
- $45K – $55K
- Near category avg vs category
- Royalty
- Greater of 5% of Gross Sales or $1,000 per month
- Ad fund
- Greater of 2% of Gross Sales or $500 per month
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $500 |
| Transfer fee | $14K |
| Renewal fee | $11K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $8.8M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 70 units
- vs category median 25 · large
- Range (low → high)
- $172K→$17.4M
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 349 Home Services brands
Revenue is 26.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How USA Insulation Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 101
- Opened
- 9
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +69.5%
- Net unit change last year
- 3-yr CAGR
- +150.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
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)
- 91.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 1
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
USA Insulation presents elevated risk due to undisclosed financial performance, rapid growth without earnings transparency, and a high minimum royalty that may strain marginal locations.
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or benchmark profitability
- 02MINORAggressive unit growth (69.5% YoY) suggests rapid expansion with unclear unit quality/sustainability
- 03MINORRoyalty floor of $1,000/month ($12,000 annually) creates break-even pressure for low-revenue locations
- 04MEDHigh initial investment ($265.5K–$410K) with no disclosed average net income creates profitability uncertainty
- 05MED101-unit system remains relatively small with limited brand recognition — fewer peer benchmarks and less operational maturity
- 06MINOR10-year term is longer than industry standard (typically 5–7 years), locking franchisees into dated economics
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 |
| Territory type | Number of homes built before 1990 |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 74 hrs
- On-the-job training
- 28 hrs
- 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 (2024) 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 $266K – $410K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do USA Insulation franchise owners earn?
According to Item 19 of the USA Insulation FDD, the average gross sales per unit is $8.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 101 total units in the United States, including 40 franchised units and 1 company-owned units. 9 new units were opened in the latest reporting year.
Is USA Insulation a good franchise to buy?
FranchiseVerdict rates USA Insulation as a B-grade franchise with a risk score of 62 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.