How Much Does a Roto-Rooter Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$104K – $274K
Franchise Fee
$25K
Royalty
From $530 to $36,000+ per month based on population formula
Ad Fund
Minimum local spend of 10.58¢ per person in 2024 (increases annually)
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Roto-Rooter is $25K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Roto-Rooter franchise requires a total investment of $104K – $274K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $10K to $12K.
Ongoing Costs
Beyond the initial investment, Roto-Rooter franchisees pay ongoing fees. The royalty structure is: From $530 to $36,000+ per month based on population formula. The ad fund contribution is: Minimum local spend of 10.58¢ per person in 2024 (increases annually).
Net Worth & Liquid Capital Requirements
Roto-Rooter requires working capital of $10K – $12K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
Roto-Rooter does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Roto-Rooter?
SBA Loans Issued
13
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Roto-Rooter has 13 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Roto-Rooter franchise owners
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See full Roto-Rooter research
Risk analysis, unit growth, contract terms, and more
Compare Roto-Rooter to similar franchises
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