How To's
What is The Mr. Appliance Franchise Cost?
For your home and office appliance needs and repairs, there’s only one name you can trust if you’re in the United States or Canada. Mr. Appliance is a reliable company with decades of experience. The company has been offering franchising opportunities since 1996. So, if you want a money-making venture, learn more about Mr. Appliance’s franchise terms and costs.
Company Overview
Mr. Appliance has been helping customers install and repair home and office appliances since 1996. The company is headquartered in Waco, Texas, and has expanded into a full-fledged business with franchising opportunities all over the U.S. and Canada. The franchisor is under the name Mr. Appliance LLC.
Mr. Appliance is well-known for its reliability and trustworthiness. The company promises to provide excellent service with highly trained professionals. Moreover, Mr. Appliance doesn’t surprise customers with their expenses as they promise to discuss the upfront costs before they start to work on the project.
Mr. Appliance’s mission is to create memorable experiences for customers who will likely share the experience with others. Furthermore, the company is built on the values of respect, integrity, and customer focus.
Franchise Training Details
Here are the franchise training details you need to know:
- A minimum of one owner or manager must attend the Phase I and Phase II training programs and complete both satisfactorily. Moreover, the owner and manager must attend the Phase II training program and complete it according to the franchisor’s satisfaction. The requirements for the training may vary according to the participant’s experience.
- The franchisor may conduct the Phase I training at a chosen location or via video call or webinar. This training will last five days. However, the duration may vary depending on the participants’ experience, knowledge, or qualifications. After they complete Phase I training, they will proceed to Phase II training which will last another five days.
- The franchisor may also require franchisees to attend with another representative or consultant in the Phase I training.
- In addition, the franchisor mandates franchisees to attend field training which requires visiting one of the chosen franchised businesses. This is to observe how the business runs and operates. This location will be selected by the franchisor and will last five days.
- Franchisees must also attend all yearly additional training programs and conferences called the “Reunion.”
Franchise Territory
Here is the Mr. Appliance franchise territory overview:
- The franchisor approves the franchisee’s chosen location that adheres to the Franchise Agreement regulations. The territory must have a minimum population of 100,000 and a maximum population of 2,500,000.
- The franchisor may approve a territory with a larger population under specific regulations.
- The franchisor doesn’t grant exclusive territory. However, the franchisee will have the right to operate within the chosen territory, which means the franchisor will not let another Mr. Appliance franchisee operate within another franchisee’s territory.
Franchise Obligations and Conditions
Here are the obligations and restrictions:
- For an individual franchise, the owner must supervise the business operations.
- Meanwhile, for corporations, the designated owner must supervise the daily business operations after completing all training programs.
- The franchisee must never sell or offer products or services unless approved by the franchisor.
Franchise Term and Renewal
The initial franchise term is 10 years. However, franchisees will have the option to renew for another 10 years if they remain in good standing.
Financial Assistance
Here are the financial assistance details:
- The franchisor may cover a percentage of the initial franchise cost. This will depend on the franchisee’s creditworthiness and other collateral presented to secure financing.
- The franchisor doesn’t transact financing when brokers are involved.
- Moreover, the franchisor may recommend third-party lenders for franchisees.
- If the franchisee is a U.S. or Canadian discharged veteran, the franchisee may be eligible for the 15 percent discount on the initial franchise cost.
Did You Know?
Here are some Mr. Appliance fun facts:
- Mr. Appliance now has over 300 branches all over the United States and Canada.
- Mr. Appliance doesn’t give a quote over the phone. But, for transparency and accurate quotations, they discuss it face to face.
- In addition, Mr. Appliance is part of Neighborly, a group of selected home service professionals.
Your Investment
Here’s the Mr. Appliance franchise cost:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $ 40,000 + $400 per 1,000 additional population over minimum |
| Vehicle | $2,250 | $29,220 |
| Equipment, Supplies & Inventory | $5,900 | $11,400 |
| Insurance | $1,000 | $2,000 |
| Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase | $7,500 | $35,000 |
| Training, Travel, Lodging & Food | $3,000 | $5,500 |
| Deposits, Permits & Licenses | $0 | $1,000 |
| Professional Fees | $0 | $5,000 |
| Additional Funds – 3 months | $6,000 | $12,000 |
| Technician Training | $150 | $395 |
| Real Estate | $0 | $3,000 |
| ESTIMATED TOTAL | $65,800(Does not include real estate costs) | $ 144,515(+ any additional franchise fee + any real estate costs) |
Other Fees:
| Type of Fee | Amount |
|---|---|
| License Fee | 5% – 7% of gross sales except for “roll-in” sales. In addition, minimum license fees apply. |
| Marketing, Advertising and Promotion (MAP) Fee | 2% of Gross Sales except for “roll-in” sales. In addition, minimum MAP fees apply. |
| Local Marketing Groups | Not to exceed 2% of gross sales. |
| Software System Monthly Fees | $245 for unlimited office access, plus $85 per mobile technician. Additional email accounts are extra. |
| Call Center Services Monthly Fees | One-time Set Up Fee: $249.00 Monthly Fees: Tier One: $0.98- $1.25/minute |
| Annual Convention (“Reunion”) Fees | $1,000 or less. |
| Transfer Fee | The greater of $7,500 or 5% of the sales price. |
| Late Fees | $10 per day. |
| Dishonored Check of ACH Draft | $25 |
| Interest | 12% on unpaid balances. |
| Failure Maintain Insurance | The franchisor’s actual cost for insurance premiums and a reasonable fee for expenses the franchisor incurs. |
| Audit | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees. |
| Renewal Fee | $5,000 |
| Amendment Fee | $250 |
| Unapproved Suppliers | The franchisor’s actual out-of-pocket costs of inspection or testing. |
| Indemnification and Attorneys’ Fees and Costs | Varies |
| Tax Reimbursement | Varies |
| Additional Training Fees | Up to $5,000. |
If you’re ready to start your Mr. Appliance franchise, visit their website for more details.