Mr. Appliance Franchise
Cost, fees, owner earnings, closure rate and litigation for a Mr. Appliance franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Mr. Appliance discloses earnings (Item 19) — but the grade is how honestly. We graded it F.
What their own earnings claim actually says
Discloses only average/median Gross Sales Per Job by quartile ($229-$365 avg per job). No total revenue, profit, or owner income data provided. Excludes 48 businesses (transfers, new opens, closures). Significant cherry-picking by omitting profitability entirely.
What a Mr. Appliance franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $63,750 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $147,750 – $273,175 | Item 7 — franchisor's own low/high estimate |
Royalty 5-7% sliding scale; MAP 2%; local marketing up to 2% additional; minimum local spend $25k/year.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Mr. Appliance system size and owner turnover
| Total outlets | 311 |
| Ceased operations | 9 |
| Terminated by franchisor | 2 |
| Transferred to new owners | 21 |
| Closure rate | 2.9% of outlets |
2025: 9 ceased ops, 2 terminations, net +1 outlet; 2024 saw -15 net decline across system.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Mr. Appliance worth it? — how it compares to 436 similar franchises
| Ongoing fees | 9% of sales | steeper than 60% of other franchises franchises |
| Startup cost | from $147,750 | about average (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 2.9% of outlets | worse than 61% of peers |
| Disclosed lawsuits | 3 | more litigious than 74% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Mr. Appliance
The franchisor's framing: Discloses only average/median Gross Sales Per Job by quartile ($229-$365 avg per job). No … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Mr. Appliance franchise — frequently asked
- How much does a Mr. Appliance franchise cost?
- The FDD lists a total initial investment of about $147,750–$273,175, including a $63,750 initial franchise fee.
- How much do Mr. Appliance franchise owners make?
- Discloses only average/median Gross Sales Per Job by quartile ($229-$365 avg per job). No total revenue, profit, or owner income data provided. Excludes 48 businesses (transfers, new opens, closures). Significant cherry-picking by omitting profitability entirely. We grade this disclosure F for honesty.
- What are the Mr. Appliance franchise fees?
- Mr. Appliance's FDD discloses a $63,750 initial franchise fee, a 7% royalty on gross sales, a 2% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5-7% sliding scale; MAP 2%; local marketing up to 2% additional; minimum local spend $25k/year.
- What is the Mr. Appliance franchise profit margin?
- Mr. Appliance does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Discloses only average/median Gross Sales Per Job by quartile ($229-$365 avg per job). No total revenue, profit, or owner income data provided. Excludes 48 businesses (transfers, new opens, closures). Significant cherry-picking by omitting profitability entirely. Recurring fees alone take about 9% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Mr. Appliance franchise failure rate?
- 2025: 9 ceased ops, 2 terminations, net +1 outlet; 2024 saw -15 net decline across system.
- How many Mr. Appliance locations are there?
- Mr. Appliance's FDD reports 311 total outlets, with 9 that ceased operations in the most recent reporting year and 21 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Mr. Appliance have complaints or lawsuits?
- Mr. Appliance discloses 3 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Mr. Appliance franchise worth it?
- It depends on the numbers, not the pitch. Mr. Appliance scores F on disclosure honesty, carries about 9% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.
Own a Mr. Appliance? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare Mr. Appliance to similar franchises
See all franchises ranked by disclosure honesty →
Source: MN CARDS 36174-202604-02 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Mr. Appliance or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.