Mr. Electric Franchise
Cost, fees, owner earnings, closure rate and litigation for a Mr. Electric franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Mr. Electric discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Discloses gross sales only (no expenses or net income) for 169 of 236 units, segmented by territory population size. Excludes 15 closed units and 17 non-reporters. No profitability data provided; significant survivorship bias.
What a Mr. Electric franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $42,500 | Item 5 — paid up front, before you open |
| Royalty | 6% 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 | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $159,500 – $357,425 | Item 7 — franchisor's own low/high estimate |
8% minimum local marketing spend required; plus call center, software, BackOffice fees add significant ongoing cost burden.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Mr. Electric system size and owner turnover
| Total outlets | 236 |
| Ceased operations | 9 |
| Terminated by franchisor | 5 |
| Transferred to new owners | 14 |
| Closure rate | 3.8% of outlets |
2025: 5 terminations, 9 ceased operations, 15 closed units excluded from Item 19 data.
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. Electric worth it? — how it compares to 85 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $159,500 | pricier than 76% of peers |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 3.8% of outlets | about average |
| Disclosed lawsuits | 2 | more litigious than 69% of peers |
Benchmarked against every home & trade services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Mr. Electric
The franchisor's framing: Discloses gross sales only (no expenses or net income) for 169 of 236 units, segmented by … 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. Electric franchise — frequently asked
- How much does a Mr. Electric franchise cost?
- The FDD lists a total initial investment of about $159,500–$357,425, including a $42,500 initial franchise fee.
- How much do Mr. Electric franchise owners make?
- Discloses gross sales only (no expenses or net income) for 169 of 236 units, segmented by territory population size. Excludes 15 closed units and 17 non-reporters. No profitability data provided; significant survivorship bias. We grade this disclosure D for honesty.
- What are the Mr. Electric franchise fees?
- Mr. Electric's FDD discloses a $42,500 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 8% minimum local marketing spend required; plus call center, software, BackOffice fees add significant ongoing cost burden.
- What is the Mr. Electric franchise profit margin?
- Mr. Electric does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Discloses gross sales only (no expenses or net income) for 169 of 236 units, segmented by territory population size. Excludes 15 closed units and 17 non-reporters. No profitability data provided; significant survivorship bias. Recurring fees alone take about 8% 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. Electric franchise failure rate?
- 2025: 5 terminations, 9 ceased operations, 15 closed units excluded from Item 19 data.
- How many Mr. Electric locations are there?
- Mr. Electric's FDD reports 236 total outlets, with 9 that ceased operations in the most recent reporting year and 14 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Mr. Electric have complaints or lawsuits?
- Mr. Electric discloses 2 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. Electric franchise worth it?
- It depends on the numbers, not the pitch. Mr. Electric scores D on disclosure honesty, carries about 8% of sales in ongoing fees, and discloses 2 legal matters. Get the real owner take-home before you sign.
Own a Mr. Electric? 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. Electric to similar franchises
See all franchises ranked by disclosure honesty →
Source: MN CARDS 36178-202604-02 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Mr. Electric or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.