Mr. Rooter Franchise
Cost, fees, owner earnings, closure rate and litigation for a Mr. Rooter franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Mr. Rooter discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Discloses only gross sales by percentile tier (avg $2.09M system-wide) for 193 of 238 units. Excludes 13 closures, 22 new units, 14 transfers. No profitability, expenses, or owner income disclosed.
What a Mr. Rooter 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 | $152,900 – $298,675 | Item 7 — franchisor's own low/high estimate |
8% local marketing minimum required; LMG up to 3% additional; $60K-$75K mandatory first-year ad spend.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Mr. Rooter system size and owner turnover
| Total outlets | 238 |
| Ceased operations | 1 |
| Terminated by franchisor | 11 |
| Transferred to new owners | 15 |
| Closure rate | 0.4% of outlets |
2025: 11 terminations, 1 ceased operations, 13 closures 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. Rooter worth it? — how it compares to 85 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $152,900 | pricier than 71% of peers |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 0.4% of outlets | better than most (median 2.8%) |
| Disclosed lawsuits | 3 | more litigious than 85% 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. Rooter
The franchisor's framing: Discloses only gross sales by percentile tier (avg $2.09M system-wide) for 193 of 238 unit… 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. Rooter franchise — frequently asked
- How much does a Mr. Rooter franchise cost?
- The FDD lists a total initial investment of about $152,900–$298,675, including a $42,500 initial franchise fee.
- How much do Mr. Rooter franchise owners make?
- Discloses only gross sales by percentile tier (avg $2.09M system-wide) for 193 of 238 units. Excludes 13 closures, 22 new units, 14 transfers. No profitability, expenses, or owner income disclosed. We grade this disclosure D for honesty.
- What are the Mr. Rooter franchise fees?
- Mr. Rooter'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% local marketing minimum required; LMG up to 3% additional; $60K-$75K mandatory first-year ad spend.
- What is the Mr. Rooter franchise profit margin?
- Mr. Rooter does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Discloses only gross sales by percentile tier (avg $2.09M system-wide) for 193 of 238 units. Excludes 13 closures, 22 new units, 14 transfers. No profitability, expenses, or owner income disclosed. 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. Rooter franchise failure rate?
- 2025: 11 terminations, 1 ceased operations, 13 closures excluded from Item 19 data.
- How many Mr. Rooter locations are there?
- Mr. Rooter's FDD reports 238 total outlets, with 1 that ceased operations in the most recent reporting year and 15 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Mr. Rooter have complaints or lawsuits?
- Mr. Rooter 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. Rooter franchise worth it?
- It depends on the numbers, not the pitch. Mr. Rooter scores D on disclosure honesty, carries about 8% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.
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Compare Mr. Rooter to similar franchises
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Source: MN CARDS 36167-202604-02 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Mr. Rooter or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.