Insulation Commandos offers franchises to install insulation and perform other home services like duct cleaning and rodent-proofing. Known for comprehensive solutions in energy efficiency and comfort, it operates in the residential and commercial building insulation market.
The total initial investment necessary to operate in one designated territory ranges from $250,000 to $295,000. This figure is part of a broader range for operating in three territories which is between $330,350 to $624,750 as stated on [p.1].
The initial franchise fee is a payment required from the franchisee, but according to [p.23], it is not financed by the franchisor. This fee constitutes part of the franchisor's general operating funds at their discretion, as stated on [p.204].
The ongoing royalty fee is 6% of Gross Sales from the preceding month, but it cannot be less than the applicable minimum royalty as specified in Section 4(a) [p.79]. Additionally, there are mandatory minimum payments for royalties and advertising that must be made regardless of sales levels [p.5]. These fees are used to support the development of the brand and provide ongoing support for franchisees [p.181].
The initial franchise agreement term is up to two consecutive terms of ten years each, with a renewal request needing to be submitted at least six months but no more than twelve months before the end of the current term [p.77]. You may renew your franchise for additional ten-year periods under these conditions [p.77].
Yes, you can sell or transfer your franchise, but it requires paying a Transfer Fee of $10,000 for each Designated Territory or Additional Territory you wish to sell or transfer, according to the terms and conditions of the applicable Franchise Agreement. [p.158]
The franchisor may terminate the franchise agreement if there is a failure of the franchisee to comply with any lawful provision of the franchise agreement and such failure is not cured within a reasonable period, which cannot exceed 30 days [p.6]. Additionally, the franchisor can terminate agreements for unauthorized subleases or similar arrangements [p.140].
The franchise agreement does not specify exact net worth or liquid capital requirements for qualification [p.111]. However, it states that the transferee must have adequate financial resources and capital to meet the performance obligations under the agreement [p.111].
You do not receive an exclusive territory. While the franchisor cannot establish additional franchises in your Designated Territory, they are allowed to use alternative channels of distribution such as e-commerce, internet, mail order, or catalogs without compensating you for any business obtained through these methods within your territory [p.41]. This isn't specified in the excerpts.
The franchisor provides an initial training program that includes both remote and on-site components. Remote training can be conducted via telephone calls, webinars, or online learning management systems, while on-site training typically lasts around five business days and is provided at their headquarters or a designated facility. Additionally, the franchisor offers up to two days of on-site assistance at the franchisee's location upon opening. Ongoing support includes operational support over the 10-year contract term, though specific details are not provided in the excerpts [p.187].
The number of franchised outlets is not specified in the excerpts. Additionally, the number of outlets that have closed or been terminated is also not provided; however, Exhibit I lists information about franchisees who had their outlets terminated, canceled, or otherwise ceased to do business as of December 31, 2025 [p.68].
The franchisor may share actual records of an existing outlet if a franchisee is purchasing one, but generally does not make any financial performance representation other than what is included in Item 19 of the FDD. [p.64] Additionally, the franchisor requires that all such information be reported to specific entities if received outside of the FDD. [p.64]
You are not limited in the customers you may serve from your Franchised Business. However, you must purchase all inventory and supplies required to sell and provide the Approved Services from suppliers designated by the franchisor or as approved by them [p.90]. This includes items like insulation materials and equipment that are part of your Pre-Opening Start-Up Package [p.27].