Koala Insulation
Koala Insulation offers franchises in insulation services under the 'Koala Insulation' brand, focusing on providing thermal and acoustic solutions to residential and commercial properties within the home improvement industry.
Koala Insulation franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Koala Insulation franchise ranges from $194,885 to $241,736. This includes between $109,335 and $128,386 that must be paid to the franchisor. [p.1]
What is the initial franchise fee?
The initial franchise fee is $49,500 for a baseline population of 200,000 [p.20]. Additional populations can be purchased at a cost of $0.25 per person [p.20], and additional territories require signing additional Franchise Agreements with discounted Initial Franchise Fees [p.84].
What are the ongoing royalty and advertising fees?
The franchisee must pay continuing royalty fees based on gross sales, as defined [p.84]. Additionally, there are mandatory minimum payments that must be made regardless of sales levels [p.4], and the franchisee is required to spend a minimum amount on initial opening advertising and ongoing marketing obligations [p.27].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the renewal terms beyond stating that a renewal fee will be required [p.81].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but if you engage a broker or franchisor sales organization for this purpose, you will be responsible for any commission or fees they charge [p.28]. This isn't specified in the excerpts whether approval from the franchisor is required for such transfers.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.204]. Additionally, the franchise agreement may allow the franchisor to change its manuals and business model without the franchisee's consent, which could require additional investments or harm the franchise business [p.3]. However, under Virginia Retail Franchising Act (Section 13.1-564), it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.208].
What financial requirements — net worth and liquid capital — do I need to qualify?
According to [p.115], you must have adequate financial resources and capital to operate the franchise, but specific net worth or liquid capital requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
You are granted a non-exclusive, protected territory. Provided you comply with all agreements, the territory will remain protected, and we will not sell other franchises within your protected territory [p.44]. However, this protection can be revoked if you fail to maintain compliance or meet certain performance requirements [p.44].
What training and ongoing support does the franchisor provide?
The franchisor provides a training program supervised by experienced individuals such as Kevin Robinson, Josh Kerbel, and Josephine Roebuck. This training must be completed successfully at their facility for Operations Managers and Salespeople [p.51]. Additionally, franchisees must comply with the franchisor's current qualification and training requirements before commencing operations [p.82].
How many franchised outlets are there, and how many have closed or been terminated?
As of September 30, 2025, there were 47 franchised FRSTeam outlets in the United States. The FDD does not specify the number of franchisees that have closed or been terminated as of that date. [p.71]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if a franchisee is considering purchasing it. Additionally, the franchisor does not make any financial performance representations except for the earnings claims figure provided in Item 19, which does not include costs like sales and operating expenses. [p.54, p.192]
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale only those products and services for which the franchisor has given written approval [p.31]. Additionally, you must purchase certain proprietary equipment and installation services from the franchisor under an Equipment Sales Agreement, as they are the sole supplier of such items [p.34].