Rooter Man
Rooter Man offers sewer and drain cleaning services, including emergency plumbing repairs, to individuals with prior plumbing experience. Known for reliable maintenance and clog removal, it operates in the plumbing and drainage service sector.
Rooter Man franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of a RooterMan franchise is $45,075 to $82,475. This includes $7,475 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee for a new RooterMan Business is $4,975 and must generally be paid in one lump sum upon execution of the Franchise Agreement [p.21]. However, payments may be deferred until after the franchisor completes its pre-opening obligations as required by the Virginia State Corporation Commission's Division of Securities and Retail Franchising [p.160, p.203, p.204].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a nonrefundable monthly payment calculated at $3 per 1,000 of population in the Protected Territory [p.107]. Additionally, there are mandatory minimum payments that must be made regardless of sales levels, which could result in termination if not met [p.4]. National advertising funds are contributed by franchisees and used for marketing materials benefiting the overall brand rather than individual franchise owners [p.68, p.86].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in these excerpts, but according to [p.106], upon expiration of the Initial Term, you have the right to renew the franchise for up to two successive ten-year periods under certain conditions.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.200]. Additionally, the franchisor has the right to terminate the franchise agreement if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time frame [p.5]. This isn't specified in the excerpts for other specific grounds.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. However, the franchisor commits to not establishing competing businesses within your "Protected Territory" if you comply with the Franchise Agreement [p.39]. This protection is subject to certain conditions and does not extend to other franchisees or channels of distribution controlled by the franchisor [p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that must be completed no later than three months after the Effective Date of the Franchise Agreement. This training is mandatory for both you (or your principal owner) and your Manager, with all related costs borne by you [p.37]. Additionally, the franchisor may require periodic training to address new developments or changes in the system, which can be conducted online or at their headquarters [p.38]. There are no currently planned additional required training programs beyond this initial one [p.38], but fees may apply for any required additional training sessions [p.38].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide specific numbers for the total number of franchised outlets or those that have closed or been terminated. It only mentions that Exhibit E lists RooterMan franchisees as of a certain date, while Exhibit F lists those who have been terminated, cancelled, or ceased operations during a specified period [p.54].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make representations about future financial performance or past financial performance of company-owned or franchised outlets [p.49]. However, if you purchase an existing outlet, the franchisor may provide actual records of that outlet's performance. The franchisor can also provide financial performance information based on reasonable grounds and must disclose such information to certain regulatory bodies if provided in a financial performance representation [p.49]. Additionally, during the term of the franchise agreement, the franchisor may collect and disclose data relating to your operation for benchmarking purposes or prepare financial performance representations for prospective franchisees [p.35, p.119].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain products; however, you may be required to buy or lease items from the franchisor or a limited group of suppliers designated by them [p.3]. This could potentially result in more expensive purchases compared to sourcing from other providers [p.3].