Roto Rooter
Roto Rooter franchises offer plumbing services including sewer, drain, and pipe cleaning. Known for reliable residential and commercial service, it operates in the home services sector.
About Roto Rooter
Roto-Rooter Plumbing & Water Cleanup is a plumbing company based in Cincinnati, Ohio. The company, founded in 1935, originally specialized in clearing tree roots and other obstructions from sewer lines.
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Roto Rooter franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Roto-Rooter franchised business ranges from $123,110 to $281,550. This includes an initial franchise fee of $25,000 to $75,000 and estimated costs for equipment and parts ranging from $22,000 to $50,000 [p.1, p.23].
What is the initial franchise fee?
The initial franchise fee is $0.15 per person within the Territory identified in the Franchise Agreement, with a minimum initial franchise fee of $25,000 [p.23, p.16]. This fee is deemed fully earned and non-refundable upon payment [p.16].
What are the ongoing royalty and advertising fees?
The franchisee must make minimum royalty and advertising fund payments regardless of sales levels [p.5]. These payments can result in termination if not met, but specific amounts are not detailed in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. However, if the current agreement expires and certain conditions are met (Franchisee not being in default), you may be offered a new franchise agreement for a term of ten years [p.87].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without the franchisor's permission, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.7(g)]. This isn't specified in the excerpts regarding the conditions or process for such transfers.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
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?
Yes, you receive an exclusive Territory as identified in the Franchise Agreement, meaning no additional franchises will be granted by the franchisor or its affiliates for sewer, drain and pipe cleaning services using the Marks within that Territory. However, this exclusivity does not prevent the franchisor or its affiliates from operating other businesses selling similar services under different trademarks. [p.29]
What training and ongoing support does the franchisor provide?
The franchisor provides management, engineering, and research services, as well as advice concerning the use and display of the marks, and the operation of the business. The franchisor also offers training and certifications related to Water Restoration Services upon request, though Franchisee may be required to pay additional fees for such training [p.78].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the exact number of franchised outlets. It mentions that a list of all franchisees' names and contact information is provided as Exhibit 4, but it doesn't give a specific count. Additionally, Exhibit 5 lists those who have had their franchises terminated, canceled, or otherwise ceased operations, but again, no specific numbers are given for this group either [p.66].
Does the franchisor share any financial performance or earnings information?
The franchisor does provide pro forma revenue and earnings information for the Company as if certain acquisitions were completed on specific dates [p.173]. However, the franchisor does not make any representations about a franchisee's future financial performance or authorize its employees to do so [p.39]. If you receive any other financial performance information, you should report it according to the instructions provided in the FDD [p.39].
What am I restricted to selling, and where must I buy supplies?
You are required to sell services only within the specified territory, as detailed on page [p.81]. Regarding supplies, you may have to purchase or lease certain items from the franchisor or a limited group of suppliers designated by them, which could be more expensive than sourcing elsewhere (refer to page [p.4]).