USA Insulation
USA Insulation franchises offer home insulation services including foam and fiberglass products. Known for professional installation of energy-efficient solutions, this Ohio-based company operates in the residential construction and improvement sector.
USA 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 single USA Insulation Franchised Business ranges from $304,400 to $476,750. This includes between $118,000 and $157,000 that must be paid to the franchisor or its affiliates, as stated on [p.2].
What is the initial franchise fee?
The initial franchise fee depends on the size of the territory granted. For a 'Large Market' territory, it is $55,000, and for a 'Small Market' territory, it is $45,000 [p.75]. This fee must be paid in full upon signing the Franchise Agreement and is nonrefundable [p.19, p.187].
What are the ongoing royalty and advertising fees?
Continuing royalties are calculated as a percentage of the franchisee's reported sales related to the company’s performance obligation under the franchise agreement. These royalties are recognized as revenue when franchisee sales occur [p.205]. Additionally, franchisees are required to contribute to the franchisor's advertising fund, which is recorded as part of franchise royalties and fees in the consolidated statements of operations [p.205].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically has a term of five to ten years [p.205], with the option to renew for an additional period if you are in compliance with the terms of the franchise agreement. However, renewal eligibility depends on meeting conditions set forth by the franchisor, including not having received three or more notices of default during the term of the agreement [p.74].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.6]. This means you would need to consult with your franchisor regarding any potential transfer as they may have specific criteria or requirements 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. The FDD focuses on recommending working capital for operating expenses but does not provide specific net worth or liquid capital requirements for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.48].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training and ongoing support for franchisees, including preopening services such as training [p.205]. This support also encompasses management of advertising fund contributions and other support services for the franchisees [p.204].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2025, there were 47 franchises operating a total of 96 territories in the USA Insulation franchise system. Additionally, 13 franchises that operated a total of 21 territories permanently closed as USA Insulation franchised businesses in 2025 [p.57].
Does the franchisor share any financial performance or earnings information?
The franchisor only shares financial performance information as specified in Item 19 of the Franchise Disclosure Document [p.131]. The document also states that no other financial performance representations are made by the franchisor, and employees or representatives are not authorized to provide such information [p.108, p.130].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain clients, but you must offer new products and services when they are introduced by the franchisor. As for supplies, you are required to purchase from the franchisor's affiliate all inventory and supplies necessary to sell and provide the approved products and services [p.88]. Additionally, certain equipment and a proprietary customer record management system (CRM) must also be purchased from approved suppliers designated by the franchisor [p.32] and [p.4].