INDUSTRY BENCHMARK · 107 SYSTEMS · FISCAL 2023–2025
Are home services franchises a good investment?
Across 98 home services franchise systems, the median system's exit rate in its latest fiscal year was 6.2%, and its opening rate 14.6%. Pooled across systems, with no system counting for more than 20% of the weight, the exit rate was 9.3%. Median franchise fee: $50K; median royalty: 6.5%; median total investment: $121K–$220K.
There is no official “home services franchise failure rate.” What franchisors must disclose, in the Item 20 outlet tables of the FDD, is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. The exit rate here is that count divided by franchised outlets open at the start of a single fiscal year. It counts exits for any reason (some are retirements, sales, relocations or non-renewals) and misses struggling units that were sold as transfers.
6.2%
98 systems · latest fiscal year each
9.3%
raw totals: 1,064 exits / 11,478 at start
14.6%
1,849 outlets opened in total
107
FDD filed within 24 months
12,191
at latest fiscal year end
$50K
FDD Item 5
6.5%
FDD Item 6
$121K–$220K
FDD Item 7
89/107
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 107 SYSTEMS · 107 FILINGS · FISCAL 2023–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST RECORD | Bath Fitter | Strong |
| STRONGEST RECORD | Mr. Sandless | Strong |
| STRONGEST RECORD | Superior Fence & Rail | Strong |
| WEAKEST FILED RECORD | JDOG JUNK REMOVAL & HAULING | Weaker |
| WEAKEST FILED RECORD | College Hunks Hauling Junk | Weaker |
| WEAKEST FILED RECORD | MONSTER TREE SERVICE | Weaker |
VERDICTS FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Home Services franchise questions, answered from the filings
How many home services franchised outlets leave their systems each year?
There is no official failure rate. FDD Item 20 tables report how many franchised outlets were terminated, not renewed, or "ceased operations — other reasons" each year. Across 98 home services systems, the median system's exit rate in its latest fiscal year (fiscal 2023–2025) was 6.2%; pooled across systems, with no system counting for more than 20% of the weight, it was 9.3%. Not every exit is a failure: some are retirements or sales.
How much does a home services franchise cost?
Across the latest FDD filings of 107 home services systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $121K–$220K (Item 7).
What royalty do home services franchises charge?
The median ongoing royalty across 107 home services franchise systems is 6.5% of gross sales, per Item 6 of their latest FDD filings.
Are home services franchises growing or shrinking?
In each system's latest Item 20 fiscal year (fiscal 2023–2025), the median home services system opened new franchised outlets at 14.6% of its starting base and lost 6.2% to exits. For the median system, openings outpaced exits.
What is the healthiest home services franchise?
Of the home services systems rated from their FDD Item 20 tables, Bath Fitter has the strongest record (verdict: Strong). A verdict describes the filed record, not a recommendation to buy.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing the numbers, including talking you out of a bad deal.