About Mr. Electric Franchise
Mr.
Electric is a residential and commercial electrical services franchise within the Neighborly family of home service brands.
The company has been franchising since 1994 and offers a full range of electrical services including wiring, lighting, panel upgrades, generator installation, and electrical safety inspections.
Mr. Electric Franchise Cost & Fees
Minimum Investment
$106K
Average Investment
$175K
Maximum Investment
$245K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $42,500 | One-time payment upon signing |
| Royalty Fee | 4% to 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not to exceed 3% of Gross Sales (Local Marketing Groups); 2% of Gross Sales for MR. ELECTRIC franchisees and 1.5% of Gross Sales for NEIGHBORLY ELECTRIC franchisees (MAP Fee) | National brand fund |
| Total Investment Range | $106,100 – $244,500 | Includes build-out, inventory, working capital |
The investment range of $106K–$245K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% to 7% of Gross Sales) and marketing fee (Not to exceed 3% of Gross Sales (Local Marketing Groups); 2% of Gross Sales for MR. ELECTRIC franchisees and 1.5% of Gross Sales for NEIGHBORLY ELECTRIC franchisees (MAP Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $42,500 | $42,500 |
| Vehicle | $2,400 | $35,000 |
| Equipment, Supplies & Inventory | $11,000 | $17,000 |
| Insurance | $1,200 | $4,500 |
| Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase | $9,000 | $40,000 |
| Training, Travel, Lodging & Food | $4,000 | $7,000 |
| Deposits, Permits & Licenses | $1,000 | $2,500 |
| Professional Fees | $0 | $5,000 |
| Additional Funds - 3 Mo. | $35,000 | $85,000 |
| Real Estate | $0 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of (i) $7,500 or (ii) 5% of the sales price |
| Renewal Fee | $5,000 |
| Technology Fee | $53 per month, plus: Additional Microsoft Office365 E1 License $8.00 per month, E3 License $20 per month, Exchange Mail License $4.00 per month. Any support or maintenance on the Point of Sale system (currently ServiceTitan) is provided at our then-current hourly rates (currently $125 per hour). |
| Audit Fee | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees |
| Late Fees (on Software System Monthly Fees) | $25 per month or the maximum amount allowed under the law, whichever is less. |
| Call Center Services Monthly Fees | One-time Set Up Fee: $0 to $249, depending on Call Center used. Monthly Fees: Vary by Call Center. Minimum Monthly Fees are $99. |
| Annual Convention (“Reunion”) Fees | Currently $1,000 or less |
| Late Fees (Franchise Agreement) | $10 per day |
| Dishonored Check or ACH Draft | $25 |
| Interest | 12% on unpaid balances |
| Failure to Maintain Insurance | Our actual cost for insurance premiums and a reasonable fee for expenses we incur |
| Amendment Fee | $250 |
| Unapproved Suppliers | Our actual out-of-pocket costs of inspection or testing |
| Indemnification and attorneys’ fees and costs | Varies according to loss |
| Tax Reimbursement | Varies according to tax |
| Additional Training Fee | The then-current fee, currently up to $5,000. |
| Key Accounts/Management Fee | Up to 5% of total Gross Sales related to Key Account work |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Phase I Training: 2.5 days; Phase II Training: 5 days; Field Training: 2-3 days. |
| Classroom Training | 41.25 hours |
| On-the-Job Training | 0 hours |
| Training Location | Waco, Texas or at such other locations as we may designate, or via webinar/video conferencing. Field training involves visiting an existing franchised business. |
| Additional Training | Franchisees must attend annual training or conference events ('Reunion') and any other designated training courses. Refresher or advanced training may be required if deemed necessary. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited territory protection within a specified geographical area. |
| Exclusive Territory | No |
| Territory Size | Minimum population of at least 100,000 and a maximum of generally no more than 1,000,000. Larger populations may be allowed under certain circumstances. |
| Description | A specified geographical area designated on the Data Sheet, with population generally ranging from 100,000 to 1,000,000. The franchisor reserves the right to operate or grant franchises for other Mr. Electric businesses outside this territory and to sell or allow others to sell products/services using different trademarks anywhere, or the same products/services using the same trademarks outside the territory. The franchisor may also advertise, solicit, and enter into Key Accounts within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional 10-year term |
| Renewal Fee | $5,000 |
| Renewal Conditions | Franchisee must give written notice (180-240 days prior), sign then-current franchise agreement (terms may differ, including higher fees), not be in default, satisfy all monetary and material obligations, receive no more than 3 written default notices, complete then-current training, and franchisee/guarantors must execute a general release. |
| Transfer Fee | The greater of (i) $7,500 or (ii) 5% of the sales price |
| Transfer Conditions | Franchisor's prior written consent, tender right of first refusal, payment of transfer fee, assignee meets current requirements, assignee signs then-current franchise agreement, all amounts owed to franchisor/affiliates/suppliers paid in full, all required reports provided, and franchisee/guarantors sign a general release. |
| Termination for Cause | Franchisor can terminate if franchisee defaults on the agreement. Curable defaults (e.g., failure to pay fees/submit reports) have 10-day cure period. Other curable defaults have 30-day cure period. Non-curable defaults (e.g., material misrepresentations, voluntary abandonment, business closure for safety, unauthorized trademark use, insolvency, felony conviction, intentional understatement of Gross Sales, unauthorized transfer, second default of any type within 12 months) result in immediate termination. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, franchisee (including guarantors, owners, spouse, children, parents, siblings) cannot have any interest in a Competitive Business. After termination/expiration, for 2 years, no Competitive Business in the Territory, within a 25-mile radius of the outer boundary of your Territory, or inside the territory of another MR. ELECTRIC business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, the franchisee must directly perform or supervise the operation of the Business. If a legal entity, a designated owner who has completed training must directly supervise. If consent is given for non-personal supervision, a trained manager must directly supervise. Principal owners and managers may be required to sign confidentiality agreements. |
| Required Suppliers | Franchisor may require the use of approved products, services, inventory, equipment, signs, advertising materials, and other items from designated or approved suppliers. Franchisor reserves the right to designate a primary or single source of supply for certain products and supplies, and the franchisor or its affiliates may be that single source. This includes a designated service provider for call center, call routing, and scheduling services. |
| Supply Restrictions | Franchisee may not contract with an alternative supplier for any products and/or services for which the franchisor has designated a supplier. Franchisee may purchase from other suppliers if they follow franchisor's supplier approval procedures and obtain prior written approval, which may involve testing at franchisee's expense. |
| Franchisor Revenue from Suppliers | In the year ending December 31, 2020, ProTradeNet’s predecessor PTNLLC had revenue of $517,465 (about 6% of its total revenues of $8,792,535) from purchases by Mr. Electric franchisees. Predecessor had revenue of $179,644 (about 2.04% of its total revenues of $8,825,821) from purchases by Mr. Electric franchisees. Affiliate ZorWare had revenue of $134,360 (about 2.15% of its total revenues of $6,262,426) from required purchases or payments by Mr. Electric Franchisees for initial training and maintenance and monthly support. Franchisor or its affiliates may receive a commission from the brokerage of a capital lease or other equipment finance. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor may finance a portion of the initial franchise fee (up to 70%, or up to 80% if certain requirements are met) for qualified prospective franchisees. Financing decisions are based on credit-worthiness and available collateral. Interest rates vary from 9% to 12% based on credit score. A promissory note is required, with monthly payments starting approximately 2 months after Phase I Training. Repayment terms range from 5 to 9 years depending on the loan amount. A security interest in the business assets is required. Franchisor may also refer to third-party lenders but does not currently derive income from such referrals. |
Mr. Electric Franchise Earnings — Item 19
Average Revenue
$796K
Median Revenue
$488K
Revenue Range
$24K – $8.7M
Sample Size
126 units
Past financial performance does not guarantee future results. Individual results will vary.
Mr. Electric Litigation & Risk Flags
Clean Litigation RecordMr. Electric has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mr. Electric System Growth
Total Units
158
Franchised
158
Company-Owned
0
Mr. Electric currently operates 158 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 23 | 14 | 137 |
| 2019 | 23 | 13 | 147 |
| 2020 | 25 | 14 | 158 |
Transfers: 11 | Closures: 14
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$270K
Net Income
$-5,341
Total Assets
$808K
Audited by BDO USA, LLP for year ending March 25, 2021.
Mr. Electric Franchise — FAQ
The total investment to open a Mr. Electric franchise ranges from $106,100 to $244,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $42,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Mr. Electric charges a royalty fee of 4% to 7% of Gross Sales of gross sales, plus a Not to exceed 3% of Gross Sales (Local Marketing Groups); 2% of Gross Sales for MR. ELECTRIC franchisees and 1.5% of Gross Sales for NEIGHBORLY ELECTRIC franchisees (MAP Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Mr. Electric Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Mr. Electric to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Mr. Electric franchise owners report average revenue of $796K and median revenue of $488K. This is based on a sample of 126 units. Past performance does not guarantee future results.
Mr. Electric has been franchising since 1994. The FDD shows an investment range of $106,100-$244,500, a 4% to 7% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $42,500 and the total investment ranges from $106,100 to $244,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Mr. Electric and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Mr. Electric or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com