About TEGG Franchise
TEGG Service is a franchise system for electrical contractors that provides maintenance, repair, replacement, diagnostics, and enhancement services for electrical systems in commercial, industrial, institutional, healthcare, government, financial, educational, and multifamily residential buildings.
Franchisees offer predictive and preventive maintenance testing of electrical distribution systems, telecommunications systems, indoor and outdoor lighting, power conditioning and monitoring systems, emergency lighting, security systems, fire alarm systems, electric generation systems, power substations, and related activities.
Target customers are owners and managers of commercial and industrial buildings on a contract and emergency service basis.
TEGG Franchise Cost & Fees
Minimum Investment
$108K
Average Investment
$139K
Maximum Investment
$171K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 | One-time payment upon signing |
| Royalty Fee | 3% to 5% of Gross Revenues (tiered schedule) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None required | National brand fund |
| Total Investment Range | $107,600 – $170,500 | Includes build-out, inventory, working capital |
The investment range of $108K–$171K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% to 5% of Gross Revenues (tiered schedule)) and marketing fee (None required) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $65,000 | $75,000 |
| Pre-Opening Training Travel & Living | $1,500 | $5,000 |
| Insurance | $0 | $0 |
| Vehicles | $4,500 | $9,000 |
| Vehicle Markings | $600 | $1,500 |
| Real Property | $0 | $0 |
| Equipment (testing instruments, safety items per pair of technicians) | $6,000 | $25,000 |
| Salary Requirements (Sales Professional and Field Service Electrician/Technician, 6 months) | $25,000 | $50,000 |
| Computer Equipment (2 laptops, 1 desktop, 1 color printer) | $5,000 | $5,000 |
| Advertising | $0 | $0 |
| Additional Funds | $0 | $0 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $0 initial franchise fee for renewal; $2,500/month waiver fee if operating under expired agreement |
| Technology Fee | TEGG ProView software license: $150 per customer (franchisee pays 50% to franchisor) |
| Audit Fee | Actual audit costs and expenses (if understatement of TEGG Service business of 2% or more) |
| Other Training Fees | $750 per instructor per day plus travel and living expenses |
| Leadership Training at Franchise Location | $1,500 plus travel and living expenses of instructors |
| Interest on Late Payments | Lesser of 1.5% per month or highest rate permissible by law |
| Indemnity | Actual losses and expenses within 30 days after invoice |
| Liquidated Damages | $65,000 within 30 days after termination (if terminated for cause) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Operations Technical Training: 2 weeks (10 full days); General Management Training: approximately 40 hours; Maintenance Sales Training: approximately 65 hours; Operations Coordinator: approximately 24 hours; Leadership Program: 16 hours |
| Classroom Training | Operations Technical: 3 full days (24 hours) technical + 1 full day (8 hours) software in Week 1; 3 days IR certification + 1 day NFPA/Safety in Week 2. General Management: 28 hours virtual classroom. Sales: 29 hours classroom/online. |
| On-the-Job Training | Operations Technical: 40 hours at contractor customer sites. Maintenance Sales: 80 hours field training at contractor sites. Operations Coordinator: on-the-job as needed. |
| Training Location | Pittsburgh, Pennsylvania (primary); Eaton Corporation facilities in Pittsburgh area; online via TEGG University; on-site at franchisee location and customer sites |
| Additional Training | TEGG University offers blended learning solutions including instructor-led training, eLearning, and self-directed learning paths. Continuing Education Conference held annually. Online courses available at no cost; optional licensed third-party courses up to $500 per course. Refresher and job-specific training provided without tuition fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive (Primary Marketing Area or Shared Marketing Area) |
| Exclusive Territory | No |
| Territory Size | Typically delineated by county boundaries and/or boundary streets or highways |
| Description | Franchisee receives either a Primary Marketing Area (limited territorial protection where franchisor will not authorize other TEGG franchisees to perform services using TEGG marks within the area, with exceptions) or a Shared Marketing Area (where franchisee may face competition from other TEGG franchisees). Franchisor and affiliates reserve the right to perform Bundled Energy Solutions, Facilities Services, and Lighting and Electrical Services within any territory. National Account programs may also operate within franchisee territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 6 years |
| Renewal Term | One 6-year renewal term |
| Renewal Fee | No additional franchise fee for renewal |
| Renewal Conditions | Not in default during term; execute then-current franchise agreement (which may contain materially different terms including different royalty rates, territory size, and no further renewal rights); execute General Release; comply with then-current qualification and training requirements; comply with then-current test instrument and safety item requirements; franchisor continues to operate as a franchisor |
| Transfer Fee | $10,000 |
| Transfer Conditions | Pay all amounts owed to franchisor; not in default; franchisor must approve transferee qualifications; execute transfer agreement and General Release; if transferee is existing TEGG franchisee, must be in compliance for at least 6 months |
| Termination for Cause | Non-curable defaults (immediate termination): abandonment, felony conviction, unauthorized transfers, misuse of trademarks or proprietary information, more than 2 defaults within 12-month period. Curable defaults (30 days to cure): failure to pay fees, failure to maintain standards/procedures prescribed in COM. |
| Non-Compete Period | 1 year after termination of employment (for employees who signed Confidentiality Agreement) |
| Non-Compete Details | During term: franchisee, General Manager, directors, officers, and 5%+ owners may not engage in any business performing TEGG Service Business activities without prior written consent. Post-termination: employees who signed Employee Confidentiality Agreement cannot contact or solicit any customer or prospect of the TEGG Service Business for 1 year after termination of employment. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor recommends but does not require that Principals personally participate in direct operation. If Principals do not personally manage, a mutually agreed-upon General Manager must be appointed who devotes sufficient time to management and completes initial training courses. General Manager does not need ownership interest but must sign confidentiality and non-compete agreements. |
| Required Suppliers | Equipment, uniforms, vehicle marking, computer software, software maintenance and support services, and certain advertising must conform to franchisor specifications or be purchased from approved suppliers |
| Supply Restrictions | All items bearing the TEGG name or logo must conform to franchisor specifications; franchisee must submit two samples of finished items for approval prior to production |
| Franchisor Revenue from Suppliers | In fiscal year ending October 2022, franchisor received $82,000 in revenue from TEGG franchisees' purchases of equipment, uniforms, vehicle markings, stationery, business cards, forms, and sales aids (0.5% of total revenue) |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | ABM Franchising Group does not offer any direct or indirect financing to franchisees except the option to pay the Initial Franchise Fee in installments ($37,500 upon execution plus 11 monthly installments of $3,409.09). They do not guarantee notes, leases, or any other obligations. |
TEGG Franchise Earnings — Item 19
TEGG does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
TEGG does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
TEGG Litigation & Risk Flags
Clean Litigation RecordTEGG 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.
TEGG System Growth
Total Units
38
Franchised
38
Company-Owned
0
TEGG currently operates 38 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 |
|---|---|---|---|
| 2020 | 1 | 6 | 55 |
| 2021 | 1 | 3 | 53 |
| 2022 | 1 | 16 | 38 |
Transfers: 0 | Closures: 16
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
$7806.6M
Net Income
$230.4M
Total Assets
$4868.9M
Audited by KPMG LLP for year ending October 31.
TEGG Franchise — FAQ
The total investment to open a TEGG franchise ranges from $107,600 to $170,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
TEGG charges a royalty fee of 3% to 5% of Gross Revenues (tiered schedule) of gross sales, plus a None required contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the TEGG 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 TEGG to ensure you have the most up-to-date version.
TEGG does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
TEGG has been franchising since 2010. The FDD shows an investment range of $107,600-$170,500, a 3% to 5% of Gross Revenues (tiered schedule) royalty, and no 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 $75,000 and the total investment ranges from $107,600 to $170,500 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 TEGG and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with TEGG or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com