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$153,000–$299,000 to open, a $42,500 franchise fee, then 7% royalty + 2% brand fund. AUV of $1.3M. Part of the Neighborly family. Here's the real math.
Mr. Rooter Plumbing is one of the most established plumbing franchises in North America, with more than 300 locations and a name that's been in the trade since 1970. It operates under the Neighborly umbrella — the world's largest home-services franchise company, with 30+ brands including Aire Serv, Mr. Electric, Molly Maid, and many more.
The numbers tell a strong story on the revenue side: the average unit volume is approximately $1.3 million, with estimated owner earnings around $172,000. The fee structure is more moderate than Authority Brands' 13.5% — Mr. Rooter charges a combined 9% (7% royalty + 2% brand fund). But 9% of $1.3 million is still $117,000 per year that doesn't go into the owner's pocket.
This article breaks down Mr. Rooter's real franchise costs, gives the Neighborly ecosystem credit where it's due, and shows how the economics compare to building an independent plumbing operation.
Mr. Rooter Plumbing is a residential and commercial plumbing franchise founded in 1970, now owned by Neighborly (a subsidiary of Frontdoor, Inc.) and headquartered in Waco, Texas. Services include drain cleaning, plumbing repair, water heater installation, sewer line work, and emergency plumbing. The franchise uses flat-rate pricing and operates over 300 locations across the U.S. and Canada. Mr. Rooter benefits from Neighborly's cross-brand referral network.
The estimated total initial investment ranges from $153,000 to $299,000. This includes the franchise fee, service vehicles, plumbing tools and equipment, drain-cleaning machinery, initial marketing, insurance, and working capital.
The initial franchise fee is $42,500.
| Category | Mr. Rooter Plumbing | HomePro Systems |
|---|---|---|
| Initial investment | $153,000–$299,000 | $0 (just $79/mo) |
| Franchise fee | $42,500 | $0 |
| Ongoing royalty | 7% of gross — forever | $0 — flat $79/mo |
| Brand fund | 2% of gross | $0 |
| Combined fee rate | 9% of gross revenue | $79/mo flat |
| Average revenue (AUV) | ~$1.3M | — |
| 5-year total fees @ $1.3M rev | ~$627,500 | $4,740 |
| Exit | Franchisor approval required | Your business — sell anytime |
Plumbing is a high-barrier, high-reward trade. State licensing, master plumber requirements, and insurance/bonding create a moat that protects established operators. Independent plumbers who build professional systems — flat-rate pricing, dispatch routing, follow-up automation, marketing — can match franchise-level revenue without sharing 9% of every dollar.
The Neighborly cross-referral network is a genuine advantage. But independent operators can build their own referral network with local HVAC companies, electricians, real estate agents, and property managers — without a franchise agreement attached.
HomePro Systems provides the franchise-grade infrastructure — operations playbooks, flat-rate pricing frameworks, technician hiring systems, and Sage AI coaching — for $79/month. See the full franchise cost comparison across every major home-service brand.
HomePro gives you the systems, playbooks, and AI coaching that brands like Mr. Rooter Plumbing charge six figures for. $79/mo. No franchise fee. No royalties. Your brand.
Get Started — $79/mo → See How It WorksPer the Mr. Rooter Plumbing FDD, the total initial investment ranges from approximately $153,000 to $299,000, including a franchise fee of $42,500. Mr. Rooter is part of Neighborly (Frontdoor Inc.), the world's largest home-services franchise company, which also owns Aire Serv, Mr. Electric, Molly Maid, and dozens of other brands. Mr. Rooter operates over 300 franchise locations. Always request the current FDD before investing.
Per Item 6, franchisees pay a 7% royalty on gross revenue plus a 2% brand fund contribution. The combined ongoing obligation is 9% of gross. At the reported $1.3 million average unit volume, that is approximately $117,000 per year in royalties and brand fund fees.
Per Mr. Rooter's FDD Item 19, the average unit volume (AUV) across reporting franchises is approximately $1.3 million in gross revenue, with estimated owner earnings of roughly $172,000. Revenue is gross — reduced by the 9% combined fees, technician labor, parts, vehicles, insurance, and overhead. Performance varies widely by market, team size, and service mix.
The main alternative is building an independent plumbing business — getting licensed, building direct customer and contractor relationships, and running the business with professional systems. HomePro Systems provides franchise-grade business systems, pricing playbooks, hiring frameworks, and AI coaching for $79/mo — no franchise fee, no royalties, no territory restrictions.
Sources: Mr. Rooter Plumbing Franchise Disclosure Document (FDD). Figures are estimates from the most recent publicly available FDD; always request the current FDD directly from the franchisor before making any investment decision. HomePro Systems is not affiliated with Mr. Rooter Plumbing or Neighborly (Frontdoor Inc.).
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