Mister Sparky Franchise Costs, Fees & Owner Salary (2023)

Mister Sparky® Electric, originally founded by Jon Sabo in 2012 as "Roof Roof," was transformed into the Mister Sparky we know today after being acquired by Horse Power Brands in August 2020. This strategic acquisition marked the beginning of its franchising journey, signaling a new era for the company. Headquartered in Omaha, Nebraska, Mister Sparky has since become a prominent name in the electrical services industry, offering a wide range of services including roof repair, replacement, gutters, siding, windows, skylights, and storm damage​​​​.

The franchise distinguishes itself by leveraging innovative drone technology and a commitment to providing high-quality service tailored to meet the unique needs of each client.

Mister Sparky's business model is designed to be turnkey, low cost, and capable of generating high returns, making it an attractive opportunity for entrepreneurs. The franchise provides comprehensive training, ongoing marketing, and sales support, ensuring franchisees are well-equipped to succeed in the competitive home improvement market​​​​.

Initial Franchise Fee

The base initial franchise fee is $33,000, plus an Additional Population Fee of $0.165 for each person above 200,000 in the franchise territory.

One-Time Initial Training Fee

A one-time initial training fee of $1,295 is required, in addition to Business Software and Technology Fees.

Technology Fee

Technology fees range from $545 to $1,535 per month per franchised business, plus a monthly business software fee of $395.

Royalty Fee

The ongoing royalty fee is 6% of Gross Revenue or a minimum of $1,500 per month, whichever is greater. This fee is payable semi-monthly unless a different period is designated.

Local Marketing Spend Recommendation

Although not a mandatory requirement until the franchisee fails to meet the Minimum Performance Requirements, it is recommended that franchisees spend at least 8% to 12% of Gross Revenue annually on local advertising and promotion of the Franchised Business. If the Minimum Performance Requirements are not met, the franchisee may then be required to spend at least 8% of Gross Revenue on Local Marketing during each of the following 12 months​​​​.

Call Center Fee

While not currently charged, the franchisor reserves the right to implement a Call Center Fee or increase the Royalty Fee by 1% of Gross Revenue for non-compliance with the "live" answering requirement.

Renewal Fee

A $5,000 fee is due when the franchisee signs a successor Franchise Agreement to continue the franchise relationship after the current agreement term ends.

Transfer Fee

A general transfer fee of $10,000 is payable if the franchisee or an owner proposes to sell the business assets or ownership interest. Additional fees may apply depending on the circumstances of the transfer.

Marketing Campaign Launch

The franchisor agrees to provide certain marketing services, including digital and website marketing services, before or at the opening of the Franchised Business, not to exceed $5,000.

The franchisor provides a comprehensive training program for franchisees, which includes:

Initial Training

• The franchisor offers a pre-opening training program at times and locations it selects for the franchisee and those employees whom the franchisor deems appropriate.
• The duration and content of the initial training may vary based on the trainee's prior experience, and successful completion may require passing tests to establish proficiency in various areas designated by the franchisor.
• The franchisor has the right to terminate the agreement if, during the pre-opening training, it concludes that any required attendee does not possess the necessary skills.

Additional Training

• After the franchised business opens, the franchisor will make available other required and optional training programs as deemed necessary.
• These programs are at the times and locations designated by the franchisor, and successful completion is required for those designated as necessary.

Training Methods

• Training may be provided in person, by video, via the Internet, or by other means as determined by the franchisor.
• The training may be performed by the franchisor, its affiliates, or third parties.

Training Fees

• The franchisor may charge a fee for additional trainees beyond the maximum number designated for a training program, for remedial training required due to non-compliance with brand standards, for re-training of individuals, or for optional training programs.

The franchisor offers a form of territory protection, but it is not exclusive. While the agreement is in effect and provided the franchisee is not in default beyond any applicable cure period, the franchisor agrees not to operate or authorize others to operate businesses under the same marks and system within the franchisee's territory. However, this protection does not prohibit the franchisor from advertising or soliciting employees or independent contractors within the franchisee's territory.

Franchisees should be aware that they may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the franchisor. The territory is typically based on total population blocks of approximately 200,000 individuals and is defined using postal zip codes, subject to the franchisor's approval.

Despite the territorial protection, the franchisor and its affiliates retain rights not expressly granted to the franchisee. These include the rights to establish, operate, franchise, and license others to operate businesses under the marks at any location outside of the franchisee's territory.

The franchisor requires franchisees to be actively involved in the day-to-day operations of their franchises. Specifically, franchisees must designate an individual responsible for the daily operational performance of the Franchised Business, who has the authority to make all decisions related to the operation.

This requirement underscores the franchisor's expectation for franchisees to maintain a hands-on approach to managing their businesses, ensuring adherence to the system's standards and procedures​​.