Start a USA Insulation Franchise in 2024

2024 Franchise 500 Rank: #111 Ranked #120 last year

Initial investment: $270K - $398K

Units as of 2023: 114 123.5% over 3 years

Founded in 1985, USA Insulation is one of the first franchised retrofit insulation corporations in the United States. The company has helped homeowners save thousands of dollars over the lifetime of homeownership by installing high-quality residential insulation.

By using USA premium foam insulation, the patented substance may distinguish USA Insulation from its competition. The foam flows through tight, narrow spaces and fills the holes conventional insulation materials cannot reach.

Why You May Want to Start a USA Insulation Franchise

At USA Insulation, the company strives to treat its franchisees like family. With over 35 years of industry experience, the company has refined its products and processes to enable franchisees to grow their locations. USA Insulation began franchising in 2007 and now has over 55 franchised locations throughout the U.S. It is actively seeking to expand its outreach further.

USA Insulation is a leading brand in the insulation industry. With its proven franchise model, USA Insulation may make it easy for a franchisee to enter the industry. For years, the company has tested its business model to ensure that franchisees have a strong roadmap to create their companies and grow in their local communities.

USA Insulations trains franchisees in all the skills needed to start and expand a franchised insulation business. Franchisees are trained in business operations and marketing, including ads, lead production, home sales, and other product education.

What Might Make a USA Insulation a Good Choice?

To be part of the USA Insulation team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

Additionally, USA Insulation has been ranked in Entrepreneur's Franchise 500 multiple times over the past decade. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.

How To Open a USA Insulation Franchise

As you decide if opening a USA Insulation franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a USA Insulation franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

Before you decide to open a USA Insulation franchise, you'll want to ask yourself if your skills and personality match what USA Insulation is looking for. USA Insulation franchisees are typically big thinkers who can develop a company from the ground up. They have sales and management experience or experience in other areas of home services and are eager to adopt and implement the company's proven procedures.

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the USA Insulation franchising team questions.

Company Overview

About USA Insulation

Industry	Home Improvement
Related Categories	Insulation, Miscellaneous Home-Improvement Businesses
Founded	1985
Parent Company	Threshold Brands
Leadership	Suave Brachowski, President
Corporate Address	17700 St. Clair Ave. Cleveland, OH 44110
Social	Facebook, Twitter, LinkedIn, YouTube

Business Overview

Franchising Since	2007 (17 years)
# of employees at HQ	23
Where seeking	This company is offering new franchises in the following US states: Alabama, Arkansas, Arizona, District of Columbia, Delaware, Florida, Georgia, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Maine, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Jersey, New Mexico, Nevada, New York, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin
# of Units	114 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a USA Insulation franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$55,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$269,500 - $398,000
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$300,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$100,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	USA Insulation has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	28 hours
Classroom Training	74 hours
Ongoing Support	Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	6-8
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes