Mr. Electric franchise unit economics
Mr. Electric franchisees run residential and commercial electrical service businesses across territories priced by population. The 169 businesses reporting for 2025 are grouped by how many people their territory holds. Population rises up to 16.7 times across those groups while average gross sales scale 5.0 times. The brand charges by population three separate ways, and at three of the four groups the typical business pays a minimum license fee against the 6% rate.
- Primary source
- Mr. Electric, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 169 of 236 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
The 169 reporting businesses are grouped by how many people their territory holds. Population scales up to 16.7 times across those groups while average gross sales scale 5.0 times. So a bigger territory bills more in total and far less per head, and the brand prices territory by the head, three separate ways.
- Population rises up to 16.7 times across the four groups while sales rise 5.0 times. $514,894 in a territory of up to 300,000 people against $2,599,071 in one of up to 5,000,000 *, so the biggest territories are the least worked.
- At three of the four groups the typical business pays a minimum license fee against the 6% rate. The minimum runs to $3,000 a week, which is $156,000 a year and equals 6% only at $2,600,000 of sales *, against a median of $2,004,844 in that group.
- The brand charges by population three times over. $425 per 1,000 people up front on top of a $42,500 base, a minimum license fee set by population group. 6% of whatever the territory bills. Revenue per head falls as the territory grows.
- The largest single business sits in the second-largest territory group. $13,345,979 in a territory of up to 1,000,000 people, which is 8.7 times its own group average * and more than twice the best business in the largest group.
- Inside one group the range reaches 61 times. $35,793 to $2,195,756 among the 87 businesses in territories up to 300,000 *, so territory size sets the ceiling and the operator sets everything else.
How much does a Mr. Electric franchise make?
The average Mr. Electric unit reported $1,114,087 of revenue in the 2026 FDD. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 10% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Sales by territory size
Four territory sizes, 169 businesses.
Most brands group their businesses by sales instead. This one groups by the size of the market each business was sold. Lets an owner read what the territory itself is worth before any question of how well it is run.
| Territory population | Businesses | Average | Median | Highest | Lowest | Reaching the group average | Group sales * |
|---|---|---|---|---|---|---|---|
| 1,000,001 to 5,000,000 | 20 | $2,599,071 | $2,004,844 | $5,543,941 | $402,383 | 8 of 20, 40% | $51,981,420 |
| 500,001 to 1,000,000 | 32 | $1,534,978 | $1,292,838 | $13,345,979 | $266,992 | 14 of 32, 44% | $49,119,296 |
| 300,001 to 500,000 | 30 | $1,412,806 | $1,022,586 | $5,805,693 | $60,247 | 13 of 30, 43% | $42,384,180 |
| 74,000 to 300,000 | 87 | $514,894 | $352,821 | $2,195,756 | $35,793 | 31 of 87, 36% | $44,795,778 |
| All 169 * | 169 | $1,114,087 | n/a | $13,345,979 | $35,793 | n/a | $188,280,674 |
The four group rows are as the brand reported it. The group sales column and the whole bottom row are marked *, weighting each group average by its business count.
A territory of up to 5,000,000 people bills 5.05 times one of up to 300,000. $2,599,071 against $514,894 *, on a market up to 16.7 times the size, so revenue per head of population falls by roughly two thirds across the range.
The median sits well below the average in every group. The middle business in each group sells 68.5%, 72.4%, 84.2% and 77.1% of the average *. Between 36% and 44% of businesses reach their own group average, so the published figure sits abovr-middle result at every territory size.
The smallest group holds 51.5% of the businesses and 23.8% of the sales. 87 of 169 businesses carrying $44,795,778 of $188,280,674 *, the shape of a system sold mostly in small territories.
Every group contains a business under $61,000. $35,793, $60,247, $266,992 and $402,383 as the low in each *, so buying population buys a higher ceiling.
Top performers
What separates the top Mr. Electric performers
Mr. Electric splits its locations into groups instead of publishing one average. The best group averaged $2,599,071 a year. The worst averaged $514,894. Both run the same brand, on the same agreement, paying the same fees.
Decided before you open
- Trade area and site.A 5.0× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Territory, and how much of it is real.This model sells from a territory rather than a building, quoted at 300,000 people. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
- What you spend to open.Opening costs $159,500 to $357,425, a 2.2× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
Live operating levers
- Installations, the operating driver.This model bills on installations. The sale happens in the customer’s home, so the owner works on how many appointments are booked, how many close, and what the average install is worth. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Fees, and where the minimum bites.Fees run about 10.0% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
Context you underwrite around
- The reporting screen.169 of 236 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations, no median, no attainment figure. Anything below the sales line has to come from the franchisor or from owners you call.
The minimum underneath
6% of sales, or a fixed weekly figure, whichever is larger.
The license fee is 6% of gross sales. Underneath it sits a minimum that rises with territory population and with how long the business has been open. For most of this system the minimum is the number that actually applies.
| Territory population | Months 9 to 24, a week | Months 25 to 48, a week | Month 49 onward, a week | A year at the mature rate * | Sales at which 6% catches up * |
|---|---|---|---|---|---|
| Under 100,000 | $25 | $50 | $50 | $2,600 | $43,333 |
| 100,001 to 200,000 | $50 | $100 | $300 | $15,600 | $260,000 |
| 200,001 to 350,000 | $75 | $300 | $600 | $31,200 | $520,000 |
| 350,001 to 600,000 | $75 | $500 | $1,000 | $52,000 | $866,667 |
| 600,001 to 1,000,000 | $75 | $700 | $2,000 | $104,000 | $1,733,333 |
| 1,000,001 and above | $75 | $1,200 | $3,000 | $156,000 | $2,600,000 |
The weekly figures and the population groups are as the brand reported it. The annual column and the crossover column are marked *, multiplying the mature weekly rate by 52 and dividing by the 6% license rate.
At the largest territory group the minimum equals 6% almost exactly at the group average. $156,000 a year against 6% of $2,599,071, which is $155,944 *, so a business at that average pays the percentage and everything below it pays the minimum.
The median business in that group pays an effective 7.78%. $156,000 against $2,004,844 of sales *, 1.78 points above the quoted rate, worth $35,709 a year.
The same arithmetic bites hardest in the 500,001 to 1,000,000 group. Its median of $1,292,838 sits well under the $1,733,333 crossover, so $104,000 of minimum is an effective 8.04% *, the highest effective license rate anywhere in this system.
What the fees come to in total. (Items 5 and 6)
| Territory group | Median sales | License fee | Marketing fund at 2% | Local marketing at 2% | Together | Share of sales * |
|---|---|---|---|---|---|---|
| 1,000,001 to 5,000,000 | $2,004,844 | $156,000 | $40,097 | $40,097 | $236,194 | 11.78% |
| 500,001 to 1,000,000 | $1,292,838 | $104,000 | $25,857 | $25,857 | $155,714 | 12.04% |
| 300,001 to 500,000 | $1,022,586 | $61,355 | $20,452 | $20,452 | $102,258 | 10.00% |
| 74,000 to 300,000 | $352,821 | $31,200 | $7,056 | $7,056 | $45,313 | 12.84% |
The rates and the median sales figures are as the brand reported it. Every dollar amount and the share column are marked *. Each row’s three components add to its total.
The lightest load falls on the group whose sales clear the minimum. A flat 10.00% in the 300,001 to 500,000 group against 11.78%, 12.04% and 12.84% everywhere else *. The only group whose median business is large enough for the percentage to govern.
The smallest territories pay the largest share of sales to the brand. 12.84% of a $352,821 median *, and the 87 businesses in that group are more than half the reporting system.
Opening a territory
$159,500 to open, and the territory is priced by the head.
| Line | Low | High | Share of the low column * |
|---|---|---|---|
| Additional funds, three months | $50,000 | $100,000 | 31.35% |
| Initial franchise fee | $42,500 | $42,500 plus $425 per 1,000 people above the minimum | 26.65% |
| Advertising, marketing and promotion | $40,000 | $80,000 | 25.08% |
| Training, travel, lodging and food | $8,000 | $16,000 | 5.02% |
| Deposits, permits and licenses | $6,000 | $12,000 | 3.76% |
| Insurance | $5,000 | $7,500 | 3.13% |
| Equipment, supplies and inventory | $4,500 | $8,000 | 2.82% |
| Vehicle | $3,500 | $80,000 | 2.19% |
| Professional fees | $0 | $5,000 | 0.00% |
| Real estate | $0 | $6,000 | 0.00% |
| Total | $159,500 | $357,425 | 100% |
Amounts are as the brand reported it and the share column is marked *.
The territory costs more per head than it returns per head at the top of the range. A 300,000-person territory prices at $127,500 *, which is 24.8% of what the average business in that group bills in a year. The entry price tracks population while the revenue does so far more weakly.
Three lines are 83.1% of the low column, and one of them is working capital. Additional funds, the fee and advertising, at $132,500 of $159,500 *, so the build is mostly cash to trade on.
The vehicle line swings from $3,500 to $80,000. A 22.9 times range *, and the single widest line here, the difference between an used van and a new fitted fleet vehicle.
The network of locations
A system adding a quarter to itself every three years.
| Year | At start | At end | Net change | Growth * | Company-owned |
|---|---|---|---|---|---|
| 2023 | 180 | 189 | +9 | +5.0% | 0 |
| 2024 | 189 | 211 | +22 | +11.6% | 0 |
| 2025 | 211 | 236 | +25 | +11.8% | 0 |
Every column apart from growth is as the brand reported it.
The system added 56 businesses in three years and lost 15 in the last one. 180 to 236 *, growth of 31.1% against a closure count that reached 6.4% of the year-end total in 2025 alone.
Sixty-seven of the 236 franchised businesses sit outside the published figures. 17 reporting unreliably, 10 reporting combined and 15 that closed, plus those open under a year *, so the 169 in the tables are 71.6% of the system.
Questions we get asked
Questions owners ask.
What does a Mr. Electric business bill?
It depends almost entirely on the territory. The 169 reporting businesses average $1,114,087 on our own weighting. By territory population the averages are $514,894 up to 300,000 people, $1,412,806 for 300,001 to 500,000 and $1,534,978 for 500,001 to 1,000,000 and $2,599,071 for 1,000,001 to 5,000,000.
Does a bigger territory earn more?
More in total, much less per head. Population rises up to 16.7 times from the smallest group to the largest while average sales rise 5.05 times. So revenue per head of population falls by roughly two thirds. The single largest business in the system sits in the second-largest group.
What does the brand take?
A 6% license fee swept weekly, a 2% marketing fund, and local marketing groups taking up to 3% and currently 2%. Underneath the license fee sits a minimum rising with territory population to $3,000 a week. At three of the four territory groups the typical business pays that minimum. Lifts the all-in charge to between 11.78% and 12.84% of sales.
What does a territory cost?
$42,500 for up to 100,000 people, plus $425 for each additional 1,000. A 300,000-person territory, which is generally the maximum, prices at $127,500. Fees actually paid in the previous year averaged $59,449 and ran $21,886 to $102,981, and a qualifying rural territory prices at $20,000.
What does it cost to open?
$159,500 to $357,425, of which $50,000 to $100,000 is three months of additional funds and $40,000 to $80,000 is opening advertising. The physical side is light: a vehicle at $3,500 to $80,000 and equipment, supplies and inventory at $4,500 to $8,000.
How wide is the difference between businesses?
Very wide, and it stays wide inside every territory group. The 87 businesses in territories up to 300,000 run from $35,793 to $2,195,756, a 61 times range. Across the whole reporting group the range is $35,793 to $13,345,979. Territory size sets the ceiling; everything under it is operating.
- No median. Only an average is published, which a few large locations can lift on their own.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
- No attainment figure. The filing does not say how many locations reached the average it publishes.
Questions worth putting to Mr. Electric
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Mr. Electric locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What is your effective license rate this month?
A structured review of your unit economics, cash forecast. Reporting, built around revenue per head of territory, the license minimum against the 6% rate. The crossover point your own sales are sitting either side of.
Request the reviewthe franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Mr. Electric reads against the rest of the mechanical trades group: Aire Serv · Benjamin Franklin Plumbing · Mister Sparky · Mr. Rooter · One Hour Heating & Air Conditioning · Plumbing Paramedics. The mechanical trades guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?How royalty, ad fund and minimums actually work on a monthly statement.
- How much cash do I fund before a new location covers its own costs?A 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?Usually it is a revenue problem wearing a payroll costume.
- What should I be looking at every week?The handful of numbers that move before the P&L does.
- Do I need a bookkeeper, a controller, or a CFO?What each one owns, and the point at which the next one pays for itself.