Roto-Rooter
Roto-Rooter Corporation
Company Information
300 Ashworth RoadWest Des Moines, Iowa 50265
Roto-Rooter Corporation was incorporated on February 13, 1936. Their business address is 300 Ashworth Road, West Des Moines, Iowa 50265.
The Roto-Rooter franchise which we offer is for qualified persons to operate a business (the "Business") offering and performing authorized sewer, drain and pipe cleaning services (the "Services") to the public within a prescribed geographic market area (the "Territory") following the methods and techniques we disclose (the "System") and under the trademarks and service marks we license from time to time, including the trademark "RotoRooter" (the "Marks"). You are not required to offer septic tank cleaning, plumbing repair, pipe inspection services, water restoration services and other services we authorize in writing but may, at your option, do so. To the extent you offer those other services, the term "Services" as used in this Disclosure Document includes those services. You may not offer any other services under the Marks or using the System. If you are a new Roto-Rooter franchisee or an existing Roto-Rooter franchisee scheduled for renewal from the date of the Disclosure Document, you must sign the new form of franchise agreement. The terms of the 2019 Agreement vary in several respects from the 2017 Agreement, and where appropriate those differences are noted in this Disclosure Document. Otherwise, references to the “Franchise Agreement” and all disclosures in this Disclosure Document describe terms and conditions that are the same under the 2017 Agreement.
3 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
2/10
Earning Transparency
1/10
Investment Accessibility
3/10
Franchise System Development
| Year | Units at Start of Year | Units Opened | Units Terminated | Non-Renewals | Re-Acquired by Franchisor | Ceased Operations | Units at End of Year |
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Distribution of Roto-Rooter Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $25,000 Maximum: $75,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $103,980 Maximum: $273,700
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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