USA Insulation

USA Insulation reduces the homeowner’s energy consumption and operating cost between 30% and 50% through the professional insulation of walls and attic area using their proprietary, water based, Green insulation product. The business model and product have been refined over the last 26 years of successful operation targeting the residential market. The Government’s estimate of 77 million homes in the country with insufficient insulation is the driving force behind federal stimulus rebates. Current rebates run through 2010 with a bill dramatically increasing federal rebates pending. Many state and local governments and utilities also recently introduced rebate programs. The increased publication and knowledge of energy reduction makes our local marketing dollars work harder with increased customer inquiries. However, government sponsored rebates are not the core of our marketing or business plan. This company was very successful long before government rebates became a reality. The simple proposition is that USA Insulation will increase your level of comfort in the home, reduce your home’s operating cost and save energy. We enjoy a 30% referral rate from our existing customer base giving testimony to the customer’s level of satisfaction, simply proposition and fact that the product simply works better than any alternative on the market. USA Insulation has been a well kept secret outside of Cleveland, Ohio for the past quarter of a century is now prepared to expand nationally with the son managing the franchise company and has no direct competition inside the franchise industry.

The company began a concerted franchise effort in early 2009 and today has 4 affiliates (older business licenses operating the same model) and 8 franchises operating 12 territories with 5 sales out for financing. In today’s franchise market, we find many candidates interested in the Green aspect of our business (both regarding product and it affect on energy consumption) and having the desire to cash in on the emerging markets generated by government spending.

Background

Year Established: Business 1983
Year First Franchised: 2006
Franchised Units: 8
Company Owned Units: 0
Projected New Units (12 months): 20
States/Countries Registered In: All states except: CA, HI, ND, SD, and WA
Availability in Canada: Masters / Area Developer United States Only
States / Cities, from which Broker Referrals are not being accepted: CA, HI, ND, SD, CT, RI, MA, and WA as well as Houston and Orlando markets

Financial/Terms

Cash Investment: $50,000 - $75,000
Total Investment: $154,000 one truck / $219,000 two trucks
Minimum Net Worth: $400,000
Franchise Fee: $40,000
Discounts: VetFran, Women, Minorities? No
VetFran Program Participant: No
Royalty: 5%
Ad: 2%
Average # of Employees: 4 to start
Passive Ownership Allowed: No
Earnings Claims: Yes, exceptionally strong ramp-up and earnings claim disclosed

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