Mr. Appliance
The total investment to open a Mr. Appliance franchise ranges from $116,500 to $214,900. The initial franchise fee is $63,750. Ongoing royalties are 7% plus a 2% advertising fee.
What is the Mr. Appliance franchise?
Mr. Appliance operates approximately 325 locations across the United States and Canada under Neighborly, the world's largest home services franchise platform. Founded in 1996 in Waco, Texas, the brand was created to bring professional, reliable, and consistent service to an appliance repair industry dominated by independent technicians. As appliances became more complex and expensive, consumers increasingly sought trusted professionals for diagnosis and repair. Mr. Appliance now runs a technology enabled mobile service model that sends trained technicians to homes and businesses. It is part of the Neighborly family of more than 30 home service brands and over 5,800 franchise owners, giving franchisees access to shared corporate infrastructure, customer referrals across brands, national vendor pricing, and franchise support. The model serves an essential service category with demand that can remain consistent through different economic conditions.
The average American household owns more than a dozen major and small appliances, while replacement costs for modern high efficiency models have risen sharply over the past decade. A refrigerator that cost $800 ten years ago may now cost $2,000 or more, making repair a practical alternative to replacement. Smart appliances with digital controls, WiFi connectivity, and complex electronic components have also increased the need for trained technicians. The market remains highly fragmented, with thousands of independent operators and few branded franchise systems at national scale. Mr. Appliance franchisees enter markets with national brand recognition, professional marketing, and operating systems. Consumer interest in reducing appliance waste and regulatory pressure to limit waste may further support repair demand. Customers commonly value technical expertise, convenience, and the assurance associated with a branded service guarantee.
The initial Mr. Appliance franchise fee is $63,750. It provides territory rights, access to proprietary business management systems, and enrollment in the initial training program. Total initial investment ranges from approximately $116,500 to $214,900. The business does not require a traditional retail storefront or major buildout. The ongoing royalty is 7 percent of gross revenue. Startup funds cover service vehicles, diagnostic equipment, parts inventory, technology systems, insurance, initial marketing, and working capital during the ramp up period. Since franchisees can operate from a home office or small commercial space, they avoid many real estate and buildout costs associated with retail and restaurant concepts. Neighborly vendor relationships provide preferred pricing on parts, supplies, vehicles, and marketing materials. Financing may be available through third party lenders and SBA backed loan programs. Mr. Appliance also has an established lending history with financial institutions across the country, including a record of SBA loan approvals across multiple lenders.
Franchisees manage trained repair technicians who serve residential and commercial customers. Services cover refrigerators, dishwashers, ovens, ranges, washers, dryers, ice makers, garbage disposals, microwaves, and other equipment. Daily management includes scheduling calls, dispatching and routing technicians, procuring parts, checking quality, and following up with customers. Proprietary software supports scheduling, dispatch, invoicing, customer communication, and performance tracking, giving owners current visibility into operations. Technicians receive initial certification and continuing training across appliance brands and models, including high end and commercial equipment. New franchisees train at the Neighborly facility in Waco, Texas, in technical service, business management, marketing, hiring, financial management, and proprietary technology. Ongoing support includes franchise business coaches, performance reviews, system wide benchmarking, and territory development guidance. Territories are exclusive, which limits internal competition and establishes a defined market for customer acquisition.
Mr. Actual results can vary with population density, marketing, technician utilization, and the owner's involvement in business development. The model earns revenue from service labor and parts markups, while common repairs generally have relatively low material costs. Repeat customers and referrals can reduce acquisition costs as a local reputation develops. Franchisees who invest in marketing, retain capable technicians, and maintain strong customer satisfaction can outperform the system average.
Mr. Appliance has expanded to approximately 325 locations during its nearly three decade history while maintaining service standards intended to protect its local reputation. Neighborly supports recruitment, onboarding, and continuing development for new and established franchisees. The broader system can also create referrals from brands such as Mr. Rooter, Molly Maid, and Aire Serv. A positive experience with one Neighborly brand may increase the chance that a customer chooses another when a different home service need arises. Mr. Appliance uses digital marketing tools that support local search, pay per click advertising, and reputation management through customer reviews. Training and service offerings continue to change with appliance technology, including smart appliances and high efficiency equipment. Recent improvements include parts sourcing systems, technician onboarding, and customer communication tools with appointment tracking and service updates.
The preferred franchise candidate has business management and leadership skills, along with a commitment to customer service. Appliance repair experience is not required because the brand provides training and hiring systems for recruiting technicians. Multi unit ownership is common, and some franchisees operate multiple territories. Territories are available across the United States and Canada in metropolitan and mid size markets. The franchise agreement includes a long operating term and renewal options. The usual period from signing the agreement to opening is approximately three to four months, including training, vehicle preparation, marketing launch, and technician hiring.
Mr. PeerSense is a commercial capital advisory firm, not a lender. It provides franchise research and introduces buyers to SBA and conventional lenders. Its Mr. Buyers can use the PeerSense comparison tool to assess Mr. Appliance against other home services and appliance repair franchises across more than 30 data points, including investment costs, revenue performance, growth trajectory, and lender confidence. The profile is intended to support due diligence for first time buyers and experienced multi unit operators.
Loan Activity Score
44/100
SBA Default Rate
19.9%
Active Lenders
31
According to its Franchise Disclosure Document or public business records, Mr. Appliance has 104 locations, all owned by franchisees. Public SBA loan records show 31 lenders made 141 loans to franchisees of Mr. Appliance. PeerSense calculates Mr. Appliance's score as 44 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2025 Franchise Disclosure Document. To correct a figure, email the current FDD and the differing item numbers to info@peersense.com, and this page will be updated.
Franchising since 1996 · 104 locations
$116,500 to $214,900
$63,750
104
104 franchised
Proprietary PeerSense metric
FairDistinct lenders in public SBA records for Mr. Appliance
141
Total SBA loans
$185K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Mr. Appliance
Loan Activity Score Breakdown
Major Brand (100+ loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
19.9%
vs 10.8% peer avg
SBA Loans
141
Total Volume
$26.0M
Active Lenders
31
5 selective
States
38
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Mr. Appliance based on SBA lending data
SBA Default Rate
19.9%
9.1% above peer avg
SBA Loan Volume
141 loans
Across 31 lenders
Lender Diversity
31 lenders
Avg 4.5 loans per lender
Investment Tier
Mid range investment
$116,500 to $214,900 total
Mr. Appliance: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2019
25 approvals. The best year on record for Mr. Appliance.
Top SBA State
Texas
16 SBA financed Mr. Appliance locations, the densest operator footprint.
Average Loan Size
$182K
Median $150K. Use as a sizing anchor when modeling your own Mr. Appliance unit.
Lender Concentration
74.1%
Concentrated
Share of Mr. Appliance approvals captured by the top 3 SBA lenders.
Mr. Appliance's SBA lending pipeline peaked in 2019 (25 approvals). The last five fiscal years account for 43% of cumulative volume ($15M approved). Operator density is highest in Texas with 16 SBA financed locations. Average funded ticket sits at $182K, with the median at $150K. Lender mix is concentrated: the top three SBA lenders account for 74.1% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$1,206
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Mr. Appliance, unit breakdown
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman