Koala Insulation Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$49,500
Investment required
$184,000 - $219,000
Royalty fee
3.5% to 6.5%

Koala Insulation: Pioneering Energy Efficiency and Comfort

Founded in 2018 and franchising since 2019, Koala Insulation operates within the crucial insulation industry, serving both new constructions and existing buildings. The franchise is dedicated to enhancing energy efficiency in homes and buildings, contributing to environmental sustainability by reducing greenhouse gas emissions.

With a vision focused on efficiency and comfort, Koala Insulation prioritizes customer satisfaction, including thorough post-job cleanup to ensure clients' homes and businesses remain pristine. Franchisees do not need prior industry experience, as Koala Insulation offers a comprehensive training and support system.

The brand provides extensive training, covering everything from basic operations to preparation for master-level industry certification, along with ongoing professional development and business coaching. Support extends beyond training, encompassing marketing and lead generation through the brand's proprietary technology and central operations team, aiding franchisees in customer acquisition.

Headquartered in Melbourne, FL, Koala Insulation operates within the thriving $52 billion insulation industry, offering a recession-resistant business model in an essential service sector. The franchise's dedication to environmental sustainability, a proven business model, and robust support system make it an appealing opportunity for those looking to enter the home services industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $49,500
Training Expenses $500 - $5,000
Equipment and Vehicles $46,257 - $59,322
GPS Tracking Systems $350 - $600
Insurances $3,500 - $6,000
Initial Advertising/Marketing $24,500
Professional Fees $2,500 - $6,000
Rent (parking location/office) $0 - $4,000
Office expense $500 - $1,250
Computer, Phone and Technology Systems $700 - $3,000
Technology Activation Fee $5,000
Business Licenses and permits $500 - $5,000
Additional Funds – 3 Months $50,000
Total Estimated Initial Investment $183,807 - $219,172

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Number of units

2024
Franchised units

248

326

385

Company-owned units

0

0

0

Total units

248

326

385

Franchise Disclosure Document

Training 

The franchisor offers extensive training for the Operating Principal, Manager, Salesperson, and other employees. This includes essential topics such as company overview, insulation types and comparison, reading building plans and cost estimation, sales process, customer segmentation, marketing strategies, organizational hierarchy, recruitment, interviewing, hiring practices, staff management, building envelopes and construction terms, utilization of online resources, safety protocols, equipment for blow-in insulation (loose-fill and dense-pack), installation and removal of blanket/batt insulation, spray polyurethane foam (SPF) safety and logistics, and customer contact, estimating, and quoting for SPF projects.

The franchisor covers the costs of instruction and materials for the initial training of the Operating Principal, Manager, and Salesperson. However, the franchisee is responsible for the costs associated with training any subsequently hired or replacement staff, including travel, accommodation, and salaries during the training period. Additionally, the franchisor may provide and require attendance at refresher training programs or seminars, including an annual conference. The franchisee is responsible for the annual conference fee for each person required to attend and all related expenses.

Territory Protection

The franchisor grants franchisees a "Protected Territory," ensuring that no other franchisee will be permitted to operate within this designated area while it is protected. However, this territory is not exclusive, meaning that franchisees may still encounter competition from other franchisees, company-owned outlets, or other distribution channels or competitive brands managed by the franchisor.

The protected status of a territory can be revoked if the franchisee fails to comply with all agreements with the franchisor or does not maintain adequate equipment and staff to serve all customers in the territory who wish to purchase the services and products offered. If the protected status is revoked, the franchisor may permit others to service customers within the territory, sell additional franchises within the territory, or open a company-owned location within the territory, which could lead to potential competition for the franchisee.

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