Neighborly Franchise Review: Costs, Revenue, and Owner Insights

Kevin Kohler (Franchise Inspectors) Interview with Trent Huey (Neighborly)

What is Neighborly?

Kevin:
For viewers who may not be familiar, can you give a high-level overview of what Neighborly is and what you’re trying to accomplish in the home services franchising space?

Trent:
Neighborly is the world’s largest home services franchisor. We’ve been around since 1981, starting with one brand, Rainbow Restoration, and have grown into a network of 30+ brands operating globally.

In the U.S., we cover 19 different service verticals, from licensed trades like Mr. Electric, Mr. Rooter, and Aire Serv to service brands like Mr. Handyman, Molly Maid, and ShelfGenie. We’ve surpassed $4.7 billion in system-wide revenue, but even with that scale, we’re still a small part of the overall home services industry.

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What Makes Neighborly Different?

Kevin:
There are a lot of platforms acquiring home service brands. What makes Neighborly different?

Trent:
It comes down to training, systems, and data. We’re very data-driven and focused on sharing both insights and customers across brands. If a customer uses one Neighborly brand, they can become a customer across multiple brands.

That creates a huge advantage. Instead of starting from scratch, franchise owners can tap into a much larger shared customer base. Neighborly has access to over 24 million email addresses across the U.S., which is a massive asset for marketing and growth.

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How Does the Collaboration Work Between Franchise Owners?

Kevin:
I hear a lot about collaboration within Neighborly. How do you actually facilitate that?

Trent:
It starts with connecting owners through training and in-person events, but it goes deeper than that. 

Now, even service professionals are integrated. For example, if a technician is in a home and sees another issue, they can recommend and even schedule another Neighborly service right from their tablet. So it’s evolved from just sharing customer lists to fully integrating services across brands.

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How Does Marketing Work for Franchisees?

Kevin:
What does customer acquisition look like from a marketing standpoint?

Trent:
It’s very digital today. Customers find businesses through Google, reviews, social media, and increasingly AI tools. We focus on being visible everywhere customers are searching, including SEO, Google Local Services Ads, social media, and emerging AI platforms.

Kevin:
Is that all on the franchisee to figure out?

Trent:
No. We provide vendors and resources through our ProTradeNet network. Each brand also has its own dedicated marketing team. They build customized local marketing plans based on how customers in that specific market behave. It’s not a one-size-fits-all approach.

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What Is the Business Model for Mr. Electric and Mr. Rooter?

Kevin:
Let’s talk about two of your major brands, Mr. Electric and Mr. Rooter. What does the business model look like?

Trent:
They’re very similar operationally. One focuses on electrical work and the other on plumbing, but about 95% of the system is the same. That’s why many owners operate both brands together.

From a demand standpoint, these services aren’t going anywhere. Every home and building needs electrical and plumbing work, and demand continues to grow with upgrades like smart home technology, EV chargers, and energy systems.

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Can You Own This Business Without Industry Experience?

Kevin:
A common concern is, “I’m not an electrician or plumber. Can I still own this?”

Trent:
Absolutely. In fact, our best owners are not technicians. They focus on three things: leadership, following the marketing plan, and managing the numbers. If they can do those well, they can build a successful business.

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How Do You Hire Skilled Labor?

Kevin:
What does hiring look like for a new owner?

Trent:
It’s less about finding workers and more about finding the right ones. Through our vendor network, franchisees can attract top talent by offering better pay, benefits, and career opportunities than many smaller local competitors. We also recommend starting with at least two technicians so you’re not dependent on just one.

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What Does It Cost to Open?

Kevin:
What’s the general investment range?

Trent:
Minimum investment is around $350,000. There’s also an SBA loan option called the SOHO Plus Loan, which goes up to $350,000 and is non-collateralized. It’s designed to help franchisees get through the early growth phase.

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What Do the Financials Look Like?

Kevin:
What does performance look like based on your latest data?

Trent:
Here’s a general breakdown:

• Average Mr. Electric: ~$1.1M to $1.2M in revenue
• Average Mr. Rooter: just under $2.1M

Top performers:

• Top 50% (Mr. Electric): ~$2.5M
• Top 50% (Mr. Rooter): ~$4.5M
• Top 10% (Mr. Electric): $6M+
• Top 10% (Mr. Rooter): ~$8.1M

There’s significant revenue potential, especially relative to the startup investment.

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What Separates Top Performers?

Kevin:
What separates the top 50% from the rest?

Trent:
Three things: grit, being results-oriented,  and following the system. Franchisees who fully commit to the system, attend training, and learn from other owners tend to perform the best.

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What Are the Growth Opportunities?

Kevin:
If someone scales successfully, what’s next?

Trent:
You have two main paths:

1. Expand geographically within the same brand
2. Add another Neighborly brand in your market

Some owners build multi-brand portfolios within the same territory, leveraging shared infrastructure.

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Can You Acquire Existing Locations?

Kevin:
Do you see owners buying out other operators?

Trent:
Yes, and we encourage starting those conversations early. There are many opportunities to acquire existing businesses within the system, especially as owners approach retirement.

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What Advice Do You Have for Prospective Franchise Buyers?

Kevin:
Any final advice for people exploring franchising?

Trent:
Talk to existing owners. Ask them what mistakes they made, what worked, and whether they would do it again. You’ll get honest feedback. And if one brand isn’t the right fit, there are multiple options within Neighborly to explore.