USA Insulation
Home Services · HVAC & Plumbing
- Active units
- 100
- Avg unit volume
- $1.2M
- Royalty
- 5.0%
Franchised, year-end 2023
of weekly Net Sales
About USA Insulation
Operating through a franchise model with physical service locations and mobile installation teams, the brand serves homeowners and businesses looking to improve energy efficiency. The business focuses on re-insulating wall cavities, attics, and crawlspaces using materials including proprietary foam, spray foam, and blown-in fiberglass. Franchisees utilize a territory-based approach to target properties, primarily residential homes built before modern energy codes. Services also include air sealing and energy assessments to identify and close leaks that contribute to high utility costs.
Key terms
- Franchise Option Program
Initial Franchise Fee waived or refunded (for new franchisees within 10 days of opening) in exchange for increased Continuing Royalty by additional 2.5% for 10 years (initial term)
- Multi-unit discount
25% reduction of the Initial Franchise Fee on the second and any additional franchises when purchasing 3 or more at the same time
- Conversion Franchisee incentive
Initial Franchise Fee waived; Royalty reduced to greater of 2% of monthly Gross Sales or $1,000 per month for first 24 months
- Hard-to-serve market discount
Up to 10% off the Initial Franchise Fee for hard-to-serve or underserved markets (geographic or demographic)
- Brand fund
2.0% of Net Sales
- Local advertising
15.0% of Net Sales
- Veteran discount
20.0% off franchise fee — 20% reduction of the Initial Franchise Fee for U.S. Armed Forces (current or honorably discharged) and First Responders
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations96
Franchised units open at year-end
- New openings8
Gross new units opened during the calendar year
- 1-year unit growth rate-11.9%
Net unit growth versus prior year
- 3-year unit CAGR-3.0%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio0.4×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$1.6M
Average Gross Sales for calendar year 2025
- Annual unit volume (25th percentile)$742k
Gross Sales as used in this Item 19 has the same meaning as in the Franchise Agreement.
- Annual unit volume (75th percentile)$2.1M
Gross Sales as used in this Item 19 has the same meaning as in the Franchise Agreement.
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$391k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open6 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio4.1×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.