Generator Supercenter Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$474,950 - $868,250
Franchise Fee
$47,500
Min Cash Required
$100,000
Total US Locations
69
Business Summary
Generator Supercenter operates businesses that provide standby generators to both residential and commercial markets. The franchise's services include the installation, maintenance, and monitoring of these generators, catering to customers who need consistent power access and backup solutions.
Corporate History
Generator Supercenter Franchising, LLC was formed in August 2016 as a Texas limited liability company. The original Generator Supercenter business was established and operated by its parent company, Generator Supercenter, Inc., starting in 2005. Generator Supercenter Franchising, LLC began offering franchises in January 2017. While the franchisor itself does not operate businesses of the type being franchised, its parent and affiliates currently operate ten Generator Supercenter locations, some of which were acquired or taken over during 2024 and 2025. An affiliate, V12 Technology Solutions, LLC, is also developing exclusive proprietary customer relationship management and operating software for use by all franchisees.
Financial Overview
Investment Range
$474,950 - $868,250
Franchise Fee (Low)
$47,500
Franchise Fee (High)
$50,000
Minimum Cash Required
$100,000
Royalty %
6%
Equipment Costs (Low)
$93,000
Equipment Costs (High)
$250,000
Working Capital
$160,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Generator Supercenter Franchising, LLC demonstrates strong operating and net income, reporting over $6.8 million in net income for 2024. While cash and cash equivalents remain robust, the company's equity decreased in 2024 primarily due to significant distributions made to members. The company secured a new revolving line of credit in 2024, with over $2.3 million outstanding at year-end. Generator Supercenter benefits from receiving management, accounting, and administrative services from its parent and affiliates without direct charge. As an S Corporation, federal income taxes are passed through to the parent company, which influences the financial presentation. The auditor has issued an unqualified opinion on the financial statements, indicating they present fairly in all material respects.
Financing Details
Generator Supercenter Franchising, LLC does not offer any direct or indirect financing to its franchisees and does not guarantee any notes, leases, or other obligations. Franchisees are responsible for securing their own financing. However, the primary generator supplier, Generac, typically assists dealers in obtaining inventory financing, which may range from $100,000 to $1,000,000.
Performance Metrics
Total US Locations
69
Franchised Units
61
Corporate Units
8
Avg Square Footage
7,000
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Generator Supercenter Franchising, LLC has been involved in several legal actions. Two arbitration cases are currently ongoing, both filed in 2024. One pending arbitration involves a dispute with former franchisees concerning alleged breaches of franchise agreements, misappropriation of trade secrets, and conspiracy, with the franchisees filing counterclaims. The other ongoing arbitration, also from 2024, is against former franchisees for refusing to comply with post-termination obligations and return confidential information. Generator Supercenter has also been involved in two prior actions from 2018 and 2019 against a former franchisee and its principals, related to continued use of Proprietary Marks after termination and other breaches. These prior cases were settled in January 2021, with the former franchisee agreeing to stop using the trademarks.
Bankruptcy History
Generator Supercenter Franchising, LLC has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Generator Supercenter franchise, franchisees must provide written notice of their intent to renew between 12 and 18 months before the current term expires. They must also have the right to lease the business premises for an additional 10 years, or have secured an approved substitute location. All required maintenance, refurbishing, and remodeling of the premises, equipment, fixtures, furnishings, and signs must be completed to meet Generator Supercenter's then-current image standards at least 30 days prior to expiration. Franchisees must not be in default of any agreement with Generator Supercenter or its affiliates and must have substantially complied with all agreements throughout their term. All monetary obligations to Generator Supercenter and its affiliates must be satisfied. Franchisees are also required to sign Generator Supercenter's then-current franchise agreement, which may have different terms and conditions including fees and territorial rights. They must meet current training requirements for new franchisees, pay the renewal fee, and execute a general release of any and all claims against Generator Supercenter and its related parties, except for any liabilities specifically protected by state franchising law.
Training & Support Program
Franchisor Assistance
Generator Supercenter provides various levels of assistance to its franchisees. Before opening, Generator Supercenter helps with reviewing and approving potential sites and leases, provides a prototypical floor plan design, and offers initial tuition-free training for up to four people (including the franchisee or Operating Principal and General Manager) at its Tomball, Texas location or a designated virtual location. It also provides information on approved suppliers for products, initial inventory, and equipment, and advises on the initial marketing plan. Franchisees receive access to a Confidential Operations Manual containing mandatory standards and procedures. For opening, Generator Supercenter offers up to three days of on-site (or remote) assistance. On an ongoing basis, Generator Supercenter offers consultation and advice on merchandising, inventory, sales techniques, personnel development, and other business matters through telephone, virtual meetings, email, intranet postings, and periodic on-site visits (for an additional fee). It approves products and services, grants permission to use confidential information and Proprietary Marks, and administers a Brand Development Fund if established. Generator Supercenter also provides ongoing support related to website technology and marketing content, including an online training portal and website maintenance, for a monthly fee. Franchisees may also be required to attend periodic refresher training programs and annual conferences.
Initial Training Hours
62
Training Location
Tomball, Texas, with a virtual option
Ongoing Support
After opening, Generator Supercenter franchisees receive continuing consultation and advice as deemed advisable, covering areas such as merchandising, inventory, sales techniques, personnel development, and operational and advertising matters. This support is delivered through various methods, including telephone, virtual meetings, email, intranet postings, and periodic on-site assistance (which may incur an additional fee). Generator Supercenter also provides ongoing services related to website technology and marketing content, including an online training and information portal, training modules, and website maintenance, for a monthly fee. Franchisees may be required to attend periodic refresher training programs, expected at least annually, and mandatory franchisee conferences, which occur no more frequently than once a year, with franchisees covering their own expenses for attendance.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Generator Supercenter provides franchisees with a Protected Area, which is defined by specific zip codes or geographical boundaries such as streets, towns, or counties, as detailed in Exhibit 1 of the Franchise Agreement. The size of these protected areas varies based on factors like population density, growth trends, apparent affluence of the population, density of residential and business entities, location of competing businesses, and major topographical features like rivers, mountains, major freeways, and undeveloped land areas.
Staffing Notes
Generator Supercenter businesses require franchisees to employ a sufficient number of qualified and competent people to meet product and service demand, as well as additional office personnel. Franchisees are solely responsible for all employment decisions including hiring, firing, discipline, supervision, setting compensation, and providing employee training according to Generator Supercenter's standards and procedures. It is crucial that employees understand they are exclusively employed by the franchisee and not by Generator Supercenter Franchising, LLC. The operating principal (or owner with at least 10% equity) is responsible for the overall management and daily operation, and must be fully trained and approved by Generator Supercenter. If the operating principal is not directly supervising, a fully trained and approved General Manager must be hired to oversee daily on-premises operations. All managers and field personnel must complete Generac's Factory Service Training to become certified service technicians. Franchisees must also staff all required vehicles with appropriately licensed drivers who meet System Standards.