TEGG Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$96,280 - $229,384
Franchise Fee
$65,000
Total US Locations
49
Business Summary
TEGG Service franchises specialize in the maintenance, repair, replacement, diagnostics, and enhancement of various electrical systems, telecommunication systems, data communication systems, and related power and building automation systems. TEGG Service offers these technical services primarily to commercial, industrial, institutional, and multi-family residential buildings (those with more than three stories), rather than to single-family homes.
Corporate History
ABM Franchising Group, LLC, the franchisor for TEGG Service, was initially established on November 3, 2003, as Linc Franchises, LLC. It underwent name changes to Linc Network, LLC, and then to ABM Franchising Group, LLC on November 1, 2012. The company is part of an affiliated group formed in 2003 to acquire Linc Corporation, an entity considered its predecessor. ABM Franchising Group, LLC acquired the TEGG brand in 2012 and has been offering TEGG franchises since that time. The TEGG brand itself had been franchising since 1993 before this acquisition.
Financial Overview
Investment Range
$96,280 - $229,384
Franchise Fee (Low)
$65,000
Franchise Fee (High)
$75,000
Royalty %
4.5%
Equipment Costs (High)
$68,684
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
TEGG Service's parent company, ABM Industries Incorporated, has received an unqualified audit opinion on its consolidated financial statements from KPMG LLP, indicating that the statements fairly present its financial position and results of operations. Auditors noted a critical audit matter related to the valuation of self-insurance liabilities, which requires significant judgment. As of October 31, 2024, the parent company had total assets of $5,097.2 million and total liabilities of $3,315.2 million, with a net income of $81.4 million for the year. ABM Industries Incorporated unconditionally guarantees to fulfill the duties and obligations of TEGG Service to its franchisees if TEGG Service is unable to do so. Positive developments were noted in the performance of the RavenVolt acquisition, leading to an increase in contingent consideration payable for future periods.
Financing Details
TEGG Service does not offer direct or indirect financing to franchisees, except for an installment option for the Initial Franchise Fee. Franchisees can pay $37,500 upfront and the remaining $37,500 in eleven consecutive monthly installments of $3,409.09 each. TEGG Service does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
49
Franchised Units
49
Corporate Units
0
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
TEGG Service has no litigation history to report.
Bankruptcy History
TEGG Service has no bankruptcy history to report.
Agreement Terms
Initial Term
6 years
Renewal Term
6 years
Renewal Conditions
To renew a TEGG Service franchise, franchisees must be in good standing, not be in default of their current agreement, and have substantially complied with all terms. Franchisees must also sign TEGG Service's then-current franchise agreement, which may contain different terms, and execute a general release of all claims against TEGG Service and its affiliates. Additionally, franchisees must comply with the then-current qualification, training, test instrument, and safety requirements. TEGG Service must also still be operating as a franchisor.
Training & Support Program
Franchisor Assistance
TEGG Service provides franchisees with initial training for their personnel, which covers general management, maintenance sales, and operations coordination without a tuition fee. There is a $2,350 tuition fee per participant for Operations Technical initial training, which includes Infrared Level 1 and Level 2 training and a PCN exam. Franchisees also receive password-protected access to the Confidential Operating Manual online. Ongoing support includes refresher training and other training, access to TEGG University for blended learning solutions, and business evaluations covering sales, cost controls, and staffing. Franchisees also receive business consulting and field sales coaching from a TEGG Area Vice President, access to COM updates, and the benefits of national purchasing agreements. TEGG Service may also regulate the types and quality of parts and equipment used, and audit the quality of work.
Initial Training Hours
74
Training Location
Pittsburgh, PA
Ongoing Support
After opening, TEGG Service offers ongoing support through refresher training and other training programs at no tuition cost. Franchisees' employees can access TEGG University, an online platform providing a central hub for training and development materials, including blended learning solutions. TEGG Service may also provide periodic evaluations of the franchisee's business performance, covering areas like sales, cost controls, and staffing, and offer business consulting and field sales coaching from a TEGG Area Vice President. Franchisees also receive updates to the Confidential Operating Manual via TEGGNet and can benefit from national or regional purchasing agreements. Additionally, TEGG Service has the right, but not the obligation, to regulate the types and quality of parts and equipment used and to audit the quality of the franchisee's work.
Franchise Requirements
Ideal Candidate Profile
TEGG Service primarily seeks qualified individuals and business entities that are currently involved in the electrical contracting business. However, it also considers qualified individuals and entities that are not presently engaged in the electrical business. While TEGG Service recommends that the business's principal(s) personally participate in the direct operation, it is not a requirement if a mutually agreed-upon and franchisor-approved General Manager is in place to dedicate sufficient time to managing the business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Limited
Staff Count
2
Territory Size Requirements
TEGG Service defines territories, either as a Primary Marketing Area or a Shared Marketing Area, by considering standard statistical information such as metropolitan areas, city and county populations, economic impact areas, and terrain conditions. These areas are typically delineated by county boundaries and/or boundary streets or highways.
Staffing Notes
A TEGG Service franchise must be directed and managed by a franchisor-approved General Manager who devotes sufficient time to the business. The TEGG Service division also needs to be staffed with personnel for sales management, operations, accounting, job costing, service report auditing, material costing, invoicing, purchasing, financial reporting, payables, clerical tasks, and administrative duties. This includes at least one fully dedicated Sales Professional and TEGG Certified Electricians and Electronic Technicians (TEGG Technical Professionals). During the first six months of operation, the estimated staffing costs are for one full-time dedicated Sales Professional and one Field Service Electrician/Technician. These personnel must be chosen by the franchisee, approved by TEGG Service, and complete initial training.