USA Insulation Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$299,500 - $470,000
Total US Locations
110
Business Summary
USA Insulation franchisees operate a business that offers and sells various insulation products, including proprietary injection foam, polyurethane spray foam, blown fiberglass, and rolled/batten fiberglass insulation. The business evaluates a client's insulation needs and then installs these products at their property, utilizing USA Insulation's brand marks and operating system.
Corporate History
USA Insulation was originally formed as USA Insulation Franchise Corporation, an Ohio corporation, on March 20, 2006. It later converted to an Ohio limited liability company on December 17, 2020. The company began offering franchises in March 2006. An affiliate, USA Enterprises, LLC, has been operating a similar insulation business since April 1985. USA Insulation was acquired by HS Group Holding Company, LLC on December 23, 2020, and subsequently by Threshold Brands, LLC on August 27, 2021.
Financial Overview
Investment Range
$299,500 - $470,000
Franchise Fee (High)
$55,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$125,000
Equipment Costs (High)
$165,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
HS Group Holding Company, LLC, the parent company of USA Insulation, has provided audited financial statements showing a net loss for the year ended December 31, 2024. The Consolidated Statement of Cash Flows indicates net cash used in operating activities and a net decrease in cash. Additionally, the company has a significant current portion of long-term debt, including a balloon payment due on December 23, 2025. Management is currently in negotiations with the lender to extend the maturity date of this debt.
Financing Details
USA Insulation may offer financing for up to the full amount of the initial franchise fee to prospects who meet its qualifications, including creditworthiness. If accepted, franchisees will sign a Promissory Note. This note requires monthly installments for up to 24 months at an annual interest rate of 12%, payable via electronic funds transfer. The note can be prepaid at any time without penalty.
Performance Metrics
Total US Locations
110
Franchised Units
109
Corporate Units
1
Avg Square Footage
3,000
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
USA Insulation has no litigation history to report. Item 3 of its Franchise Disclosure Document states that no litigation is required to be disclosed.
Bankruptcy History
USA Insulation has no bankruptcy history to report for itself or its management. Item 4 of its Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, USA Insulation franchisees must provide timely written notice, have no uncured material defaults (including monetary defaults) or more than three default notices during the agreement term, execute USA Insulation's then-current franchise agreement (which may have different terms) and a renewal amendment including a general release, complete any required refresher training, pay a renewal fee equal to 20% of the then-current initial franchise fee, and re-image, renovate, refurbish, and modernize their Approved Vehicles and Franchised Business to meet current brand standards.
Training & Support Program
Franchisor Assistance
Before opening, USA Insulation provides site selection guidelines and assistance, reviews and approves lease agreements, defines the designated territory, grants access to its confidential USA Insulation Operations Manual, provides a list of Required Items and Approved Suppliers, reviews and approves location layout/design/signage, and offers guidance for the Initial Marketing Spend. USA Insulation also provides an Initial Training Program. After opening, franchisees may receive additional and refresher training, continuing consultation and advice, advertising material approval, website listing, inspections and audits, product/supplier approval, administration of the Brand Fund, various forms and templates, and access to website development and maintenance services. USA Insulation may also establish a System-wide call center and offer search engine optimization services.
Initial Training Hours
174
Training Location
A combination of remote learning through calls, webinars, and online systems, and in-person sessions at USA Insulation's corporate headquarters or another designated training facility.
Ongoing Support
After opening, USA Insulation franchisees may be required to attend additional training programs and/or refresher courses, not exceeding two sessions or seven days annually, plus up to 24 hours of remote training. USA Insulation may provide ongoing consultation and advice via various communication channels. The franchisor also reviews and approves advertising/marketing materials, lists the business on its website, conducts inspections and audits, approves or disapproves requests for non-approved products/services or alternative suppliers, and administers the Brand Fund. USA Insulation may also provide various forms and templates and can establish a System-wide call center that franchisees may be required to use under certain conditions.
Franchise Requirements
Ideal Candidate Profile
USA Insulation seeks hands-on owner-operators who will initially be personally involved in the actual operation and direct supervision of the Franchised Business. Candidates must meet financial qualifications, including creditworthiness, as the franchisor may offer financing for the initial franchise fee. Franchisees are responsible for ensuring that personnel installing or selling proprietary foam insulation products become "Authorized Installers" by completing specific training programs designated by USA Insulation. After 18 months of operation, a franchisee may, with prior approval from USA Insulation, appoint a dedicated manager to handle day-to-day operations. However, if the franchisee or dedicated manager is not physically present on an Approved Vehicle or on-site at a job, at least one Authorized Installer must be present when proprietary foam insulation products are being used.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
4
Territory Size Requirements
USA Insulation offers two types of territories: a 'Large Market' territory, consisting of up to 150,000 homes built before 1990, and a 'Small Market' territory, consisting of up to 100,000 homes built before 1990. The number of older homes is determined using data from the United States Census Bureau.
Staffing Notes
USA Insulation franchisees will need to employ three to five associates, some of whom will be part-time. If the franchisee or their dedicated manager is not physically present at a job site, at least one Authorized Installer must be present if services involve proprietary foam insulation products. All personnel providing Approved Services must have the necessary licenses and certifications.