Z Plumberz Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$94,270 - $418,710
Franchise Fee
$19,900
Total US Locations
37
Business Summary
Z PLUMBERZ operates a business offering residential, commercial, industrial, and government/municipal plumbing, sewer, and drain cleaning and repair services. Franchisees also have the option to provide cured in place pipe lining (CIPP) services to clients within their assigned geographic area.
Corporate History
Z PLUMBERZ International, LLC was formed on March 25, 2019, as a Michigan Limited Liability Company. In April 2019, its parent company, BELFOR Franchise Group, LLC, acquired the assets of Plumbing Professors, LLC, a company that offered residential and commercial plumbing, sewer, and drain services. Plumbing Professors, LLC served as Z PLUMBERZ's predecessor but did not operate as a franchise. Z PLUMBERZ aims to grow a franchised network of local owners across the U.S., offering plumbing, sewer, and drain services, including the option for cured in place pipe lining.
Financial Overview
Investment Range
$94,270 - $418,710
Franchise Fee (Low)
$19,900
Franchise Fee (High)
$44,900
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$139,900
Equipment Costs (High)
$211,300
Working Capital
$70,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for BFG Holdco, Inc., the guarantor for Z PLUMBERZ, indicate significant financial challenges. BFG Holdco, Inc. reported substantial consolidated net losses of $6,330,000 in 2022, $44,277,000 in 2023, and $11,108,000 in 2024. The company recognized large goodwill impairment losses in both 2023 ($45,537,000) and 2024 ($10,519,000). These impairments were attributed to deteriorating economic conditions, rising interest rates, increased cost of accessible debt, the elimination of TruckMount manufacturing, and strategic shifts to reduce the size of the franchise network to address franchisee noncompliance issues, all of which negatively impacted expected future cash inflows. The company's stockholders' equity significantly decreased from $115,695,000 in 2022 to $59,275,000 in 2024, and it reported an accumulated deficit of $54,968,000 by the end of 2024. Additionally, BFG Holdco, Inc. guarantees balances outstanding on a term loan and line of credit for Belfor Holdings, Inc. and other related entities.
Financing Details
Z PLUMBERZ may offer direct financing for a portion of the initial franchise fee if a franchisee meets its credit qualifications. For standard, related, and additional franchises, Z PLUMBERZ may finance up to 50% of the initial franchise fee, requiring a minimum 50% down payment. For conversion franchises, up to 75% of the initial franchise fee may be financed, with a minimum 25% down payment. The financing terms include a 9% interest rate for a period of up to 36 months. A personal guarantee from the franchisee, all owners, and their spouses is required as security. The promissory note can be prepaid at any time without penalty. Z PLUMBERZ also provides information and assistance for SBA loans and suggests third-party lenders like FranFund, Benetrends, and Directed Equity.
Performance Metrics
Total US Locations
37
Franchised Units
31
Corporate Units
6
Avg Square Footage
300
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Z PLUMBERZ has no litigation to report. Item 3 states that no litigation is required to be disclosed.
Bankruptcy History
Z PLUMBERZ has no bankruptcy history to report. Item 4 states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Z PLUMBERZ franchise, franchisees must be in substantial compliance with their franchise agreement and not have committed certain repeated defaults. They need to provide timely notice of their intent to renew, sign Z PLUMBERZ's then-current franchise agreement (which may have different terms), and upgrade or remodel their business to meet current brand standards. Franchisees are also required to sign a general release and pay a renewal fee.
Training & Support Program
Franchisor Assistance
Z PLUMBERZ provides several forms of assistance to its franchisees. Before opening, Z PLUMBERZ designates the territory, provides an initial package that includes equipment, marketing materials, and apparel, and loans operational manuals. They also approve business forms and marketing materials, specify insurance requirements, provide an initial training program for up to two people, and assign a business phone number. After opening, Z PLUMBERZ offers ongoing guidance on new products and services, purchasing supplies, developing marketing programs, and managing financial and daily operations. Franchisees receive support for the franchise's management software, access to a 24-hour contact number, and periodic updates to the operations manuals. Z PLUMBERZ also schedules periodic refresher training courses and conferences for ongoing education.
Initial Training Hours
50
Training Location
Ann Arbor, MI
Ongoing Support
Z PLUMBERZ provides ongoing support to its franchisees after opening through access to operational information based on submitted reports and inspections. Franchisees receive guidance on new products, services, and methods, as well as assistance with purchasing supplies, developing marketing programs, and managing financial and daily operations. The franchisor offers general business and marketing advice, support for the franchise's management software system, and a 24-hour contact telephone number. Franchisees also receive periodic updates to the operational manuals and are required to attend periodic refresher training courses and conferences, not exceeding one per year.
Franchise Requirements
Ideal Candidate Profile
Z PLUMBERZ seeks franchisees who are either licensed plumbers or can secure the necessary state licensing. Ideal candidates include individuals with a minimum of two years of experience in the plumbing industry. The Managing Owner, who must be approved by Z PLUMBERZ, is required to dedicate their full-time best efforts to manage, promote, and enhance the business. Franchisees must also employ a full-time experienced Service Technician, who may be the Managing Owner if they meet Z PLUMBERZ's experience criteria.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Z PLUMBERZ defines a standard franchise territory by population, encompassing between 200,000 and 350,000 people. In densely populated urban areas, the territory may instead be defined by the number of households, ranging from 150,000 to 160,000 households.
Staffing Notes
Z PLUMBERZ requires franchisees to employ a full-time experienced Service Technician responsible for performing and overseeing all plumbing, sewer, drain, and optional cured in place pipe lining services. Franchisees are responsible for training the Service Technician to Z PLUMBERZ's specifications. The Managing Owner, if experienced and approved by Z PLUMBERZ, may also serve as the Service Technician. Additionally, before opening, franchisees must employ at least one person who has successfully completed the Business Manager and Technical Operations Training. This trained individual must be employed by the Z PLUMBERZ business at all times. All Service Technicians, Designated Managers, sales, and account management employees must sign non-disclosure and confidentiality agreements upon starting their employment.