Mr. Electric franchise startup costs run $113K–$294K — a Neighborly residential and commercial electrical services concept with low physical overhead, recurring maintenance and repair demand, and SBA Franchise Directory listing.
Mr. Electric is a residential and commercial electrical services franchise within the Neighborly family of home services brands. The concept covers the full range of electrical service needs — panel upgrades, outlet and switch installation, EV charger installation, lighting upgrades, ceiling fan installation, whole-home surge protection, and diagnostic service calls. Mr. Electric operates as a service dispatch business, not a brick-and-mortar retail location. This guide covers the capital requirements for prospective Mr. Electric franchisees at the planning stage.
Mr. Electric franchisees run service dispatch operations — hiring licensed electricians, managing service vehicles, and dispatching to residential and commercial job sites within a defined territory. The Neighborly platform provides marketing infrastructure, call center support, and cross-referral opportunities from other Neighborly brands operating in the same territory (Aire Serv, Mr. Rooter, Rainbow Restoration, and others). The residential electrical services market benefits from recurring demand driven by aging housing stock, EV adoption requiring Level 2 charger installation, and increasing home automation and smart home upgrades.
Per Mr. Electric's current Franchise Disclosure Document (FDD), required under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment runs $113K–$294K. The low end of the range reflects a home-based or small-office startup with minimal service vehicles; the high end reflects a multi-vehicle operation with dedicated office space. Major cost categories include:
Mr. Electric charges a royalty of 6% of gross sales plus a 2% advertising fund contribution, for a total ongoing fee load of 8%. The 2% advertising fund supports Neighborly's national marketing infrastructure, which drives inbound service requests across all Neighborly brands in a market. The cross-referral model — where other Neighborly franchisees in the same territory refer clients to each other — provides incremental lead volume on top of the advertising fund spend. The 6% royalty is standard for a residential services franchise with dispatch infrastructure support.
Mr. Electric is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. The $113K–$294K investment range accommodates SBA 7(a) financing across the full range. Common financing paths include:
Mr. Electric franchisees benefit from recurring demand in the residential electrical services market — aging housing stock, EV charger installations, smart home upgrades, and code-compliance work create a consistent service call pipeline. The asset-light model (no storefront, home-based or small-office operation viable) keeps fixed costs low relative to retail franchise concepts at similar investment levels. Operators who prioritize hiring licensed electricians quickly and building commercial account relationships alongside residential service calls typically model 12–24 months to operating breakeven. The Neighborly cross-referral network accelerates lead volume in established Neighborly territories.
Mr. Electric is a strong fit for operators with a background in skilled trades, construction management, or home services operations. The franchisee does not need to be a licensed electrician — the model is built around recruiting and managing licensed electricians — but trades industry familiarity accelerates hiring and quality control. The $113K investment floor is one of the lowest in the skilled trades service franchise category, making this accessible to operators with $40K–$60K in liquid capital using SBA financing. The Neighborly platform is a meaningful advantage in markets where multiple Neighborly brands are already operating.
SBA lenders underwriting Mr. Electric applications under SBA SOP 50 10 7 evaluate five primary factors:
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Per the current FDD, total estimated initial investment runs $113K–$294K. The low end reflects a home-based or small-office startup with minimal service vehicles; the high end reflects a multi-vehicle operation with dedicated office space.
No. Mr. Electric franchisees are business operators who hire and manage licensed electricians. Trades industry familiarity is helpful for hiring and quality control, but the franchise model is built around business management, not performing the electrical work personally.
Neighborly is the parent franchise platform that owns Mr. Electric along with other home services brands including Aire Serv, Mr. Rooter, Rainbow Restoration, and others. Franchisees benefit from a cross-referral network where other Neighborly brands operating in the same territory refer clients — a meaningful lead-volume advantage in established Neighborly markets.
Mr. Electric charges a 6% royalty on gross sales plus a 2% advertising fund contribution, for a total ongoing fee load of 8%. The 2% advertising fund supports Neighborly's national marketing infrastructure and cross-referral system.
SBA lenders require a minimum DSCR of 1.25× at stabilized service volume under SBA SOP 50 10 7. For a home services dispatch business like Mr. Electric, stabilized DSCR is typically modeled at the revenue run rate achievable after 12–18 months of service territory development. The non-discretionary nature of electrical repair and code-compliance demand supports a lower-risk revenue ramp assumption compared to discretionary service concepts. Supplement your DSCR pro forma with local housing stock age data and EV charger installation market demand in your service territory.
SBA 7(a) financing for the $113K–$294K Mr. Electric investment range requires 10–15% equity injection under SBA SOP 50 10 7 — approximately $11K–$44K in liquid borrower assets depending on total project cost. The full range fits within SBA Express (up to $500K) for faster approval. ROBS (Rollover for Business Startups) is a qualifying equity source for franchisees with retirement savings. Service vehicles financed separately reduce the main SBA loan amount and the associated equity injection requirement.