Mr. Appliance franchise cost: investment, fees and the SBA default rate

Items 5, 6 and 7 · Mr. Appliance FDD 2026 · Updated 2026

A Mr. Appliance franchise costs $147,750–$273,175 in total initial investment, according to Item 7 of the brand's FDD (2026). Mr. Appliance charges a weekly license fee of 5% - 7% of Gross Sales, the rate set by the prior week's sales per capita in the territory, plus minimum license fees. On the lending side, Mr. Appliance franchisees defaulted on 42.5% of SBA 7(a) loans approved FY2010–FY2019 (17 of 40), and the average SBA loan to a Mr. Appliance franchisee in that cohort was $146,288.

Mr. Appliance franchise cost and SBA record.

Total initial investment (Item 7)	$147,750–$273,175
Advertising fund (Item 6)	2% of sales
Ongoing fees (Item 6)	Mr. Appliance charges a weekly license fee of 5% - 7% of Gross Sales, the rate set by the prior week's sales per capita in the territory, plus minimum license fees.
SBA 7(a) default rate, FY2010–FY2019	42.5%
Average SBA loan, 2010s cohort	$146,288
Average SBA loan since 2020	$225,392
Industry	Appliance Repair and Maintenance

How much does it cost to open a Mr. Appliance franchise?

Item 7 of the FDD estimates the total initial investment at $147,750–$273,175. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Total excludes the fee for territory beyond the 150,000-population minimum, charged at $425 per 1,000 population.

What does the SBA data add?

The federal loan record adds what the FDD cannot: Mr. Appliance franchisees defaulted on 42.5% of SBA 7(a) loans approved FY2010–FY2019 (17 of 40 resolved loans), against the Appliance Repair and Maintenance industry average of 16.8%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 78 new SBA loans, of which 11 have already charged off.

Set the investment range against the loans: an average SBA loan of $146,288 against the $147,750–$273,175 investment range says roughly how much of a typical Mr. Appliance opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.

Considering Mr. Appliance?

The Item 19 in Mr. Appliance's FDD was written by Mr. Appliance. The record on this page was written by the banks that lent to its owners and by the federal agency that paid when those loans went bad. Take that record with you, or have an analyst hold the brand's own disclosures up against it before you sign.

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The loan-level detail this page leaves out: the default rate of Mr. Appliance loans by the owner's situation (start-up, existing business, or bought an existing one), what owners who repaid borrowed against owners who defaulted, the year of the loan the charge-offs came in, how much was written off, the states with the most loans and the lenders that made them. Plus the rate by approval year, lending since 2020, what its FDD discloses and the CSV behind every table, in a PDF a loan officer will recognize. Stamped with your order. Yours the moment you pay.

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An analyst takes Mr. Appliance's own disclosures, the Item 19 revenue claim, the Item 20 closures and transfers, the Item 3 litigation, and reads them line by line against this federal record, ending in a written verdict you can put in front of your attorney and lender. SBA Record Snapshot the moment you pay; the full teardown by email within 24 hours.

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Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.

Frequently asked

How much does a Mr. Appliance franchise cost?

What is the Mr. Appliance franchise fee?

Mr. Appliance's FDD Item 5 fee is not in this dataset; the total initial investment (Item 7) is $147,750–$273,175.

What royalty does Mr. Appliance charge?

Mr. Appliance charges a weekly license fee of 5% - 7% of Gross Sales, the rate set by the prior week's sales per capita in the territory, plus minimum license fees.

What is Mr. Appliance's SBA loan default rate?

42.5%: 17 of 40 SBA 7(a) loans approved FY2010–FY2019 to Mr. Appliance franchisees were charged off.

Source

Sources: Mr. Appliance Franchise Disclosure Document (2026, Wisconsin DFI filing 640764); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.

Cite this page

Franchise Failure Rates (2026). Mr. Appliance franchise cost, Items 5–7, and SBA 7(a) default rate. From the Mr. Appliance FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/mr-appliance/cost/ · Data & methodology

Author: Franchise Failure Rates · First published August 17, 2026 · Updated September 30, 2026 · Citation format