Koala Insulation is a home services franchise specializing in insulation evaluation, removal, and installation services. The system shows concerning unit economics with significant contraction in 2025 (59 net unit decline) and high termination rates. However, Item 19 data shows reasonable financial performance for surviving franchisees with median sales over $1M. The franchise offers territorial protection based on population (200k minimum), allows home-based operations to reduce overhead, and provides comprehensive training. Key concerns include high ongoing fees (6.5% royalty plus multiple other fees), restrictive contract terms, and recent system instability. The franchise requires significant equipment investment ($220-296k for Koala Rigs) but offers a necessary service in an established market.
Generated from 2026 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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