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Koala Insulation Franchise Opportunity

Minimum Investment

$183,807

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Established

2018

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Franchise Units

400

payments

Minimum Investment

$183,807

payments

Franchise Fee

$49,500

payments

Total Investment Range

$250,000

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Home Based

Yes

Description

Koala Insulation is a fast-growing, essential services franchise offering energy-efficient insulation solutions for residential and commercial customers. Backed by a simple, scalable, and eco-conscious business model, Koala provides franchisees with a low-overhead, mobile operation in a $50+ billion insulation industry. Services include spray foam, blown-in, batt, and removal, all aimed at increasing energy efficiency, reducing utility bills, and improving indoor comfort.

With strong national brand recognition, turnkey systems, and comprehensive training and support, Koala Insulation is ideal for owner-operators and semi-absentee investors looking for a recession-resistant business with recurring demand. As energy efficiency becomes more important to homeowners and businesses alike, Koala Insulation positions franchisees to capitalize on this growing awareness while making a measurable environmental impact.


Background

Year Business Started: 2018
Year Started Franchising: 2020

Franchise Units Open: 400

Company Units Open: 0

Canada Franchises: No

International Franchises: No

Registered in non-registration states, CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA & WA



Support Training

Site Selection Assistance: Yes
Lease Negotiation Assistance: No
Recruiting Assistance: Yes

Initial Training 

No charge for any training listed below for the life of their agreement!  

Onsite training prior to open-Full Week long initial training at a purpose-built, state-of-the-art 12,000 sq. ft. training facility in Melbourne, Florida prior to launching in the franchisee's local market.  Koala Corporate Training facility has indoor and outdoor ventilated classrooms and has representative portions of buildings mocked up for use by trainers. New franchisees will be trained on all aspects of the business from sales and marketing to operations. 

After open Spray Foam training- After 4-5 weeks of being open Koala HQ will deploy out to the franchisee in their territory and work along side their technicians for 4 days building out their skill on Spray Foam.  

New in 2024-Koala 360 Sales Training- This is a top notch sales training built to educate a sales estimator on "building science" and how to match up the best recommendation for the customer need they're solving for 

New in 2024-Ongoing Koala Spray Foam Boot Camp-- As franchisees scale and add more technicians they are encouraged to send them to our Boot Camp at HQ for no cost. 


On-Going Support

  • On-staff experts who also staff help lines and offer field support, franchisees complete training with the knowledge and confidence they need to accurately quote and expertly install insulation. Just as importantly, they leave knowing how to teach their staff to do the same. Koala HQ possesses 30+ HQ members for ongoing support for our franchise partners.
  • Strong advertising programs; television ads; radio ads; in-house, full-time marketing department; marketing program designed by service business experts and proven to generate rapid sales increases.  In-house content writers, graphic designers, and videographers for location-specific content and video marketing.  
  • Nationally negotiated insulation distribution channels.  Franchisees will save on insulation purchases and will be part of bulk purchasing program. 
  • HR support to assist in building out opp model
  • Technology system to run the business end-to-end.  Franchisor has used and tested many software systems in various aspects of the operation and will assist franchisee with software to run virtually every aspect of the business.  


Ideal Candidate

Function & Daily Tasks of the Owner-Operator:

  • Operations Management
  • Sales or Sales Management
  • Providing Estimates
  • Networking with local realtors, HVAC professionals, builders, and other partners
  • Bookkeeping & Admin
  • Marketing & Advertising

Function & Daily Tasks of the Semi-Absentee Owner:

  • Sales Mentorship
  • Financial Reviews
  • Marketing Input
  • Reviewing KPIs
  • Weekly Meeting with Team

Ideal Candidate: Ideally, we would have franchisees that come from a management or sales / sales management background. To make Koala Insulation an executive-run business, the franchise owner has to be a leader with strong organizational skills. We need dynamic and strong leaders who can manage people and drive results.



Financial Detail

Investment Range: $183,807-$219,423 

Cash Investment: $150,000

Required Net Worth: $250,000

Required Liquid Capital: $150,000

Franchise Fees: 1 Unit: $49,500 2 Units: $89,500 3 Units: $124,500 4 Units: $154,500

See 2 Min. Drill for more 

Royalty: 6.5% for first Million, 5% for gross revenues after $1M, 4.5% after $2M, 3.5% after $3M

Brand Fund: 1%

Item 19: Yes 

 

Average Number of Employees:

Depending on if the franchisee is going to be involved in the daily operations or not can directly affect the staff level required. 

Executive Ownership Franchisee:

  • 2 Management Staff (1 Operations Manager, 1 Sales Manager / Estimator)
  • 2-6 laborers depending on # of trailers (2 installers per trailer or job)

 Owner Operator Franchisee 

  • 1 Management. Franchisee typically hires either Sales Manager or Operations Manager depending on their own background and experience.
  • 2-6 laborers.  (2 installers per trailer or job)

Daily Involved franchisee w/ sales background –

  • 1 Management. (1 Operations Manager) – Franchisee acts as Sales Manager.
  • 2-6 laborers. (2 installers per trailer or job)



Visa Candidate: Yes

Passive Ownership: Yes, Exectutive. 30-40 hours a week to launch and grow. Depending on leadership skills time to lower that varies. 

Home-Based: Yes

Business Model: B2B & B2C

Master Franchise Opportunities: No

Veteran Discount: Yes, 15% off first territory 



Item 19 Earning Claims
2022 Average of 23 Qualifying Locations

Gross Sales - $1,060,459.64
Total Revenue Less Disclosed Expenses - $341,606.77 (32.2%)*
*This is essentially the return but NOT EBITDA

2022 Average of 16 Non-Qualifying Locations

Gross Sales - $654,299.44
Total Revenue Less Disclosed Expenses - $171,102.89 (26.2%) 

Gross Sales for Koala Insulation Businesses for the 12 months ending September 30, 2023
Average Total Gross Revenue - $942,723 (76 locations)



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