FREQUENTLY ASKED QUESTIONS ABOUT KOALA INSULATION
Below are the most commonly asked questions about franchising with Koala Insulation and the home insulation business.
IS THERE A BETTER TIME TO OPEN A KOALA INSULATION FRANCHISE?
There has never been a better time to build your family’s financial security through a Koala Insulation franchise. Costs are low and there is a huge, currently untapped market you will be able to access. There is no security working for someone else, so don’t wait!
HOW MUCH DOES A KOALA INSULATION FRANCHISE COST?
We have a low cost of entry compared to most franchises offering such a large, lucrative and untapped market. The total investment necessary to begin operation of a Koala Insulation franchise is estimated to be $200,000 but, is dependent on how many territories you purchase. This includes an initial franchise fee of $49,500.00 that must be paid to the franchisor. Click HERE to go to our startup cost page.
DO I NEED TO WORK IN THE BUSINESS?
It’s important for you to understand all aspects of the business, but your role is up to you. You can work in the business, manage the company, simply invest, or work to grow and sell the business. We can help you formulate the strategy that works best for your situation.
IF I’M INTERESTED IN A PARTICULAR TERRITORY, HOW CAN I FIND OUT WHAT IS OPEN OR FOR SALE?
Koala Insulation sites, both new and existing, are offered either to both our existing franchisees or to franchisee applicants on a first come first pick basis. We can’t predict what will be available for sale at the time the application is completed, but our real estate team will work to position each location for the greatest success possible. If you have the funds we recommend you make the move as soon as possible.
CAN I BUY A FRANCHISE FOR MY SON OR DAUGHTER?
It’s great if you want to be proactive about your family’s financial future. Each applicant must apply individually and have the required minimum non-borrowed personal resources. However, exceptions may be made on a case-by-case basis.
IS KOALA INSULATION SEEKING MINORITY OR WOMEN OWNER-OPERATORS?
Koala Insulation is an equal opportunity franchiser. We are seeking the best individuals who are capable of operating a territory, no matter what their race, creed or sex.
WHO ARE KOALA INSULATION’S CUSTOMERS?
Koala Insulation works with several different customer verticals that include: homeowners, contractors, property management companies, business owners, restoration companies, real estate investors and others. We also offer a number of services including insulation installation, air sealing, annual inspections, insulation removal, damage remediation, energy waste analysis and testing.
HOW BIG IS THE INSULATION MARKET?
The demand for affordable insulation is booming. According to The Atlantic, there are roughly 135 million homes in America. An industry study showed that 90% of existing single-family homes are under insulated. We also work with businesses and industrial properties as well, which means there is a lot of demand. In 2019, the Joint Center for Housing Studies at Harvard University reported that Americans will spend $450 billion dollars in home remodeling in 2019.
HOW MANY EMPLOYEES DO I NEED?
The number of staff depends on how many clients you have. In the beginning, you will start with a few people, but you will need to scale us as you become more established. We will provide coaching on how to hire the best people and how to scale wisely.
DO I HAVE TO COLD-CALL TO GET CUSTOMERS?
No, cold calling is not necessary. Our marketing systems are very robust and cold-calling to get most customers is not necessary. There are certain customer types that require additional outreach early on but, that can be done by other mediums.
IS IT HARD TO KEEP EMPLOYEES?
We’ve developed a successful retention strategy for franchise operators to follow. Through the use of Koala’s excellent training program, positive leadership and Koala’s recommended compensation structure, employee hiring and retention is much easier.
IS INSULATION INSTALLATION HARD WORK?
Yes, insulation work is manual. However, with the use of our custom-designed installation rigs, the machinery does a big portion of the work allowing the installer to work smarter and more efficiently.
HOW DO I START THE PROCESS FOR APPLYING FOR A KOALA INSULATION FRANCHISE?
To start the process, click HERE for more information. You can also call our development group directly at 877-87-KOALA Ext. 3.
HOW MUCH MONEY DO I NEED?
Koala Insulation requires each applicant to have a minimum of $50,000 of liquid assets available to invest prior to applying. While this is a minimum, Koala Insulation may require that an applicant have a significantly higher amount of liquid assets available to inject into multiple locations.
IS TRAINING PROVIDED TO PROSPECTIVE APPLICANTS? HOW LONG IS IT?
We require all franchisees to complete our training program prior to being allowed to open a location. Generally, training is 7 days which will require 5 days on site at the Koala Insulation Headquarters, then continued remote training.
I WOULD LIKE TO INVEST IN KOALA INSULATION WITH A PARTNER, ARE THERE ANY ADDITIONAL QUALIFICATIONS FOR A PARTNERSHIP?
Your Koala Insulation Franchising Officer will work with each applicant to make sure that everyone involved is fully educated and that everyone’s franchising questions about the brand and the business are answered. They will determine what is needed for the franchisee and any partners.
HOW MUCH DOES A KOALA INSULATION MAKE PER LOCATION?
Profitability depends on many factors, including operating costs, financing terms and most important, your ability to operate the business effectively. There is a strong revenue potential however of $125k-$400k per year.
WHAT IS THE AVAILABILITY OF KOALA INSULATION TERRITORIES IN MY AREA?
The availability of any specific areas will be discussed during your initial interview. We cannot predict which territories will be available when your application is complete. The Koala Insulation Development Team is limiting territories so that there is only one local territory awarded so that franchise has the best opportunity for strong growth. We will work with you to pick your territory.
DOES KOALA INSULATION HAVE ANY STRATEGIC PARTNERS?
Yes. We partner with Habitat for Humanity. We donate insulated walls, custom-sized for building construction.
HOW LARGE A SPACE DO I NEED?
We don’t require you to have an office or warehouse space. This is another way you can save expenses, but as you grow you may decide you need office or other space.
IS KOALA INSULATION A GOOD FIT FOR VETERANS?
Yes! Veterans are often trained in following systems, procedures and processes. Because our business model is easy to run and easy to scale, Koala Insulation is particularly suited to honorably discharged veterans who aspire to become entrepreneurs. In addition, many veterans can find favorable funding which can help with profitability.
WHAT MAKES A GOOD KOALA INSULATION TERRITORY?
When evaluating your territory options, its best to look at a mix of items such as:
a) The number of single-family dwellings.
b) The density of the area to reduce unwanted drive and estimating time.
c) Growth of the area. Koala has great territory mapping systems and we can help you to define the perfect territory.
WHY DOES THE FRANCHISE AGREEMENT ONLY ALLOW A RENEWAL OF UP TO 10-YEARS?
Great question! This is very common in franchise agreements to only allow a certain amount of renewal terms. The main reasoning for this is because we can’t predict the future and we must put a “hard stop” on the agreement term. This is more legal reasoning than anything.
I'VE NEVER OWNED A BUSINESS. DOES KOALA HELP WITH ESTABLISHING MY FRANCHISE?
Yes, absolutely! Our National Franchise Coordinator, Josey, will help to establish your franchise location. Our goal at HQ is to help you get opened as quickly as possible and on-schedule.
DOES KOALA HQ CHARGE FRANCHISEES FOR TRAINING?
NO! Your initial training is included in your franchise fee. Additional training is also no charge, assuming that we already have a training course scheduled. If you wanted to schedule private training, we would charge for that at the then-current rate. Our goal is to not charge for training as we feel knowledge transfer is extremely important.