FDD Analysis Report
Mighty Dog Roofing
MDR United LLC
Home Services
Mighty Dog Roofing is a home services franchise specializing in residential and commercial roofing services. The franchise offers new and replacement roofing, emergency tarping, gutter replacement, siding replacement, and window replacement. Founded in 2020, the system has grown to 388 territories across the United States. The business model is operationally straightforward with a home-based structure.
Key Metrics At-a-Glance
$59,500
$171,524 - $223,965
6%
of gross sales
See FDD
of gross sales
10 years (renewable)
388 units
388 franchised, 0 company
$1,549,914
Item 19 data
About This Franchise
5 min read## Executive Summary
Mighty Dog Roofing is a rapidly expanding roofing franchise backed by HorsePower Brands, one of the fastest-growing multi-brand home services franchisors in North America. Founded in 2012 as "Roof Roof" by Jon Sabo and acquired by HorsePower Brands in August 2020, the franchise has experienced explosive growth, ranking No. 313 on Entrepreneur's 2025 Franchise 500 List.
## Investment Overview
| Category | Details | |----------|----------| | **Franchise Fee** | $59,500 | | **Total Investment** | $171,524 - $303,000 | | **Royalty Fee** | 8.5% of Gross Revenues Collected | | **Minimum Royalty** | $300-$650 per week (varies by months in operation) | | **Brand Fund** | Up to 3% (if re-established) | | **Local Advertising** | $6,000/month first 3 months; then 5% of monthly Gross Revenues | | **Liquid Capital** | $50,000 - $100,000 |
## Financial Performance (Item 19)
Mighty Dog Roofing demonstrates strong financial performance based on FDD disclosures:
- **Average Gross Revenue:** $3,571,253 (39% above sub-sector average) - **Sub-sector Average:** $2,567,876 - **Estimated Net Income:** $171,326 - **Franchisees in 2023 Study:** 52 franchisees operating full year
### Item 19 Details The FDD discloses performance data for 52 of 103 franchisees who operated for the entire 2023 calendar year. As of December 31, 2023, there were 103 franchisees in operation, with 38 new franchisees commencing operations during 2023.
## Training & Support
Mighty Dog Roofing provides comprehensive franchisee support:
- **Initial Training:** Comprehensive onboarding program - **Ongoing Support:** Continuous operational guidance - **Technology Platform:** Modern systems for job management - **HorsePower Brands Resources:** Access to multi-brand support infrastructure - **Marketing Support:** National advertising and local marketing guidance
## Network Statistics
- **Total Locations:** 104 across the United States - **Franchised Units:** 103 (as of December 2023) - **Company-Owned:** 1 - **Growth in 2023:** 38 new franchisees - **Founded:** 2012 (franchising since 2020) - **Parent Company:** HorsePower Brands
## Competitive Analysis
### Strengths - HorsePower Brands backing provides substantial resources and expertise - 39% above sub-sector average revenue demonstrates strong business model - Rapid expansion (65 to 103 franchisees in one year) - Comprehensive service offerings: roofing, siding, gutters, windows, skylights - Storm damage repair specialization creates recurring opportunities - Strong Entrepreneur Franchise 500 ranking (#313)
### Weaknesses - Higher royalty rate (8.5%) compared to competitors - Significant local advertising requirements ($6,000/month initially) - Newer franchise system (franchising since 2020) - Minimum royalty fees regardless of revenue
### Key Competitors - Best Choice Roofing - Storm Guard Roofing & Construction - Honest Abe Roofing - Bumble Roofing
## Risk Factors
1. **Newer Franchise System:** Less proven track record compared to established competitors 2. **Higher Ongoing Costs:** 8.5% royalty plus significant advertising requirements 3. **Rapid Expansion Risk:** Fast growth may strain support resources 4. **Weather Dependency:** Business tied to weather events and storm damage 5. **Labor Challenges:** Roofing industry faces ongoing skilled labor shortages
## Investment Recommendation
**Rating: Buy**
Mighty Dog Roofing offers an attractive opportunity for investors seeking to capitalize on the growing roofing franchise sector. The HorsePower Brands backing provides stability and resources that independent roofing businesses cannot match.
**Ideal Candidate Profile:** - Liquid capital of $50,000-$100,000 - Comfortable with higher initial advertising spend - Sales or management background preferred - Interest in building a multi-service home exterior business - Ability to recruit and manage crews
**Key Considerations:** The higher royalty rate (8.5%) is offset by strong revenue performance. Franchisees averaging $3.57M in gross revenue should generate sufficient margins to absorb the fee structure while building a profitable business.
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*This analysis is based on publicly available information including the Franchise Disclosure Document. Prospective franchisees should conduct independent due diligence and consult with franchise attorneys and accountants before making investment decisions.*
Investment Analysis
Initial Investment Breakdown
The total initial investment ranges from $171,524 to $223,965.
| Expense Category | Low | High |
|---|---|---|
| Initial Franchise Fee | $59,500 | $59,500 |
| InsuranceInsurance (90 days) - general liability, commercial auto, workers comp | $4,500 | $10,000 |
| Training ExpensesTuition Fee for Initial Training Program (up to 3 attendees) | $4,995 | $4,995 |
| Training ExpensesTravel and Living Expenses while Training | $1,500 | $3,500 |
| Equipment & FixturesOpening Package - catch all system, technology devices, promotional materials, drone kit | $11,900 | $15,470 |
| Other CostsUtilities (90 days) | $200 | $500 |
| Vehicle(s)Vehicle - one pick-up truck sales vehicle | $13,144 | $15,115 |
| Licenses & PermitsLicenses, Certificates and Permits | $3,200 | $10,000 |
| Professional FeesProfessional Fees (Attorneys/Accountants) | $1,000 | $10,500 |
| Technology & SoftwareTechnology Fee (3 months at $792/month) | $2,376 | $2,376 |
| Technology & SoftwareSpecial Software Fee (3 months) | $900 | $900 |
| Technology & SoftwareContact Center Fee (3 months) | $1,200 | $3,500 |
| Other CostsBusiness Dues and Subscriptions | $3,000 | $3,500 |
| Initial Marketing/AdvertisingBrand Marketing Fee (one-time) | $15,500 | $15,500 |
| Initial Marketing/AdvertisingInitial Marketing and Local Advertising Expenditure (90 days) | $20,000 | $20,000 |
| Initial Marketing/AdvertisingDigital Management Fee (3 months) | $1,500 | $1,500 |
| Other CostsAccounting Services Fee (3 months at $440/month + setup) | $2,109 | $2,109 |
| Other CostsZeePartnerships Fee (one-time) | $5,000 | $5,000 |
| Additional Funds (Working Capital)Additional Funds (90 days working capital) | $20,000 | $40,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $171,524 | $223,965 |
* Working capital estimate covers 3 months of operations
Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Royalty | 6% of Gross Revenue | Tiered royalty: 6% ($0-$1M), 5% ($1M-$3M), 4% ($3M-$5M), 3% ($5M-$7M), 2% ($7M+). Minimum royalty $500/month after year 1. |
| Brand Fund | See FDD of Gross Revenue | Brand Fund currently not assessed. Local advertising requirement: $20,000 first 90 days, then greater of $2,000/month or 5% of Gross Revenues. |
| Technology Fee | $792/month | Monthly Technology Fee. Additional: Special Software Fee, Contact Center Fee ($300/mo + $23/appointment) |
| Local Marketing | 5% | Brand Fund currently not assessed. Local advertising requirement: $20,000 first 90 days, then greater of $2,000/month or 5% of Gross Revenues. |
| Transfer Fee | 20% | 20% of then-current Initial Franchise Fee per Protected Territory |
| Renewal Fee | 20% | 20% of then-current Initial Franchise Fee per Protected Territory |
Item 19: Financial Performance Representations
This franchisor provides financial performance representations.
Average Revenue
$1,549,914
Median Revenue
$1,008,179
Highest
—
Lowest
—
Data Notes:
- Basis: franchisee_reported
- Units included: 84
System Health Analysis
Growth Trajectory
| Year | Start | End | Opened | Closed | Net | Growth |
|---|---|---|---|---|---|---|
| 2025 | 313 | 388 | +75 | -0 | +75 | +24.0% |
Risk Assessment
Items to Review
No exclusive territory granted
The franchisor may place additional units or competing channels within your area.
Source: Item 12
Material litigation disclosed
Review Item 3 for details on lawsuits involving the franchisor.
Source: Item 3
Growth rate decelerating
System growth is slowing compared to prior years.
Source: Item 20
Positive Indicators
Strong system growth trajectory
Consistent unit growth indicates market demand and successful franchisee operations.
Source: Item 20
Due Diligence Recommendations
Minimum royalty of $24,000/year applies regardless of sales. Calculate break-even revenue needed to cover this minimum plus other fixed costs.
Minimum payments create fixed cost exposure.
Growth has decelerated from 633.33% to 200%. Investigate whether this reflects market saturation, competitive pressure, or internal issues.
Slowing growth may indicate maturing market or brand challenges.
FDD notes some franchisees have signed confidentiality provisions. Be aware that some contacts may be restricted in what they can share. Try to speak with franchisees who left before such provisions existed.
Confidentiality clauses may limit validation information available.
No exclusive territory is granted. Understand exactly what protections (if any) you have against competition from franchisor or other franchisees.
Lack of territory protection creates competitive risk.
Review all 117 litigation matters in Item 3. Have attorney assess patterns, outcomes, and implications for franchisee relations.
Material litigation may indicate systemic disputes.
Disputes must be resolved in PE. Understand cost and practical implications of out-of-state litigation. Check if your state has protections that override this.
Out-of-state dispute resolution increases cost and complexity of any future disputes.
Contact at least 10-15 current franchisees across different tenure levels and performance tiers. Prepare specific questions about revenue, profitability, support quality, and overall satisfaction.
Standard due diligence - validate FDD claims with operators.
Contact franchisees who left the system (listed in Item 20 exhibits). Understand their reasons for leaving and any disputes with franchisor.
Former franchisees provide candid perspective on challenges.
Have a franchise attorney review the Franchise Agreement, especially termination provisions, renewal conditions, transfer restrictions, and non-compete clauses.
Standard due diligence - understand contractual obligations.
Build a detailed 5-year pro forma using Item 7 costs, Item 6 ongoing fees, and revenue assumptions validated with franchisees. Include realistic ramp-up period.
Standard due diligence - model expected economics.
Download Complete FDD
Access the full Franchise Disclosure Document including all 23 items, exhibits, and financial statements.
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Learn More About FDDs
New to franchise investing? Our educational guides will help you understand what to look for in the Mighty Dog Roofing FDD.
FDD Item 19 Explained
Understanding financial performance representations
How to Analyze Item 19 Data
Calculate ROI, break-even, and evaluate earnings claims
The Ultimate Guide to FDDs
Learn how to read and analyze Franchise Disclosure Documents
Understanding Item 7: Initial Investment
How to evaluate franchise investment costs
About Mighty Dog Roofing Franchise
Mighty Dog Roofing is a home services franchise that offers entrepreneurs the opportunity to own and operate their own business within an established system. As of the 2025 Franchise Disclosure Document, the system has grown to 388 locations across the United States. This analysis provides prospective franchisees with key insights from the FDD to support informed investment decisions.
Mighty Dog Roofing Franchise Cost
The total initial investment required to open a Mighty Dog Roofing franchise ranges from $171,524 to $223,965. This investment includes the initial franchise fee of $59,500, along with expenses for real estate, equipment, inventory, training, and working capital to sustain operations during the initial period. Ongoing fees include a royalty fee of 6% of gross sales. Prospective franchisees should review Item 7 of the FDD for a complete breakdown of estimated initial investment costs.
Mighty Dog Roofing Item 19 Financial Performance
Mighty Dog Roofing provides financial performance representations in Item 19 of their Franchise Disclosure Document. According to the disclosed data, franchisees reported average gross revenue of $1,549,914. This transparency allows prospective franchisees to evaluate potential returns, though actual results will vary based on location, management, and market conditions. Review the complete Item 19 disclosure for detailed financial metrics and the specific criteria used in the analysis.
Mighty Dog Roofing Franchise Growth and System Health
The Mighty Dog Roofing franchise system has shown growing performance based on unit count data from Item 20 of the FDD. Prospective franchisees should examine the historical data on unit openings, closings, and transfers to understand the system's trajectory and identify any concerning trends.
Mighty Dog Roofing Franchise Investment Considerations
The Mighty Dog Roofing FDD contains important disclosures that prospective franchisees should carefully review before making an investment decision. Key factors to evaluate include the franchise fee structure, ongoing royalty requirements, territory rights, termination history, and franchisor support systems. Every franchise investment carries risk, and this analysis should be combined with professional legal and financial advice. Review the complete FDD and speak with current franchisees to gain a comprehensive understanding of the opportunity.
Due Diligence Recommendations for Mighty Dog Roofing
Before investing in a Mighty Dog Roofing franchise, prospective franchisees should:
- Minimum royalty of $24,000/year applies regardless of sales. Calculate break-even revenue needed to cover this minimum plus other fixed costs.
- Growth has decelerated from 633.33% to 200%. Investigate whether this reflects market saturation, competitive pressure, or internal issues.
- FDD notes some franchisees have signed confidentiality provisions. Be aware that some contacts may be restricted in what they can share. Try to speak with franchisees who left before such provisions existed.
- No exclusive territory is granted. Understand exactly what protections (if any) you have against competition from franchisor or other franchisees.
- Review all 117 litigation matters in Item 3. Have attorney assess patterns, outcomes, and implications for franchisee relations.
Download the Mighty Dog Roofing FDD
Access the complete Mighty Dog Roofing Franchise Disclosure Document, including all 23 Items, exhibits, franchise agreement, and audited financial statements. FreeFDDs™ provides free access to FDDs to promote franchise transparency and help prospective franchisees make informed decisions. The FDD contains critical information that should be reviewed in its entirety before making any investment decision.
Disclaimer
This analysis report is provided for informational purposes only. The data presented has been extracted from the Franchise Disclosure Document and may contain errors or omissions.
Prospective franchisees should conduct their own due diligence, review the complete FDD document, and consult with qualified legal and financial advisors before making any investment decisions.