Z PLUMBERZ

## Executive Summary

Z Plumberz offers a lower-cost entry into the plumbing franchise market backed by the BELFOR Franchise Group, one of the largest property restoration companies globally. With average unit revenue of $956,000 and total investment starting at $74,000, the franchise presents accessible economics for operators seeking plumbing market entry. The relatively young franchise system (franchising since 2017) means less track record but potentially more territory availability.

## The Business

Z Plumberz provides residential plumbing services including repairs, installations, maintenance, and drain cleaning. Founded in 2007 in Ann Arbor, Michigan, the company began franchising in 2017 and was acquired by BELFOR Franchise Group in 2020.

BELFOR Franchise Group owns multiple home service brands including 1-800 WATER DAMAGE and DUCTZ, creating potential synergies for multi-brand operators and referral networks.

## Investment Overview

| Category | Amount | |----------|--------| | Franchise Fee | $49,500 | | Total Investment | $74,000 - $398,000 | | Net Worth Required | $500,000 | | Liquid Capital Required | $150,000 | | Royalty Fee | 7% of gross sales | | Marketing Fund | 2% of gross sales |

## Financial Performance (Item 19)

- Average Unit Volume (AUV): $956,000 per year - Alternate reported figure: $980,624 gross sales - Estimated earnings: $117,675 - $147,094 annually - Estimated EBITDA (15% margin): $144,000

This compares to approximately $1,072,000 average for similar plumbing/HVAC franchises, placing Z Plumberz slightly below category average but with lower entry costs.

## Network Statistics

- Franchised Units: 38 (as of 2024) - Corporate Units: 0 - Franchising Since: 2017 - Parent Company: BELFOR Franchise Group - Headquarters: Ann Arbor, Michigan

## Training and Support

Z Plumberz provides initial training and ongoing support through the BELFOR Franchise Group infrastructure. Territory size typically covers 200,000-350,000 population with defined boundaries but not exclusive rights.

## Competitive Analysis

**Strengths:** - Lower entry cost than major competitors - BELFOR Franchise Group backing - Newer system with territory availability - 10-year initial term with renewal options

**Weaknesses:** - Smaller network means less brand recognition - Higher 7% royalty than some competitors - Limited track record (franchising since 2017) - Non-exclusive territory protection

**Competitors:** - Mr. Rooter ($122K-$264K investment, 6% royalty) - Roto-Rooter ($114K-$288K investment) - Benjamin Franklin Plumbing ($143K-$287K investment, 6% royalty)

## Risk Factors

1. Relatively new franchise system with limited performance history 2. Higher royalty rate (7%) compared to 6% industry standard 3. Non-exclusive territory creates potential competition concerns 4. Smaller network means less brand awareness 5. Limited Item 19 disclosure compared to established competitors

## Investment Recommendation

Z Plumberz offers an accessible entry point for operators seeking to enter the plumbing franchise space with institutional backing. The BELFOR connection provides operational infrastructure and potential referral networks. Best suited for operators who prioritize lower initial investment over established brand recognition, and who have realistic expectations about building awareness in their markets.

Prospective franchisees should validate territory economics carefully given the limited system track record and compare the 7% royalty impact against competitors offering 6%.