Koala Insulation franchise
A Koala Insulation franchisee installs insulation and provides related home and commercial building services. At the end of its 2025 fiscal year there were 333 Koala Insulation locations in the US, all franchised.
- Cost to open
- $195K–$242K
- Franchise fee
- $49,500
- Royalty
- 3.5%–6.5% + minimum
- Locations, 2025
- 333+7 in 3 yrs
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Company snapshot
- SBA loans
- On the SBA Franchise Directory
From Koala Insulation Franchisor, LLC’s 2026 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
How much a Koala Insulation franchise costs
Opening one territory costs an estimated $194,885 to $241,736. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Koala Insulation Franchisor, LLC, 2026 filing, page 28
Koala Insulation franchise fee
The franchise fee is $49,500. You pay it when you sign the franchise agreement.
Source: Koala Insulation Franchisor, LLC, 2026 filing, page 20
Royalty and ongoing fees
| Royalty | Tiered annual gross-sales rates of 6.5%, 5%, 4.5% and 3.5%, subject to per-territory minimums from month 7. Large accounts over $25,000 are charged at 4%. |
|---|
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Koala Insulation Franchisor, LLC, 2026 filing, page 26
Sales and earnings
Shares figures Koala Insulation publishes sales or earnings figures for its locations: Sales cover reporting territories for the fiscal year ending September 30, 2025; territory counts are not owner counts.. The full tables, with notes on which locations are counted, are in its filing.
Source: Koala Insulation Franchisor, LLC, 2026 filing, page 54
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2023 | 385 (+59) | 0 | 1 |
| 2024 | 392 (+7) | 0 | 48 |
| 2025 | 333 (−59) | 0 | 85 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Years are fiscal years ending September 30.
See which brands grew most in the fastest-growing franchises rankings.
Koala Insulation passes four of the five tests on our list of the best franchises to own; more of its franchised locations closed or left than is typical.
Source: Koala Insulation Franchisor, LLC, 2026 filing, page 66
How Koala Insulation compares
Of the 143 home service franchises on this site, Koala Insulation is the 118th cheapest to open and the 23rd largest by number of locations.
| Measure | Koala Insulation | Typical home service |
|---|---|---|
| Cost to open, low end | $195K | $134K |
| Closed or left per year | 11.5% | 5.6% |
| Change in franchised locations, 3 yrs | +2.1% | +15.6% |
| Shares earnings figures | Yes | 123 of 143 |
Typical is the median across the 143 brands in home service franchises.
