1 800 WATER DAMAGE
1-800 WATER DAMAGE offers water damage restoration services including mold remediation and fire cleanup. Known for quick response and comprehensive restoration solutions, it operates in the disaster recovery and cleaning services industry.
1 800 WATER DAMAGE franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a 1-800 WATER DAMAGE Business ranges from $142,903 to $312,398. This includes $110,000 to $115,950 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee can vary based on different scenarios. For new franchise owners purchasing their first standard franchise, it typically includes a fee, though the exact amount isn't specified in these excerpts. Related franchisees qualify for a 25% discount off the then-current standard initial franchise fee [p.85]. This isn't specified in the provided excerpts for other cases or amounts.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 10% of Gross Sales up to $499,999.99 for Remediation Services, with a required minimum monthly payment of $500 starting from the Transition Date. The fee reduces based on sales volume, down to 7% if annual sales exceed $2,000,000. There are no additional advertising fees required by the company beyond potential contributions to the Brand Marketing Fund, which it can use at its discretion for various promotional activities. [p.86, p.41, p.40]
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 5 to 10 years, with an option to renew for a fee or transfer the franchise agreement to a new or existing franchisee [p.215]. Renewal terms may require you to purchase new or additional equipment at your sole expense [p.18, p.84].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Additionally, if you wish to sell the equipment associated with your franchise, you must sell it to another 1-800 Water Damage franchisee in good standing and allow the franchisor first right of refusal [p.198]. The franchisor must approve any transaction, and if they financed part of the purchase price, the transferee will need to pay the remaining balance to them [p.198].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement for good cause, which includes the franchisee's failure to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to do so [p.5]. This isn't specified in the excerpts regarding grounds for termination by the franchisee.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify. However, it does indicate concerns about the franchisor's financial condition [p.179, p.242], which might affect services and support provided to you.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.47], but you do receive certain protected rights in your territory [p.47]. However, competition from other franchisees, company-owned outlets, and competitive brands controlled by the franchisor may still exist [p.47].
What training and ongoing support does the franchisor provide?
The franchisor provides technical operations and business manager training through a program directed by Mr. Ted Foster and Mr. Tim Fagan, who have extensive experience in the cleaning industry and franchising. Other training staff also support them periodically [p.44]. However, this training does not address specific ongoing financial or operational support beyond initial obligations [p.236-240].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the information provided in [p.61], as of December 31, 2025, there were 86 franchisees operating in 160 Territories. However, this number does not include 8 franchisees (operating 12 Franchised Businesses) who were either new or experienced a period of closure during the Measurement Period. Therefore, the exact number of closed or terminated outlets is not specified in these excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations except for the information included in the disclosure document. If you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet's performance [p.63]. Additionally, the franchisor is permitted to share supplementary financial performance information only if it pertains to a particular location or circumstances and supplements the information provided in Item 19 [p.61].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items, but you may have to buy certain items from designated suppliers or approved sources that the franchisor designates. For example, small tools, equipment, and safety packages, as well as branded apparel, must be purchased from CDI or BHI [p.31]. Additionally, all products and materials must meet the franchisor's standards and specifications and must be preapproved by them regardless of the supplier [p.140].