911 Restoration
911 Restoration offers franchises for emergency response services including fire, water, and mold damage cleanup, carpet cleaning, and duct cleaning. Known for rapid response to disaster situations, 911 Restoration operates in various geographic territories across the U.S., focusing on communities of different sizes.
911 Restoration franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Micro-Market Franchise ranges from $135,200.00 to $296,000.00, while for a Traditional Franchise, it ranges from $167,700.00 to $334,000.00. This includes the initial franchise fee that must be paid to the franchisor, which is part of these amounts. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of franchise and the estimated population of the territory. For Traditional and Conversion Franchises, the fee is associated with territories having a population between 250,000 to 350,000, while for Micro-Market Franchises, it relates to territories with a population between 100,000 to 249,999. However, the exact amount is not specified in these excerpts. [p.28]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 1% of monthly collected sales, payable on the 15th day of each month, with adjustments if the 15th falls on a non-business day [p.249]. Additionally, there's an ongoing contribution to the National Advertising Fund at the greater of 1% of Gross Revenue or $100 per month after the first six months [p.25]. These fees are mandatory regardless of sales levels and failure to pay may result in termination of the franchise agreement [p.5].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement generally lasts for a period of seven years [p.250]. However, whether you can renew the agreement depends on various factors, including compliance with the terms of the agreement and the availability of the premises under your lease or sublease [p.96]. The franchisor may also refuse to renew if you fail to pay amounts owed when due or substantially comply with the terms of the agreement [p.96].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires Franchisor's approval except for good cause. Additionally, there are fees involved; a $2,500 fee if transferred to an existing franchisee, and a $5,000 fee if transferred to someone not currently under the Franchisor. If transferring multiple territories or if referred by the Franchisor, additional fees apply [p.138]. The new franchisee will also need to pay the initial training fee in addition to any transfer fee [p.45].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.215]. Additionally, if there is a default or termination stated in the Franchise Agreement that does not constitute 'reasonable cause' as defined under Virginia Retail Franchising Act or Virginia laws, such provision may not be enforceable [p.209, p.222].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor does not specify a minimum net worth requirement directly. However, if the franchisor’s most recent financial statements are unaudited and show a net worth of less than $100,000.00, the franchisor may require that initial investment and other funds be escrowed until obligations to provide real estate, improvements, equipment, inventory, training, or other items included in the franchise offering are fulfilled [p.210]. This isn't specified in the excerpts for minimum net worth or liquid capital requirements directly applicable to the franchisee's financial condition.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.47]. However, other franchisees are prohibited from directly marketing to or soliciting customers within your Territory through local advertising methods [p.47], though this protection does not extend to franchisor-owned outlets or national accounts [p.202].
What training and ongoing support does the franchisor provide?
The franchisor provides an Initial Training Program which includes operational, management, and marketing training. This program can be held virtually or at their headquarters, depending on their designation. The training may involve accompanying, observing, assisting, and participating in service delivery to customers. Ongoing support is not specified beyond the initial training; however, the franchisor reserves the right to modify the training program as needed. [p.99]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance representations based on historical data from existing franchisee-owned outlets, but does not make any representations about a franchisee's future financial performance. This information is included in Item 19 of the FDD and covers operations from January 1, 2025 to December 31, 2025, excluding businesses that did not provide adequate financial reporting [p.56].
What am I restricted to selling, and where must I buy supplies?
You are restricted from operating a similar business during the term of the franchise and must purchase all goods, services, and equipment for your Franchised Business exclusively from the franchisor's preferred suppliers, unless otherwise permitted in writing. You may sell products only to customers within your designated Territory, and you cannot sell any products or deliver any products to customers located outside of your Territory unless there is no other 911 Restoration operating in that area. [p.4, p.31]