Lightspeed Restoration
Lightspeed Restoration offers water and fire damage restoration services to residential and commercial customers. Known for comprehensive indoor air quality solutions, it requires an initial investment of $157,180 - $268,950. Operates in the disaster restoration industry.
Lightspeed Restoration franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of a LIGHTSPEED RESTORATION® franchise ranges from $157,180 - $268,950. This includes $109,950 - $111,450 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is a fixed amount of $19,950 payable in a lump sum upon signing the franchise agreement. This fee is not refundable and applies only to the first franchise agreement [p.95, p.132, p.15]. Additionally, veterans, active service members, or their spouses receive a 15% discount on this fee [p.23].
What are the ongoing royalty and advertising fees?
Ongoing royalties include both variable sales-based royalties, which vary based on sales generated by the franchisee and may have de-escalation clauses, and fixed rate royalties, which are flat fees due monthly as determined in the franchise agreement. These fixed rates may also escalate during a new franchisee ramp-up period or periodically for inflation [p.201]. Additionally, ongoing advertising fees are imposed and collected by the company; upon written request, you must authorize direct withdrawal from your bank account [p.19].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information about the length of the initial franchise agreement or the renewal process beyond mentioning a $5,000 renewal fee at the time a new franchise agreement is signed [p.100].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise only for good cause as defined by the franchisor. Good cause includes but is not limited to unspecified criteria. [p.6] This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law, according to [p.71]. Additionally, the franchisor has the right to terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time frame, which cannot exceed 30 days, as stated in [p.6].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on working capital needs and qualifications for a transferee, but it does not provide specific details about net worth or liquid capital requirements for initial qualification as a franchisee. [p.111] mentions maintaining working capital, while [p.25] provides an estimate of additional funds needed for the first three months, but these do not directly address net worth or liquid capital qualifications.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.41, p.62]. However, your Protected Territory is safeguarded from other LIGHTSPEED RESTORATION® franchises, meaning no additional LIGHTSPEED RESTORATION® franchise will be sold in your area [p.41]. This protection does not extend to competition from ACS or other channels of distribution controlled by the franchisor [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for the franchisee and up to one employee at no additional charge [p.24]. This training is detailed in Item 11 of the FDD. For on-site assistance beyond the initial training, the franchisor may provide such help if available, charging the franchisee based on their then-current training fee plus expenses including travel and lodging [p.108]. The franchisor also shares training facilities with its affiliate ACS at the HFC Experience Center [p.41].
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 share actual records of an existing outlet if it is being purchased, but generally does not provide financial performance or earnings projections. The franchisor also prohibits its employees or representatives from making such representations [p.54]. However, the franchisor can supplement the information provided in Item 19 under certain conditions [p.51].
What am I restricted to selling, and where must I buy supplies?
Based on the provided excerpts, there is no specific mention of what you are restricted to selling or where you must buy supplies. [p.N] This isn't specified in the excerpts.