Rainbow International
Rainbow International offers water, fire, and mold restoration services, along with cleaning and reconstruction for both residential and commercial properties. Known for comprehensive restoration solutions, it operates in the disaster recovery and cleaning services industry.
Rainbow International franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation ranges from $185,336 to $351,900. This includes a minimum franchise fee of $40,250 that must be paid to the franchisor and its affiliate, plus additional costs for establishing the business. [p.2]
What is the initial franchise fee?
The initial franchise fee is $60,000 for a territory up to 200,000 in population. For additional territory beyond this, the fee is $400 per each additional 1,000 population, with pro-rata amounts for smaller increments [p.24]. This fee is non-refundable and may be subject to discounts or financing options [p.26, p.124]. However, as of the latest amendment, no initial franchise fee is due upon execution of the Agreement [p.329].
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts. The provided FDD excerpts discuss synthetic royalties and master license fees from affiliated entities, as well as MAP (Marketing, Advertising, and Promotional) fund contributions and expenditures, but do not detail specific ongoing royalty or advertising fees for franchisees.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.4]. However, you may renew your license for one renewal term of 10 years under certain conditions, including being in good standing and meeting other specified criteria [p.112].
Can I sell or transfer my franchise, and what does that require?
According to [p.6], you cannot freely sell or transfer your franchise; it requires good cause as determined by the franchisor. This provision also allows the franchisor a right of first refusal to purchase the franchise if applicable.
On what grounds can the franchisor terminate the agreement?
The franchisor, PROTRADENET, can terminate the agreement at any time, with or without cause, for any reason whatsoever by providing written notice of intent to terminate. Additionally, termination can occur if the franchisee is in default of their Franchise Agreement or fails to comply with specified terms and conditions [p.334]. This isn't specified in the excerpts regarding specific grounds beyond these general provisions.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.74]. You may face competition from other franchisees, as well as outlets owned by the company or controlled by affiliated parties [p.74]. However, the franchisor will not operate another Rainbow Restoration franchise in your designated territory if you are in full compliance with your Franchise Agreement [p.74].
What training and ongoing support does the franchisor provide?
The franchisor provides Phase I and Phase II training at no additional cost for up to 12 months from signing the Franchise Agreement. At least one owner or designated manager must complete this training. Additionally, ZorWare will offer training and support services by telephone and over the internet during their normal business hours [p.338]. The franchisor may also require field training at a franchised business location, which is not compensated but for which travel, living, and miscellaneous expenses are required to be paid by the franchisee [p.67].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2025, there were a total of 262 franchised outlets in operation. Seventeen franchised businesses closed during the 2025 fiscal year [p.89], but this does not specify how many had their franchise agreements terminated; it only indicates that none of the closures occurred after being open for less than 12 months [p.89].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can share financial performance and earnings information under certain conditions. According to [p.88], the franchisor is permitted to provide such information if there is a reasonable basis for it and it is included in the disclosure document. Additionally, [p.91] states that while the franchisor does not typically furnish this type of information, exceptions include providing actual records of an existing outlet being considered or receiving financial performance information from prospective franchisees, which must be reported to the franchisor's management and relevant authorities.
What am I restricted to selling, and where must I buy supplies?
You are restricted to using certain items that the franchisor or a limited group of suppliers designated by them. These items might be more expensive than those you could purchase on your own [p.4]. The franchise agreement does not specify exact limitations on what you can sell, but it may include restrictions on operating a similar business during the term of the franchise and other operational aspects such as marketing and hours of operation [p.201][p.4].