Restoration 1 Water Damage Experts
Restoration 1 Water Damage Experts offers water, fire, smoke, and mold restoration services to residential and commercial clients. Known for comprehensive damage recovery, this franchise requires significant investment ranging from $18,350 to $309,500. Operates in the water damage restoration industry.
Restoration 1 Water Damage Experts franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a standard Restoration 1® franchise ranges from $126,525 to $309,500. This includes $60,425 to $64,925 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $59,900 plus an additional $0.18 per person in the Market Territory over 250,000 people. Most franchisees have a Market Territory between 250,000 and 275,000 people, resulting in Franchise Fees ranging from $59,900 to $64,400 [p.13]. This fee is deemed fully earned when paid and is non-refundable under any circumstances [p.73].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is calculated based on a percentage of the Collected Gross Revenue, with specific details provided on the Summary Page [p.73]. Additionally, you must spend up to 2% of Collected Gross Revenue each month on Local Advertising Expenditure, though indirect costs and certain advertising expenses are excluded from this requirement [p.85, p.30]. There is also a Brand Fund Contribution that can be up to 2% of Collected Gross Revenue, which you must pay in the manner designated by the company [p.85].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in detail regarding duration. However, any renewal terms would be governed by the remaining renewal terms outlined in this agreement [p.102].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a provision permits the franchisor to refuse to permit a transfer of ownership of the franchise, except for good cause [p.5]. Good cause includes but is not limited to unspecified factors. This means you cannot freely sell or transfer your franchise without the franchisor's approval [p.5(g)].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement if there is good cause, which includes your failure to comply with any lawful provision of the Franchise Agreement and not curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your Market Territory is strictly a limitation on the geographic area where you may conduct business activities, but it does not provide territorial protections against competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by the company [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive Training Program that covers essential aspects of operating a Restoration 1 Business [p.34]. This program may be conducted at designated locations or virtually, with the duration and content tailored to the attendees' experience [p.36]. Ongoing support includes periodic meetings for franchise owners or managers, which may incur fees up to $1,000 per attendee, per conference [p.36].
How many franchised outlets are there, and how many have closed or been terminated?
There are a total of 231 franchised territories operated by 118 franchisees. Since the end of the most recent fiscal year, 11 franchised outlets have ceased operations [p.54]. This isn't specified in the excerpts regarding the exact number of closed or terminated outlets broken down by state, but it does provide details on their locations [p.58].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and if such information is included in this Disclosure Document [p.49]. However, other than the specified financial performance representation, the franchisor does not make any representations about future or past financial performance of company-owned or franchised outlets [p.54].
What am I restricted to selling, and where must I buy supplies?
You are generally restricted to selling products that comply with the franchisor's System Standards, though you may need to seek approval for alternative suppliers or products first [p.24]. You must typically buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].