In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the All Dry Services franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an All Dry Services franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an All Dry Services franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned All Dry Services outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of All Dry Services’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020, 2019, and 2014 (first year of business) annual total income, advertising expenses, equipment rental, wages, repairs and maintenance, fuel costs, insurance, permits and licenses, technology/communications, bank fees, royalty fee, brand fund contribution, utilities, facility rent, and net ordinary income for the franchisor’s affiliate, All Dry Services, LLC, based in Jupiter, Florida

Section I – Background Information

9 Things You Need to Know About the All Dry Services Franchise

Plans to Add 50 New Franchises in 2021

1.  In late September 2020, All Dry Services announced that is has franchised the business with four locations and six potential franchises coming aboard in the next sixty days. With zero advertising and overwhelming interest in the brand, All Dry’s team is excited for the future. All Dry plans to add 50 new franchises in 2021. The growth in this $210 billion dollar industry is far from mature, and gives All Dry the opportunity to come in and provide its franchises the turnkey model, support, and value-added brand the industry lacks today.

2.  All Dry Services has been a leader in the water restoration and mold remediation industry for the last six years. Its strong branding, job processes, technology, and support provide the company and its franchises a winning model. All Dry’s approach to attracting potential new partners is simple: provide a model that is easy to follow and provide quality support around the clock.

Provides a Wide Array of Restoration Services

3.  As a Florida-based company, All Dry Services is no stranger to natural disasters like flooding, hurricanes, tropical storms, and more. All Dry team members handle all of the restoration work themselves and never rely on subcontractors to get the job done. The brand’s goal is to leave a client’s home better than it was found and better than its original condition.

4.  All Dry’s restoration and cleanup services include:

• Fire damage restoration;
• Smoke damage restoration;
• Flood damage restoration;
• Storm damage restoration;
• Biohazard removal;
• Leak detection;
• Mold cleanup and inspection;
• Sewage cleanup;
• Odor removal;
• Trauma and crime scene cleanup; and
• Plumbing disasters.

5.  In addition to its array of services, All Dry says there are important details that make the company more reliable than other restoration services providers. Things to look for in a quality restoration services company include:

• Insurance Compliance – All Dry has experience working with all major insurance companies and can assist clients with the claims process.

• Emergency Services – All Dry is available for same-day and 24/7 emergency services so property owners will always be able to reach All Dry when it’s urgent.

• Reviews – Since starting in 2014, All Dry has collected satisfied customer reviews, proving that the brand offers quality service.

• An Informative Blog – All Dry knows that an informed market makes the best decisions when it comes to restoration services and cleaning up after disasters. Because of that, All Dry provides a blog to keep customers up to date on the hottest trends and latest news in the industry.

• Company Values – As a company that values integrity and honesty, All Dry provides clients with an honest, upfront estimate before any work is started.

Company History

6.  All Dry Services was founded in 2014 by Matt Kuntz in Florida. After studying marketing and accounting at the University of Central Florida, Kuntz ended up starting an air conditioning, plumbing, and electrical business. He spent over 25 years running and growing that business before selling it to a Fortune 100 company.

7.  Using all the knowledge and experience he gained, Kuntz developed the concept for All Dry and opened the first location in 2014. Franchising started in 2020. All Dry specializes in helping property owners return their property to normal after unexpected and unfortunate events requiring water mitigation and mold remediation.

8.  Today, there are All Dry locations open or coming soon in Florida, Nebraska, Texas, Tennessee, Colorado, Alabama, Louisiana, Georgia, Utah, Arizona, Nevada, Pennsylvania, New Jersey, Idaho, Connecticut, Massachusetts, and New Hampshire.

Entrepreneur’s Franchise 500

9.  All Dry Services did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of All Dry Services franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on All Dry Services’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Company-Owned

2018

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• The franchisor’s affiliate, All Dry Services, LLC, based in Jupiter, Florida, has operated a business of the type offered in the Disclosure Document since April of 2014. The table below represents the financial performance of this outlet during 2019 and 2020.

• This outlet served an area consisting of 370,000 people, which is approximately equal to one and a half territories under the Disclosure Document. This outlet did not pay an initial franchise fee and has not paid royalty fees or brand marketing fund fees. Other than the above-mentioned details, there are no material differences between this outlet and the franchise concept described in the Disclosure Document.

Corporate Outlet (January 1, 2019 to December 31, 2019)

Total Income (Service):  $4,090,488 (100.0%)

Expenses

• Advertising/Marketing/Referrals:  $458,482 (11.2%)
• Subcontractors/Equipment Rental:  $225,506 (5.5%)
• Wages/Payroll Expenses:  $1,278,417 (31.3%)
• Payroll Tax Direct Costs:  $259,900 (6.4%)
• Equipment Repairs and Maintenance:  $35,700 (0.9%)
• Vehicle Repairs and Maintenance:  $20,447 (0.5%)
• Fuel – Vehicles:  $72,775 (1.8%)
• Insurance – Vehicle and G/L:  $41,481 (1.0%)
• Permits and Licenses:  $3,380 (0.1%)
• Technology/Communications:  $17,476 (0.4%)
• Bank Fees:  $1,231 (0.0%)
• Royalty:  $286,334 (7.0%)
• Brand Fund:  $40,905 (1.0%)
• Total Expenses:  $2,701,128 (66.0%)

Net Ordinary Income Without Rent and Utilities:  $1,389,360 (34.0%)

Less:

• Utilities:  $12,080 (0.3%)
• Facility Rent:  $30,000 (0.7%)

Net Ordinary Income After Rent and Utilities:  $1,347,280 (32.9%)

Corporate Outlet (January 1, 2020 to December 31, 2020)

Total Income:  $3,151,702.42 (100.00%)

Expenses

• Advertising/Marketing/Referrals:  $435,876.33 (13.83%)
• Subcontractors/Equipment Rental:  $203,456.98 (6.46%)
• Payroll and Fees:  $1,079,878.55 (34.26%)
• Education – Tuition and Seminars:  $36,452.99 (1.16%)
• Equipment Repairs and Maintenance:  $66,909.89 (2.12%)
• Utilities:  $13,245.89 (0.42%)
• Facility Rent:  $34,456.34 (1.09%)
• Repairs and Maintenance – Vehicle:  $24,568.33 (0.78%)
• Fuel – Vehicles:  $71,345.87 (2.26%)
• Insurance – Vehicle and G/L:  $52,345.33 (1.66%)
• Permits and Licenses:  $3,298.99 (0.10%)
• Accounting and Audit Fees:  $4,525.00 (0.14%)
• Communications:  $15,345.89 (0.49%)
• Bank Fees:  $1,343.23 (0.04%)
• Total Expenses:  $2,043,049.61 (64.82%)

• Imputed Royalty Fees:  $220,619.17 (7.00%)
• Imputed Brand Fund Fees:  $31,517.02 (1.00%)

Net Income:  $856,516.62 (27.18%)

• Total Income is all income derived from the sale of services.

• Vehicle Repairs and Maintenance includes standard maintenance (oil change, tire rotation, etc.).

• Technology/Communications estimate to roughly $250 per employee for software, phones, tablets, etc.

• It is recommended that the business be run out of the owner/operator’s home during the first couple of years.

• Corporate outlet was operated from home for the first two and a half years before an office was added.

Corporate Outlet (January 1, 2014 to December 31, 2014: First Year of Business)

Total Income (Service):  $375,026 (100.0%)

Expenses

• Advertising/Marketing/Referrals:  $67,996 (18.1%)
• Subcontractors/Equipment Rental:  $59,128 (15.8%)
• Wages/Payroll Expenses:  $0 (0%)
• Payroll Tax Direct Costs:  $0 (0%)
• Equipment Repairs and Maintenance:  $9,000 (2.4%)
• Vehicle Repairs and Maintenance:  $1,200 (0.3%)
• Fuel – Vehicles:  $5,825 (1.6%)
• Insurance – Vehicle and G/L:  $2,120 (0.6%)
• Permits and Licenses:  $600 (0.2%)
• Technology/Communications:  $2,072 (0.6%)
• Bank Fees:  $239 (0.1%)
• Total Expenses:  $148,180 (39.5%)

Net Ordinary Income:  $226,846 (60.5%)

• Advertising/Marketing/Referrals includes several large marketing campaigns throughout the first year.

• Payroll was not an expense in the first year as the four co-founders worked the business themselves.

• Vehicle Repairs and Maintenance includes standard maintenance (oil change, tire rotation, etc.).

• Utilities and Rent were not an expense for the first two and a half years as the business was run from the founders’ home offices.

• Corporate territory was only open for 9 months of 2014.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.

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