How Much Is a Restoration 1 Franchise? (Detailed Franchise Costs)

Restoration 1 Franchise Costs: Estimated Initial Investment (Item 7, 2025 FDD)

For a Non-Conversion Franchise

1.  Franchise Fee:  $59,900 to $64,400

• The Franchise Fee for a standard Market Territory is $59,000 plus $0.18 per person above 250,000 in population. Most franchisees have Market Territories between 250,000 and 275,000 people, resulting in Franchise Fees ranging from $59,900 to $64,400 for a standard Market Territory.

• If you wish to add-on a micro Market Territory to an existing Market Territory, the Franchise Fee will depend on the size of the Market Territory. The Franchise Fee for a micro Market Territory of 75,000 to 200,000 will be $13,500 to $36,000, based on $0.18 per person in the population.

2.  Technology Fee:  $2,100

• This estimate is for your Technology Fee for one month prior to opening and the first three months of operation for a total of four months of payments. This estimate assumes that you have one Market Territory and have not requested any additional user accounts or email addresses. You must pay the Technology Fee per Market Territory.

3.  Real Estate/Rent:  $0 to $1,000

• A suitable space for storing all service tools and equipment will be approximately 150 square feet. Restoration 1 currently requires you lease off-site storage space.

• The estimate above includes a security deposit equal to two months’ rent to lease the unit. Estimated rental costs for three months are included within the category “Additional Funds.”

• The location of the storage space and its relationship to and the nature of any adjoining uses will affect both its size and price.

• Restoration 1 may establish System Standards for off-site storage, including relating to size, safety, or insurance requirements, with which your off-site storage must comply.

4.  Renovations and Improvements:  $250 to $500

• To adapt the Franchised Business Office for the operation of your Franchised Business, you may need to make some minor renovations or improvements.

• Factors that may effect the cost of renovations and improvements include: the size, condition, and location of the facilities, local wage rates, and the cost of materials.

5.  Encircle Software:  $225 to $2,500

• You must purchase Restoration 1’s designated Encircle Software prior to attending the Training Program in Dallas, Texas. This fee may be paid in a lump sum of $2,500 per year or in installment payments of $225 per month. The fee is paid directly to the third-party licensor and covers the first 100 claims as well as the training program provided by the licensor of the software.

• After you first 100 claims, you must pay the licensor an additional fee of $10 per claim (a minimum of 100 claims must be purchased at a time).

6.  Office Equipment and Supplies:  $300 to $1,000

• You must purchase general office supplies including stationery, business cards, and typical office equipment. Factors that may affect your cost of office equipment and supplies include local market conditions, competition among suppliers, and other factors.

7.  Service Tools and Equipment:  $1,200 to $48,000

• Restoration 1 will provide you with its System Standards for the service tools and equipment and other equipment and supplies necessary to establish and operate a Restoration 1 Business.

• The low estimate is based on 3 months of leasing costs, if you lease the required equipment and service tools through a third party.

• The high estimate above assumes that you purchase new equipment and service tools.

• Factors that may affect the cost of required service tools and equipment may include local market conditions, competition among suppliers, and other factors.

8.  Uniforms:  $250 to $650

• The range of costs provided represents an initial supply of uniform shirts that meet Restoration 1’s standards and specifications.

• The costs will depend on the number of employees that you hire and the quantity of uniform shirts that you order.

9.  Technology Systems Components:  $1,650 to $4,750

• You must acquire and use the Technology Systems that Restoration 1 designates.

• The cost of your Technology Systems will depend on whether you already own any components that must be purchased, freight and installation costs, the cost of internet and connectivity services in your area, applicable state and local taxes, and other factors.

10.  Training Expenses for 3 People:  $4,700 to $14,100

• Restoration 1 does not charge a fee for the Training Program for you (or if you are a legal business entity, your Owners) and up to three additional persons (one of which must be your Designated Owner or Designated Manager, as applicable).

• For the estimate above, Restoration 1 assumes that you will send between 1 to 3 individuals to training. Restoration 1 does not include fees or costs for any additional trainees.

• You are responsible for all travel and living expenses (including wages, transportation, food, lodging, and workers’ compensation insurance) that you and your Key Personnel incur during any and all meetings and/or training courses and programs. The total cost will depend on the number of people attending, how far you and your Key Personnel will travel, and the type of accommodation chosen.

• Restoration 1 assumes for the estimate above, that all attendees will share one rental car.

• If Restoration 1 or its representatives travel to your area to conduct any training of any kind, you are also responsible for the travel and living expenses and out-of-pocket costs that Restoration 1 and such representatives incur. The estimate provided does not include the cost of Restoration 1’s personnel traveling to your area to provide the Training Program.

11.  Vehicle:  $4,500 to $70,000

• Restoration 1 will provide you its System Standards for a service vehicle, which you must lease or purchase prior to the start of operations of your Franchised Business.

• The service vehicle must be wrapped and lettered in accordance with the System Standards and must accommodate the required equipment to operate your Franchised Business.

• The low estimate above is based on the first three months of leasing costs for one new service vehicle including the cost of wrapping the van; and the high estimate includes the estimated purchase price of one tradesman van and the cost of wrapping the van.

• You may obtain more than one service vehicle if you wish, but you are not required to do so, and Restoration 1’s estimate above does not include more than one service vehicle for a non-conversion franchise.

12.  Marketing Materials:  $500 to $2,500

• During your first three months of operation, Restoration 1 recommends you spend at least $500 on local advertising and promotion of your Franchised Business, including online and internet marketing and advertising, dues for business organizations and events, or other solicitation and promotional efforts.

13.  Insurance:  $7,000 to $12,000

• You must maintain in force at your sole expense the minimum types and amounts of insurance that Restoration 1 requires.

• Insurance providers may require either an annual payment or semi-annual installments.

• The amounts listed above estimate the cost of your premiums for the first 3 months of operations.

14.  Licenses and Permits:  $250 to $5,000

• You must obtain and provide Restoration 1 with copies of all permits and licenses required to operate your Franchised Business, including those specified as mandatory in the Confidential Operations Manual and by state and local law.

• In addition to business and operating licenses and permits, you may need to become a licensed contractor or engineer to make repairs to damaged structures.

15.  Certifications:  $2,200 to $4,000

• Restoration 1 will provide you access to its designated vendor for Water Restoration, Applied Structural Drying, and Estimating certifications from IICRC at no cost in connection with the Training Program. But you must obtain all other necessary certifications at your own expense based on the services you offer from your Franchised Business.

• The estimate above assumes you obtain Mold and Fire certifications promptly after signing your Franchise Agreement, but you may elect to obtain additional certifications.

• The low estimate assumes that you do not need to travel outside of your area to obtain the certifications.

• The high estimate includes estimates of travel, local transportation, lodging, and meals in addition to tuition, course materials, and exam fees.

16.  Professional Fees:  $1,500 to $2,000

• You may incur other types of professional fees including fees for legal and accounting services. You may require an accountant and an attorney to provide services to help you form a new business entity to own your Franchised Business and review contracts and other documents, including the Disclosure Document.

17.  Additional Funds (3 months):  $40,000 to $75,000

• The figures above reflect estimated working capital needs for a three-month period. Additional funds include operating expenses, such as rent, storage space rental costs, utilities, and employees’ salaries.

• Restoration 1 recommends that you engage a business development manager or technician, the cost of which is also included in this estimate.

• These amounts do not include any estimates for debt service on loans that you obtain to finance your Franchised Business, and the estimates do not include any salary for your Owners during the initial phases of operations.

18.  Total:  $126,525 to $309,500

• In compiling this chart, Restoration 1 relied on its and its affiliates’ industry knowledge and experience in developing Restoration 1 Businesses and affiliated franchise businesses.

For a Conversion Franchise

• Total:  $75,750 to $199,000

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