In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Restoration 1 franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Restoration 1 franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Restoration 1 outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Restoration 1 franchise opportunity
Section V – Presentation and analysis of Restoration 1’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest collected gross revenue for the 81 Restoration 1 franchisees that operated 1 franchised territory during the full 2022 calendar year; 35 Restoration 1 franchisees that operated 2 franchised territories during the full 2022 calendar year; 18 Restoration 1 franchisees that operated 3 franchised territories during the full 2022 calendar year; 3 Restoration 1 franchisee that operated 4 franchised territories during the full 2022 calendar year; 2 Restoration 1 franchisees that operated 5 franchised territories during the full 2022 calendar year; and 2 Restoration 1 franchisees that operated 6 franchised territories during the full 2022 calendar year
Section VI – Key ratios, comparables, computations, and analyses for the Restoration 1 franchise opportunity (exclusive content for Platinum subscribers)
Section I – Restoration 1 Franchise Costs
- Restoration 1 franchise costs (standard franchise), based on Item 7 of the company’s 2023 FDD:
- Franchise Fee: $59,900 to $64,275
- Real Estate/Rent: $0 to $450
- Renovations and Improvements: $250 to $500
- Encircle Software: $1,000
- Office Equipment and Supplies: $300 to $1,000
- Service Tools and Equipment: $500 to $40,000
- Uniforms: $250 to $650
- Technology Systems Components: $1,650 to $4,750
- Training Expenses for 3 People: $2,000 to $5,000
- Vehicle: $3,000 to $50,000
- Marketing Materials: $500 to $2,500
- Insurance: $2,500 to $5,000
- Licenses and Permits: $250 to $5,000
- Certifications: $1,000 to $4,000
- Professional Fees: $1,500 to $2,000
- Additional Funds (3 months): $20,000 to $40,000
- Total Estimated Restoration 1 Franchise Costs: $94,600 to $226,125
Section II – Restoration 1’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Restoration 1’s initial franchise fee, royalty fee, and marketing fee (standard franchise), based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: for a Standard Franchise: $59,900, plus an additional $175 per 1,000 people over 250,000 in your Market Territory; for a Micro Market Franchise: $35,000, plus an additional $265 per 1,000 people over 125,000 in your Market Territory
- Royalty Fee: greater of: (a) 7% of Collected Gross Revenue (or 3.5% for a conversion franchise during its initial 6 months) (other than Construction Gross Revenue); or (b) the Minimum Royalty Fee
- Reconstruction Royalty Fees: 2% of Construction Gross Revenue
- Brand Fund Contribution: up to 2% of Collected Gross Revenue (other than Construction Gross Revenue)
- Reconstruction Brand Fund Contribution: up to 0.5% of Construction Gross Revenue
- Local Advertising Expenditure: up to 2% of Collected Gross Revenue (not currently imposed)
Section III – Number of Franchised and Company-Owned Restoration 1 Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 252
- Net Change: +33
2021
- Outlets at the Start of the Year: 252
- Outlets at the End of the Year: 271
- Net Change: +19
2022
- Outlets at the Start of the Year: 271
- Outlets at the End of the Year: 290
- Net Change: +19
Company-Owned
2020
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on the Restoration 1 Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Restoration 1 Franchise (Item 19, 2023 FDD)
- As of December 31, 2022, there were a total of 290 franchised Restoration 1 Businesses.
- Each Restoration 1 Business represents one franchised territory. Some franchisees operate multiple franchised territories. Most franchisees that operate multiple franchised territories do not separately report Collected Gross Revenue for each franchised territory.
- As a result, Restoration 1 has provided Collected Gross Revenue data on a “per franchisee” basis (not on a “per territory” basis). The financial performance data below is provided in separate tables based on the number of franchised territories each franchisee operates.
- The financial performance representations presented below include 2022 Collected Gross Revenue data for the 141 franchisees operating a total of 239 franchised territories during the full 2022 calendar year.
- Restoration 1 excluded data for the following franchisees:
- (i) 7 franchised territories that operated during the entire 2022 calendar year but failed to report their 2022 Collected Gross Revenue to Restoration 1;
- (ii) 44 franchised territories that were not operating during the entire 2022 calendar year because they opened after January 1, 2022;
- (iii) 13 franchised territories that were not operating during the entire 2022 calendar year because they were terminated or permanently closed prior to December 31, 2022.
Part 1 – Collected Gross Revenue – Franchisees Operating 1 Territory (81 Franchisees)
Top 25%
- Number of Franchises: 20
- Average Collected Gross Revenue: $1,863,904
- Number and Percentage Meeting or Exceeding Average: 5 of 20 (25.0%)
- Median Collected Gross Revenue: $1,634,425
- Lowest Collected Gross Revenue: $1,107,525
- Highest Collected Gross Revenue: $6,204,096
Top 50%
- Number of Franchises: 41
- Average Collected Gross Revenue: $1,280,129
- Number and Percentage Meeting or Exceeding Average: 12 of 41 (29.3%)
- Median Collected Gross Revenue: $1,061,105
- Lowest Collected Gross Revenue: $431,362
- Highest Collected Gross Revenue: $6,204,096
Top 75%
- Number of Franchises: 61
- Average Collected Gross Revenue: $966,913
- Number and Percentage Meeting or Exceeding Average: 24 of 61 (39.3%)
- Median Collected Gross Revenue: $696,171
- Lowest Collected Gross Revenue: $252,728
- Highest Collected Gross Revenue: $6,204,096
Bottom 25%
- Number of Franchises: 20
- Average Collected Gross Revenue: $130,308
- Number and Percentage Meeting or Exceeding Average: 11 of 20 (55.0%)
- Median Collected Gross Revenue: $156,910
- Lowest Collected Gross Revenue: $5,800
- Highest Collected Gross Revenue: $212,208
Bottom 50%
- Number of Franchises: 41
- Average Collected Gross Revenue: $232,535
- Number and Percentage Meeting or Exceeding Average: 21 of 41 (51.2%)
- Median Collected Gross Revenue: $252,728
- Lowest Collected Gross Revenue: $5,800
- Highest Collected Gross Revenue: $431,362
Bottom 75%
- Number of Franchises: 61
- Average Collected Gross Revenue: $398,521
- Number and Percentage Meeting or Exceeding Average: 24 of 61 (39.3%)
- Median Collected Gross Revenue: $316,472
- Lowest Collected Gross Revenue: $5,800
- Highest Collected Gross Revenue: $1,061,105
Total
- Number of Franchises: 81
- Average Collected Gross Revenue: $760,344
- Number and Percentage Meeting or Exceeding Average: 30 of 81 (37.0%)
- Median Collected Gross Revenue: $431,362
- Lowest Collected Gross Revenue: $5,800
- Highest Collected Gross Revenue: $6,204,096
Part 2 – Collected Gross Revenue – Franchisees Operating 2 Territories (35 Franchisees)
Top 25%
- Number of Franchises: 9
- Average Collected Gross Revenue: $2,268,192
- Number and Percentage Meeting or Exceeding Average: 2 of 9 (22.2%)
- Median Collected Gross Revenue: $1,773,516
- Lowest Collected Gross Revenue: $1,411,754
- Highest Collected Gross Revenue: $5,638,483
Top 50%
- Number of Franchises: 18
- Average Collected Gross Revenue: $1,630,598
- Number and Percentage Meeting or Exceeding Average: 6 of 18 (33.3%)
- Median Collected Gross Revenue: $1,406,414
- Lowest Collected Gross Revenue: $740,384
- Highest Collected Gross Revenue: $5,638,483
Top 75%
- Number of Franchises: 26
- Average Collected Gross Revenue: $1,335,238
- Number and Percentage Meeting or Exceeding Average: 10 of 26 (38.5%)
- Median Collected Gross Revenue: $1,014,694
- Lowest Collected Gross Revenue: $597,965
- Highest Collected Gross Revenue: $5,638,483
Bottom 25%
- Number of Franchises: 9
- Average Collected Gross Revenue: $325,874
- Number and Percentage Meeting or Exceeding Average: 6 of 9 (66.7%)
- Median Collected Gross Revenue: $348,914
- Lowest Collected Gross Revenue: $102,255
- Highest Collected Gross Revenue: $471,383
Bottom 50%
- Number of Franchises: 18
- Average Collected Gross Revenue: $502,148
- Number and Percentage Meeting or Exceeding Average: 9 of 18 (50.0%)
- Median Collected Gross Revenue: $534,674
- Lowest Collected Gross Revenue: $102,255
- Highest Collected Gross Revenue: $740,384
Bottom 75%
- Number of Franchises: 26
- Average Collected Gross Revenue: $662,897
- Number and Percentage Meeting or Exceeding Average: 13 of 26 (50.0%)
- Median Collected Gross Revenue: $667,286
- Lowest Collected Gross Revenue: $102,255
- Highest Collected Gross Revenue: $1,401,074
Total
- Number of Franchises: 35
- Average Collected Gross Revenue: $1,075,687
- Number and Percentage Meeting or Exceeding Average: 12 of 35 (34.3%)
- Median Collected Gross Revenue: $740,384
- Lowest Collected Gross Revenue: $102,255
- Highest Collected Gross Revenue: $5,638,483
Part 3 – Collected Gross Revenue – Franchisees Operating 3 Territories (18 Franchisees)
Top 25%
- Number of Franchises: 5
- Average Collected Gross Revenue: $5,182,855
- Number and Percentage Meeting or Exceeding Average: 2 of 5 (40.0%)
- Median Collected Gross Revenue: $5,012,219
- Lowest Collected Gross Revenue: $2,179,246
- Highest Collected Gross Revenue: $9,142,006
Top 50%
- Number of Franchises: 9
- Average Collected Gross Revenue: $3,587,306
- Number and Percentage Meeting or Exceeding Average: 4 of 9 (44.4%)
- Median Collected Gross Revenue: $2,179,246
- Lowest Collected Gross Revenue: $1,109,999
- Highest Collected Gross Revenue: $9,142,006
Top 75%
- Number of Franchises: 14
- Average Collected Gross Revenue: $2,618,070
- Number and Percentage Meeting or Exceeding Average: 4 of 14 (28.6%)
- Median Collected Gross Revenue: $1,547,774
- Lowest Collected Gross Revenue: $648,730
- Highest Collected Gross Revenue: $9,142,006
Bottom 25%
- Number of Franchises: 5
- Average Collected Gross Revenue: $441,411
- Number and Percentage Meeting or Exceeding Average: 3 of 5 (60.0%)
- Median Collected Gross Revenue: $469,105
- Lowest Collected Gross Revenue: $178,330
- Highest Collected Gross Revenue: $648,730
Bottom 50%
- Number of Franchises: 9
- Average Collected Gross Revenue: $658,395
- Number and Percentage Meeting or Exceeding Average: 4 of 9 (44.4%)
- Median Collected Gross Revenue: $648,730
- Lowest Collected Gross Revenue: $178,330
- Highest Collected Gross Revenue: $1,040,315
Bottom 75%
- Number of Franchises: 14
- Average Collected Gross Revenue: $1,034,020
- Number and Percentage Meeting or Exceeding Average: 6 of 14 (42.9%)
- Median Collected Gross Revenue: $926,252
- Lowest Collected Gross Revenue: $178,330
- Highest Collected Gross Revenue: $2,179,245
Total
- Number of Franchises: 18
- Average Collected Gross Revenue: $2,122,850
- Number and Percentage Meeting or Exceeding Average: 6 of 18 (33.3%)
- Median Collected Gross Revenue: $1,075,157
- Lowest Collected Gross Revenue: $178,330
- Highest Collected Gross Revenue: $9,142,006
Part 4 – Collected Gross Revenue – Franchisees Operating 4 Territories (3 Franchisees)
Total
- Number of Franchises: 3
- Average Collected Gross Revenue: $2,009,686
- Number and Percentage Meeting or Exceeding Average: 1 of 3 (33.3%)
- Median Collected Gross Revenue: $1,753,136
- Lowest Collected Gross Revenue: $810,160
- Highest Collected Gross Revenue: $3,465,760
Part 5 – Collected Gross Revenue – Franchisees Operating 5 Territories (2 Franchisees)
Total
- Number of Franchises: 2
- Average Collected Gross Revenue: $1,394,683
- Number and Percentage Meeting or Exceeding Average: 1 of 2 (50.0%)
- Median Collected Gross Revenue: $1,394,683
- Lowest Collected Gross Revenue: $1,140,932
- Highest Collected Gross Revenue: $1,648,433
Part 6 – Collected Gross Revenue – Franchisees Operating 6 Territories (2 Franchisees)
Total
- Number of Franchises: 2
- Average Collected Gross Revenue: $3,614,991
- Number and Percentage Meeting or Exceeding Average: 1 of 2 (50.0%)
- Median Collected Gross Revenue: $3,614,991
- Lowest Collected Gross Revenue: $2,726,464
- Highest Collected Gross Revenue: $4,503,518
- “Collected Gross Revenue” means the aggregate of all revenue and consideration of any kind derived from your Franchised Business, whether from check, cash, credit or otherwise, including all proceeds from any business interruption insurance, but excluding (a) all refunds actually made to customers in good faith, (b) any sales and equivalent taxes that are collected by you for or on behalf of any governmental taxing authority and paid thereto, and (c) uncollected amounts not paid by customers.
- With respect to National Accounts Clients, Collected Gross Revenue includes all revenue received by Restoration 1 for performance of services, without deduction for dispatch or claims management fees or similar fees.
- The figures in the chart do not reflect the operating costs and expenses that you will incur in operating your Franchised Business, such as royalties, advertising and marketing fees and costs, payroll, vehicle finance or lease payments, insurance, telephone, utilities, and central telephone number fees. These figures also do not include depreciation or amortization or taxes.
- Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.
Section VI – Restoration 1 Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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