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Description

How To Open a Servpro Franchise?

To begin your journey as a Servpro franchise owner, you will need to complete an initial franchise application. Following this, you may review the Servpro Franchise Disclosure Document (FDD) to understand the operational requirements, fees, and support provided. After a thorough vetting process, which includes interviews and discussions about your business background, you could be invited to a discovery day at Servpro's headquarters. This event allows you to interact with existing franchisees and gain insights directly from the corporate team. If all goes well, you may be awarded the opportunity to establish your own Servpro franchise, focusing on restoration and cleaning services.

What Might Make a Servpro Franchise a Good Choice?

Before committing to a Servpro franchise, it’s crucial to conduct comprehensive market research and financial analysis. A conversation with a franchise attorney and financial advisor can help clarify the investment required, which typically includes a franchise fee, equipment costs, and ongoing royalties. Servpro offers a unique business model focused on emergency restoration services, which can provide stability even in fluctuating economies. Additionally, the brand's established reputation and training resources can contribute to your potential success. Ensure that you meet the net worth and liquid capital requirements as outlined in the FDD to strengthen your application.

Why You May Want to Start a Servpro Franchise?

Servpro is a leader in the restoration industry, specializing in fire, water, and mold damage cleanup. Their strong brand recognition and comprehensive training programs can support your transition into a successful business. If you are passionate about helping others during challenging times and have a strong work ethic, owning a Servpro franchise may align well with your goals. The franchise provides ongoing support, marketing assistance, and access to proprietary technology, giving you the tools needed to effectively manage your business and meet customer needs.

Is Owning a Servpro Franchise the Right Move for You?

The restoration industry is continually in demand, making Servpro a viable franchise option for entrepreneurs seeking a resilient business model. Founded in 1967 and franchising since 1988, Servpro has grown to over 1,700 locations nationwide. The ability to serve both commercial and residential clients can increase your revenue potential. Evaluate your skills in customer service and operational management, as these will be critical in establishing a successful Servpro franchise. Are you ready to step into a rewarding business that makes a difference in people's lives?

Servpro Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

A broad sector defining similar types of franchise businesses.

Industry

Cleaning Franchises
A more specific division within the broader industry.

Category

Commercial Cleaning
Available financing options to help start the franchise.

Funding Year

1977
The main organization that owns the franchise brand.

Parent Company

Servpro Industries Inc.
The key individuals guiding the franchise’s strategy and growth.

Leadership

Sue Steen
The official business address of the franchisor’s headquarters.

Corporate Address

801 Industrial Boulevard, P. O. Box 1978, Gallatin, Tennessee 37066
The total amount required to launch the franchise.

Initial Investment

$241,270 - $301,775
The initial fee paid to join the franchise system.

Franchise Fee

$90,000
Ongoing percentage of revenue paid to the franchisor.

Royalty Fee

10%
Regular contribution toward the franchise’s advertising fund.

Marketing Fee

3%
The minimum liquid capital you must have on hand.

Cash Required

$90,000 - $90,000
The minimum total assets (minus liabilities) you must possess.

Net Worth Required

$500,000 - $1,000,000
The typical yearly revenue generated per franchise location.

Average Revenue

$313,125,566
The middle value of yearly revenue among franchise locations.

Median Revenue

$1,000,000
The smallest reported annual revenue among franchisees.

Lowest Revenue

$912,000
The largest reported annual revenue among franchisees.

Highest Revenue

$1,000,000
The estimated timeframe to recover your initial costs.

Breakeven Time

12 Months
The estimated period to recoup your total investment.

Investment Payback

39 Months

Servpro Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.

The overall number of operating franchise locations.

Total Units

2202
The number of locations owned by independent franchisees.

Franchised Units

2202
The number of locations owned and run by the franchisor.

Corporate Units

0
Units 2021 2022 2023
Total Units 1960 2114 2202
Net Change YoY 154 88
Franchised Units 1960 2114 2202
Net Change YoY 154 88
Corporate Units 0 0 0
Net Change YoY 0 0

Company Background

Servpro is a leading franchise in the restoration and cleaning industry, specializing in fire and water damage restoration, mold remediation, and general cleaning services. Founded in 1967, Servpro has grown to over 1,800 locations across the United States and Canada. The brand is known for its commitment to high-quality service and customer satisfaction, helping both residential and commercial clients recover from disasters swiftly and effectively.

Franchise Opportunity

Investing in a Servpro franchise offers a significant opportunity for entrepreneurs looking to enter a thriving industry. With a well-established brand and a comprehensive support system, franchisees can leverage Servpro’s reputation and proven business model. The initial investment typically ranges from $150,000 to $200,000, which includes franchise fees, equipment, and training costs, making it a viable option for those seeking a rewarding business venture in the restoration sector.

Corporate Structure

Servpro Industries, LLC operates as a limited liability company headquartered in Gallatin, Tennessee. The company is part of the larger Servpro family, which includes a range of services and products tailored to the restoration and cleaning markets. Established in 1967, Servpro has maintained a clear corporate structure, focusing on franchise development and operational excellence to support its franchisees effectively.

Royalties

Servpro franchisees are required to pay a royalty fee of 10% of gross sales. In addition, there is an advertising contribution of 3% of gross sales, which is used to fund national marketing campaigns and brand promotion. These fees are designed to support franchisees through comprehensive training, marketing assistance, and operational resources, ultimately helping them succeed in their local markets.

Company Mission

Servpro’s mission is to develop a team of quality people who focus on excellent service, fairness, and mutual respect. The company is dedicated to helping individuals and businesses recover from unexpected disasters while providing peace of mind through reliable and efficient restoration services. Servpro aims to be the first choice in the eyes of customers by delivering exceptional service and promoting community involvement.

Brand Story

Servpro began its journey in 1967 when Ted and Doris Isaacson established the company in Sacramento, California. The brand focused on providing cleaning and restoration services, quickly gaining traction for its commitment to quality and customer service. Over the decades, Servpro expanded its franchise model, allowing aspiring entrepreneurs to join its mission of restoring homes and businesses after disasters. Today, Servpro is synonymous with reliability and expertise in the restoration industry, reflecting decades of growth and innovation.

Frequently Asked Questions

The initial investment for a Servpro franchise typically ranges from $181,000 to $365,000. This includes initial franchise fees, equipment, supplies, and other startup costs necessary to establish the business.