How to Start a Restoration Franchise

The Restoration business has grown significantly in the past number of years.  The water damage, mold, fire damage and other work that is required has always been there.  People's homes have been going through this kind of damage and repair forever, only recently has there been the development and build up of service firms that focus specifically in the Restoration Franchise segment.  With this growth in service organizations, franchising has become a major portion of this industry's growth.  Like any good franchise, Restoration franchise models provide franchisees with a proven business model, track record of success, leveraged systems and technology needed for the local franchisee to get their business off the ground.


Why is there so much growth in the Restoration franchise segment?  There are several reasons, the first being profit margins.   Good restoration franchises can generate profit margins up to 50% on gross sales.  Revenues on a good restoration franchise territory can also exceed $1 million annually.  The second reason why this industry has grown so significantly is because of the fact that insurance companies pay most of the bills for restoration franchise work.  With that being said, the Restoration industry is not as susceptible to the trials and tribulations of the economy and overall business environment.  Lastly, Restoration Franchises are typically a lower investment business model to start up which allows for lower barriers of entry into a new business.

What franchises are there to choose from?  The restoration franchise industry has a large array of organizations to choose from with all shapes and sizes included.  There are smaller, fast growing franchises like Restoration 1, Restoration 1 in the News, mid-size groups such as 911 Restoration and very large organizations like ServPro.  All provide the same suite of services for water damage, fire and mold damage work, but the structure and "personality" of the restoration franchises varies greatly.  Smaller restoration franchises will typically offer a larger territory, lower upfront costs and higher top-end potential for revenues and profits.  The larger restoration franchise systems offer less risk and a more "packaged" franchise model that brings fully integrated marketing, equipment packages and support.  The larger restoration franchises have less of a top end potential for revenue because the territories are more constricted and less of the prime locations are open, but for those who prefer a safer bet will end up with one of the larger franchise organizations.

For more information on how to buy a franchise or on Restoration Franchises, contact Franchise Marketing Systems.  (800) 610-0292

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