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What is the Actual 911 Franchise Cost?
The restoration industry continues to grow because of the need for constant repairs and remodeling. And restoration services have the potential to grow because of the growing demand by homeowners and businesses alike. That is to say, one of the franchises that have become a leading choice for many franchisees is 911 Restoration. But how much does a 911 Restoration franchise cost?
So, in this article, read about the 911 Restoration franchise. Moreover, learn how you can franchise one and what to expect.
911 Restoration Franchise Overview
Before 911 Restoration was known as one of the U.S.’s largest restoration services, it was a carpet cleaning business then. Idan Shpizear and Peleg Lindenberg were two former employees of the company, but they took over and grew 911 Restoration ever since. They also offered more services such as water damage and fire cleanup as they became more recognized.
While the company started in 2003, it wasn’t until 2008 that the restoration company started franchising. To date, they have over 200+ units, including company-owned and outside of the US. Despite such growth, they face competition from ServPro, PuroClean, and 1-800 Water Damage.
One other thing that makes 911 Restoration different from other services is the Fresh Start Philosophy. It contains ten philosophies that will guide the franchisee. Not only that, but they also have a program in line with the philosophy. Hence, this gives them an opportunity to do philanthropic activities.
So far, 911 Restoration is available for franchising in the Lower 48 states and Canada. Aside from their first and main location in California, 911 Restoration has locations in states such as:
- New York
- Colorado
- Florida
- Texas
- Georgia
If you’re interested in starting a 911 Restoration franchise, you can click on this link to Get Started. But before we discuss the 911 restoration franchise cost, know what to expect when franchising one.
Training
911 Restoration Franchise Inc. (the franchisor) conducts and requires training classes and provides resources for the franchisee. Therefore, the franchisees and their delegated managers or supervisors should be present for the two to four-week training in Van Nuys, California. According to the franchisor, they will cover training for:
- Water-damage
- Fire
- Mold
- Business development
However, at the franchisor’s discretion, there might be additional training for the franchisee. Plus, the franchisor will also require franchisees to attend refresh training programs. Furthermore, there might be yearly meetings for training purposes, new product announcements, and other information.
Territory and Obligations
The franchisor will give an exclusive, single territory wherein the franchisee can only operate their location. Location size depends on the population and territory. However, for franchisees to get a protected territory, they need to fulfill their gross revenue requirement in the second and subsequent years as agreed on in the Franchise Agreement (FA).
Franchisees should follow their obligations based on the FA. However, they’re not mandated to run the business full-time. Instead of managing the business full-time, franchisees can designate a manager that will operate the franchise daily. Not to mention, the franchisors expect the franchisees to follow system standards and regulations.
The franchisor will grant the franchisee an initial seven-year term. But if the franchisee wants to renew, they can do so, so long as they meet requirements. So, they will receive an additional seven-year term.
911 Restoration Franchise Cost
Your Investments
911 Restoration provides estimates depending if it’s an existing model, related-trade, or a startup. Firstly, the startup model franchise cost ranges from $51,600 to $94,700, plus the initial franchise fee. On the other hand, related-trade can run from $13,000 to $26,000, plus the initial franchise fee. Finally, for the existing restoration model it costs around $2,000 to $4,000 plus the initial franchise fee.
Since 911 Restoration is part of the VetFran, veterans who plan to franchise will get 15% off the initial franchise fee.
The initial franchise fee depends on the territory.
The franchisor MAY offer to aid a franchisee in the initial 911 Restoration franchise fee. Other than that, the franchisor doesn’t typically offer loans, guarantees, and other financial aid.
Check out the tables below on the estimated 911 Restoration franchise cost.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $29,000 | $49,000 |
| Leaseholds Improvements | $0 | $5,000 |
| Equipment, Furnishings and Fixtures | $25,000 | $50,000 |
| Service Vehicle | $1,500 | $35,000 |
| Signage | $1,000 | $3,000 |
| Rent (3 months) | $0 | $4,500 |
| Initial Inventory and Operating Supplies | $5,000 | $10,000 |
| Security Deposits | $0 | $1,500 |
| Insurance (3 months) | $0 | $2,700 |
| Business Launch Fee | $1,500 | $1,500 |
| Initial Training Fee | $2,500 | $2,500 |
| Travel and Living Expenses While Training | $0 | $3,500 |
| Computer System | $0 | $2,000 |
| Permit/Licenses | $0 | $2,000 |
| Professional Fees | $3,000 | $5,000 |
| Additional Funds (3 to 6 months) | $0 | $50,000 |
| Telephone | $100 | $200 |
| ESTIMATED TOTAL* | $70,100 | $226,900 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee for a New Start-Up Franchise | 10% of gross revenue for restoration services; 3% of gross revenue for non-restoration services. |
| Royalty Fee for a Conversion Franchise | Sliding scale percentage dependent upon gross revenue, the franchisee’s year of operation, and whether the services are restoration or non-restoration. |
| Local Advertising | Franchisees must engage in local business development and advertising as outlined in the manual. |
| Digital Marketing | Franchisees must spend at least $100 per day on digital marketing. It focuses on lead development through currently approved sites for SEO, social media, and PPC campaigns. |
| Advertising Cooperative | To be determined. It’s based on the franchisee’s location and market, not to exceed 3% of gross revenue. |
| National Advertising Fund Fee | Up to 1% of gross sales. |
| Additional or Replacement Supervisorial or Managerial Personnel Initial Training Fee | The then-current training fee, plus expenses. Current training fee: $500 for technicians and $1,500 for inspector. |
| Transfer Fee | $5,000 |
| Renewal Fee | $2,500. If franchisees have multiple franchises that are renewing in the same year, the renewal fees will be capped for a total possible renewal fee of $7,500. |
| Late Fee | $50 per day. |
| Audit Fee | Varies. It is estimated to be between $5,000 and $8,500. |
| Technology Fees | $195 monthly. Set-up fee for CRM is a one-time fee of $300. 911 Restoration emails incur a yearly charge of $50 per email per year. |
| Computer System Maintenance | $0 to $600 |
| Proprietary Products | Varies |
| Insurance Premiums | Insurance premiums to maintain recommended coverage as a franchise owner. |
| Costs and Attorneys’ Fees | Varies |
| Indemnification | Varies |
| Liquidated Damages | If the franchisor terminates the FA for cause, the franchisee must pay within 15 days after the effective date of termination. |
| Supplier Evaluation | Varies |
Did You Know
- Entrepreneur featured 911 Restoration on their Franchise 500 list. The restoration franchise ranked #44 overall. They garnered the 2nd spot on the restoration list too. And they also earned the title of Fastest Growing franchise in 2020.
- The franchisor has partnerships with big brands such as Google Partner, Yahoo, and Bing for online visibility. They’ve also partnered with Lowe’s Pro and The Home Depot.
- Not only does 911 Restoration have cleaning and restoration, but they also offer SEO services. They started Milestone SEO, which will help 911 Restoration franchisees. But they can also help other small businesses to grow their SEO efforts.
- Aside from having an SEO agency, they also developed a customer relationship management software called Gazingle. The software has automated features and lead tracking processes.
- According to 911 Restoration, restoration services are recession-proof. Since the nature of the service relies on repairs, restorations, and cleaning, even with certain conditions, businesses like this will continue to operate.
For more franchise information, you can find more resources here at Franchise How!