SERVPRO
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SERVPRO is a leading franchisor of cleanup and restoration services for fire, water, mold and more. Founded in 1967, SERVPRO has grown to an extensive network of more than 1,500 franchises covering 48 states. Ranked #1 in the restoration services category in Entrepreneur magazine’s Franchise 500, SERVPRO has established a brand name with national recognition. For the last 40 years, SERVPRO has grown rapidly with a winning business model based on services that are a necessity. Today, SERVPRO franchise owners respond to property emergencies ranging from multi-million dollar disasters to those suffered by individual businesses and homeowners.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
1,459 |
1,521 |
1,571 |
| | % Change | -- |
4.2% |
3.3% |
| | Company-Owned | 0 | 0 | 0 |
| | % Change | -- |
-- |
-- |
| | Total |
1,459 |
1,421 |
1,571 |
| | % Change | -- |
4.2% |
3.3% |
| | Franchised as % of Total |
100.0% |
100.0% |
100.0% |
Investment Required
The fee for a SERVPRO franchise is $42,000 for territories with populations of approximately 50,000-80,000. SERVPRO franchisees may purchase additional territory at a cost of $462 per population of 1,000. Franchisees must also purchase a standard equipment and products package costing $56,500. SERVPRO offers financing for qualifying franchisees.
SERVPRO provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$42,000 |
$42,000* |
| | Vehicle | $600 |
$29,000 |
| | Equipment and Products Package |
$60,250 |
$60,250 |
| | Supplies | $3,100 | $7,500 |
| | Insurance | $3,000 | $3,750 |
| |
Advertising and Promotions |
$250 | $1,500 |
| |
Expenses While Training | $550 | $1,900 |
| |
Deposits, Permits and Licenses | $700 | $2,550 |
| |
Accounting Services, Online Tak Table Service and QuickBooks Pro Training | $600 | $1,500 |
| |
Xactimate Estimating and Pricing Software and Training | $1,000 | $2,500 |
| |
Real Estate |
$0 |
$3,000 |
| |
Additional Funds (3 Months) | $20,000 | $25,000 |
| |
Total Initial Investment |
$132,050 |
$180,450* |
*Plus $462.00 per 1,000 over maximum population
Ongoing Expenses
SERVPRO franchisees pay royalty fees ranging from 3-10% of monthly gross volume, a fixed monthly fee ranging from $45-$115, depending on monthly gross volume, a monthly advertising fee equal to 0.5% of gross volume and an additional advertising fee equal to 2.5% of annual gross volume.
What You Get—Training and Support
SERVPRO prides itself on its comprehensive training program, which begins with a home study program and pre-opening projects designed to help franchise ownerw research and prepare to open their business. Following this, franchisees visit the SERVPRO National Training Center for an extensive program which teaches the basics, demonstrates proper techniques and includes hands-on training in each area of business operation.
After training takes place, SERVPRO assigns a Trainer to support the franchise owner throughout set-up and grand opening. Throughout the first year, the franchisee has access to the full SERVPRO support system in order to learn the business while gaining field experience. SERVPRO supports the franchisee through marketing efforts, business growth, and ongoing training sessions.
Territory
SERVPRO does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD.
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