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1-800 Water Damage Franchise ProfileIndustrial Franchises > Industrial Cleaning |
What is the Initial Investment for a 1-800 Water Damage Franchise?
The initial investment for a 1-800 Water Damage franchise ranges from $210,903 to $316,398. This includes a franchise fee of $59,000, along with other startup costs. Potential franchisees should also be prepared for ongoing expenses, which include a 10% royalty fee and a 2% marketing fee. Having sufficient cash reserves is crucial, as the cash required falls within the same range as the initial investment.
What are the Financial Performance Metrics for a 1-800 Water Damage Franchise?
Franchisees can expect an average annual revenue of $820,477 per unit, with a median revenue of $439,865. The highest reported revenue per unit is an impressive $6,093,800, showcasing the potential for significant earnings. The breakeven time is estimated at 15 months, while the investment payback period is about 25 months, indicating a relatively quick return on investment for successful operators.
What are the Operational Costs Associated with a 1-800 Water Damage Franchise?
Operational costs for a 1-800 Water Damage franchise can be substantial, with average running expenses totaling approximately $5,073,434 annually. Key expenses include general and administrative costs of $4,938,453 and selling and marketing expenses of $98,521. Other costs, such as insurance, rent, and utilities, contribute to the overall financial picture, making it essential for franchisees to manage these effectively to maintain profitability.
How Has 1-800 Water Damage Expanded in Recent Years?
The growth of the 1-800 Water Damage franchise has been notable, with the number of franchised units increasing from 133 in 2021 to 167 in 2023. This expansion reflects the brand's growing presence in the market and its appeal to potential franchisees. The absence of corporate-owned units in recent years suggests a focus on franchising as a primary growth strategy, allowing franchisees to capitalize on the brand's established reputation and support system.
1-800 Water Damage 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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
1-800 Water Damage Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 135 | 152 | 167 |
| Net Change YoY | 17 | 15 | |
| Franchised Units | 133 | 152 | 167 |
| Net Change YoY | 19 | 15 | |
| Corporate Units | 2 | 0 | 0 |
| Net Change YoY | -2 | 0 |
Franchise Overview
1-800 Water Damage is a leading restoration franchise specializing in water damage restoration, mold remediation, and disaster recovery services. With a strong brand presence and a commitment to quality, the franchise has established itself as a trusted partner for homeowners and businesses facing water-related emergencies. The franchise model offers aspiring entrepreneurs a chance to join a growing industry with significant demand for services.
Investment Requirements
The initial investment to open a 1-800 Water Damage franchise ranges from $210,903 to $316,398, which includes a franchise fee of $59,000. Potential franchisees should be prepared for ongoing royalty fees of 10% and a marketing fee of 2%. A net worth of $100,000 to $500,000 is required, along with sufficient cash reserves to cover startup costs and initial operating expenses.
Financial Performance
1-800 Water Damage franchises have demonstrated strong financial potential, with average annual revenue per unit reaching $820,477. The median annual revenue is $439,865, while the highest recorded revenue for a unit is an impressive $6,093,800. This financial performance indicates a lucrative opportunity for franchisees willing to invest in the business.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 15 months of operation. The investment payback period averages around 25 months, making it a relatively quick return on investment compared to other franchise opportunities. These timelines can vary based on location, market conditions, and operational efficiency.
Unit Growth
The 1-800 Water Damage franchise has shown consistent growth in its number of franchised units, expanding from 133 units in 2021 to 167 units in 2023. This growth reflects the increasing demand for restoration services and the brand's ability to attract new franchisees. The steady rise in units indicates a robust support system and a strong market presence.
Operational Insights
Franchisees benefit from comprehensive training and ongoing support from the corporate team, which includes operational guidance, marketing strategies, and access to proprietary technology. With average annual operating expenses totaling approximately $5,073,434, franchisees are equipped to manage costs effectively while focusing on delivering high-quality services to their clients.
Frequently Asked Questions
The initial investment for a 1-800 Water Damage franchise ranges from $210,903 to $316,398, which includes the franchise fee and other startup costs.