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Description
Investment Icon

What is the Initial Investment for a Restoration 1 Franchise?

To open a Restoration 1 franchise, you'll need to consider an initial investment that ranges from $69,650 to $226,125. This includes a franchise fee of $59,900. It's essential to have cash on hand within this range to cover startup costs, which may include equipment, supplies, and initial marketing efforts. Additionally, you'll need to meet a net worth requirement of $500,000 to $1,000,000 to qualify for franchise ownership.

Fees Icon

What are the Ongoing Fees for Restoration 1 Franchisees?

Restoration 1 franchisees are subject to a royalty fee of 7% on their gross sales, which is typical for many franchise systems. Additionally, a marketing fee of 2% is required to support brand-wide advertising initiatives. These ongoing fees are important to factor into your financial planning, as they will impact your overall profitability and cash flow once your franchise is operational.

Revenue Icon

What Are the Financial Performance Metrics for Restoration 1?

The average annual revenue for a Restoration 1 franchise unit is reported at approximately $760,344, with a median revenue of $740,384. This highlights the potential profitability within the franchise model. However, revenue can vary significantly, with the lowest reported annual revenue at $102,255 and the highest reaching $9,142,006. Understanding these figures can help you assess potential returns on your investment.

Breakeven Icon

How Long Does It Take to Break Even with a Restoration 1 Franchise?

The breakeven time for a Restoration 1 franchise is estimated at 18 months, with an investment payback period of around 16 months. This means that, on average, franchisees can expect to recover their initial investment within a relatively short timeframe. It's crucial to have a solid business plan and operational strategy in place to achieve these timelines and maximize your return on investment.

Restoration 1 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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

16 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$59,900
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

7%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

18 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$69,650 - $226,125
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$69,650 - $226,125
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$760,344
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$740,384
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$9,142,006
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$102,255
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Home Based Franchises
Category icon A more specific division within the broader industry.

i Category:

Home Repair Services
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Gary Findley
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

5113 Steinbeck Bend DriveWaco, Texas76708
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2009
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Restoration 1 Franchise Holding LLC

Restoration 1 Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

290
The number of locations owned by independent franchisees.

Franchised Units i

290
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2020 2021 2022
Total Units 219 252 290
Net Change YoY 33 38
Franchised Units 219 252 290
Net Change YoY 33 38
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Initial Investment

The Restoration 1 franchise offers a range of initial investment options, with costs ranging from $69,650 to $226,125. This includes a franchise fee of $59,900, making it accessible for aspiring entrepreneurs looking to enter the restoration industry. The varied investment levels allow for flexibility based on location and operational scale.

Potential About

Ongoing Fees

Franchisees are required to pay a royalty fee of 7% on gross sales along with a 2% marketing fee. These fees contribute to the overall brand support and marketing efforts, ensuring franchisees benefit from a strong national presence while also promoting their local businesses.

Metrics About

Financial Performance

Restoration 1 units generate impressive average annual revenues of approximately $760,344, with a median of $740,384. The revenue range is significant, with some units reporting as low as $102,255 and others achieving as high as $9,142,006. This indicates strong potential for profitability within the franchise model.

Fees About

Breakeven and Payback

Franchisees can expect to reach breakeven within 18 months of operation, with an investment payback period of around 16 months. This relatively quick return on investment is attractive for new franchisees, providing confidence in the business's financial viability.

Breakeven About

Franchise Growth

The Restoration 1 franchise has shown consistent growth, increasing from 219 franchised units in 2020 to 290 in 2022. This upward trend reflects the brand's strong market demand and the effective support provided to franchisees, positioning the company for continued expansion in the restoration sector.

Units About

Net Worth Requirements

Aspiring franchisees must have a net worth of $500,000 to $1,000,000, ensuring that they possess the financial stability necessary to support their business. This requirement helps maintain a strong network of financially capable franchisees, contributing to the overall health and success of the Restoration 1 brand.

Frequently Asked Questions

The initial investment for a Restoration 1 franchise ranges from $69,650 to $226,125, which includes the franchise fee of $59,900 and other startup costs.