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Restoration 1 Franchise ProfileHome Based Franchises > Home Repair Services |
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.
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.
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.
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.
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:
Restoration 1 Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| 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 |
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.
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.
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.
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.
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.
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.