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ServiceMaster Restore Franchise ProfileCleaning Franchises > Commercial Cleaning |
What Are the Initial Investment Requirements for a ServiceMaster Restore Franchise?
To open a ServiceMaster Restore franchise, the initial investment ranges from $89,775 to $131,200. This includes a franchise fee of $32,500, along with cash requirements that align with the total investment. Prospective franchisees should also be prepared for ongoing royalty fees of 10% and a marketing fee of 4% of revenue. Meeting the net worth requirements of $300,000 to $700,000 is essential to ensure financial stability as you embark on this business journey.
What Is the Revenue Potential for ServiceMaster Restore Franchisees?
ServiceMaster Restore franchisees have the opportunity to generate significant revenue, with average annual revenue per unit reported at $733,564. The median annual revenue stands at $404,483, indicating a solid return potential. However, revenue can vary widely, with the lowest annual revenue recorded at $15,760 and the highest reaching an impressive $36,310,583. Understanding these figures can help franchisees set realistic financial goals and expectations.
How Long Does It Take to Break Even with a ServiceMaster Restore Franchise?
Franchisees can expect to reach their breakeven point within approximately 24 months of operation. This timeline can be influenced by various factors, including location, market demand, and operational efficiency. Additionally, the investment payback period is relatively swift, at around 15 months, making it an attractive option for those seeking a quicker return on their investment.
What Are the Key Financial Metrics for ServiceMaster Restore Franchisees?
ServiceMaster Restore franchisees can benefit from a strong financial structure. The average gross profit margin is a notable 85.4%, with operating expenses averaging around $215,000 annually. EBITDA stands at $129,700, representing 17.7% of revenue. This financial performance indicates that franchisees can maintain healthy profitability while managing costs effectively, making it a viable business model for aspiring entrepreneurs.
ServiceMaster Restore 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:
ServiceMaster Restore 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 | 707 | 655 | 599 |
| Net Change YoY | -52 | -56 | |
| Franchised Units | 696 | 655 | 599 |
| Net Change YoY | -41 | -56 | |
| Corporate Units | 11 | 0 | 0 |
| Net Change YoY | -11 | 0 |
Investment Overview
ServiceMaster Restore offers a compelling franchise investment opportunity with an initial investment ranging from $89,775 to $131,200. The franchise fee is set at $32,500, while ongoing royalties are 10% of gross sales and a marketing fee of 4%. Potential franchisees should have a net worth between $300,000 and $700,000 to qualify.
Financial Performance
Franchisees can expect significant revenue potential, with average annual revenues per unit reported at $733,564. The median annual revenue stands at $404,483, showcasing a robust financial landscape. However, revenue can vary widely, with the lowest annual revenue recorded at $15,760 and the highest reaching an impressive $36,310,583.
Breakeven and Payback Period
Franchisees typically experience a breakeven period of around 24 months. The investment payback period is notably shorter, averaging just 15 months. This quick return on investment is an attractive feature for potential franchisees looking to minimize financial risk.
Franchised Units Growth
ServiceMaster Restore has seen a steady presence in the market, with a total of 696 franchised units in 2021, decreasing to 655 in 2022, and further to 599 in 2023. This trend indicates a need for strategic planning to enhance unit growth and stability in the franchise network.
Operating Costs
The average operating expenses for a ServiceMaster Restore franchise are approximately $215,000 annually, which includes selling and administrative expenses of $33,900 and depreciation costs of $6,200. These figures represent about 29.3% of total revenue, underscoring the importance of effective cost management for profitability.
Corporate Structure
ServiceMaster Restore operates under the umbrella of ServiceMaster Global Holdings, Inc., which has a long-standing reputation in the restoration and cleaning industry. The corporate structure supports franchisees by providing a well-established brand, comprehensive training programs, and ongoing operational support to ensure franchise success.
Frequently Asked Questions
The initial investment for a ServiceMaster Restore franchise ranges from $89,775 to $131,200. This includes the franchise fee of $32,500, along with other startup costs.