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Servpro Franchise ProfileCleaning Franchises > Commercial Cleaning |
What is the Initial Investment for a Servpro Franchise?
To become a Servpro franchisee, you will need to consider an initial investment that ranges from $241,270 to $301,775. This includes a franchise fee of $90,000. Additionally, you should have cash readily available, with a requirement of $90,000. It’s essential to assess your financial readiness, as the investment also entails ongoing fees such as a 10% royalty and a 3% marketing fee.
What are the Financial Performance Expectations for Servpro Franchisees?
Servpro franchises have shown promising financial performance. The average annual revenue per unit is approximately $313,125,566, with a median annual revenue of $1,000,000. The lowest annual revenue recorded is $912,000, while the highest is $1,000,000. With a breakeven time of just 12 months, franchisees can expect a return on their investment within about 39 months. These figures indicate a potentially lucrative opportunity for those entering the restoration and cleaning industry.
What are the Franchise Growth Trends for Servpro?
Servpro has experienced consistent growth in the number of franchised units over the years. In 2021, there were 1,960 franchised units, which increased to 2,114 in 2022, and further to 2,202 in 2023. This upward trend showcases the brand's popularity and the increasing demand for its services, which can be a strong indicator for prospective franchisees considering market entry.
What are the Key Operational Expenses for Servpro Franchisees?
Understanding the operational expenses is crucial for managing a Servpro franchise effectively. Average running expenses include significant costs such as product and equipment costs at $49,734,922 and selling, general, and administrative expenses totaling $137,844,624. Royalty commissions also contribute to ongoing costs, amounting to $3,203,950. By being aware of these expenses, franchisees can better strategize to optimize profitability and manage their financial performance.
Servpro 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.
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Servpro Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 1960 | 2114 | 2202 |
| Net Change YoY | 154 | 88 | |
| Franchised Units | 1960 | 2114 | 2202 |
| Net Change YoY | 154 | 88 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Company Background
Servpro is a leading franchise in the restoration and cleaning industry, specializing in fire and water damage restoration, mold remediation, and general cleaning services. Established in 1967, Servpro has built a strong reputation for providing high-quality services to both residential and commercial customers. With over 2,200 locations across the United States, Servpro is committed to helping communities recover from disasters and maintain their properties.
Franchise Opportunity
Investing in a Servpro franchise offers aspiring entrepreneurs a chance to tap into a lucrative market with a proven business model. The initial investment ranges from $241,270 to $301,775, making it accessible for those with the right financial backing. With a franchise fee of $90,000 and ongoing royalties of 10%, franchisees benefit from a strong brand presence and comprehensive support in operations and marketing.
Financial Performance
Servpro franchises have demonstrated impressive financial performance, with an average annual revenue of approximately $313,125,566 per unit. The median annual revenue stands at $1,000,000, showcasing the potential for profitability. Franchisees can expect a breakeven period of about 12 months and an investment payback timeframe of approximately 39 months, making it a potentially rewarding investment.
Marketing Support
Servpro provides extensive marketing support to its franchisees, including a dedicated marketing fee of 3% of gross sales. This investment helps franchisees reach local customers through targeted advertising campaigns, digital marketing initiatives, and community engagement efforts. Franchisees benefit from a well-established brand that drives customer trust and recognition in the restoration industry.
Training and Support
Franchisees receive comprehensive training and ongoing support from Servpro, ensuring they are well-equipped to manage their businesses effectively. The training program covers essential aspects such as operational procedures, customer service, and marketing strategies. Additionally, franchisees have access to a network of experienced professionals who can provide guidance and share best practices for success.
Growth Potential
Servpro continues to experience significant growth, with the number of franchised units increasing from 1,960 in 2021 to 2,202 in 2023. This upward trend indicates strong demand for restoration services and highlights the brand's ability to attract new franchisees. With a focus on innovation and market expansion, Servpro offers franchisees the opportunity to capitalize on a growing industry while building a successful business.
Frequently Asked Questions
The initial investment for a Servpro franchise ranges from $241,270 to $301,775, which includes the initial franchise fee of $90,000.