SERVPRO
is a leading franchisor of cleanup and restoration services for fire, water,
mold and more.Founded in 1967, SERVPRO has grown to an extensive network of more than 1,400 franchises covering 49
states.Ranked #1 in the restoration
services category in Entrepreneur
magazine’s Franchise 500, SERVPRO has established a brand name with national
recognition.For the last 40 years,
SERVPRO has grown rapidly, with a winning business model based on services that
are a necessity.Today, SERVPRO franchise
owners respond to property emergencies ranging from multi-million dollar
disasters to those suffered by individual businesses and homeowners.
Operating Units
12/31/2006
12/31/2007
12/31/2008
Franchised
1,364
1,427
1,459
% Change
--
4.6%
2.2%
Company-Owned
0
0
0
% Change
--
0.0%
0.0%
Total
1,364
1,427
1,459
% Change
--
4.6%
2.2%
Franchised as % of
Total
100.00%
100.00%
100.00%
Investment
Required
The
fee for a SERVPRO franchise is $40,000 for territories with populations of
approximately 50,000 to 80,000. SERVPRO franchisees may purchase additional
territory at a cost of $444.44 per 1,000 population. Franchisees also must
purchase a standard equipment and products package costing $51,000. SERVPRO
offers financing for qualifying franchisees.
SERVPRO provides the following range of investments required to open your initial
franchise. The range assumes that all items are paid for in cash. To the extent
that you choose to finance any of these expense items, your front-end
investment could be substantially reduced.
Item
Established Low
Range
Established High
Range
Franchise Fee
$40,000
$40,000
+ $444.44 per 1,000 over maximum population
Vehicle
$600
$28,000
Equipment and Products Package
$51,000
$51,000
Supplies
$3,100
$7,500
Insurance
$3,000
$3,750
Advertising and Promotional Expenses
$250
$1,500
Training Expenses
$550
$1,900
Licenses, Permits and Deposits
$150
$2,000
Accounting Services, Online Tax Service and
Software Training
$600
$1,500
Estimating and Pricing Software and
Training
$1,000
$2,500
Additional Funds (3 months)
$2,000
$18,500
Real Estate
$0
$3,000
Total Investment
$102,250
$161,150
+ $444.44 per 1,000 over maximum population + real estate
On-going
Expenses
SERVPRO
franchisees pay royalty fees ranging from 3-10% of monthly gross volume, a
fixed monthly fee ranging from $45-$115, depending on monthly gross volume, a
monthly advertising fee equal to ½% of gross volume and an additional advertising
fee equal to 2½% of annual gross volume.
What You Get—Training
and Support
SERVPRO prides itself on its comprehensive
training program, which begins with a home study program and pre-opening
projects designed to help the franchise owner research and prepare to open
their business.Following this,
franchisees visit the SERVPRO National Training Center for an extensive program
which teaches the basics, demonstrates proper techniques and includes hands-on
training in each area of operating the business.
After
training takes place, SERVPRO assigns a Trainer to support the franchise owner
throughout set-up and grand opening.Throughout
the first year, the franchisee has access to the full SERVPRO support system in
order to learn the business while gaining field experience.SERVPRO supports the franchisee through marketing
efforts, business growth and certification training.
