Servpro

Servpro's pricing model is unusual in the restoration category: a $208,000 Standard Purchase Price that bundles the $100,000 franchise fee with a mandatory $108,000 Equipment and Products Package — purchased from a Servpro affiliate. You can't buy just the license; the equipment package is part of the deal. A 2.5% cash discount ($5,200) applies if you pay cash at signing.

The $100,000 franchise fee is the highest in the restoration category by a significant margin — PuroClean is $59,000, Rainbow International $40,000, ServiceMaster Restore $72,500. You're paying a substantial brand premium. The fee covers a standard territory of 50,000-80,000 population; additional territory costs $1,110 per 1,000 additional population.

Total investment for a standard franchise: $258,780-$379,500, though the high end assumes operating from home (real estate $0) and using an existing vehicle (vehicle line at $5,000 minimum for markings). If you purchase a new vehicle and buy equipment outright, add those costs on top of the total — the item 7 table shows a financed approach by default.

Ongoing fees are layered. The royalty starts at 10% on the first $12,849.99 in monthly gross volume, dropping through tiers to 5% above $214,165/month. But here's the key difference from Servpro's competitors: the monthly gross volume thresholds are monthly, not annual. That means you benefit from lower tiers faster — a strong month immediately moves you to lower rates rather than waiting until January.

New franchisees pay a flat 10% until they complete the Business Development Program (BDP) — typically accomplished within 120 days of completing setup training. A fixed fee of $45-$115/month stacks on top of the royalty percentage. The brand fund (2.5% of monthly gross volume, currently) plus technology ($200/month) completes the ongoing fee picture.

Servpro makes no financial performance representations in Item 19. The FDD states explicitly: 'We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets.'

This is a notable absence. Competitors PuroClean and Rainbow International both provide meaningful gross sales data. Servpro — the largest restoration franchise in the country — provides none. For a $208,000 upfront investment, you are writing a significant check without any franchisor-provided revenue benchmarks.

What you can do: use the Item 20 franchisee list (2,286 operators across all 50 states) to conduct your own validation calls. Request specifically: average monthly gross volume at different stages of business (year 1, year 3, year 5), the typical time to complete BDP and start benefiting from tiered royalties, and how large a national accounts lead network contribution is to total revenue in their territory.

Industry research and broker-sourced data suggest restoration franchises in Servpro-sized territories ($50,000-$80,000 population) typically generate $500,000-$1.5M in annual gross volume at maturity, with top operators in well-run larger territories reaching $3M+. But these are category estimates, not Servpro-specific data from the FDD.

Servpro grew from 2,114 units in 2022 to 2,286 by end-2024 — net growth of 172 units across three years, or about 57 net new locations annually. The closure rate has been low: 12 in 2022, 9 in 2023, and just 8 in 2024 out of a 2,200+ unit base. That's less than 0.4% annual closure rate — exceptional for any franchise category.

For context against its primary competitor ServiceMaster Restore: Servpro grew by 172 units while ServiceMaster Restore lost 227 units over the same period. That performance gap in the same market category is highly significant. Both brands serve the same insurance restoration market; the divergence reflects Servpro's stronger brand position, lead network, and franchisee economics.

The transfer activity is notable: 158, 106, and 137 transfers in successive years indicate an active resale market. There are existing Servpro businesses available to purchase — often a better option than starting from scratch, as you inherit established customer relationships, insurance adjuster relationships, and a running operation.

The combined royalty plus fixed fee structure creates a layered obligation that's easy to underestimate. At $42,833+ in monthly gross volume (roughly $514,000/year), you pay 7% royalty plus a $115 fixed fee plus a $200/month software fee plus 2.5% brand fund — combined 9.5%+ of gross volume. This is on top of your equipment and vehicle costs, insurance, and labor.

The BDP completion requirement affects your royalty calculation. Until BDP is completed — all three business consultations plus specific training milestones within a fixed timeline — you pay a flat 10%. Missing the 120-day BDP completion target means continuing to pay maximum royalty rates, and there are financial penalties for failing specific BDP steps (loss of Convention Allowance, mandatory minimum royalty payments).

The No Item 19 policy is a meaningful information asymmetry. Servpro knows exactly what its 2,286 operators earn. Prospective franchisees don't. In any negotiation, the party with better information has an advantage — here, that's Servpro. Your validation calls with existing franchisees become even more critical given the absence of FDD-sourced data.

The resale referral fee (up to 10% of gross sale price) means if Servpro helps you find a buyer when you want to exit, they take up to 10% of the transaction value. On a $500,000 business sale, that's $50,000. Factor this into your exit planning from day one.