Evans / Lyons Restores

Item 7 in the 2024 FDD lays out a hefty initial investment of $83,975 to $302,200 for converting dry-cleaning facilities into main restoration locations, plus extras for optional depots. The $40,000 franchise fee kicks it off, followed by a 6% royalty (or a minimum after year one), 2% brand fund, $685 monthly software for principal spots, $35-$76 tech fees, and a $5,000 annual fee. With only 8 franchise locations alongside 3 corporates—down 20% from 10 in 2022—and 2 non-renewals, the system's health signals caution; projected 3 new units offer slim optimism amid stagnation.

No Item 19 earnings disclosure leaves franchisees guessing on revenue potential, a major red flag for a service converting existing operations where profits hinge on local disaster volume and uptake. This opacity, paired with Memphis-based headquarters and a niche in garment/textile restoration post-disasters, means evaluating viability requires scrutinizing your current dry-cleaning cash flow against these fees—the model assumes you already have facilities, but shrinkage suggests challenges in scaling or retaining owners. For investors eyeing home services, the trajectory implies high risk without proven unit economics.