RAINBOW INTERNATIONAL
Rainbow International franchises provide specialized restoration and cleaning services, including water and fire restoration, smoke and odor cleanup, hard surface, carpet and upholstery cleaning, reconstruction, and mold remediation for residential and commercial customers. Franchisees can operate as start-ups or convert existing businesses, with an optional add-on for air duct cleaning services upon purchasing additional equipment and training. The business model involves granting licenses to use Rainbow Restoration trademarks and systems, supported by the franchisor's training and operational guidance.
Franchise Costs
6% royalty + 2% ad fund + $1,053-$1,253/mo software & HelpDesk fees
Financial Performance
Item 19 Financial Performance
Data Based On: 275 franchised businesses that were in operation and reporting sales for the full 12 months of the 2024 Reporting Period and submitted their Gross Sales data using the Software System.
* Overall average and median gross sales for all 275 franchised businesses derived directly from the '100%' row in the 'Average and Median Gross Sales' table (Page 3). The revenue for the top 25% performers is the 'Average' from the 'Top 25%' row (Page 2), and the revenue for the bottom 25% performers is the 'Average' from the 'Bottom 25%' row (Page 3). No explicit gross profit, net income, net profit, or EBITDA data was provided, nor sufficient expense details to estimate profit ranges.
Extracted Item 19 Section
How RAINBOW INTERNATIONAL Compares
Key Insights
- Lower than average SBA loan default rate in Home Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
RAINBOW INTERNATIONAL Current | $119K – $263K | $40K | 6.0% | 330 |
| MERRY MAIDS | $127K – $166K | $55K | 7.0% | 933 |
| HOLIDAY LIGHTING HEROES | $150K – $177K | $127K | 10.0% | 653 |
| SIGN GYPSIES | $4K – $5K | $1K | N/A | 587 |
| MOSQUITO AUTHORITY | $54K – $128K | $45K | 10.0% | 546 |
| Culligan | $130K – $814K | $40K | 2.0% | 460 |
Home Services Average 130 franchises | $144K – $289K | $53K | 7.0% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 130 Home Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+32 more states
SBA Loan History
Historical SBA 7(a) loan data for RAINBOW INTERNATIONAL franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
458 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
458 Contacts Available
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Due Diligence
Litigation (Item 3)
Breach of franchise agreement, non-compete violations, unpaid fees, trade secret misappropriation, and related counterclaims.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a RAINBOW INTERNATIONAL franchise ranges from $119,336 to $263,160. This includes a franchise fee of $40,000. Ongoing royalty fees are 6.0% of gross sales.
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