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RAINBOW INTERNATIONAL

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.

Since 1981ServicesWaco, TXNeighborlywww.rainbowrestores.com
Item 19 AvailableSBA Loan Data

Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.

Overview

Investment
$119,336 - $263,160
Franchise Fee
$40,000
Locations
330

Financial Requirements

Franchise Fee$40,000
Initial Investment Range$119,336 - $263,160
Royalty Rate6.00%
Brand Fund2.00%
Fixed Monthly Fees$1,053 - $1,253

6% royalty + 2% ad fund + $1,053-$1,253/mo software & HelpDesk fees

Franchise Stats

Franchise Locations330
Corporate Locations0
States Operating48
Franchising Since1981
FDD Year2025

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$1,049,780
Median Gross Revenue
$612,588
Top Quartile Revenue
$2,777,173
Bottom Quartile Revenue
$109,950

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 to Other Home Services Franchises

Key Insights

  • Lower than average SBA loan default rate in Home Services
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
RAINBOW INTERNATIONAL
Current
$119K - $263K$40K6.0%330
MERRY MAIDS$127K - $166K$55K7.0%933
HOLIDAY LIGHTING HEROES$150K - $177K$127K10.0%653
SIGN GYPSIES$4K - $5K$1KN/A587
MOSQUITO AUTHORITY$54K - $128K$45K10.0%546
Culligan$130K - $814K$40K2.0%460
Home Services Average
129 franchises
$144K - $289K$53K7.0%-

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 129 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

Top States by Outlet Count
1CA
57
2TX
31
3NY
22
4PA
15
5GA
14
6VA
14
7OH
12
8NC
11
9MD
11
10AZ
11
11IL
11
12FL
10
13WA
8
14NJ
8
15CO
6

+32 more states

SBA Loan History

Historical SBA 7(a) loan data for RAINBOW INTERNATIONAL franchisees (2010 - 2025)

Total Loans
200
Average Loan Amount
$313,576
Total Loan Volume
$62,715,200
Default Rate
11.0%

Loans by Year

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases1

Breach of franchise agreement, non-compete violations, unpaid fees, trade secret misappropriation, and related counterclaims.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
11
Non-Renewals
3
Reacquired by Franchisor
0
Ceased Operations (Other)
2
System Transfers
12
Sold to Franchisees
0
Projected New Franchises
23

Frequently Asked Questions

How much does it cost to open a RAINBOW INTERNATIONAL franchise?

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.

How much revenue does a RAINBOW INTERNATIONAL franchise make?

According to the 2025 FDD, the average gross revenue for a RAINBOW INTERNATIONAL franchise is $1,049,780. The median revenue is $612,588.

How many RAINBOW INTERNATIONAL franchise locations are there?

As of the 2025 FDD, RAINBOW INTERNATIONAL has 330 franchise locations. The company has been franchising since 1981.

Can you get an SBA loan for a RAINBOW INTERNATIONAL franchise?

Yes, SBA loans are available for RAINBOW INTERNATIONAL franchises. Historical data shows 200 SBA 7(a) loans have been approved for RAINBOW INTERNATIONAL franchisees, with an average loan amount of $313,576. The historical default rate is 11.0%.

Is RAINBOW INTERNATIONAL a good franchise to buy?

RAINBOW INTERNATIONAL shows several positive indicators: established brand with 330+ locations, transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Interested in RAINBOW INTERNATIONAL?

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