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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.
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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
Avg. Revenue: $1,049,780
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Unlock financial performance dataRAINBOW INTERNATIONAL Franchise Analysis
Disaster strikes without warning, yet Rainbow International has been the quiet hero in restoration since 1981, now thriving under Neighborly's vast network with options to convert existing cleaning outfits. Item 19 unveils impressive revenue benchmarks that outpace many service peers, while a robust SBA lending track record hints at accessible financing paths. But amid steady expansion and some contractual friction, does this franchise deliver the steady cash flow essential for long-term security?
Item 7 lays out a clear entry: $40,000 franchise fee within a total investment of $119,336 to $263,160, accommodating startups or conversions with add-ons like air duct cleaning. Ongoing costs include 6% royalties, 2% brand fund, plus $1,053-$1,253 monthly for software and HelpDesk—watch those stack up on lower-volume days. Item 19 shines brightly: average gross revenue hits $1,049,780 per unit, though median at $612,588 signals variability; top performers likely dominate in high-disaster zones, rewarding territorial savvy.
System vitality shows 330 locations up 5% from 313 in 2023, with 23 projected new units, 12 transfers, just 11 terminations and 3 non-renewals—healthier than litigious peers. SBA stats bolster appeal: 200 loans averaging $313,576, but 11% default rate warrants caution versus industry norms. Litigation echoes breaches, non-competes, and fee disputes, underscoring enforcement rigor. Buyers should probe local flood/fire risks, Neighborly synergies, and full Item 20/21 for outlier performance drivers.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
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 | $136K – $164K | $118K | 10.0% | 672 |
| MOSQUITO AUTHORITY | $54K – $128K | $45K | 10.0% | 546 |
| Culligan | $130K – $814K | $40K | 2.0% | 460 |
| MOSQUITO JOE | $150K – $192K | $43K | 10.0% | 415 |
Home Services Average 136 franchises | $142K – $269K | $52K | 6.9% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 136 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
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Unlock location growth dataSBA 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.
200 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
458 franchisee contacts on file from official FDD filings.
458 Contacts Available
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Unlock contactsDue 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
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Unlock due diligence reportsFrequently 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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