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RESTORATION 1

RESTORATION 1

Restoration 1 franchises businesses that provide residential and commercial water, fire, smoke, mold restoration services, and additional authorized services and products under the Restoration 1 brand. Franchisees operate using proprietary systems, standards, and marks, targeting homeowners, property managers, and commercial property owners needing emergency restoration. The business model involves selling franchises for standard or micro territories, with options for conversions and add-ons like reconstruction services.

Since 2010ServicesDallas, TXStellar Brands, LLCwww.Restoration1.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
$126,525 - $309,500
Franchise Fee
$59,900
Locations
298

Financial Requirements

Franchise Fee$59,900
Initial Investment Range$126,525 - $309,500
Royalty Rate7.00%
Brand Fund0.00%
Fixed Monthly Fees$525 - $525

7% royalty + 0% brand fund (up to 2%) + $525/mo technology fee

Franchise Stats

Franchise Locations298
Corporate Locations0
States Operating43
Franchising Since2010
FDD Year2025

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$1,224,339
Median Gross Revenue
$645,255
Average Net Profit
$254,663
Average Gross Profit
$688,079

Data Based On: Financial performance data based on 253 franchised territories operated by 140 franchisees for Total Collected Revenue for the calendar year ended December 31, 2024. Cost and profit data based on 186 franchised territories operated by 104 franchisees for the calendar year ended December 31, 2024.

* Average gross revenue and median gross revenue were taken directly from the 'TOTAL' row of the '2024 TOTAL COLLECTED REVENUE' table on Page 4. Average gross profit was calculated by multiplying the average total collected revenue ($1,224,339) by the average 'GROSS PROFIT' percentage (56.2%) from the '2024 COSTS AND PROFIT' table on Page 5. Average net profit was calculated by multiplying the average total collected revenue ($1,224,339) by the average 'PROFITS BEFORE OWNERS/MGMT.' percentage (20.8%) from the '2024 COSTS AND PROFIT' table on Page 6, as this represents operating profit before owner-related expenses. The best_guess_profit_low was calculated using the average total collected revenue ($1,224,339) multiplied by the median 'PROFITS AFTER OWNERS/MGMT.' percentage (11.9%) for a conservative estimate. The best_guess_profit_high was calculated using the average total collected revenue ($1,224,339) multiplied by the average 'PROFITS BEFORE OWNERS/MGMT.' percentage (20.8%) for an optimistic estimate.

Extracted Item 19 Section

How RESTORATION 1 Compares to Other Home Services Franchises

Key Insights

  • Lower than average SBA loan default rate in Home Services
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
RESTORATION 1
Current
$127K - $310K$60K7.0%298
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
1TX
34
2FL
19
3WA
18
4GA
16
5CA
14
6IL
14
7NC
13
8MI
13
9CO
12
10NY
11
11AZ
9
12VA
8
13PA
8
14MO
8
15NJ
7

+26 more states

SBA Loan History

Historical SBA 7(a) loan data for RESTORATION 1 franchisees (2018 - 2025)

Total Loans
86
Average Loan Amount
$238,786
Total Loan Volume
$20,535,600
Default Rate
5.8%

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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297 franchisee contacts on file. Upgrade to see names, locations, phone numbers, and matched SBA loan data.

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases6

Primarily arbitration claims by former franchisees for misrepresentations, fraud, deceptive trade practices, and breach of contract (2015-2016), settled with mutual releases and terminations; one 2023 lawsuit by franchisor against former franchisee for breach, trademark infringement post-termination, with counterclaims for wrongful termination.

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
24
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
0
System Transfers
13
Sold to Franchisees
0
Projected New Franchises
0

Frequently Asked Questions

How much does it cost to open a RESTORATION 1 franchise?

The total initial investment to open a RESTORATION 1 franchise ranges from $126,525 to $309,500. This includes a franchise fee of $59,900. Ongoing royalty fees are 7.0% of gross sales.

How much revenue does a RESTORATION 1 franchise make?

According to the 2025 FDD, the average gross revenue for a RESTORATION 1 franchise is $1,224,339. The median revenue is $645,255.

How much profit can you make with a RESTORATION 1 franchise?

Based on the financial performance data in the FDD, estimated profit for a RESTORATION 1 franchise ranges from $145,697 to $254,663 per year. Actual results vary based on location, management, and market conditions.

How many RESTORATION 1 franchise locations are there?

As of the 2025 FDD, RESTORATION 1 has 298 franchise locations. The company has been franchising since 2010.

Can you get an SBA loan for a RESTORATION 1 franchise?

Yes, SBA loans are available for RESTORATION 1 franchises. Historical data shows 86 SBA 7(a) loans have been approved for RESTORATION 1 franchisees, with an average loan amount of $238,786. The historical default rate is 5.8%.

Is RESTORATION 1 a good franchise to buy?

RESTORATION 1 shows several positive indicators: established brand with 298+ locations, transparent financial performance data (Item 19), low SBA loan default rate. 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 RESTORATION 1?

Talk to a franchise advisor to get personalized guidance and learn if RESTORATION 1 is the right fit for you.

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