How much revenue does a RESTORATION 1 franchise make?

RESTORATION 1 does disclose financial performance data (Item 19) in their 2025 FDD, including average and median gross revenue figures. Get full access to see the exact revenue numbers and detailed financial breakdown.

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

Profit estimates for RESTORATION 1 franchises are available from the Item 19 financial performance data in the 2025 FDD. Get full access to see the estimated profit range and calculation methodology.

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. We have historical SBA 7(a) loan data on file including approval counts, average loan amounts, and default rates. Get full access to see the complete SBA loan history.

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.

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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.

298locations

$127K–$310K

Since 2010

ServicesDallas, TXStellar Brands, LLCwww.Restoration1.comDisclaimer

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Franchise Costs

Franchise Fee

$59,900

Initial Investment

$126,525 – $309,500

Royalty Rate

7.00%

Brand Fund

0.00%

Fixed Monthly Fees

$525 – $525

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

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

Avg. Revenue: $1,224,339

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RESTORATION 1 Franchise Analysis

Disaster strikes without warning, and Restoration 1 positions franchisees as the first responders in water, fire, and mold crises for homes and businesses. Item 19 lays bare revenue streams that outperform many service brands, while SBA loan records hint at accessible financing paths. But with expansion grinding to a halt, can this Dallas-based powerhouse deliver the steady climb investors crave?

Item 7 details a lean initial investment of $126,525 to $309,500, kicked off by a $59,900 franchise fee, making it approachable for operators eyeing home services. Royalty hits 7% plus up to 2% brand fund and $525 monthly tech fee, but Item 19's $1,224,339 average gross revenue dwarfs the median $645,255, signaling top performers crush it with estimated profits from $145,697 to $254,663. SBA stats shine too: 86 loans averaging $238,786 and just 5.8% default rate, proving banks back this model amid 298 locations nationwide.

System maturity shows in franchising since 2010 under Stellar Brands, yet growth stalled from 293 to 294 units year-over-year—a red flag amid 24 terminations and 13 transfers. Litigation shadows include 2015-2016 arbitration over alleged misrepresentations settled quietly, plus a 2023 franchisor suit for post-termination infringement. Buyers must probe territory options (standard vs. micro) and reconstruction add-ons, cross-checking Item 20 projections against real unit economics to gauge if Restoration 1's emergency appeal justifies the risks in a volatile niche.

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Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How RESTORATION 1 Compares

Key Insights

Lower than average SBA loan default rate in Home Services

Franchise	Investment	Fee	Royalty	Locations
RESTORATION 1 Current	$127K – $310K	$60K	7.0%	298
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

Top States

1TX

2FL

3WA

4GA

5CA

6IL

7NC

8MI

9CO

10NY

11AZ

12VA

13PA

14MO

15NJ

+26 more states

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SBA Loan History

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

Total Loans

Average Loan

$238,786

Total Volume

$20.5M

Default Rate

5.8%

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.

86 SBA loans on record

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Franchisee Contacts

297 franchisee contacts on file from official FDD filings.

297 Contacts Available

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Due Diligence

Litigation (Item 3)

Franchisee 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

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations

Non-Renewals

Reacquired

Ceased Ops

Transfers

Sold to Franchisees

Projected New

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Frequently Asked Questions

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.