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.

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.

298

Locations

$127K–$310K

Investment

Since 2010

Franchising

ServicesDallas, TXStellar Brands, LLCwww.Restoration1.comDisclaimer

Franchise Costs

Franchise Fee

$59,900

Item 5 of FDD

Initial Investment Range

$126,525 – $309,500

Low: $126,525High: $309,500

Item 7 of FDD

Royalty Rate

7.00%

of gross sales

Brand Fund

0.00%

Item 6 of FDD

Fixed Monthly Fees

$525 – $525

Item 6 of FDD

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

Financial Performance

Item 19 Financial Performance

Average Gross Revenue

Median Gross Revenue

Average Net Profit

Average Gross Profit

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

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	$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

Top States

1TX

2FL

3WA

4GA

5CA

6IL

7NC

8MI

9CO

10NY

11AZ

12VA

13PA

14MO

15NJ

+26 more states

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.

Franchisee Contacts

297 franchisee contacts on file from official FDD filings.

Name	Address	Phone	Email	SBA Loan
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active

297 Contacts Available

Unlock all RESTORATION 1 franchisee contacts with verified contact information

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

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.