In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Restoration 1 franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Restoration 1 franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Restoration 1 outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Restoration 1 franchise opportunity

Section V – Presentation and analysis of Restoration 1’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest collected gross revenue; average cost of materials; average cost of hourly workers and subcontractors; and average cost of salaried staff for the Restoration 1 franchisees that operated 1 franchised territory during the full 2023 calendar year

• 2023 average, median, highest, and lowest collected gross revenue; average cost of materials; average cost of hourly workers and subcontractors; and average cost of salaried staff for the Restoration 1 franchisees that operated 2 franchised territories during the full 2023 calendar year

• 2023 average, median, highest, and lowest collected gross revenue; average cost of materials; average cost of hourly workers and subcontractors; and average cost of salaried staff for the Restoration 1 franchisees that operated 3 franchised territories during the full 2023 calendar year

• 2023 average, median, highest, and lowest collected gross revenue; average cost of materials; average cost of hourly workers and subcontractors; and average cost of salaried staff for the Restoration 1 franchisees that operated 4-7 franchised territories during the full 2023 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the Restoration 1 franchise opportunity (exclusive content for Platinum subscribers)

Section I – Restoration 1 Franchise Costs

• Franchise Fee:  $59,900 to $64,275
• Technology Fee:  $2,100
• Real Estate/Rent:  $0 to $1,000
• Renovations and Improvements:  $250 to $500
• Encircle Software:  $1,000
• Office Equipment and Supplies:  $300 to $1,000
• Service Tools and Equipment:  $500 to $62,000
• Uniforms:  $250 to $650
• Technology Systems Components:  $1,650 to $4,750
• Training Expenses for 3 People:  $2,000 to $5,000
• Vehicle:  $4,500 to $60,000
• Marketing Materials:  $500 to $2,500
• Insurance:  $3,000 to $6,000
• Licenses and Permits:  $250 to $5,000
• Certifications:  $1,000 to $4,000
• Professional Fees:  $1,500 to $2,000
• Additional Funds (3 months):  $25,000 to $50,000
• Total Estimated Restoration 1 Franchise Costs:  $103,700 to $271,775
  

Section II – Restoration 1’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $59,900, plus an additional $175 per 1,000 people over 250,000 in your Market Territory

• Royalty Fee:  greater of: (a) 7% of Collected Gross Revenue (or 3.5% for a conversion franchise during its initial 6 months) (other than Construction Gross Revenue); or (b) the Minimum Royalty Fee

• Reconstruction Royalty Fees:  2% of Construction Gross Revenue

• Brand Fund Contribution:  not currently charged (subject to change up to 2% of Collected Gross Revenue, excluding Construction Gross Revenue)

• Reconstruction Brand Fund Contribution:  not currently charged (subject to change up to 0.5% of Construction Gross Revenues)

• Local Advertising Expenditure:  not currently charged (subject to change up to 2% of Collected Gross Revenue)

Section III – Number of Franchised and Company-Owned Restoration 1 Outlets

Franchised

2021

• Outlets at the Start of the Year:  252
• Outlets at the End of the Year:  271
• Net Change:  +19

2022

• Outlets at the Start of the Year:  271
• Outlets at the End of the Year:  290
• Net Change:  +19

2023

• Outlets at the Start of the Year:  290
• Outlets at the End of the Year:  296
• Net Change:  +6

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Restoration 1 Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Restoration 1 Franchise (Item 19, 2024 FDD)

• As of December 31, 2023, there were a total of 296 franchised Restoration 1 Businesses. Each Restoration 1 Business represents one franchised territory. Some franchisees operate multiple franchised territories. Most franchisees that operate multiple franchised territories do not separately report financial information per franchised territory. As a result, Restoration 1 has provided data on a “per franchisee” basis (not on a “per territory” basis).

• The financial performance data presented below for Collected Gross Revenue is based on 115 franchisees operating a total of 198 franchised territories during the full 2023 calendar year.

• Restoration 1 excluded data for:

• (i) 17 franchised territories that opened in the 2023 calendar year by new franchisees that were not currently in Restoration 1’s system, and Restoration 1 therefore did not have a full year of reporting for such franchisee;

• (ii) 8 franchised territories that were transferred to new franchisees that were not currently
  in Restoration 1’s system, and Restoration 1 therefore did not have a full year of reporting for such franchisee;

• (iii) 22 franchised territories that failed to report their 2023 data to Restoration 1;

• (iv) 51 franchised territories that derived more than 30% of their revenue in the 2023 calendar year from Reconstruction Services, which franchisees are not required to offer; and

• (v) 14 franchised territories that were terminated between January 1, 2023 and December 31, 2023, for which Restoration 1 did not have a full year of reporting.

Part 1 – Collected Gross Revenue – Franchisees Operating 1 Territory (65 Franchisees)

Top 25%

• Average Collected Gross Revenue:  $2,062,407
• Number and Percentage Meeting or Exceeding Average:  7 of 16 (43.1%)
• Median Collected Gross Revenue:  $1,683,425
• Lowest Collected Gross Revenue:  $977,339
• Highest Collected Gross Revenue:  $6,501,661

Top 50%

• Average Collected Gross Revenue:  $1,343,224
• Number and Percentage Meeting or Exceeding Average:  11 of 33 (33.8%)
• Median Collected Gross Revenue:  $964,403
• Lowest Collected Gross Revenue:  $449,751
• Highest Collected Gross Revenue:  $6,501,661

Top 75%

• Average Collected Gross Revenue:  $1,014,336
• Number and Percentage Meeting or Exceeding Average:  14 of 49 (28.7%)
• Median Collected Gross Revenue:  $665,463
• Lowest Collected Gross Revenue:  $207,308
• Highest Collected Gross Revenue:  $6,501,661

Bottom 25%

• Average Collected Gross Revenue:  $123,406
• Number and Percentage Meeting or Exceeding Average:  8 of 16 (49.2%)
• Median Collected Gross Revenue:  $129,997
• Lowest Collected Gross Revenue:  $38,717
• Highest Collected Gross Revenue:  $201,146

Bottom 50%

• Average Collected Gross Revenue:  $236,373
• Number and Percentage Meeting or Exceeding Average:  15 of 33 (46.2%)
• Median Collected Gross Revenue:  $207,308
• Lowest Collected Gross Revenue:  $38,717
• Highest Collected Gross Revenue:  $449,751

Bottom 75%

• Average Collected Gross Revenue:  $381,193
• Number and Percentage Meeting or Exceeding Average:  22 of 49 (45.1%)
• Median Collected Gross Revenue:  $344,511
• Lowest Collected Gross Revenue:  $38,717
• Highest Collected Gross Revenue:  $964,403

Total

• Average Collected Gross Revenue:  $795,030
• Number and Percentage Meeting or Exceeding Average:  20 of 65 (30.8%)
• Median Collected Gross Revenue:  $449,751
• Lowest Collected Gross Revenue:  $38,717
• Highest Collected Gross Revenue:  $6,501,661

• Average Cost of Materials:  5.5%
• Average Cost of Hourly Workers and Subcontractors:  16.4%
• Average Cost of Salaried Staff:  8.1%

Part 2 – Collected Gross Revenue – Franchisees Operating 2 Territories (28 Franchisees)

Top 25%

• Average Collected Gross Revenue:  $1,488,999
• Number and Percentage Meeting or Exceeding Average:  2 of 7 (28.6%)
• Median Collected Gross Revenue:  $1,298,831
• Lowest Collected Gross Revenue:  $1,171,590
• Highest Collected Gross Revenue:  $2,290,889

Top 50%

• Average Collected Gross Revenue:  $1,227,155
• Number and Percentage Meeting or Exceeding Average:  5 of 14 (35.7%)
• Median Collected Gross Revenue:  $1,149,096
• Lowest Collected Gross Revenue:  $878,365
• Highest Collected Gross Revenue:  $2,290,889

Top 75%

• Average Collected Gross Revenue:  $1,020,300
• Number and Percentage Meeting or Exceeding Average:  9 of 21 (42.9%)
• Median Collected Gross Revenue:  $932,356
• Lowest Collected Gross Revenue:  $441,081
• Highest Collected Gross Revenue:  $2,290,889

Bottom 25%

• Average Collected Gross Revenue:  $302,644
• Number and Percentage Meeting or Exceeding Average:  4 of 7 (57.1%)
• Median Collected Gross Revenue:  $349,267
• Lowest Collected Gross Revenue:  $56,401
• Highest Collected Gross Revenue:  $431,609

Bottom 50%

• Average Collected Gross Revenue:  $454,618
• Number and Percentage Meeting or Exceeding Average:  6 of 14 (42.9%)
• Median Collected Gross Revenue:  $436,345
• Lowest Collected Gross Revenue:  $56,401
• Highest Collected Gross Revenue:  $822,751

Bottom 75%

• Average Collected Gross Revenue:  $624,849
• Number and Percentage Meeting or Exceeding Average:  10 of 21 (47.6%)
• Median Collected Gross Revenue:  $593,970
• Lowest Collected Gross Revenue:  $56,401
• Highest Collected Gross Revenue:  $1,126,601

Total

• Average Collected Gross Revenue:  $840,886
• Number and Percentage Meeting or Exceeding Average:  14 of 28 (50.0%)
• Median Collected Gross Revenue:  $850,558
• Lowest Collected Gross Revenue:  $56,401
• Highest Collected Gross Revenue:  $2,290,889

• Average Cost of Materials:  5.4%
• Average Cost of Hourly Workers and Subcontractors:  19.1%
• Average Cost of Salaried Staff:  6.2%

Part 3 – Collected Gross Revenue – Franchisees Operating 3 Territories (16 Franchisees)

Top 25%

• Average Collected Gross Revenue:  $4,404,871
• Number and Percentage Meeting or Exceeding Average:  2 of 4 (50.0%)
• Median Collected Gross Revenue:  $4,030,740
• Lowest Collected Gross Revenue:  $2,746,135
• Highest Collected Gross Revenue:  $6,811,867

Top 50%

• Average Collected Gross Revenue:  $3,253,780
• Number and Percentage Meeting or Exceeding Average:  2 of 8 (25.0%)
• Median Collected Gross Revenue:  $2,668,612
• Lowest Collected Gross Revenue:  $1,704,388
• Highest Collected Gross Revenue:  $6,811,867

Top 75%

• Average Collected Gross Revenue:  $2,499,313
• Number and Percentage Meeting or Exceeding Average:  5 of 12 (41.7%)
• Median Collected Gross Revenue:  $2,057,639
• Lowest Collected Gross Revenue:  $624,463
• Highest Collected Gross Revenue:  $6,811,867

Bottom 25%

• Average Collected Gross Revenue:  $348,930
• Number and Percentage Meeting or Exceeding Average:  2 of 4 (50.0%)
• Median Collected Gross Revenue:  $374,483
• Lowest Collected Gross Revenue:  $53,190
• Highest Collected Gross Revenue:  $593,564

Bottom 50%

• Average Collected Gross Revenue:  $669,655
• Number and Percentage Meeting or Exceeding Average:  3 of 8 (37.5%)
• Median Collected Gross Revenue:  $609,013
• Lowest Collected Gross Revenue:  $53,190
• Highest Collected Gross Revenue:  $1,268,439

Bottom 75%

• Average Collected Gross Revenue:  $1,147,333
• Number and Percentage Meeting or Exceeding Average:  6 of 12 (50.0%)
• Median Collected Gross Revenue:  $1,034,310
• Lowest Collected Gross Revenue:  $53,190
• Highest Collected Gross Revenue:  $2,591,089

Total

• Average Collected Gross Revenue:  $1,961,717
• Number and Percentage Meeting or Exceeding Average:  6 of 16 (37.5%)
• Median Collected Gross Revenue:  $1,486,413
• Lowest Collected Gross Revenue:  $53,190
• Highest Collected Gross Revenue:  $6,811,867

• Average Cost of Materials:  7.3%
• Average Cost of Hourly Workers and Subcontractors:  22.8%
• Average Cost of Salaried Staff:  13.8%

Part 4 – Collected Gross Revenue – Franchisees Operating 4-7 Territories (6 Franchisees)

Top 25%

• Average Collected Gross Revenue:  $8,324,631
• Number and Percentage Meeting or Exceeding Average:  1 of 2 (66.7%)
• Median Collected Gross Revenue:  N/A
• Lowest Collected Gross Revenue:  $2,357,654
• Highest Collected Gross Revenue:  $14,291,607

Top 50%

• Average Collected Gross Revenue:  $6,321,136
• Number and Percentage Meeting or Exceeding Average:  1 of 3 (33.3%)
• Median Collected Gross Revenue:  $2,357,654
• Lowest Collected Gross Revenue:  $2,314,146
• Highest Collected Gross Revenue:  $14,291,607

Top 75%

• Average Collected Gross Revenue:  $4,521,042
• Number and Percentage Meeting or Exceeding Average:  1 of 5 (22.2%)
• Median Collected Gross Revenue:  $2,314,146
• Lowest Collected Gross Revenue:  $1,691,162
• Highest Collected Gross Revenue:  $14,291,607

Bottom 25%

• Average Collected Gross Revenue:  $1,502,049
• Number and Percentage Meeting or Exceeding Average:  1 of 2 (66.7%)
• Median Collected Gross Revenue:  N/A
• Lowest Collected Gross Revenue:  $1,312,936
• Highest Collected Gross Revenue:  $1,691,162

Bottom 50%

• Average Collected Gross Revenue:  $1,651,579
• Number and Percentage Meeting or Exceeding Average:  2 of 3 (66.7%)
• Median Collected Gross Revenue:  $1,691,162
• Lowest Collected Gross Revenue:  $1,312,936
• Highest Collected Gross Revenue:  $1,950,639

Bottom 75%

• Average Collected Gross Revenue:  $1,925,308
• Number and Percentage Meeting or Exceeding Average:  3 of 5 (66.7%)
• Median Collected Gross Revenue:  $1,950,639
• Lowest Collected Gross Revenue:  $1,312,936
• Highest Collected Gross Revenue:  $2,357,654

Total

• Average Collected Gross Revenue:  $3,986,358
• Number and Percentage Meeting or Exceeding Average:  1 of 6 (16.7%)
• Median Collected Gross Revenue:  $2,132,393
• Lowest Collected Gross Revenue:  $1,312,936
• Highest Collected Gross Revenue:  $14,291,607

• Average Cost of Materials:  3.5%
• Average Cost of Hourly Workers and Subcontractors:  15.4%
• Average Cost of Salaried Staff:  8.0%

• “Collected Gross Revenue” means the aggregate of all revenue and consideration of any kind derived from your Franchised Business, whether from check, cash, credit or otherwise, including all proceeds from any business interruption insurance, but excluding (a) all refunds actually made to customers in good faith, (b) any sales and equivalent taxes that are collected by you for or on behalf of any governmental taxing authority and paid thereto, and (c) uncollected amounts not paid by customers.

• With respect to National Accounts Clients, Collected Gross Revenue includes all revenue received by Restoration 1 for performance of services, without deduction for dispatch or claims management fees or similar fees.

• The figures in the chart do not reflect the operating costs and expenses that you will incur in operating your Franchised Business, such as royalties, advertising and marketing fees and costs, payroll, vehicle finance or lease payments, insurance, telephone, utilities, and central telephone number fees. These figures also do not include depreciation or amortization or taxes.

• “Cost of Materials” means the cost of supplies and materials used to perform services for customers as a percentage of Collected Gross Revenue.

• “Cost of Hourly Workers and Subcontractors” means the cost of wages to hourly workers and subcontractors as a percentage of Collected Gross Revenue, not including payroll taxes and benefits.

• “Cost of Salaried Staff” means the cost of wages to salaried staff as a percentage of Collected Gross Revenue, not including payroll taxes and benefits.

• Neither the Cost of Hourly Workers and Subcontractors nor the Cost of Salaried Staff includes salaries and other distributions paid to the franchisee or its owners, if any.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

Section VI – Restoration 1 Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️