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

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

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

Section III – Number of franchised and company-owned United Water Restoration Group 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 United Water Restoration Group franchise opportunity

Section V – Presentation and analysis of United Water Restoration Group’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 gross sales, and average and median job size for the top 25%, top 50%, top 75%, bottom 75%, bottom 50%, and bottom 25% of the 10 company-owned United Water Restoration Group businesses that were open the full 12 months of 2023

• 2023 average, median, highest, and lowest gross sales per job for the 10 company-owned United Water Restoration Group businesses that were open the full 12 months of 2023

• 2023 average, median, highest, and lowest gross sales, and average and median job size for the top 25%, top 50%, top 75%, bottom 75%, bottom 50%, and bottom 25% of the 23 franchised United Water Restoration Group businesses in Canada and the United States that were open the full 12 months of 2023

• 2023 average, median, highest, and lowest gross sales per job for the 23 franchised United Water Restoration Group businesses in Canada and the United States that were open the full 12 months of 2023

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

Section I – United Water Restoration Group Franchise Costs

• United Water Restoration Group franchise costs (office/warehouse outlet), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,000 to $210,000
• Deposits (Lease and Utility):  $1,500 to $3,000
• Rent (3 Months):  $4,500 to $9,000
• Monthly Utility Costs (3 Months):  $600 to $1,200
• Leasehold Improvements:  $0 to $9,000
• Signage:  $4,000 to $7,500
• Vehicles:  $20,000 to $95,000
• Opening Equipment, Tools, Inventory, and Supplies Package:  $42,500 to $106,000
• Office Furniture, Equipment, and Supplies:  $1,000 to $5,500
• Computer Hardware and Software:  $7,500 to $15,000
• Payroll Service Fee (3 Months):  $0 to $600
• Answering Service Fee (3 Months):  $0 to $750
• Uniforms:  $200 to $600
• Business Licenses and Permits:  $1,000 to $2,000
• Association Fees:  $400 to $750
• Legal, Accounting, and Professional Fees:  $600 to $2,500
• Insurance:  $7,500 to $10,000
• Initial Marketing and Promotion:  $7,500 to $11,000
• Local Advertising and Promotion:  $9,000
• Training Expenses:  $7,500 to $14,000
• Additional Funds/Working Capital (3 Months):  $50,000 to $115,000
• Total Estimated United Water Restoration Group Franchise Costs:  $214,300 to $627,400

Section II – United Water Restoration Group’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• United Water Restoration Group’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,000 (1 territory) to $210,000 (6 territories)

• Royalty Fee:  Restoration/Remediation Services: 6% of Collected Revenue, subject to minimums; Reconstruction Services: 2% of Collected Revenue

• Brand Development Fund Contributions:  the greater of $450 per month or the percentage of Collected Revenue the franchisor sets, but not more than 2%

• Co-op Contributions:  as determined by the Co-op, not to exceed 1% of Collected Revenue, unless Co-op votes for a higher amount

Section III – Number of Franchised and Company-Owned United Water Restoration Group Outlets

Franchised

2021

• Outlets at the Start of the Year:  17
• Outlets at the End of the Year:  20
• Net Change:  +3

2022

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  24
• Net Change:  +4

2023

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  32
• Net Change:  +8

Company-Owned

2021

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  12
• Net Change:  +1

2022

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  12
• Net Change:  0

2023

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  12
• Net Change:  0

Section IV – News Updates on the United Water Restoration Group Franchise

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

Part 1 – Company-Owned United Water Restoration Group Businesses

• The franchisor compiled the Gross Sales (which are unaudited figures) from the company-owned United Water Restoration Group Businesses which offer substantially the same services to the public as the type of Business the franchisor franchises.

• The United Water Restoration Group Businesses have access to many of the same services as those the franchisor offers to new franchisees. The franchisor shares personnel and certain other assets and resources with the company-owned United Water Restoration Group Businesses. There are no material financial and operation characteristics of the company-owned outlets that are reasonably anticipated to different materially from future operational franchise outlets.

• The following figures are based on historical results of Gross Sales from the franchisor’s company-owned United Water Restoration Group Businesses for the calendar year ended December 31, 2023, that were open the full 12 months, which accounted for 10 out of 10 units.

A. Average Gross Sales

Top 25%

• Number of Operators in Group:  3
• Average Gross Sales:  $3,181,254
• Number of Locations That Exceeded Average:  1
• Percentage of Locations That Exceeded Average:  33%
• Highest:  $5,095,084.73
• Lowest:  $2,058,376.69
• Median:  $2,390,300.43
• Average Job Size:  $4,866.78
• Median Job Size:  $3,409.84

Top 50%

• Number of Operators in Group:  5
• Average Gross Sales:  $2,648,578
• Number of Locations That Exceeded Average:  1
• Percentage of Locations That Exceeded Average:  20%
• Highest:  $5,095,084.73
• Lowest:  $1,796,375.29
• Median:  $2,058,376.69
• Average Job Size:  $3,908.76
• Median Job Size:  $2,983.15

Top 75%

• Number of Operators in Group:  8
• Average Gross Sales:  $2,139,146
• Number of Locations That Exceeded Average:  2
• Percentage of Locations That Exceeded Average:  25%
• Highest:  $5,095,084.73
• Lowest:  $733,376.14
• Median:  $1,849,564.42
• Average Job Size:  $3,794.49
• Median Job Size:  $3,196.50

Bottom 75%

• Number of Operators in Group:  8
• Average Gross Sales:  $1,344,305
• Number of Locations That Exceeded Average:  5
• Percentage of Locations That Exceeded Average:  63%
• Highest:  $2,058,376.69
• Lowest:  $396,780.79
• Median:  $1,568,449.83
• Average Job Size:  $3,018.37
• Median Job Size:  $3,091.50

Bottom 50%

• Number of Operators in Group:  5
• Average Gross Sales:  $999,387
• Number of Locations That Exceeded Average:  2
• Percentage of Locations That Exceeded Average:  40%
• Highest:  $1,678,848.78
• Lowest:  $396,780.79
• Median:  $733,376.14
• Average Job Size:  $3,455.70
• Median Job Size:  $3,547.57

Bottom 25%

• Number of Operators in Group:  3
• Average Gross Sales:  $620,012
• Number of Locations That Exceeded Average:  2
• Percentage of Locations That Exceeded Average:  67%
• Highest:  $733,376.14
• Lowest:  $396,780.79
• Median:  $729,879.58
• Average Job Size:  $3,034.32
• Median Job Size:  $3,199.85

Total

• Number of Operators in Group:  10
• Average Gross Sales:  $1,823,983
• Number of Locations That Exceeded Average:  4
• Percentage of Locations That Exceeded Average:  40%
• Highest:  $5,095,084.73
• Lowest:  $396,780.79
• Median:  $1,737,612.04
• Average Job Size:  $3,773.24
• Median Job Size:  $3,304.84

B. Average Gross Sales Per Job

• Number of Locations:  10
• Average Gross Sales Per Job:  $3,773.24
• Number of Locations That Exceeded Average:  2
• Percentage of Locations That Exceeded Average:  20%
• Highest:  $8,938.75
• Lowest:  $2,317.90
• Median:  $3,304.84

Part 2 – Franchised United Water Restoration Group Businesses

• The following figures are based on historical results of Gross Sales from franchisee United Water Restoration Group Businesses in Canada and the United States for the calendar year ended December 31, 2023, that were open the full 12 months, which accounted for 23 out of 30 units (7 units did not operate the entire calendar year and were therefore excluded).

A. Average Gross Sales

Top 25%

• Number of Operators in Group:  6
• Number of Territories in Group:  40
• Average Gross Sales:  $2,743,955
• Number of Locations That Exceeded Average:  2
• Percentage of Locations That Exceeded Average:  33%
• Highest:  $3,689,649.57
• Lowest:  $1,989,831.33
• Median:  $2,549,642.87
• Average Job Size:  $6,736.39
• Median Job Size:  $6,076.10

Top 50%

• Number of Operators in Group:  11
• Number of Territories in Group:  61
• Average Gross Sales:  $2,167,452
• Number of Locations That Exceeded Average:  5
• Percentage of Locations That Exceeded Average:  45%
• Highest:  $3,689,649.57
• Lowest:  $1,063,865.97
• Median:  $1,989,831.33
• Average Job Size:  $6,819.79
• Median Job Size:  $6,418.81

Top 75%

• Number of Operators in Group:  17
• Number of Territories in Group:  74
• Average Gross Sales:  $1,688,643
• Number of Locations That Exceeded Average:  7
• Percentage of Locations That Exceeded Average:  41%
• Highest:  $3,689,649.57
• Lowest:  $412,312.94
• Median:  $1,481,995.19
• Average Job Size:  $6,579.63
• Median Job Size:  $6,418.81

Bottom 75%

• Number of Operators in Group:  17
• Number of Territories in Group:  46
• Average Gross Sales:  $799,786
• Number of Locations That Exceeded Average:  9
• Percentage of Locations That Exceeded Average:  53%
• Highest:  $1,846,966.56
• Lowest:  $61,273.19
• Median:  $847,384.99
• Average Job Size:  $6,163.35
• Median Job Size:  $6,114.17

Bottom 50%

• Number of Operators in Group:  11
• Number of Territories in Group:  22
• Average Gross Sales:  $472,975
• Number of Locations That Exceeded Average:  4
• Percentage of Locations That Exceeded Average:  36%
• Highest:  $991,347.75
• Lowest:  $61,273.19
• Median:  $384,227.65
• Average Job Size:  $5,723.57
• Median Job Size:  $5,540.16

Bottom 25%

• Number of Operators in Group:  6
• Number of Territories in Group:  12
• Average Gross Sales:  $225,527
• Number of Locations That Exceeded Average:  2
• Percentage of Locations That Exceeded Average:  33%
• Highest:  $335,723.83
• Lowest:  $61,273.19
• Median:  $208,727.62
• Average Job Size:  $4,714.86
• Median Job Size:  $4,813.00

Total

• Number of Operators in Group:  23
• Number of Territories in Group:  86
• Average Gross Sales:  $1,306,960
• Number of Locations That Exceeded Average:  10
• Percentage of Locations That Exceeded Average:  43%
• Highest:  $3,689,649.57
• Lowest:  $61,273.19
• Median:  $1,015,385.90
• Average Job Size:  $6,464.53
• Median Job Size:  $6,114.17

B. Average Gross Sales Per Job

• Number of Locations:  23
• Average Gross Sales Per Job:  $6,464.53
• Number of Locations That Exceeded Average:  9
• Percentage of Locations That Exceeded Average:  39%
• Highest:  $13,177.32
• Lowest:  $3,009.58
• Median:  $6,114.17

• Gross Sales, as used herein, means the total sales invoiced during the year, minus credit memos (not the amount collected).

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

• The figures the franchisor presents are based on the cash basis of accounting and conform to generally accepted accounting principles. The statements are the product of the accounting software program and system the franchisor utilizes for its operations.

• The sales of United Water Restoration Group Businesses do not appear to be affected by seasonality.

• The Collected Revenue shown does not include any expenses that you will also incur in operating your United Water Restoration Group Business, as well as royalties, brand development contributions, and other fees due the franchisor.

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