SERVPRO is one of the largest names in the cleaning industry. With around 2,000 franchises, it’s one of the best options for entrepreneurs looking to start a cleaning business that can double as a source of income and a way to achieve financial independence.
Buying a franchise can be an exciting and rewarding experience. However, you’re also making a significant investment when you own a franchise, so it’s important to do your homework before buying.
This blog is a complete guide on buying a SERVPRO franchise using details contained in the franchise’s FDD document.
Fransmart, the leading franchise development company for emerging brands, offers resources to help people interested in buying a franchise, exploring profitable franchises and how to start your own franchise. From learning how to find a good location to choosing between franchising or starting your own business, we provide useful information on what it takes to succeed with franchising.
Business Overview
Founded in 1969, SERVPRO is an industry leader in restoration services, construction, fire and water cleanup, mould mitigation, biohazard, and pathogen remediation. The company prides itself on being a quick responder to emergencies in large and small properties. It is ranked #8 on the Entrepreneur Franchise 500 list.
For more information about the SERVPRO franchise opportunity, request a Free Franchise Consultation now.
Franchise Cost
SERVPRO’s investment costs range between $191,825 and $248,700, including franchise fees of $70,000. The table below presents the breakdown of start-up costs.
| Name of Fee | Low | High |
| Initial Franchise Fee | $70,000 | $70,000 plus $778 per 1,000 population over maximum |
| Vehicle | $2,000 | $35,000 |
| Equipment and Products Package | $78,500 | $78,500 |
| Supplies | $3,850 | $8,500 |
| Insurance | $4,000 | $5,750 |
| Advertising and Promotional | $250 | $1,500 |
| Training, Travel, Lodging and Food | $550 | $1,900 |
| Deposits, Permits and Licenses | $700 | $2,550 |
| Legal & Professional Fees, Accounting Services, On-Line Tax Table Service and QuickBooks Pro or QuickBooks Online Training | $975 | $1,500 |
| Xactimate and/or Other Third Party Estimating and Pricing Software and Training | $1,000 | $2,500 |
| Additional Funds – 3 months | $30,000 | $35,000 |
| Real Estate | $0 | $3,000 |
| ESTIMATED TOTAL | $191,825 | $245,700 + $778 per 1,000 over maximum population plus any real estate costs |
SERVPRO offers in-house financing to cover equipment, inventory, and franchise fees.
What Are Existing Franchisees Saying About SERVPRO Franchise?
“If you consider being a Franchise owner, the opportunity is just tremendous. You control your destiny. If you’re willing to work hard, follow a system, believe in a dream, you can pretty much do anything you want to do.” – Bill Callahan.
“The support and training we get as a SERVPRO Franchise is excellent. I have been involved in other Franchises, and this by far is the best for training and support.” – Jerry Rowe
“Most businesses operate with a profit margin of 20 per cent. SERVPRO’s franchisees find themselves with a mere 13 per cent — a disappointing number for franchisees”
Available Franchise Locations
SERVPRO is seeking new franchisees only in the U.S. and Canada.
How to Buy a SERVPRO Franchise
The initial franchise term SERVPRO offers is five years. Franchisees can renew for successive five-year terms depending on whether they meet their operational conditions.
Franchisees looking to buy a SERVPRO franchise can find this guide and useful resource to acknowledge the fees and expenses related to franchise, how much franchise owners earn, available location, advantages and disadvantages of the franchise, and more. The complexities of the buying processes have been broken down by Fransmart into a 10 step process for potential franchisees.
Advantages and Disadvantages
SERVPRO functions in the inspection, repair, and maintenance industry. The industry is projected to grow from USD $40.25 billion to USD $65.81 billion from 2021 by 2028 at a CAGR of 7.3%. Drivers of this market growth include increased residential remodelling and repair, and industrial and commercial buildings globally.
Pros
- SERVPRO provides franchisees with a proven and successful business formula.
- Franchisees enjoy in-depth training from SERVPRO.
- Protected territories are mapped out for SERVPRO’s franchisees.
Cons
- Strict rules govern SERVPRO’s franchisees, such as mandatory meetings and community services.
- SERVPRO’s franchisees report lower than average profit levels.
- Finding skilled employees can be challenging.
For an investor looking to build wealth through franchising, there are other industries and brands that could return a stronger ROI than RE/MAX.
Alternative Franchises
Fransmart has a portfolio of emerging brands with lower start-up costs, easier operations and the opportunity for better ROI than SERVPRO including:
- RISE SOUTHERN BISCUITS & RIGHTEOUS CHICKEN
- BROOKLYN DUMPLING SHOP
- CURRY UP NOW
- IKE’S LOVE & SANDWICHES
- JARS BY FABIO VIVIANI
- PAYMORE
- SLAPFISH
- THE HALAL GUYS
- TAFFER’S TAVERN
- SAVANNAH SEAFOOD SHACK
- DUFFS CAKE MIX
If you’re ready to explore all your franchise options, contact Fransmart today for help choosing the ideal franchise for your goals.