Franchise: Servpro
Franchising Since: 1969
Headquarters: Gallatin, Tenn.
Number of Units: 1,678
About the Franchise
With over 1,650 franchises nationwide, Servpro is a leading franchise in the restoration industry and its professionals are faster to any size disaster. Servpro provides emergency mitigation services for water-, fire-, and smoke-damaged properties, as well as mold and mildew situations.
Services include cleaning and restoration of carpets, upholstery, air ducts, drapes, ceilings, and walls for both residential and commercial clients. The company also offers instruction and training on water- and fire-damage restoration.
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Servpro equips its franchise owners to lead and manage a solid business operation. Its franchise professionals are uniquely qualified to keep claims costs down while still providing the best services possible for your customers and are available 24/7.
Financial Assistance
Servpro may agree to finance a portion of the franchisee’s acquisition of a franchise, subject to credit approval and meeting the then-current financing criteria. Servpro’s Affiliate, Servpro Finance, LLC, may also agree to provide financing. Servpro may at its discretion, or Servpro Finance, LLC may at its discretion, finance the franchisee’s purchase of additional equipment or vehicles
Term of Agreement and Renewal
The length of the franchise term is five years. The franchisee can renew for additional five-year terms if the requirements are met.
Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of Servpro (2014). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a Servpro franchise.
Initial Franchise Fee: $44,000 plus $489 per 1,000 over population maximum
Vehicle: $600 to $29,000
Equipment and Products Package: $64,00
Supplies: $3,850 to $8,500
Insurance: $3,000 to $3,750
Advertising and Promotional: $250 to $1,500
Training, Travel, Lodging and Food: $550 to $1,900
Servpro may require the franchisee and each person actively involved in operation of the Franchise to complete their five-step initial training program to their satisfaction, which is called the Business Development Program (BDP). Servpro will provide two owners with the five-step BDP: Step 1: Prerequisite Progress (preparing the business prior to classroom attendance); Step 2: Prerequisite Consultation (on-site Trainer meeting); Step 3: New Franchise Training Program (NFTP, 15-day classroom); Step 4: Business Setup (five day on-site Trainer visits); and Step 5: Business Consultations (six on-site Trainer visits).
Deposits, Permits and Licenses: $700 to $2,550
Accounting Services, Online Tax Table Service and QuickBooks Pro Training: $600 to $1,500
Additional Funds (3 months): $20,000 to $25,000
Real Estate: $0 to $3,000
ESTIMATED TOTAL: $138,550 to $187,200 plus $489 per 1,000 over maximum population, plus any real estate costs
These figures are estimates in setting up a Servpro franchise and operating it for three months. It is possible to exceed costs in any of the areas above.
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