Servpro

At a Glance

Products & Services: Insurance/disaster restoration & cleaning

Number of Locations: 1,581

Total Investment: $132.05K - 180.45K

Founded: 1967

Began Franchising: 1969

Private Owned

About Servpro

Servpro started out in 1967 as a painting business. Two years later, founders Ted and Doris Isaacson began franchising it as a cleaning and restoration company. In 1988, they moved the company from Sacramento, California to Gallatin, Tennessee in order to be within 600 miles of 50 percent of the U.S. population.

Servpro franchisees specialize in disaster restoration, offering cleanup and repairs to both commercial and residential customers whose property has suffered fire or water damage. They also offer mold remediation, carpet and upholstery cleaning, air duct and HVAC cleaning, and other related services.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2011	1,580	1	0	0
2010	1,526	0	0	0
2009	1,478	0	0	0
2008	1,420	0	0	0

Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S. and Canada.

Startup Costs, Ongoing Fees and Financing

Total Investment: $132,050 - $180,450
Franchise Fee: $42,000
Ongoing Royalty Fee: 3-10%
Term of Franchise Agreement: 5 years, renewable

Financial Requirements

Net Worth: $100,000
Liquid Cash Available: $60,000

Operations

Franchise can be run from home. 40% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 5 - 10. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 2-1/2 weeks. At franchisee's location: 1 week. Business development program

Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives,

Marketing Support: Co-op advertising, Ad slicks, National media, Regional advertising,

Other marketing support: National accounts marketing