Start a 1-800 Water Damage Franchise in 2026

2026 Franchise 500 Rank: #347 Ranked #303 last year

Initial investment: $221K - $321K

Units as of 2025: 179 4.1% over 3 years

1-800 Water Damage is a unique restoration company that performs a variety of services. These include emergency mitigation, water damage restoration, carpet cleaning, fire and smoke damage restoration, sewage cleanup, and mold remediation. The company's mission is to help people return their property to its original state. It also provides solutions to bring safety and security back to your home.

Tim Fagan, the current president of the company, purchased his father's restoration company upon his father's retirement. Many years later the company was purchased by Belfor, which asked him to remain as president of the newly acquired 1-800 Water Damage. 1-800 Water Damage has expanded to include many locations all over the country. It is one of the fastest-growing restoration companies in the United States. Franchisees put smiles back on the faces of home and property owners affected by disasters.

Why You Should Start an 1-800 Water Damage Franchise

1-800 Water Damage is part of the Belfor Franchise Group, the largest property restoration company in the world. This relationship has improved 1-800 Water Damage's access to resources, so it can now provide better and faster service to clients.

With Belfor Group's extensive experience in the industry, you don't have to worry about creating an effective franchise system. The company provides extensive coaching to develop business acumen with an emphasis on professional knowledge through their well-rounded approach to training. With corporate support, you will have resources to encourage you not just as you get started, but every step of the way.

What Might Make 1-800 Water Damage Franchise a Good Choice?

As a 1-800 Water Damage franchisee, you'll have exclusive rights to a large territory, and you'll also have access to much larger projects through the company's National Disaster Response Team. Additionally, the company's knowledgeable team is passionate about its services, and this shows in the quality of its work.

In order to be part of the 1-800 Water Damage team, you should make sure you’re financially ready for an initial investment and potential set-up fees. On top of franchise benefits, the restoration industry is typically a durable one. Even during times of economic stress, it continues to develop.

How to Open Your Own 1-800 Water Damage Franchise

To become a 1-800 Water Damage franchise, you’ll need to review a Franchise Disclosure Document, so you can prepare by chatting with an attorney who can help you understand what you’re reading. As part of the onboarding process, the company will usually set up a day for you to meet with the 1-800 Water Damage team. This is a great opportunity for you to see if the company culture is a good fit for you. You can also use this time to ask any questions you have about your potential franchise location.

Are you ready to dive into your own 1-800 Water Damage franchise?

Company Overview

About 1-800 Water Damage

Industry	Maintenance
Related Categories	Restoration Services, Miscellaneous Home-Improvement Businesses, Miscellaneous Maintenance Businesses, Cleaning/Restoration
Founded	1988
Parent Company	Belfor Franchise Group
Leadership	Tim Fagan, President
Corporate Address	731 Fairfield Ct. Ann Arbor, MI 48108
Social	Facebook, Twitter, YouTube

Business Overview

Franchising Since	2002 (24 years)
# of employees at HQ	45
Where seeking	This company is offering new franchises throughout the US.
# of Units	179 (as of 2025)

Information for Franchisees

Here's what you need to know if you're interested in opening a 1-800 Water Damage franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$59,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$220,803 - $321,398
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$300,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$100,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	3%-10%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing	1-800 Water Damage offers in-house financing to cover the following: franchise fee, startup costs, equipment
Third Party Financing	1-800 Water Damage has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	39 hours
Classroom Training	112.25 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	2
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes