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- 2023 Franchise 500 Rank
#16 Ranked #8 last year
- Initial investment
$217K - $271K
- Units as of 2022
2,050 19.5% over 3 years
Are you passionate about bringing spaces back to life? Then opening a Servpro franchise may be for you. With over 2,000 franchises nationwide, Servpro is one of the leading restoration companies in the United States.
Although Servpro started as a painting business in 1967, it's now one of the most acclaimed restoration companies in the U.S. and Canada. Servpro specializes in the cleaning, repairing, and reconstructing commercial and residential buildings that have undergone water, fire, or smoke damage. Over time, they have expanded their portfolio to offer mold remediation, carpet cleaning services, upholstery, air duct, and HVAC cleaning, among other credential services.
With over five decades in the cleaning industry, Servpro may be a trusted restoration business. All Servpro employees are professionally trained to handle biohazard decontamination, chemical spills, and general cleaning.
Why You May Want to Start a Servpro Franchise
Opening a Servpro franchise not only means you get to provide exceptional cleaning services, but also offers you the opportunity to help breathe new life to buildings that have undergone water, smoke, or fire damage.
In 1992, Servpro opened a national training center to train franchisees and their employees in restoration and mitigation skills. So besides getting to become a Servpro franchisee, you might also learn new useful skills. The fact that Servpro has built a name for itself and is willing to offer a variety of support services may take a huge burden off the chests of franchisees—especially compared to starting a business from scratch.
When Servpro started, one of the main goals was to enable people from all walks of life to have financial freedom by opening their own businesses. As per the available franchise business models, you can usually customize yours to suit your goals, so long as you're within a certain overall design.
What Might Make a Servpro Franchise a Good Choice?
Servpro strives to help its community by restoring one residential or commercial residence at a time.
Servpro has been ranked in Entrepreneur’s Franchise 500 an impressive number of times since its inception. This ranking is based on an evaluation of more than 150 data points that consist of areas in costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
To be part of the Servpro team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees.
It may be a good idea to contact an attorney or financial advisor to ensure that you have the necessary financial standing to open and operate a Servpro franchise.
How to Open a Servpro Franchise
If you're ready to dive into restoration, the first step is to evaluate your community for the perfect location. If you find yourself wanting to serve residential clients, consider whether your area tends to have frequent flooding or frozen pipe issues. Dryer climates might have more fire damage, while more moist climates could have a greater need for mold remediation. And as a part of the Servpro team, the company encourages network support for larger commercial projects.
Before making any financial commitment or signing an agreement, you'll want to do your due diligence and make sure this is the right opportunity for you. Speak to existing franchisees and ask questions directed to the Servpro team. After you feel confident about your decision to open a Servpro franchise, serve your community and restore what's been lost!
- Parent Company
- Commodore Parent Holdings LLC
- Richard Isaacson, CEO
- Corporate Address
801 Industrial Blvd.
Gallatin, TN 37066
- Franchising Since
- 1969 (54 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Canada
- # of Units
- 2,050 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Servpro 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.
- Initial Investment
- $216,905 - $270,780
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.
- Cash Requirement
- $105,000 - $110,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- 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.
- 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.
- Term of Agreement
- 5 years
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.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- Servpro offers in-house financing to cover the following: franchise fee, equipment, inventory
- Third Party Financing
- Servpro has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory
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
- 80.5 hours
- Classroom Training
- 128 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite Development
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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.
- 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.
- # of employees required to run
- 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.
Interested in ownership opportunities like Servpro? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Servpro landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Servpro ranked on other franchise lists? Find out below.
Ranked #16 in 2023
Franchise 500 Ranking
Ranked #38 in 2022
Ranked #42 in 2022
Top Global Franchises
Ranked #53 in 2022
Top Franchises for Veterans
Ranked #27 in 2022
Fastest-Growing Franchises (U.S. & Canada)
Ranked #1 in Restoration Services in 2021
Best of the Best
Ranked #1 in 2023
#1 in Restoration Services Category
Are you eager to see what else is out there? Browse franchises that are similar to Servpro.
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