Servpro offers franchise opportunities for those interested in general construction cleanup, mold removal, fire and water damage, and storm damage. Entrepreneurs can also choose to specialize in commercial office cleaning services.
About the Company
Founded in 1967 and originally headquartered in Sacramento, California, Servpro now calls Tennessee its home. The maintains hundreds of franchises across the country specializing in all types of restoration services.
Servpro currently has a network of 1,500 franchises. The company maintains a national network of accounts with major insurance companies who need work completed on insurance claims.
Costs and Revenue Expectations
The total initial investment to open a Servpro franchise is between $150,000 and $200,000. Of this total amount, the franchisee needs a minimum of $105,000 in cash liquidity. The remaining portion of the investment is given to Servpro as an initial franchising fee of $46,000. The initial franchise fee and equipment costs can be purchased with in-house financing from Servpro.
The average profit for each Servpro franchisee varies depending on location and area of expertise. First year profits can be as low as $40,000 while many entrepreneurs have experienced profits of more than $100,000.
The Pros of Owning a Servpro Franchise
Servpro has become one of the most well known damage restoration companies in the country, making name recognition a big plus for new franchise owners.
Owners have also enjoyed the steady flow of work provided by major insurance companies, with little to no advertising needed.
Servpro also offers ongoing business development training at no cost to franchise owners who request it. After the on-boarding process is completed all franchise owners must complete a 15 day mandatory training session at the company’s headquarters in addition to a 5 day onsite training immediately afterwards.
The Cons of Owning a Servpro Franchise
One of the biggest drawbacks to the Servpro franchise program is the high total initial investment. Most potential franchise owners don’t have nearly enough money to cover the liquidity requirement in addition to other startup costs that might come up. Other complaints have arisen about the potential high annual royalty fee of 10 percent, and the often lack of advertisements in certain areas of the country.
While work is normally steady throughout the year, franchise owners on the east coast and in the southeast part of the United States enjoy more success than those located on the west coast, primarily due to the amount of natural disasters that can occur throughout the year.