How to Franchise a Restoration Company

by FMS Franchise | Case Studies
4 minutes
How To Franchise A Restoration Company

The Restoration Business can be a lucrative and attractive industry for many reasons. With much of the income paid for by insurance carriers, the lion’s share of the revenue comes from a third-party provider as opposed to being paid for directly out of the consumer’s pocket. When handling work in the water damage sector, mold remediation, and fire damage areas, this type of work doesn’t slow down when the economy dips.

The restoration industry also is attractive from the perspective of start-up investment costs being that a new business in this industry segment requires only $30k – $100k in most cases and with the revenue potential/profitability from this business segment, it is not uncommon to have a 100% ROI from a new restoration franchise in only a year or less.

As a business owner in the Restoration Services industry segment, you should be considering ways to expand the operations and grow the business. Franchising has been proven to be a viable and lucrative expansion option for many restoration companies. FMS has worked with a large number of restoration franchises to build, develop and launch franchise models. These include Restoration 1 (400 Locations), 911 Restoration, All Dry Restoration (300 Locations) and United Water Restoration (50 Locations). Although the process of franchising a restoration business has similarities to franchising other business models, there are unique elements and challenges for the restoration industry in particular which should be addressed to effectively franchise your restoration business model.

When considering how to franchise a restoration business, although there has been past success, several questions must be answered prior to launching your own franchise organization.

  1. Do you have a professional brand for your restoration services business?The brand may not be quite as critical when you are operating your restoration company and providing the actual restoration services to customers. The brand becomes incredibly important when you franchise your restoration business out to new investors who are looking to you for a credible, professional brand image. You should have great social media presence, strong color schemes, logo, taglines, etc in place to convert new franchise owners.
  2. Does your restoration business have a proven and effective marketing model?When franchising a restoration business, the most critical and important element related to your franchisee’s success is their ability to find and acquire profitable client jobs. You need to have a system in place that has been proven to work in marketing your restoration services. Although no franchise guarantees work for a new restoration franchise owner, we should have the marketing and business development model in place to be able to teach and train new franchise owners how to execute and be successful.
  3. Do you have the time and bandwidth to support and nurture a growing restoration franchise system?
    When considering how to franchise a restoration business, many business owners forget the level of responsibilities and commitment that come AFTER the restoration franchise has been sold. You should count on 3-4 weeks of training for each franchisee and at least one of those weeks being at the new franchisee’s location.
  4. Do you have a vision for scaling the business model into new markets?
  5. It might sound corny, because after all, you are reading this and most likely considering the idea of franchising your model, but there is a significant difference between a business owner who is motivated by short term money, which you can make in the restoration business, or long term growth. The most successful restoration franchise businesses had leadership that was focused on building the brand, building equity and expanding the business into new markets. Your vision for your brand is what will dictate how big and how successful your growth is in franchising.

Any restoration services brand should consider the franchise model, it has been one of the most proven market segments to leverage franchising and scale effectively over the past decade. If you have a successful restoration services business, it is worth the time to look into the franchise model as a way to scale and grow your brand.
For more information on how to franchise your Restoration Business, Contact Us: https://www.fmsfranchise.com/about-us/contact/

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