1-800 WATER DAMAGE franchise unit economics
1-800 WATER DAMAGE franchisees run restoration businesses from a small facility that clean up and repair water, fire and mold damage, paid through insurance and homeowner claims, in one or more territories.
1-800 WATER DAMAGE franchise at a glance
In its 2026 FDD 1-800 WATER DAMAGE reports 2025 gross sales for 78 owners across 148 territories, with averages by quartile and by the number of territories each owner holds.
1-800 WATER DAMAGE franchisees averaged $770,375 of sales in 2025, with a median of $481,891, according to Item 19 of 1-800 WATER DAMAGE’s 2026 FDD, issued 30 March 2026. The 78 owners in that group operated 148 of 1-800 WATER DAMAGE’s 160 territories, or 92.5%*. Fees paid to 1-800 WATER DAMAGE come to about 12.79%* of sales.
- A 1-800 WATER DAMAGE franchise costs $142,903 to $312,398 to open, including a $59,000 initial franchise fee, according to the brand's 2026 FDD.
- 1-800 WATER DAMAGE charges a royalty of 10% of sales, a 2% brand fund contribution and a $1,149 monthly technology fee.
- 32% of reporting 1-800 WATER DAMAGE locations reached the average.
- Work out 1-800 WATER DAMAGE's fees at your own sales with the minimum fee calculator.
- In a two-territory 1-800 WATER DAMAGE business each territory bills 61% of what a single-territory owner bills.
These figures come from 1-800 WATER DAMAGE's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- Single-territory owners bill $512,051 a territory; two-territory owners bill $312,375.That is 64% more from one piece of ground *. Owners of three or more territories bill $377,274 a territory.
- The top quartile averages $1,949,638 against $133,479 in the bottom.The top quartile average is 14.6 times the bottom quartile average, and one reporting franchisee billed $0.00 while operating all year.
- Brand cost runs 22.3% of revenue at the bottom quartile and 10.1% at the top franchisee.The gap comes from $13,788 a year of fixed technology and software fees ($1,149 a month), which weigh more on lower sales *.
- Reconstruction royalty drops from 10% to 3% once remediation sales pass $500,000.The rebuild royalty falls by seven points at that threshold, and the median 1-800 WATER DAMAGE franchisee, at $481,891 of total sales, sits below it.
- The system went from 178 outlets to 160 in two years.That is 25 terminations in 2025 against 10 openings, with 20 new outlets projected for 2026.
How much does a 1-800 WATER DAMAGE franchise make?
The average 1-800 WATER DAMAGE unit reported $770,375 of revenue in the 2026 FDD, and the median reported $481,891. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 12.8% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top 1-800 WATER DAMAGE performers
1-800 WATER DAMAGE splits its locations into groups instead of publishing one average. The top group averaged $1,949,638 a year. The lowest averaged $133,479. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $481,891. The average was $770,375. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 14.6× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Capacity is the number of vans, times the hours they run, times how full their schedules are. The build sets how much you can sell.
- Territory.This model sells from a territory quoted at 350,000 people, with no storefront. Population density sets how much driving sits between jobs.
- Opening cost range.Opening costs $142,903 to $312,398, a 2.2× range inside one brand.
- Fees and the minimum.Fees run about 12.8% of sales. A minimum fee also applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
Live operating levers
- Claims.The work is done first and the carrier pays later, so you fund wages and materials until the claim is paid. Track days to collect.
Context you underwrite around
- Locations included.These figures cover 78 franchisees operating 148 of the 160 1-800 WATER DAMAGE territories. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- What the filing does not include.Item 19 publishes no profit or cost data for franchised locations. Ask the franchisor or current owners for cost and profit figures.
Top performers
How far apart the locations are
1-800 WATER DAMAGE reports its locations in performance groups, from the highest-selling to the lowest. The group-by-group figures are in the tables on the Model and Finance tabs.
One territory or three
Revenue by number of territories owned, 2025
| Territories owned | Owners | Territories | Average per owner | Median per owner | Average per territory | Highest | Lowest |
|---|---|---|---|---|---|---|---|
| One | 46 | 46 | $512,051 | $353,607 | $512,051 | $2,186,265 | $0 |
| Two | 15 | 30 | $624,749 | $469,803 | $312,375 | $1,581,910 | $295,782 |
| Three or more | 17 | 72 | $1,597,864 | $1,392,921 | $377,274 | $4,408,411 | $164,289 |
| All 78 | 78 | 148 | $770,375 | $481,891 | $406,008 * | $4,408,411 | $0 |
As the brand reported it, except the all-78 revenue per territory, which is marked *.
One territory produces $512,051; a territory inside a two-territory business produces $312,375. That is 64% more from the same amount of ground *. A second territory raises an owner's total sales by 22% ($512,051 to $624,749) while doubling the ground they are responsible for.
Three or more territories recovers some of it, at $377,274 a territory. That is still 26% below the single-territory figure. The seventeen owners in that group hold 72 territories between them, 4.2 each, and bill $1,597,864, so scale works for total sales and works against intensity.
The median two-territory owner bills $469,803, below the average single-territory owner. The average single-territory owner bills $512,051, so half the two-territory owners bill less in total than that average on twice the ground.
Revenue per territory across the whole system is $406,008. * That comes from $60,089,253 of reported sales across 148 territories. Against a territory of roughly 350,000 people, that is $1.16 a head a year.
Highest to lowest, by sales
Revenue by performance group, 2025
| Group | Franchisees | Average gross sales | Median | Highest | Lowest | Exceeding the group average |
|---|---|---|---|---|---|---|
| Top 25% | 19 | $1,949,638 | $1,506,017 | $4,408,411 | $944,433 | 6 (32%) |
| Top 50% | 39 | $1,299,281 | $912,982 | $4,408,411 | $490,871 | 14 (36%) |
| Top 75% | 58 | $989,994 | $707,128 | $4,408,411 | $257,242 | 18 (31%) |
| All 78 | 78 | $770,375 | $481,891 | $4,408,411 | $0 | 25 (32%) |
| Bottom 75% | 59 | $390,612 | $354,431 | $912,982 | $0 | 26 (44%) |
| Bottom 50% | 39 | $241,470 | $249,108 | $472,912 | $0 | 22 (56%) |
| Bottom 25% | 20 | $133,479 | $145,840 | $249,108 | $0 | 11 (55%) |
As the brand reported it.
The top 25% averages $1,949,638 and the bottom 25% averages $133,479. That is 14.6 times *.
The median is $481,891 against an average of $770,375. That is a gap of $288,484, and only 25 of 78 reach the average. The bottom half averages $241,470, which is below what a single territory produces on average. So half the system is running under one territory's worth of work whatever ground they hold.
Attainment inverts across the distribution: 32% at the top and 55% at the bottom. The top 25% runs from $944,433 to $4,408,411, a spread of $3,463,978, while the bottom 25% runs from $0 to $249,108.
One franchisee operated all year and reported $0.00. The franchisor states this remains under review. It sits inside every bottom-group average on this page. An owner reading the bottom 25% figure of $133,479 should know one of those twenty entries is a zero.
What the fees come to
Brand costs across the reported range
| Franchisee | Gross sales | Royalty | Effective royalty rate | Brand marketing fund | Technology and software | Total | Share |
|---|---|---|---|---|---|---|---|
| Highest reporting | $4,408,411 | $343,589 | 7.79% | $88,168 | $13,788 | $445,545 | 10.1% |
| Top 25% average | $1,949,638 | $170,971 | 8.77% | $38,993 | $13,788 | $223,752 | 11.5% |
| System average | $770,375 | $74,334 | 9.65% | $15,408 | $13,788 | $103,529 | 13.4% |
| System median | $481,891 | $48,189 | 10.00% | $9,638 | $13,788 | $71,615 | 14.9% |
| Bottom 75% average | $390,612 | $39,061 | 10.00% | $7,812 | $13,788 | $60,661 | 15.5% |
| Bottom 25% average | $133,479 | $13,348 | 10.00% | $2,670 | $13,788 | $29,805 | 22.3% |
We built these figures by applying the published rates to the filed revenue.
Franchise fees cost 22.3% at the bottom quartile and 10.1% at the largest franchisee *. $13,788 of fixed technology and software is 10.3% of the bottom quarter's revenue and 0.3% of the top franchisee's, a 33-fold difference in weight on an identical charge.
Reconstruction drops to 3% once remediation sales pass $500,000. It falls from 10%. On a job where mitigation is followed by a rebuild, that is seven points off the larger half of the work. The threshold is on remediation sales alone. The system median of $481,891 sits just below it.
The effective royalty falls from 10.00% to 7.79% across the range. Crossing $500,000 of annual sales takes the marginal rate to 9%, $1,000,000 takes it to 8% and $2,000,000 to 7%. Since the median franchisee bills $481,891, most of this system pays the full 10% on every dollar.
Technology and software cost what the supplier charges, plus an administration fee of up to 15%. That is $750 and $399 a month today. They rise with what suppliers charge, plus that administration fee. For a franchisee at the bottom quarter's $133,479, those two lines alone are more than the royalty.
The network and what it costs to open
Franchised outlets, 2023 to 2025
| Year | Start | Opened | Terminations | Ceased, other | End |
|---|---|---|---|---|---|
| 2023 | 167 | n/a | n/a | n/a | 178 |
| 2024 | 178 | 17 | 19 | 1 | 175 |
| 2025 | 175 | 10 | 25 | 0 | 160 |
As the brand reported it; the 2024 and 2025 rows reconcile exactly.
That is 25 terminations in 2025 against 10 openings. That was the largest single-year loss in the three years shown, taking the system from 175 to 160. Departures rose from 20 to 25 while openings fell from 17 to 10.
20 new outlets are projected for 2026 against 4 signed and waiting. The 20 projected openings are double the 10 opened in 2025 and five times the 4 signed agreements not yet open.
1-800 WATER DAMAGE had no company-owned outlets in any of the three years. Every figure here comes from franchisees, and the FDD has no company-owned profit and loss to compare with.
Buying a territory
| Item | Low | High |
|---|---|---|
| Vehicle with upfitting | $6,000 | $115,000 |
| Initial franchise fee per territory | $59,000 | $64,950 |
| Initial package, marketing, operations and equipment fee | $51,000 | $51,000 |
| Additional funds, three months | $10,000 | $30,000 |
| Full-time service technician | $6,336 | $16,896 |
| Rent | $3,000 | $15,000 |
| Insurance | $4,500 | $8,750 |
| Security and utility deposits | $1,000 | $3,000 |
| Computer system | $0 | $2,875 |
| Food and lodging while training | $1,800 | $2,500 |
| Building work | $0 | $1,200 |
| Licenses and permits | $0 | $600 |
| Internet, anti-virus and email | $267 | $477 |
| Business telephone | $0 | $150 |
| Total | $142,903 | $312,398 |
As the brand reported it, reordered here by size.
Discounts available
- 1-800 WATER DAMAGE takes 20% off the fee for one territory for honorably discharged veterans who meet VetFran requirements.
- 1-800 WATER DAMAGE takes $2,500 off the first territory's fee for first responders (police, firefighters, EMTs and paramedics).
- 1-800 WATER DAMAGE takes $10,000 off the fee for each additional franchise agreement bought at the same time as the first.
- 1-800 WATER DAMAGE charges existing restoration businesses converting to the brand a reduced fee of $44,000, $39,000 or $34,000 depending on annual sales.
- 1-800 WATER DAMAGE takes 25% off the fee for up to two franchises for franchisees in good standing with its affiliated brands.
- 1-800 WATER DAMAGE charges existing franchisees $49,000 instead of $59,000 for an expansion franchise.
From Item 5 of the 1-800 WATER DAMAGE 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The vehicle line runs from $6,000 to $115,000. That is nineteen times, and the widest single line in the table. A restoration business runs on trucks carrying drying and extraction equipment. So how an owner finances that fleet moves the entry price more than any other decision.
$110,000 to $115,950 of the build goes to the franchisor. That is the $59,000 to $64,950 territory fee plus the $51,000 package, 77% of a $142,903 low build *. The package covers marketing, operations and equipment and is payable on the first franchise alone.
The territory costs about 17 cents a head. That is $59,000 for 350,000 people and $170 for each further thousand *. Against an average territory billing $406,008, the fee is about 53 days of revenue.
Working capital (cash to run the business day to day) of $10,000 to $30,000 covers three months. That compares with fixed technology and software costs of $1,149 a month and a technician on wages from the start. Insurance-paid jobs can take months to collect, so the $30,000 high end covers more of that wait.
Questions we get asked
Questions owners ask.
How much does a 1-800 WATER DAMAGE franchise make?
1-800 WATER DAMAGE franchisees averaged $770,375 of sales in 2025, with a median of $481,891, according to Item 19 of 1-800 WATER DAMAGE’s 2026 FDD, issued 30 March 2026. The 78 owners in that group operated 148 of 1-800 WATER DAMAGE’s 160 territories, or 92.5%*. Fees paid to 1-800 WATER DAMAGE come to about 12.79%* of sales.
What should a 1-800 WATER DAMAGE business be billing?
The 78 franchisees operating 148 territories for the whole of 2025 averaged $770,375 of gross sales with a median of $481,891, from $0 to $4,408,411. 25 of the 78, 32%, reached the average. The top 25% averaged $1,949,638 and the bottom 25% $133,479. By territory count, 46 single-territory owners averaged $512,051, 15 two-territory owners averaged $624,749, and 17 owners with three or more averaged $1,597,864 across 72 territories. That works out at $512,051, $312,375 and $377,274 per territory, and $406,008 across the whole system.
Is a second territory worth it at 1-800 WATER DAMAGE?
On these figures, a second territory adds 22% to an owner's total sales while doubling the ground: $512,051 for one against $624,749 for two. Per territory that is $512,051 against $312,375, and the median two-territory owner bills $469,803, less than the average single-territory owner. 1-800 WATER DAMAGE owners with three or more territories recover to $377,274 a territory, across an average of 4.2 territories each. The initial package fee of $51,000 applies to the first franchise only, so an additional territory costs the franchise fee alone.
What fees does 1-800 WATER DAMAGE charge?
The royalty on remediation work is 10% of sales up to $499,999.99 a year, 9% above $500,000, 8% above $1,000,000 and 7% above $2,000,000. The minimum is $500 a month from the thirteenth month. Rebuilding work is charged at 10% until remediation sales pass $500,000, then 3%. A brand marketing fund takes 2% of gross sales. Technology costs $750 a month and software $399 a month, both able to rise with third-party costs plus an administration fee of up to 15%. Selling the business costs 25% of the initial franchise fee, and never less than $10,000. A referral fee of roughly 0% to 10% of the invoice applies to work the franchisor sends.
What is left out at 1-800 WATER DAMAGE?
Everything below the revenue line is left out. The figures leave out royalty, technology, software, local advertising, brand marketing, rent, stock, wages, payroll taxes, the owner's own compensation, healthcare, benefits, uniforms, office supplies, postage, travel, utilities, late fees, training fees, tax liabilities, professional fees, interest, depreciation and amortization. With zero company-owned outlets there is no franchisor-operated profit and loss to compare against. Any figure for what is left has to come from your own model or from talking to existing owners.
Who does bookkeeping for a 1-800 WATER DAMAGE franchise?
Three things shape the close for a 1-800 WATER DAMAGE owner. First, remediation and rebuilding are charged at different royalty rates. The rebuilding rate depends on whether remediation sales have passed $500,000 in the year, so revenue has to be split by service type in the ledger. The rate applied to the rebuild half of a job changes partway through the year. Second, the remediation scale steps down at $500,000, $1,000,000 and $2,000,000 of annual gross sales. So the accrual rate moves through the year and the median franchisee at $481,891 sits within one job of a step. Third, restoration is insurance-funded work with long collection cycles, so revenue recognition and cash collection diverge by months, and the royalty is charged on gross sales. The document reports no costs at all, so costing each job is the only reliable way to know what is left. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- The filing gives no profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- The filing breaks out no cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
Questions worth putting to 1-800 WATER DAMAGE
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- Which factors does 1-800 WATER DAMAGE see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many 1-800 WATER DAMAGE locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What is each territory actually producing at 1-800 WATER DAMAGE?
We review your unit economics, cash forecast and reporting, built around revenue per territory and the royalty steps that decide this model.
Talk to AveranWhere these figures come from.
Every figure here comes from 1-800 WATER DAMAGE International, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. 1-800 WATER DAMAGE® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: 1-800 WATER DAMAGE International, LLC, 2026 Franchise Disclosure Document, issued 30 March 2026.
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1-800 WATER DAMAGE reads against the rest of the restoration group: DRYmedic · Paul Davis · PuroClean · Rainbow Restoration · Restoration 1 · ServiceMaster Restore. The restoration guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- Do I need a bookkeeper, a controller, or a CFO?It explains what each role owns and when the next hire pays for itself.
- Revenue was the highest it has been. Why did profit not move?It traces where the extra revenue went, line by line.