FRSTeam franchise unit economics
FRSTeam franchisees run textile and contents restoration businesses that launder and restore clothing, fabrics, electronics and household contents after fire, smoke, water and mold losses, much of it referred by insurance carriers.
FRSTeam franchise at a glance
The FDD issued on February 25, 2026 by FRSTeam, LLC reports gross revenue for the 44 franchisees that operated the full 12 months to September 30, 2025. FRSTeam’s 2024 benchmarking study of 26 reporting franchisees shows gross revenue less cost of revenue and certain operating expenses of $432,786, or 14.4% of revenue.
FRSTeam franchisees averaged $2,021,571 of sales in the 12 months to 30 September 2025, with a median of $1,456,737, according to Item 19 of FRSTeam’s 2026 FDD, issued 25 February 2026. Fees paid to FRSTeam come to about 8.45%* of sales. A FRSTeam franchise costs $138,875 to $553,500 to open.
- An FRSTeam franchise costs $138,875 to $553,500 to open, plus real estate, and $67,500 to $77,500 of that is paid to the franchisor or its affiliates.
- FRSTeam splits those 44 franchisees into thirds: the top 14 averaged $3,799,088 and the bottom 15 averaged $728,591.
- FRSTeam charges a 6% royalty and a 2% advertising fee, each with a monthly minimum, which come to 8.45%* of sales at the 44-franchisee average once the two required software fees are added.
- FRSTeam sets a minimum royalty from the second year of $3,300 a month, rising to $5,700 a month from the fifth year, or $68,400* a year.
- FRSTeam had 47 franchised and 2 company-owned locations at September 30, 2025, after the franchisor sold 9 company-owned locations to franchisees during the year.
- Of the 44 FRSTeam franchisees that operated the full 12 months to September 30, 2025, 42 are in the U.S. and 2 in Canada.
These figures come from FRSTeam's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 8.45% total of brand charges at the 44-franchisee average and the $68,400 annual minimum royalty are Averan calculations from Item 6 and the Item 19 average.
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Talk to Averan → Averan FRSTeam Conversion Package →- The 44 franchisees averaged $2,021,571 of gross revenue and had a median of $1,456,737. The figures cover the 12 months to September 30, 2025 and include two Canadian franchisees. Eighteen of the 44, 40.9%, met or exceeded the average.
- The top third averaged $3,799,088 and the bottom third $728,591. The top third’s average is 5.21 times* the bottom third’s. The lowest franchisee reported $235,869 and the highest $6,437,217.
- The minimum royalty reaches $5,700 a month from the fifth year, regardless of territory size. That is $68,400* a year, which equals 6% of $1,140,000*. Every franchisee in the bottom third reported less than that, the highest at $1,080,518. From the sixth year the minimum can rise by up to $900 a month if the franchisee’s market penetration is below 80% of the national average.
- In the 2024 benchmarking study, 26 reporting franchisees kept 14.4% of revenue after cost of revenue and the listed operating expenses. Their average gross revenue was $3,007,158 and the remaining amount $432,786. Direct labor and services were 23.6% of revenue, overhead salaries and wages 20.6% and rent and utilities 9.3%. Overhead salaries may include owner’s compensation for some franchisees.
- National account insurance carriers referred work that produced $40,951,999 of gross revenue, 45.5% of the total for the 44 franchisees. The share varied from 1% to 94% by franchisee. Franchisees that take national account work pay an administrative fee of 3% of the gross revenue from it.
Revenue
How much does an FRSTeam franchise make?
| Group | Period | Number | Average | Median | Highest | Lowest |
|---|---|---|---|---|---|---|
| Franchisees open the full year | 12 months to Sept. 30, 2025 | 44 | $2,021,571 | $1,456,737 | $6,437,217 | $235,869 |
| Company-owned: Hayward, CA | 12 months to Sept. 30, 2025 | 1 | $3,086,401 | |||
| Company-owned: Fresno, CA | 12 months to Sept. 30, 2025 | 1 | $1,119,899 | |||
| Benchmarking study franchisees | Calendar 2024 | 26 | $3,007,158 | $1,985,849 | $8,809,347 | $699,352 |
Source: FRSTeam FDD, Item 19, parts A, B and C. The 44-franchisee highest and lowest are the top of the top third and the bottom of the bottom third. The benchmarking study covers 26 franchisees operating 31 territories and is a different group and period from the 44. The figures are reported by franchisees and were not audited.
The 44 franchisees that operated the full 12 months to September 30, 2025 averaged $2,021,571 of gross revenue. Their median was $1,456,737. Forty-two are in the U.S. and two in Canada. Eighteen of the 44, 40.9%, met or exceeded the average.
The two company-owned locations reported $3,086,401 and $1,119,899. Both are in California and are operated by the franchisor’s affiliate, Custom Commercial. They took 83.8% of their revenue, $3,523,037, from national accounts.
The 2024 benchmarking study is a separate group. 26 franchisees operating 31 of 36 franchised territories sent in income statements for calendar 2024. They averaged $3,007,158 of gross revenue with a median of $1,985,849, and 9 of the 26 met or exceeded the average. Four of the 26 operate more than one territory.
Fabrics made up 57% of franchisee revenue on average. Electronics averaged 15% and other contents 28%. For the two company-owned locations the averages were 31%, 14% and 55%.
Item 19 also charts total gross revenue for all franchised locations. It was $48.7M in the year to September 2020 and $90.0M in the year to September 2025. That total includes any location that operated for part of a year.
2024 costs
Costs in the 2024 benchmarking study
| Line | Average | % of revenue |
|---|---|---|
| Gross revenue | $3,007,158 | 100.0% |
| Production supplies | $145,141 | 4.8% |
| Direct labor and services | $710,889 | 23.6% |
| Other costs of revenue | $25,051 | 0.8% |
| Total cost of revenue | $881,081 | 29.3% |
| Gross profit | $2,126,077 | 70.7% |
| Royalties | $225,537 | 7.5% |
| Advertising and marketing | $40,935 | 1.4% |
| Automobile expenses | $86,923 | 2.9% |
| Bank charges and merchant fees | $11,447 | 0.4% |
| Insurance | $76,117 | 2.5% |
| Rent and utilities | $279,653 | 9.3% |
| Repairs and maintenance | $33,128 | 1.1% |
| Sales commission | $35,645 | 1.2% |
| Salaries and wages, overhead | $620,799 | 20.6% |
| Technology and telephone | $36,250 | 1.2% |
| Other expenses | $246,857 | 8.2% |
| Total operating expenses | $1,693,291 | 56.3% |
| Revenue less cost of revenue and certain operating expenses | $432,786 | 14.4% |
Source: FRSTeam FDD, Item 19, part C (an image table, read from the page). The figures were reported voluntarily by 26 franchisees and were not audited. Royalties are what each would have paid under this FDD.
The 26 reporting franchisees averaged $432,786 after cost of revenue and the listed operating expenses, 14.4% of revenue. Item 19 says this is not their profit, since each had other costs not shown. Overhead salaries and wages may include owner’s compensation for some franchisees.
Labor is the largest cost. Direct labor and services, which can include subcontractors, averaged 23.6% of revenue. Overhead salaries and wages for office, sales and management staff averaged 20.6%. Their medians were $481,511 and $412,083.
Royalties averaged 7.5% of revenue, above the 6% royalty rate. The FDD does not explain the difference. Item 6 says some franchisees pay special royalty rates negotiated with the franchisor.
Each cost is also shown by third, and the thirds differ by measure. Gross profit margin averaged 88.5% in the top third and 51.4% in the bottom third. Rent and utilities averaged 3.8% of revenue in the lowest third and 15.4% in the highest. Overhead salaries averaged 3.7% in the lowest third and 38.5% in the highest. Each measure ranks the franchisees separately, so the thirds are not the same franchisees.
Thirds
Gross revenue by third, year to September 30, 2025
| Third | Franchisees | Lowest | Highest | Median | Average | At or above the average |
|---|---|---|---|---|---|---|
| Top third | 14 | $2,520,063 | $6,437,217 | $3,308,528 | $3,799,088 | 6 (42.9%) |
| Middle third | 15 | $1,087,810 | $2,340,396 | $1,466,423 | $1,655,533 | 6 (40.0%) |
| Bottom third | 15 | $235,869 | $1,080,518 | $812,932 | $728,591 | 9 (60.0%) |
| All 44 | 44 | $235,869 | $6,437,217 | $1,456,737 | $2,021,571 | 18 (40.9%) |
Source: FRSTeam FDD, Item 19, part A. The “at or above the average” column compares each franchisee with the average of its own third.
The top third averaged $3,799,088, 5.21 times* the bottom third’s $728,591. The top third’s lowest franchisee reported $2,520,063, more than twice the bottom third’s highest of $1,080,518.
The median of $1,456,737 is 72.1%* of the average. The 14 franchisees in the top third lift the average above what most franchisees reported.
The bottom third’s highest figure, $1,080,518, is below $1,140,000*. At $1,140,000 a 6% royalty equals the minimum royalty of $5,700 a month that applies from the fifth year. Item 19 does not say how many years each franchisee had operated or what royalty each paid.
The share of revenue from national accounts also varies by third. The top third of franchisees by that share took 57% to 94% of their revenue from national accounts, and the bottom third 1% to 42%. The average across the 44 franchisees was 52%.
Brand charges
Brand charges
| Charge | Rate or amount | A year at the average |
|---|---|---|
| Royalty | 6% of gross revenues, or the minimum monthly royalty if higher | $121,294* |
| Minimum monthly royalty | None in year 1; $3,300 in year 2, $4,250 in year 3, $5,200 in year 4, $5,700 from year 5 | Below 6% at this average |
| Advertising | 2% of gross revenues, with a minimum of $1,250 a month up to 500,000 households or $2,000 a month above | $40,431* |
| FRSTaid 3.0 software | $510 a month, plus a $2,500 setup fee | $6,120* |
| ERIS software (RescueTech) | $250 a month for up to 4 users, plus $50 per extra user | $3,000* |
| National Account Administrative Fee | 3% of gross revenues from national accounts, if participating | Not included |
| Total | 8.45% of sales* | $170,846* |
Source: FRSTeam FDD, Items 5 and 6. Annual amounts and the total are Averan calculations. The national account fee is left out of the total because participation is optional and the FDD gives no per-franchisee figure for national account revenue.
Royalty and advertising together are 8% of gross revenues, each with a monthly minimum. Both are due on the 15th for the previous month. At the 44-franchisee median of $1,456,737 the royalty, advertising and software come to 8.63%* of sales.
The minimum royalty applies regardless of territory size. It starts in the second year at $3,300 a month, or $39,600* a year, and reaches $5,700 a month, $68,400* a year, from the fifth year. A 6% royalty equals those minimums at $660,000* and $1,140,000* of annual revenue.
From the sixth year the minimum royalty is reset each January 1. If the franchisee’s contents restoration market penetration is at or above 80% of the national average, there is no increase. Below 80%, the increase may not exceed $900 a month.
In the fifth year the minimums and software come to $92,520* a year in a territory of up to 500,000 households. That is $68,400 of royalty, $15,000* of advertising and $9,120* of software. Above 500,000 households it is $101,520*. At the bottom-third average of $728,591, $92,520 is 12.70%* of revenue.
The advertising minimums may rise each January 1. Any increase is limited to the greater of $50 or 5% a year. There is currently no advertising cooperative.
Cost to open
Cost to open
| Line | Low | High |
|---|---|---|
| Initial franchise fee | $65,000 | $75,000 |
| Lease, utility, security deposits and improvements | $0 | $30,000 |
| Signage | $500 | $5,000 |
| Equipment and promotional items | $500 | $158,500 |
| Office equipment, supplies, software, furniture and fixtures | $3,375 | $20,000 |
| Business licenses, permits and professional fees | $0 | $20,000 |
| Initial inventory | $1,000 | $58,500 |
| Insurance | $5,000 | $20,000 |
| Initial advertising | $1,000 | $10,000 |
| Training expenses | $2,500 | $6,500 |
| Additional funds, 3 months | $60,000 | $150,000 |
| Total, plus real estate costs | $138,875 | $553,500 |
Source: FRSTeam FDD, Item 7. Real estate costs are not included in either total. The improvements estimate assumes the franchisee already leases or owns a facility.
The initial franchise fee is $65,000 for a territory of up to 500,000 households and $75,000 above that. Honorably discharged veterans who meet the franchisor’s criteria receive 15% off. In limited cases the franchisor may finance up to 80% of the fee.
$67,500 to $77,500 of the total is paid to the franchisor or its affiliates. That is the franchise fee and the $2,500 FRSTaid 3.0 software setup fee.
Equipment and inventory account for most of the difference between the low and high estimates. Equipment and promotional items run from $500 to $158,500 and initial inventory from $1,000 to $58,500. Item 7 says facilities range from 5,000 square feet with a minimal production facility to 20,000 square feet with a full one.
Additional funds for the first three months are $60,000 to $150,000. At the low end that is 43.2%* of the total estimate. Item 11 says franchisees typically open within 120 days of signing the franchise agreement.
Locations
Locations, 2023 to 2025
| Year | Franchised, start | Opened | Not renewed | Ceased, other reasons | Franchised, end | Company-owned, end | Company-owned sold to franchisees | Total, end |
|---|---|---|---|---|---|---|---|---|
| 2023 | 37 | 2 | 1 | 0 | 38 | 11 | 2 | 49 |
| 2024 | 38 | 2 | 1 | 3 | 36 | 11 | 0 | 47 |
| 2025 | 36 | 11 | 0 | 0 | 47 | 2 | 9 | 49 |
Source: FRSTeam FDD, Item 20, tables 1, 3 and 4. There were no terminations or reacquisitions of franchised locations in the three years.
FRSTeam had 47 franchised and 2 company-owned locations at September 30, 2025. Franchised locations rose from 36 to 47 during the year and company-owned locations fell from 11 to 2.
The franchisor sold 9 company-owned locations to franchisees in 2025. Five were in California, two in Washington, one in Colorado and one in Oregon. Item 19 says six locations began the year as company-owned and ended it franchised, and that those six are counted in the 11 franchised openings.
The state rows for 2025 do not match the totals. The totals show 11 openings and no closures, while the state rows add up to 13 openings and show one location that ceased operations in each of Alabama, Nebraska and New York. This page uses the totals.
Two franchise agreements were signed but not opened at September 30, 2025, both in Virginia. The franchisor projects 10 new franchised locations in the next fiscal year, 9 in California and 1 in Washington, and no new company-owned locations. Four franchised locations were transferred to new owners in 2024.
Questions we get asked
Questions owners ask
How much does it cost to open an FRSTeam franchise?
Item 7 estimates $138,875 to $553,500, plus real estate costs. That includes the $65,000 or $75,000 initial franchise fee and $60,000 to $150,000 of additional funds for the first three months. $67,500 to $77,500 is paid to the franchisor or its affiliates.
What are the FRSTeam royalty and other fees?
The royalty is 6% of gross revenues or a minimum monthly royalty, whichever is higher; the minimum starts at $3,300 a month in the second year and reaches $5,700 from the fifth. Advertising is 2% with a minimum of $1,250 or $2,000 a month depending on territory size. Required software costs $510 and $250 a month, and franchisees in the national account program pay 3% of that revenue.
How much does an FRSTeam franchise make?
Item 19 reports that the 44 franchisees that operated the full 12 months to September 30, 2025 averaged $2,021,571 of gross revenue, with a median of $1,456,737. The top third averaged $3,799,088 and the bottom third $728,591. These are revenue figures, not profit.
Does the FRSTeam FDD give any profit figures?
Item 19 includes a 2024 benchmarking study of 26 franchisees. On average they had $432,786, or 14.4% of revenue, left after cost of revenue and the operating expenses listed. Item 19 says this is not their profit because other costs are not shown.
How many FRSTeam locations are there?
At September 30, 2025 there were 47 franchised and 2 company-owned locations, 49 in all. Two more franchise agreements were signed but not opened, and the franchisor projects 10 new franchised locations in the next fiscal year.
How much FRSTeam work comes from insurance carriers?
Item 19 says national account insurance carriers produced $40,951,999 of gross revenue, 45.5% of the total for the 44 franchisees, in the year to September 30, 2025. The share ranged from 1% to 94% by franchisee.
Questions worth putting to FRSTeam
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does FRSTeam see in its highest-selling locations, such as territory, years open and staffing?
- 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 FRSTeam 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 also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for an FRSTeam owner
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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.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from FRSTeam, 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. FRSTeam is a 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: FRSTeam, LLC, 2026 Franchise Disclosure Document, issued 25 February 2026.