Lightspeed Restoration franchise unit economics
Lightspeed Restoration franchisees run restoration businesses that sell water and fire damage restoration, smoke odor removal, mold remediation and indoor air quality services, much of it paid through insurance claims.
Lightspeed Restoration franchise at a glance
Lightspeed Restoration’s Item 19 reports 2025 sales for four single-territory franchisees and nine multi-territory franchisees, with average cost of goods and labor cost.
Lightspeed Restoration’s four single-territory franchisees open all of 2025 averaged $517,606 in sales, with a median of $457,231, according to Item 19 of Lightspeed Restoration’s 2026 FDD, issued 1 April 2026. Fees paid to Lightspeed Restoration come to about 10.13%* of sales. A Lightspeed Restoration franchise costs $157,180 to $268,950 to open.
- A Lightspeed Restoration franchise costs $157,180 to $268,950 to open, including a $19,950 initial franchise fee and a $40,000 initial territory fee.
- Lightspeed Restoration charges a royalty of 6% of monthly bank deposits up to $83,300 and 5% above, with 2% on non-core subcontracted services, plus a monthly minimum of $1,000 per territory after the first year.
- Lightspeed Restoration also charges a National Advertising Fund payment of the greater of 2% of bank deposits or $500 a month per territory, and a technology fee of $750 a month for the first territory.
- Lightspeed Restoration’s nine multi-territory franchisees averaged $805,211 across 24 territories, which Averan puts at $301,954 a territory*.
- Lightspeed Restoration reports average cost of goods of 21% and average labor cost of 23% of sales for 2025; Item 19 publishes no profit figure.
- Lightspeed Restoration had 40 franchised outlets and no company-owned outlets at the end of 2025, up from 27 a year earlier.
- The franchisor, Lightspeed Restoration, LLC, has offered franchises since June 2023 and is part of Home Franchise Concepts.
These figures come from Lightspeed Restoration's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The $301,954 per territory for the multi-territory group (805,211 x 9 / 24).
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Talk to Averan → Averan Lightspeed Restoration Conversion Package →- Averan puts multi-territory sales at $301,954 a territory in 2025*. Nine multi-territory franchisees averaged $805,211 across 24 territories. The single-territory average of $517,606 is 71.4% higher*.
- Average cost of goods was 21% of sales and average labor cost 23%. Item 19 prints gross profit of 79%, which equals 100% less the 21% cost of goods. Taken together, the two cost averages come to 44% of sales*.
- Royalty is charged on bank deposits, when payment is received. Item 6 says royalty is not due until the franchisee receives payment, because insurance claims can delay it. The 5% rate applies to monthly deposits above $83,300 per territory.
- The royalty and advertising minimums come to $18,000 a year per territory after the first year*. Royalty is at least $1,000 a month and the advertising fund at least $500 a month for each territory. Both minimums may rise each April 1 by the change in the Consumer Price Index.
- Outlets rose from 0 to 40 between 2023 and 2025. Forty-three outlets opened and three were terminated over the three years. Nine franchise agreements were signed but not opened, and Item 20 projects 23 new franchised outlets in 2026.
Average sales
How much does a Lightspeed Restoration franchise make?
| Group | Franchisees, 2025 | Average, 2025 | Median, 2025 | Average, 2024 | Median, 2024 |
|---|---|---|---|---|---|
| One territory | 4 | $517,606 | $457,231 | $349,180 | $349,180 |
| Multiple territories (24 in 2025) | 9 | $805,211 | $582,303 | $881,032 | $791,856 |
As printed in Item 19. The 2024 figures cover one single-territory franchisee and five multi-territory franchisees holding 15 territories. Figures are franchisee-reported and the FDD does not say they are audited.
The four single-territory franchisees open all of 2025 averaged $517,606 in sales, and the median was $457,231. Two of the four, 50%, reached or exceeded the average.
The nine multi-territory franchisees averaged $805,211, with a median of $582,303. Four of the nine, 44%, reached or exceeded the average, and five, 56%, reached or exceeded the median. Item 19 says multi-territory franchisees do not report each territory separately, so their figures are totals for all the territories they hold.
Item 19 covers 13 franchisees holding 28 territories. Item 20 counts 40 franchised outlets at the end of 2025, so the sales figures describe the franchisees open for all of 2025.
Item 19 publishes no operating expenses beyond cost of goods and labor, and no profit figure. Rent, vehicles, insurance, marketing, fees and owner pay are not reported.
Cost of goods and labor
Cost of goods, gross profit and labor cost, 2025
| Measure | Average | Median | Lowest | Highest | At or better than the average |
|---|---|---|---|---|---|
| Cost of goods sold | 21% | 21% | 4% | 42% | 3 (43%) |
| Gross profit | 79% | 79% | 58% | 96% | 3 (43%) |
| Labor cost | 23% | 22% | 16% | 45% | 4 (57%) |
As printed in Item 19. Item 19 does not state how many franchisees these measures cover; the printed counts (3 or 43%, 4 or 57%) correspond to seven franchisees*.
Average cost of goods sold was 21% of sales, and the median was 21%. Item 19 defines cost of goods as the cost to the franchisee to perform the services. The lowest was 4% and the highest 42%.
The printed gross profit figures equal 100% less the cost of goods figures. The average is 79% against 21%, the lowest 58% against the highest cost of goods of 42%, and the highest 96% against the lowest of 4%. The 79% is therefore stated before the 23% labor cost. Taken together, the cost of goods and labor averages come to 44% of sales*.
Average labor cost was 23% of sales, with a median of 22%. The lowest was 16% and the highest 45%. Four franchisees, 57%, had labor cost at or below the average.
Item 19 does not say whether labor is part of cost of goods. The lowest cost of goods, 4%, is below the lowest labor cost, 16%, so at least one franchisee’s labor cost is not counted inside its cost of goods.
Sales per territory
Sales per territory, 2024 and 2025
| Group | Year | Franchisees | Territories | Average per franchisee | Average per territory |
|---|---|---|---|---|---|
| One territory | 2025 | 4 | 4 | $517,606 | $517,606 |
| Multiple territories | 2025 | 9 | 24 | $805,211 | $301,954* |
| One territory | 2024 | 1 | 1 | $349,180 | $349,180 |
| Multiple territories | 2024 | 5 | 15 | $881,032 | $293,677* |
Franchisee counts, territory counts and per-franchisee averages as printed in Item 19. Per-territory figures for the multi-territory group are Averan calculations: average sales times franchisees, divided by territories.
Averan puts multi-territory sales at $301,954 a territory in 2025*. The single-territory average of $517,606 is 71.4% higher*. Item 19 does not report sales by territory, so this is an average across each group’s territories.
Multi-territory franchisees held 2.67 territories each on average in 2025*, against 3.0 in 2024*. Their average per franchisee fell from $881,032 to $805,211, and the per-territory figure rose from $293,677* to $301,954*.
Item 19 gives no quartiles, bands or ranges for sales. It gives the average, the median and the share of franchisees at or above each, by group. The 2024 single-territory figure rests on one franchisee.
Brand charges
Brand charges
| Fee | Amount | At the single-territory average |
|---|---|---|
| Royalty | 6% of monthly bank deposits to $83,300, 5% above; 2% on non-core subcontracted services. Minimum $500 a month in months 7–12, then $1,000 a month, per territory | $31,056* |
| National Advertising Fund | Greater of 2% of bank deposits or $500 a month, per territory; may rise to the greater of 3% or $500 | $10,352* |
| Technology fee | $750 a month for the first territory, $250 for each additional; may rise up to 3% a year | $9,000* |
| Convention fee | Up to $2,000 a year; attendance is mandatory | $2,000 |
| Advertising cooperative | Not currently imposed | – |
| Renewal fee | $5,000 per territory | – |
| Transfer fee | Greater of $5,000 per territory or 6% of the sale price, up to $50,000 | – |
| Total | $52,408 (10.13% of sales)* |
Fees as printed in Item 6. Averan’s amounts assume one territory, even monthly deposits of about $43,134*, no non-core subcontracted services and the convention fee at its cap.
At the $517,606 single-territory average, Averan puts the royalty, advertising fund, technology fee and convention fee at $52,408 a year, or 10.13% of sales*. The royalty is $31,056* and the advertising fund $10,352*.
Royalty is charged on bank deposits. All proceeds must go into a dedicated account, and royalty is not due until payment is received, which Item 6 links to delays in insurance claims. The 5% rate starts above $83,300 a month per territory, or $999,600 a year*. For franchisees with more than one territory, deposits are averaged across territories.
The minimums are charged per territory. After the first year they are $12,000 of royalty* and $6,000 of advertising* a year for each territory. The royalty minimum stops applying above $200,000 a year per territory* and the advertising minimum above $300,000*. Both minimums may rise each April 1 by up to the change in the Consumer Price Index.
Non-core subcontracted services carry a 2% royalty. Item 6 defines them as services other than restoration and remediation that are performed by others on an overhead and profit markup, for example reconstruction and garment cleaning.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $19,950 | $19,950 |
| Initial territory fee | $40,000 | $40,000 |
| Initial equipment package | $50,000 | $50,000 |
| Vehicle | $0 | $60,000 |
| Initial marketing | $10,000 | $15,000 |
| Insurance (auto, liability and other policies) | $4,800 | $10,000 |
| Licenses, certifications, bonds and professional fees | $5,000 | $11,500 |
| Rent and security deposits | $1,000 | $5,000 |
| Training travel, extra trainees, technology, office and card processing | $1,430 | $8,500 |
| Additional funds, first 3 months | $25,000 | $50,000 |
| Total | $157,180 | $268,950 |
Item 7 lines as printed except four grouped rows, which Averan has summed from the printed lines: insurance ($1,800–$3,500 auto plus $3,000–$6,500 other); licenses, bonds and professional fees ($3,000–$5,000, $0–$1,500 and $2,000–$5,000); and the training, technology, office and card-processing lines.
Item 7 puts the cost to open one territory at $157,180 to $268,950. Of that, $109,950 to $111,450 is paid to the franchisor or its affiliates. The largest fixed lines are the $50,000 initial equipment package, which covers up to two territories, and the $40,000 initial territory fee.
The first territory carries $59,950 of initial fees*. That is the $19,950 initial franchise fee and the $40,000 initial territory fee. Both are discounted 15% for veterans, active service members and their spouses.
Additional territories bought at the same time as the first cost $30,000 each, with no further franchise fee. A territory bought later costs the then-current territory fee. Franchisees who meet the credit standards may pay $32,000 for the first territory and $24,000 for each additional territory bought at the same time over 5 years at 10% interest.
Item 7 recommends $125,000 of working capital for the first year. The $25,000 to $50,000 of additional funds covers the first three months and is based on the franchisor’s experience with AdvantaClean franchisees. Item 11 estimates 90 to 180 days to open.
A territory typically has a minimum population of 200,000. It is a protected territory, not an exclusive one: the franchisor will not sell another Lightspeed Restoration franchise in it, but national accounts and disaster work may be handled by others.
Locations
Locations, 2023 to 2025
| Year | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased other | End |
|---|---|---|---|---|---|---|---|
| 2023 | 0 | 18 | 0 | 0 | 0 | 0 | 18 |
| 2024 | 18 | 12 | 3 | 0 | 0 | 0 | 27 |
| 2025 | 27 | 13 | 0 | 0 | 0 | 0 | 40 |
As printed in Item 20. There were no company-owned outlets in any year. One outlet transferred to a new owner in 2024. A footnote says one outlet earlier recorded as opening in 2023 opened in 2024.
Lightspeed Restoration had 40 franchised outlets at the end of 2025, up from 27 a year earlier. Forty-three outlets opened over the three years and three were terminated, all in Florida in 2024. There were no non-renewals, reacquisitions or other closures.
Nine franchise agreements were signed but the outlets had not opened at the end of 2025. Item 20 projects 23 new franchised outlets in 2026, including five in Arizona.
Texas had 11 outlets and Virginia 10 at the end of 2025. Eight of the 13 openings in 2025 were in Texas.
Questions we get asked
Questions owners ask
How much does a Lightspeed Restoration franchise cost to open?
Item 7 puts the total at $157,180 to $268,950 for one territory. That includes the $19,950 initial franchise fee, the $40,000 initial territory fee and the $50,000 initial equipment package. Item 7 also recommends $125,000 of working capital for the first year.
What fees does a Lightspeed Restoration franchisee pay?
A royalty of 6% of monthly bank deposits up to $83,300 and 5% above, with 2% on non-core subcontracted services and a minimum of $1,000 a month per territory after the first year. The advertising fund is the greater of 2% or $500 a month per territory, and the technology fee is $750 a month for the first territory. At the single-territory average, Averan puts these and the convention fee at 10.13% of sales*.
How much revenue does a Lightspeed Restoration franchise make?
The four single-territory franchisees open all of 2025 averaged $517,606, with a median of $457,231. The nine multi-territory franchisees averaged $805,211 across 24 territories, with a median of $582,303.
Does the Lightspeed Restoration FDD show profit?
No. Item 19 reports sales, cost of goods (21% average), gross profit (79% average) and labor cost (23% average), but no other expenses and no profit. The printed gross profit equals 100% less the cost of goods, so it is stated before labor.
How many Lightspeed Restoration locations are there?
Item 20 reports 40 franchised outlets at the end of 2025, up from 27, and no company-owned outlets. Nine more franchise agreements were signed but not opened, and 23 openings are projected for 2026.
How large is a Lightspeed Restoration territory?
Item 12 says a protected territory typically has a minimum population of 200,000. The franchisor will not sell another Lightspeed Restoration franchise in it, but the territory is not exclusive, and national accounts and disaster work may be performed there by others.
Questions worth putting to Lightspeed Restoration
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 Lightspeed Restoration 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 Lightspeed Restoration 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.
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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 Lightspeed Restoration, 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. Lightspeed Restoration 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: Lightspeed Restoration, LLC, 2026 Franchise Disclosure Document, issued 1 April 2026.