Rainbow Restoration franchise unit economics
Rainbow Restoration franchisees run restoration businesses that dry out, clean up and rebuild homes and commercial properties after water, fire, smoke and mold damage, mostly paid through insurance claims.
Rainbow Restoration in the news
- Neighborly® Appoints Brent Korb as Chief Financial Officer · Franchising.com ·
The Rainbow Restoration headline above is the publisher's own and links to the publisher. Averan Advisors checked this Rainbow Restoration link on 11 October 2026. Franchise news lists news on 95 brands, including Rainbow Restoration. Rainbow Restoration is in the Restoration franchise guide.
Rainbow Restoration franchise at a glance
Rainbow Restoration’s Item 19 reports 2025 gross sales for 284 businesses trading the full year, by percentile group and by territory population.
Rainbow Restoration franchisees averaged $1,063,348 of sales in 2025, with a median of $601,671, according to Item 19 of Rainbow Restoration’s 2026 FDD, issued 1 April 2026. The 284 in that group are 87%* of Rainbow Restoration’s 328 locations. Fees paid to Rainbow Restoration come to about 10%* of sales. A Rainbow Restoration franchise costs $185,336 to $351,900 to open.
- A Rainbow Restoration franchise costs $185,336 to $351,900 to open, including a $60,000 initial franchise fee, according to the brand's 2026 FDD.
- Rainbow Restoration charges a royalty of 8% of sales and a 2% brand fund contribution.
- Rainbow Restoration reported 328 franchised locations in its 2026 FDD.
- 31% of reporting Rainbow Restoration locations reached the average.
- Work out Rainbow Restoration's fees at your own sales with the minimum fee calculator.
These figures come from Rainbow Restoration'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 →- Crossing each threshold adds 1% of the threshold amount.Crossing each Rainbow Restoration threshold adds 1% of the threshold amount: $7,500 at $750,000, $14,000 at $1,400,000, $20,000 at $2,000,000, $27,500 at $2,750,000 and $35,000 at $3,500,000 *. The rate applies to the whole year, so a December invoice can pay for itself many times over.
- The median business hands over 10% of sales and the top tenth hands over 5%.The median Rainbow Restoration business, at $601,671, pays 8% license plus 2% marketing, and the top tenth, at $4,420,188, pays 3% plus 2% *, a five-point difference.
- Territory population differs 12.5 times over and average revenue differs 2.4 times over.Rainbow Restoration's 116 businesses in territories of 40,000 to 249,999 people average $730,906, and the 80 in territories of 500,000 and up average $1,736,727 *. The ground grows far faster than the billing does.
- The lowest-selling tenth averages $30,028 against a minimum license fee of $4,500 to $10,320.At Rainbow Restoration that minimum is 15.0% or 34.4% of revenue depending on territory population *, before the marketing fee. The minimum applies to everything below $56,250 in a small territory and below $129,000 in a mid-sized one.
- Departures exceeded openings in two of the last three years.Rainbow Restoration opened 18 against 19 gone in 2023 and 15 against 17 in 2025. The three-year gain of 14 came from 2024, when 33 businesses opened.
How much does a Rainbow Restoration franchise make?
The average Rainbow Restoration unit reported $1,063,348 of revenue in the 2026 FDD, and the median reported $601,671. 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 10% 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 Rainbow Restoration performers
Rainbow Restoration splits its locations into groups instead of publishing one average. The top group averaged $4,420,188 a year. The lowest averaged $30,028. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $601,671. The average was $1,063,348. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 147.2× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Territory.This model sells from a territory quoted at 249,999 people, with no storefront. Population density sets how much driving sits between jobs.
- Opening cost range.Opening costs $185,336 to $351,900, a 1.9× range inside one brand.
- Fees and the minimum.Fees run about 10.0% 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 284 of 328 locations. 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.
Where the system sits
Gross sales by percentile group, 2025
| Band | Businesses | Average | Median | High | Low | Reaching the average | Rung * | Total charge * |
|---|---|---|---|---|---|---|---|---|
| Top 10% | 28 | $4,420,188 | $3,726,109 | $14,541,506 | $2,612,014 | 10, 36% | 3% | $221,009 |
| Top 25% | 71 | $2,824,113 | $2,192,830 | $14,541,506 | $1,256,826 | 25, 35% | 4% | $169,447 |
| Top 50% | 142 | $1,853,927 | $1,245,784 | $14,541,506 | $605,282 | 44, 31% | 6% | $148,314 |
| All businesses | 284 | $1,063,348 | $601,671 | $14,541,506 | $1,643 | 89, 31% | 7% | $95,701 |
| Bottom 50% | 142 | $272,768 | $280,442 | $598,060 | $1,643 | 73, 51% | 8% | $27,277 |
| Bottom 25% | 71 | $113,109 | $81,156 | $286,828 | $1,643 | 30, 42% | 8% | $11,311 |
| Bottom 10% | 28 | $30,028 | $21,735 | $61,794 | $1,643 | 13, 46% | 8% | $4,500 |
Counts, averages, medians, ranges and attainment are as the brand reported it. The rung and total-charge columns are marked *, applying the ladder plus the 2% marketing fee to each group’s average. The bottom tenth pays the minimum instead of the rate.
The median business bills $601,671, which is 56.6% of the average. $1,063,348 against $601,671 *, 89 of 284 reach the average, so the arithmetic mean describes a position that seven businesses in ten sit below.
The top half averages 6.8 times the bottom half. $1,853,927 against $272,768 *, on the same count of 142 each, and the two weighted together return the filed all-system figure of $1,063,348 to the dollar.
Attainment is 51% in the bottom half against 31% in the top. The low end is bunched between $1,643 and $598,060. Meanwhile the high end is stretched by a single business at $14,541,506, 3.3 times its own group’s average.
The bottom half’s average sits below its own median. $272,768 against $280,442, which happens when the tail is extreme, and here the tail runs down to $1,643.
The 7% rate starts at $750,000, $148,329 above the median business. $750,000 against $601,671 *, a 24.7% step, and it pays $7,500 the following year, so the last quarter of a year spent near the line is worth planning around.
Discounts available
- Rainbow Restoration takes 20% off the $60,000 minimum fee for honorably discharged U.S. or Canadian veterans holding at least 51% (VetFran).
- Rainbow Restoration takes 5% off per $125,000 of annual sales rolled in from an existing similar business (minimum $250,000), up to 50%, but not below the $60,000 minimum fee.
- Rainbow Restoration gives franchisees of at least 2 years 5% to 20% off an additional territory depending on years in the system, but not below the $60,000 minimum fee.
- Rainbow Restoration takes 10% off for franchisees of its affiliated brands of at least 2 years, but not below the $60,000 minimum fee.
- Rainbow Restoration takes 10% to 25% off for recommended employees of its or affiliate franchisees with 2 or more years of service (HIRE discount), but not below the $60,000 minimum fee.
From Item 5 of the Rainbow Restoration 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
How the licence fee steps
License fee ladder
| Prior-year gross sales | License fee | Plus marketing | Total brand charge | Worth of the first dollar over the threshold * |
|---|---|---|---|---|
| $0 – $749,999.99 | 8% | 2% | 10% | n/a |
| $750,000 – $1,399,999.99 | 7% | 2% | 9% | $7,500 |
| $1,400,000 – $1,999,999.99 | 6% | 2% | 8% | $14,000 |
| $2,000,000 – $2,749,999.99 | 5% | 2% | 7% | $20,000 |
| $2,750,000 – $3,499,999.99 | 4% | 2% | 6% | $27,500 |
| $3,500,000 and over | 3% | 2% | 5% | $35,000 |
Rates are as the brand reported it and the right-hand column is marked. Comparing the fee owed one cent below each threshold with the fee owed at it.
The rate is fixed for a calendar year, so each threshold sets the rate on twelve months of billing. A business closing 2025 at $749,999 pays 8% on everything it bills in 2026; one closing at $750,000 pays 7% on everything it bills in 2026 *, and the sales that decide it are last year’s, which are already in the system by the time the rate is set.
Reconstruction work is excluded from the tiered rate. It has its own 3% license fee and 1% marketing fee. It is excluded when the threshold is worked out. So a business that grows through reconstruction pays a lower rate on that work and stays on a higher rate for everything else.
Year one runs at a flat 6%. The ladder starts at month 13, which means a first-year business pays 6% license plus 2% marketing whatever it bills. It then lands on a rung decided by the part-year it has just traded.
Local marketing can add up to three more points. Up to 3% of gross sales through a designated local marketing group, of which 2% may be directed to brand-level awareness work. So the fully loaded charge runs from 8% at the top of the ladder to 13% at the bottom.
Territory size
Gross sales by territory population, 2025
| Territory population | Businesses | Average | Median | High | Low | Reaching the average | Against the smallest band * |
|---|---|---|---|---|---|---|---|
| 40,000 – 249,999 | 116 | $730,906 | $430,921 | $7,519,022 | $4,656 | 33, 28% | n/a |
| 250,000 – 499,999 | 86 | $908,846 | $591,671 | $3,781,280 | $1,643 | 34, 40% | 1.24 times |
| 500,000 and up | 80 | $1,736,727 | $987,280 | $14,541,506 | $82,558 | 26, 33% | 2.38 times |
Counts, averages, medians, ranges and attainment are as the brand reported it; the final column is marked *, comparing each group’s average with the smallest group.
The group minimums run 40,000, 250,000 and 500,000 people, a span of 12.5 times. Average revenue across the same three groups runs $730,906, $908,846 and $1,736,727, a span of 2.38 times *, so each extra person in the territory adds less revenue.
A 500,000-population territory costs $180,000 in fees. $60,000 buys the first 200,000 people and each further 1,000 costs $400, so a 500,000-population territory costs $180,000 *, three times the entry fee for 2.38 times the group average.
Revenue for each dollar of entry fee falls 20.8% across that step. Rainbow Restoration revenue is $12.18 for each fee dollar at 200,000 people, against $9.65 at 500,000 *. The larger territory still bills more in total, and it bills less for what it cost.
Fees paid in 2025 averaged $54,788. Rainbow Restoration fees paid in 2025 ranged from $40,000 to $149,326, against a $60,000 list price. Discounts and territory size move the real entry cost well above or below the list price.
The middle group has the top attainment and the smallest has the lowest. 40% of the 250,000-to-499,999 group reaches its own average against 28% of the smallest group *. The smallest territories hold the widest internal range, running from $4,656 to $7,519,022.
The minimum
Minimum monthly license fee by territory population
| Territory population | Months 10–18 | Months 19–48 | Months 49 and after | Mature yearly minimum * | Revenue where 8% overtakes it * |
|---|---|---|---|---|---|
| Under 200,000 | $225 | $300 | $375 | $4,500 | $56,250 |
| 200,000 – 500,000 | $515 | $690 | $860 | $10,320 | $129,000 |
| 500,001 – 1,000,000 | $1,315 | $1,750 | $2,190 | $26,280 | $328,500 |
| 1,000,001 – 2,000,000 | $2,815 | $3,000 | $3,750 | $45,000 | $562,500 |
| 2,000,001 and above | $3,000 | $4,000 | $5,000 | $60,000 | $750,000 |
The monthly figures are as the brand reported it and the last two columns are marked *; the three largest population groups are closed to new franchisees.
The lowest-selling tenth of the system averages $30,028. At 8% that is $2,402 of license fee, against a mature minimum of $4,500 in a small territory and $10,320 in a mid-sized one *, so the effective rate lands at 15.0% or 34.4% against 8%.
The lowest business in the system billed $1,643 for the year. The mature minimum for a mid-sized territory is $10,320 *, more than six times what the business collected, before the marketing minimum of $100 to $2,500 a month is added.
The minimum climbs by two thirds between month 10 and month 49. $225 to $375 a month in a small territory and $515 to $860 in a mid-sized one, 1.67 times in both cases *, so the charge rises on a schedule while the revenue behind it rises only if the work arrives.
The minimum does not apply above $56,250 in a small territory and $129,000 in a mid-sized one. Those are the levels where 8% overtakes the mature Rainbow Restoration minimum *, and since the bottom quarter averages $113,109, most of the system is already past it. That is what makes the bottom tenth the group to watch.
Questions we get asked
Questions an owner asks
How much does a Rainbow Restoration franchise make?
Rainbow Restoration franchisees averaged $1,063,348 of sales in 2025, with a median of $601,671, according to Item 19 of Rainbow Restoration’s 2026 FDD, issued 1 April 2026. The 284 in that group are 87%* of Rainbow Restoration’s 328 locations. Fees paid to Rainbow Restoration come to about 10%* of sales. A Rainbow Restoration franchise costs $185,336 to $351,900 to open.
What does a Rainbow Restoration business bill?
Across 284 businesses trading all of 2025, the average was $1,063,348 and the median $601,671, on a range from $1,643 to $14,541,506. By percentile group the averages run $4,420,188 at the top tenth, $2,824,113 at the top quarter, $1,853,927 at the top half, $272,768 at the bottom half, $113,109 at the bottom quarter and $30,028 at the bottom tenth.
What fees does Rainbow Restoration charge?
Rainbow Restoration charges a license fee of 6% for the first twelve months, then 3% to 8% of gross sales, set each 1 January on the prior calendar year’s sales. The marketing fee is 2%. A local marketing group contribution of up to 3% may also apply. Reconstruction services have their own 3% license fee and 1% marketing fee and are excluded from the threshold calculation. Minimum license fees of $225 to $5,000 a month apply from month 10, set by territory population.
What does that work out to at Rainbow Restoration?
On our reading, Rainbow Restoration fees come to 9% of sales at the system average of $1,063,348, 10% at the median of $601,671, and 5% at the top tenth’s average of $4,420,188. At the bottom tenth’s average of $30,028 the minimum takes over and the effective rate reaches 15.0% or 34.4%, depending on territory population.
Does a bigger territory pay at Rainbow Restoration?
Revenue rises more slowly than territory population. The group minimums differ 12.5 times over, from 40,000 people to 500,000, while group average revenue differs 2.38 times over, from $730,906 to $1,736,727. The entry fee moves the other way: $60,000 covers the first 200,000 people and each further 1,000 costs $400. So 500,000 people costs $180,000, three times the fee for 2.38 times the billing.
How much does a Rainbow Restoration franchise cost to open?
A Rainbow Restoration franchise costs $185,336 to $351,900 to open, before real estate and before any additional fee for territory beyond the minimum. The largest lines are the $60,000 franchise fee, a vehicle at $10,000 to $55,000, equipment and supplies at $41,461 to $66,000. The investment also includes $40,000 to $100,000 of additional funds for the first six to nine months.
How stable is the Rainbow Restoration system?
Rainbow Restoration had 328 franchised businesses at the end of 2025, down from 330, and no company-owned outlets in any of the three years. Across 2023 to 2025, 66 opened and 52 left, 41 terminations, 8 non-renewals and 3 that ceased for other reasons. Transfers to new owners ran 5, 12 and 11. Eight franchise agreements were signed with the outlet still to open, and 23 new franchised outlets are projected for the next fiscal year.
Which two numbers should run monthly at Rainbow Restoration?
Track gross sales against the rung you are standing on, because a calendar year ending one dollar the wrong side of a threshold costs between $7,500 and $35,000 the following year. Then keep reconstruction revenue separate from standard revenue, because it is charged at its own rate and excluded when the threshold is set.
- 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 Rainbow Restoration
These are questions the Rainbow Restoration filing leaves open. An owner or a buyer can put them to Rainbow Restoration 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 Rainbow Restoration 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 Rainbow 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. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Which rung will you land on in January?
We review your unit economics and cash forecast and build your reporting around the threshold your calendar year is heading for, the reconstruction split that sits outside it. The reporting also tracks the collection cycle between the job and the payment.
Talk to Averanthe franchise library, all 447 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Rainbow Restoration reads against the rest of the restoration group: 1-800 WATER DAMAGE · DRYmedic · Paul Davis · PuroClean · 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.
- I run several locations. Which ones actually make money?It shows each location's contribution to profit and the reporting it takes to see it.
- 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 Rainbow International SPV 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. Rainbow Restoration® 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: Rainbow International SPV LLC, 2026 Franchise Disclosure Document, issued 1 April 2026.