Restoration 1 franchise unit economics
Restoration 1 franchisees run disaster restoration businesses that bill water, fire, smoke and mold claims and the reconstruction work that follows.
Restoration 1 franchise at a glance
Restoration 1’s Item 19 reports 2025 collected revenue for 118 owners by number of territories held, the same revenue split by whether the owner kept a full-time business developer, and costs and profit as a share of revenue for 75 franchisees.
Restoration 1 franchisees averaged $1,427,586 of sales in 2025, with a median of $760,111, according to Item 19 of Restoration 1’s 2026 FDD, issued 1 May 2026. The 118 in that group are 42%* of Restoration 1’s 278 locations. Fees paid to Restoration 1 come to about 6.38%* of sales. A Restoration 1 franchise costs $126,525 to $309,500 to open.
- A Restoration 1 franchise costs $126,525 to $309,500 to open, including a $59,900 initial franchise fee, according to the brand's 2026 FDD.
- Restoration 1 charges a royalty of 7% of sales and a $525 monthly technology fee.
- Restoration 1 reported 278 franchised locations in its 2026 FDD.
- Restoration 1’s 75 franchisees with reliable cost data averaged profits after owners and management of 10% of revenue in 2025. Restoration 1’s FDD takes that line after gross profit, other expenses and the pay of owners and managers.
- At the average Restoration 1 location, wages took 39.8%, rent and space costs took 4.9% and cost of goods took 43.8% of sales.
- Work out Restoration 1's fees at your own sales with the minimum fee calculator.
These figures come from Restoration 1'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 franchisees with a full-time business developer average $1,251,098, against $561,145 without. That is 2.2 times, across 22 franchisees against 37. System-wide the split is $2,174,654 against $628,092.
- Every franchisee holding four or more territories has one. The without-development table stops at three territories; all 11 franchisees at four and above appear only in the full-time column.
- The published bottom line is 10.0% of revenue, and the median owner draws 0.8%. $142,759 at the system average, with management wages at a 0.0% median *, more than half the group pays itself a token amount.
- The royalty line reconciles to the fee schedule exactly. At Restoration 1, 7% on the 78.8% of revenue outside construction plus 2% on the 21.2% construction share gives 5.94% against a filed 5.9% *.
- The system lost 20 territories in 2025 and 11 more after year end. That is 298 down to 278, with 30 territories terminated or ceased during the year.
How much does a Restoration 1 franchise make?
The average Restoration 1 unit reported $1,427,586 of revenue in the 2026 FDD, and the median reported $760,111. The brand’s disclosure document puts profits after owners and management at 10% of revenue. Fees come off the top first, at about 6.4% 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 Restoration 1 performers
Restoration 1 splits its locations into groups instead of publishing one average. The top group averaged $4,977,002 a year. The lowest averaged $818,415. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $760,111. The average was $1,427,586. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 6.1× 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 250,000 people, with no storefront. Population density sets how much driving sits between jobs.
- Opening cost range.Opening costs $126,525 to $309,500, a 2.4× range inside one brand.
- Lease cost.Occupancy cost ran 4.9% of sales in this filing. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
- Fees and the minimum.Fees run about 6.4% 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
- Products and materials.Cost of goods, which includes hourly labor, subcontractors, royalties and vehicles, takes 43.8% of sales, against profits after owners and management of 10.0%. The levers are buying terms, price discipline and waste.
- Occupancy cost.Rent and building costs take 4.9% of sales here. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Routes.Each van costs the same per day. Track stops per van and the distance between them.
Context you underwrite around
- Locations included.These figures cover 118 of 278 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
The profit and loss
Costs and profit as a share of revenue, 2025
| Line | Average | Median | Favourable to average | At $1,427,586 * |
|---|---|---|---|---|
| Core services revenue | 77.8% | 82.0% | 54.7% | $1,110,662 |
| Construction revenue | 21.2% | 15.9% | 44.0% | $302,648 |
| Miscellaneous revenue | 1.0% | 0.0% | 13.3% | $14,276 |
| Hourly labor and subcontractors | 25.7% | 27.2% | 49.3% | $366,890 |
| Royalties | 5.9% | 6.3% | 44.0% | $84,228 |
| Equipment and vehicle | 5.2% | 4.4% | 58.7% | $74,234 |
| Materials and supplies | 4.9% | 3.1% | 69.3% | $69,952 |
| Miscellaneous cost of goods | 1.2% | 0.7% | 70.7% | $17,131 |
| Referrals and commissions | 0.9% | 0.0% | 80.0% | $12,848 |
| Total cost of goods | 43.8% | 43.0% | 53.3% | $625,283 |
| Gross profit | 56.2% | 57.0% | 53.3% | $802,303 |
| General and administrative wages | 14.1% | 10.3% | 66.7% | $201,290 |
| Advertising | 7.4% | 6.0% | 61.3% | $105,641 |
| Professional fees | 5.5% | 5.1% | 57.3% | $78,517 |
| Building costs | 4.9% | 3.9% | 62.7% | $69,952 |
| Technology | 2.1% | 1.9% | 61.3% | $29,979 |
| Miscellaneous | 1.7% | 0.2% | 74.7% | $24,269 |
| Office | 1.5% | 0.8% | 72.0% | $21,414 |
| Travel | 1.2% | 0.8% | 68.0% | $17,131 |
| Other expenses | 38.5% | 36.8% | 50.7% | $549,621 |
| Other income | 0.6% | 0.1% | 21.3% | $8,566 |
| Profit before owners and management | 18.3% | 17.1% | 48.0% | $261,248 |
| Owner's expense | 5.0% | 0.8% | 68.0% | $71,379 |
| Management wages | 3.4% | 0.0% | 68.0% | $48,538 |
| Profit after owners and management | 10.0% | 8.0% | 58.7% | $142,759 |
Percentages and favourable-to-average shares are as the brand reported it, reordered here by size within each block. The dollar column is marked *, applying each average to the system's $1,427,586.
The average franchisee keeps 10.0% after paying itself; the median keeps 8.0%. That is $142,759 and $114,207 at the system average *. Publishing a figure this far down the statement is rare, and it is the number that makes every other line on this page readable.
The median owner's expense is 0.8% and the median management wages are 0.0%. That compares with averages of 5.0% and 3.4%. So for more than half this group, the 10.0% bottom line arrives largely before anyone has been paid for running the business. That means the published profit and the owner's income are much the same money.
Hourly labor and subcontractors take 25.7% and general wages take another 14.1%. That is $568,180 together at the system average *, 39.8% of revenue on people, against 4.9% on materials. Restoration is a labor business with an equipment line attached.
Professional fees run 5.5% of revenue. That is $78,517 at the system average *, against $84,228 for the entire Restoration 1 royalty. In a trade billing insurers and adjusters that figure reads as the cost of getting claims paid. It is among the highest professional-fee lines published in this library.
Construction is 21.2% of average revenue and 15.9% of median revenue. The gap says a minority of franchisees lean heavily on reconstruction. The 24 territories where construction passed 60% of revenue run different economics and sit outside the table. So what you are reading is the core-led business.
One salaried role
Revenue with and without a business development rep, 2025
| Territories | With full-time development | Franchisees | Without | Franchisees | Multiple * |
|---|---|---|---|---|---|
| One | $1,251,098 | 22 | $561,145 | 37 | 2.23 |
| Two | $1,518,681 | 18 | $739,073 | 14 | 2.05 |
| Three | $2,595,446 | 9 | $781,976 | 6 | 3.32 |
| Four | $1,399,255 | 2 | n/a | 0 | n/a |
| Five to seven | $4,977,002 | 9 | n/a | 0 | n/a |
| All | $2,174,654 | 61 | $628,092 | 57 | 3.46 |
Revenue figures and franchisee counts are as the brand reported it; the multiple column is marked *.
A single territory with a full-time business developer billed $1,251,098 against $561,145 without. That is an extra $689,953 on the same ground. Thirty-seven of the 59 single-territory franchisees chose otherwise, and their median was $394,520 against $836,618 for the 22 who staffed the role.
Every franchisee at four territories or more staffs the role. The without-development table stops at three. Eleven franchisees hold four to seven territories and all of them appear only in the full-time column. So at scale this stops being a choice in the published record.
The gap widens at three territories to 3.3 times. That is $2,595,446 against $781,976. Nine franchisees have a developer and six do not, on the same territory count. Adding ground without adding the role produced $260,659 a territory; adding both produced $865,149 *.
The lowest figure is $133,035 with development and $42,159 without. Both lows are at one territory. At Restoration 1 the role raises the average, the median and the lowest figure, while 22.7% of the group with a developer reached its own average against 35.1% of the group without.
At the 10.0% bottom line, the role is worth $154,656 a year. That is 10.0% of the $1,546,562 revenue gap *. Against a salaried business developer’s cost, that is the clearest single return anywhere in this model.
Territories and scale
Revenue and population by territory count, 2025
| Territories | Franchisees | Average revenue | Median | Range | Average population | Revenue per territory * | Revenue per head * |
|---|---|---|---|---|---|---|---|
| One | 59 | $818,415 | $526,145 | $42,159 – $5,221,437 | 380,679 | $818,415 | $2.15 |
| Two | 32 | $1,177,603 | $731,462 | $77,417 – $7,424,409 | 651,571 | $588,802 | $1.81 |
| Three | 15 | $1,870,058 | $2,039,967 | $132,717 – $4,127,975 | 972,046 | $623,353 | $1.92 |
| Four | 2 | $1,399,255 | $1,399,255 | $759,725 – $2,038,785 | 1,208,517 | $349,814 | $1.16 |
| Five to seven | 9 | $4,977,002 | $2,955,011 | $1,137,431 – $22,503,672 | 1,841,350 | n/a | $2.70 |
| All | 118 | $1,427,586 | $760,111 | $42,159 – $22,503,672 | n/a | n/a | n/a |
Franchisee counts, revenue, medians, ranges and populations are as the brand reported it; the per-territory and per-head columns are marked *.
A second territory brought revenue per territory from $818,415 down to $588,802. * Revenue per head of population falls the same way, $2.15 to $1.81. The third territory recovers a little at $623,353, and the two franchisees holding four sit at $349,814. So through the middle of this system, ground is being added faster than it is being worked.
The single-territory median is $526,145 against an average of $818,415. One business selling $5,221,437 creates that $292,270 gap. Fifty-nine franchisees hold one territory and 28.8% reach their own average, so the typical single-territory business trades at roughly two thirds of the published figure.
Population inside one territory runs from 250,532 to 2,494,345. That is ten times the population, all called one Restoration 1 territory. The single-territory average covers businesses that differ by ten times in population, so it says little about what any one territory will sell.
The nine largest franchisees average $4,977,002 with a median of $2,955,011. One Restoration 1 business selling $22,503,672 lifts that average. Their revenue per head of $2.70 is the highest in the table.
The three-territory group is the only one whose median exceeds its average. That is $2,039,967 against $1,870,058, with 53.3% reaching it. Owners in that group are closest together in sales, and furthest apart on whether they employ a salesperson.
Fees and what it costs to open
Franchisor charges at each revenue level
| Level | Collected revenue | Royalty | Effective rate | Technology | Total | Share |
|---|---|---|---|---|---|---|
| With full-time development, all | $2,174,654 | $129,174 | 5.94% | $6,300 | $135,474 | 6.2% |
| System average | $1,427,586 | $84,799 | 5.94% | $6,300 | $91,099 | 6.4% |
| One territory, average | $818,415 | $48,614 | 5.94% | $6,300 | $54,914 | 6.7% |
| Without full-time development, all | $628,092 | $37,309 | 5.94% | $6,300 | $43,609 | 6.9% |
| One territory, median | $526,145 | $31,253 | 5.94% | $6,300 | $37,553 | 7.1% |
| Lowest-selling reporting franchisee | $42,159 | $24,179 | 57.35% | $6,300 | $30,479 | 72.3% |
We applied the published rates to the filed revenue, at the system's own 77.8% core and 21.2% construction mix.
The effective royalty is 5.94% of collected revenue at the current mix *. The cost table lands at 5.9%, close enough to accrue the blend with confidence.
The $2,000 monthly minimum applies below roughly $435,000 of collected revenue. * That holds at the system mix. The single-territory median is $526,145, so a meaningful share of the single-territory group sits at or under that line. At the lowest-selling reporting franchisee's $42,159 the minimum alone is 57.4% of revenue.
Construction sales pay 2%. Everything else pays 7%. That five-point difference applies to 21.2% of the average franchisee’s revenue and is worth $15,132 a year *. Construction-heavy territories sit outside the cost table, though, so the cheaper royalty comes with thinner evidence about what the work actually returns.
Three further charges are disclosed at zero and could reach 4.5%. Restoration 1 discloses a 2% brand fund, a 0.5% reconstruction brand fund and a 2% local advertising requirement, and charges none of them today. At the system average, switching them on would add $61,806 a year *, more than two fifths of the published 10.0% bottom line.
What it costs to open a territory
| Item | Low | High |
|---|---|---|
| Franchise fee | $59,900 | $64,400 |
| Additional funds, three months | $40,000 | $75,000 |
| Vehicle | $4,500 | $70,000 |
| Service tools and equipment | $1,200 | $48,000 |
| Training expenses for three people | $4,700 | $14,100 |
| Insurance | $7,000 | $12,000 |
| Licenses and permits | $250 | $5,000 |
| Technology systems components | $1,650 | $4,750 |
| Certifications | $2,200 | $4,000 |
| Marketing materials | $500 | $2,500 |
| Encircle software | $225 | $2,500 |
| Technology fee | $2,100 | $2,100 |
| Professional fees | $1,500 | $2,000 |
| Office equipment and supplies | $300 | $1,000 |
| Real estate and rent | $0 | $1,000 |
| Uniforms | $250 | $650 |
| Renovations and improvements | $250 | $500 |
| Total | $126,525 | $309,500 |
As the brand reported it, reordered here by size.
Discounts available
- Restoration 1 charges $49,900 for a second franchise and $39,900 for a third or later franchise bought at the same time or within 2 years of the first (plus $0.18 per person above 250,000).
- Restoration 1 lets existing franchisees add a contiguous micro territory for $0.18 per person (about $13,500 to $36,000).
- Restoration 1 takes $9,000 off the first franchise's fee for honorably discharged U.S. military veterans holding at least 51%.
From Item 5 of the Restoration 1 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The vehicle and the service equipment account for 61% of the range. That is $5,700 at the low end against $118,000 at the high, 61% of the $182,975 difference between the two columns *. A Restoration 1 franchisee who starts with one truck and basic drying equipment builds at a third of the cost of one who starts fully fitted.
Working capital (cash to run the business day to day) of $40,000 to $75,000 covers three months. The second largest line after the fee, and a sensible weighting for a trade that bills insurers. The work is done and the equipment runs for weeks before a claim settles. So the gap between job completion and collection is the real capital requirement here.
A second territory costs $10,000 less and a third $20,000 less. That is $49,900 and $39,900 against $59,900. Set against per-territory revenue falling from $818,415 to $588,802 at two territories *, the cheaper ground still has to be worked to be worth holding.
Territory population is priced at 18 cents a head above 250,000 people. So a 500,000-person territory costs $104,900 in franchise fee against $59,900 for a 250,000-person one. Revenue per head runs $1.16 to $2.70, which makes that 18 cents recoverable inside the first months of trading, if the ground is actually covered.
Questions we get asked
Questions owners ask.
How much does a Restoration 1 franchise make?
Restoration 1 franchisees averaged $1,427,586 of sales in 2025, with a median of $760,111, according to Item 19 of Restoration 1’s 2026 FDD, issued 1 May 2026. The 118 in that group are 42%* of Restoration 1’s 278 locations. Fees paid to Restoration 1 come to about 6.38%* of sales. A Restoration 1 franchise costs $126,525 to $309,500 to open.
What should a Restoration 1 business be billing?
Across 118 franchisees holding 231 territories, 2025 total collected revenue averaged $1,427,586 with a median of $760,111, and 29.7% reached the average. By territory count, Restoration 1 owners averaged $818,415 with one territory (59 owners), $1,177,603 with two (32), $1,870,058 with three (15), $1,399,255 with four (2) and $4,977,002 with five to seven (9). The highest franchisee collected $22,503,672 and the lowest $42,159. There were 278 franchised territories at 31 December 2025, down from 298, and 11 more have ceased operating since.
What does a full-time business developer do to the numbers at Restoration 1?
Franchisees with at least one dedicated person developing business full-time averaged $2,174,654 against $628,092 for the rest, 3.5 times, which is marked *. At a single territory the split is $1,251,098 across 22 franchisees against $561,145 across 37, and medians of $836,618 against $394,520. At two territories it is $1,518,681 against $739,073 and at three $2,595,446 against $781,976. Every one of the 11 franchisees holding four or more territories staffs the role. At the published 10.0% bottom line, the system-wide revenue gap of $1,546,562 is worth $154,656 of profit a year, which is marked *.
What does the Restoration 1 business actually keep?
Across 75 franchisees holding 148 territories, cost of goods averaged 43.8% of collected revenue, leaving a 56.2% gross profit. Other expenses took 38.5% and other income added 0.6%, giving 18.3% before owners and management. Owner's expense averaged 5.0% and management wages 3.4%, leaving 10.0% after both, with a median of 8.0%. The median owner's expense was 0.8% and the median management wages were 0.0%. So for more than half the group the bottom line and the owner's income are substantially the same money. Royalties sit inside cost of goods at 5.9%. Depreciation, amortization, interest and taxes are excluded, and this table covers a narrower population than the revenue tables.
What fees does Restoration 1 charge?
The royalty is 7% of collected sales other than construction, or a minimum, whichever is higher. The minimum is nothing for six months, then $500 a month in months 7 to 24, $1,500 in months 25 to 36 and $2,000 thereafter. A conversion franchise pays 3.5% for its first six months. Construction sales pay a separate 2% royalty. Technology costs $525 a month per market territory and may rise 15% a year on a compounding basis. A 2% brand fund contribution, a 0.5% reconstruction brand fund contribution and a local advertising requirement of up to 2% sit in the agreement and are currently uncharged. Marketing outside the market territory costs the greater of $5,000 an incident or 100% of the job value obtained there. At the system revenue mix the effective royalty is 5.94%, which is marked *, against the 5.9% royalty line in the cost table.
Who does bookkeeping for a Restoration 1 franchise?
Three mechanics shape the close. Revenue is measured on collection, and the royalty follows it. The fee follows the insurer's payment date, not the job date. A busy month of work and a high month of sales are different months and have to be tracked separately. Second, the royalty runs at two rates, 7% on core services and 2% on reconstruction. So the revenue ledger has to separate those streams from the first invoice. The blend lands at 5.9% of total sales. Any drift from that is worth investigating. Third, the profit and loss stops at 10.0% after owners and management while the median owner’s expense is 0.8%. So benchmarking against it means deciding first whether your own pay sits inside or outside the comparison. Underneath all of it, professional fees at 5.5% and general wages at 14.1% are the two largest controllable lines below gross profit. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
Questions worth putting to Restoration 1
These are questions the Restoration 1 filing leaves open. An owner or a buyer can put them to Restoration 1 directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- Which factors does Restoration 1 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 Restoration 1 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.
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Talk to AveranWhere these figures come from.
Every figure here comes from Restoration 1 Franchise Holding, 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. Restoration 1® 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: Restoration 1 Franchise Holding, LLC, 2026 Franchise Disclosure Document, issued 1 May 2026.
the franchise library, all 447 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Restoration 1 reads against the rest of the restoration group: 1-800 WATER DAMAGE · DRYmedic · Paul Davis · PuroClean · Rainbow Restoration · 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.