SERVPRO franchise unit economics
SERVPRO franchisees run restoration and cleaning businesses that take insurance-referred water, fire and mold mitigation, reconstruction and cleaning jobs inside a territory.
SERVPRO franchise at a glance
SERVPRO’s 2026 FDD, issued 15 April 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A SERVPRO franchise costs $263,305 to $385,570 to open, including a $100,000 initial franchise fee. SERVPRO charges a 10% royalty on a volume ladder, a $45 to $115 monthly fixed fee and a 2.5% Brand Fund Fee.
- SERVPRO reported 2,354 franchised locations in its 2026 FDD.
- Work out SERVPRO's fees at your own sales with the minimum fee calculator.
These figures come from SERVPRO's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
Own this franchise?
See what your numbers should look like every month.
Talk to Averan → Move your books and accounting to Averan →- The effective royalty falls 4.46 points across the sales tiers. 10.45% at $10,000 a month down to 5.99% at $300,000 *, so scale is worth more here than in almost any brand in this library.
- Reconstruction has roughly half the royalty of mitigation. 4.5% falling to 3% against 10% falling to 5%, so the job mix decides the rate, and tear-out and demolition stay on the full rate.
- New owners pay the top rate until they finish the integration program. $2,160 a year more at $20,000 a month *, and the same applies to anyone buying a franchise that billed under $100,000.
- Territory costs $1.25 to $2.00 a head and extends at $1.11. $100,000 for 50,000 to 80,000 people *, with extra population at $1,110 for each 1,000, so expansion ground is the cheaper ground.
- Three hundred and eighty-two franchises changed hands in three years. 16.2% of the system *, against 26 terminations, so the way in is usually a purchase.
How much does a SERVPRO franchise make?
The 2026 FDD for SERVPRO does not publish unit revenue in a form that answers this directly. What it does publish is below. At $10,000 of sales a month the royalty is 10.45%. At $300,000 a month it is 5.99%. Rebuilding work is charged at 4.5% falling to 3%. SERVPRO had 2,354 franchises at the end of 2025.
Job mix decides the rate
Reconstruction royalty ladder
| Monthly reconstruction volume | Rate | Royalty * | Effective rate * |
|---|---|---|---|
| $10,000 | 4.5% | $450 | 4.50% |
| $20,000 | $495 plus 4% above $10,997 | $855 | 4.28% |
| $40,000 | $1,320 plus 3% above $32,992 | $1,530 | 3.83% |
| Before the yearly threshold | 5% until cumulative reconstruction volume passes $43,989 in a calendar year | ||
The brand reported every rate and step. We applied them to each monthly sales level to get the royalty columns.
Reconstruction at $40,000 a month costs $1,530 against $3,095 for mitigation *. SERVPRO charges the same dollar of revenue about half the royalty, depending only on what the work is called.
Tear-out, demolition, removal and disposal stay on the full rate. They sit alongside reconstruction on the same job, so the estimate needs splitting line by line.
Fire, smoke, water, mold and disinfection work pays the full rate. That work is the core of the business and the reason the combined rate sits near that ladder for most owners.
The reduced rate requires approved estimating software and separate records. It also requires the insurance and compliance with the territorial and brand rules, so the discount is earned administratively as well as operationally.
The first $43,989 of reconstruction each year is charged at 5%. That 5% sits above the 4.5% entry step of the SERVPRO ladder itself, so the discount arrives only once the volume is established.
Top performers
What separates the top SERVPRO performers
SERVPRO publishes no revenue figures, so neither the average nor the spread between locations is disclosed.
Decided before you open
- Territory.This model sells from a territory quoted at 80,000 people, with no storefront. Population density sets how much driving sits between jobs.
- Opening cost range.Opening costs $263,305 to $385,570, a 1.5× range inside one brand.
- Fees and the minimum.A minimum fee applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
Live operating levers
- Jobs.Each job is won separately. Track how many quotes turn into work and the average job value.
Context you underwrite around
- What the filing does not include.Item 19 publishes no profit or cost data for franchised locations, no median, no performance bands, no attainment figure. Ask the franchisor or current owners for cost and profit figures.
- Sales spread in the category.Across 66 Home Services brands in this library, the top group sells 8.9× the bottom at the typical brand, and a median 35% of locations reach their own average *. Ask the franchisor for this brand’s spread.
How the rate steps
Effective royalty across the ladder
| Monthly volume | Rate | Fixed fee | Total a month * | Effective rate * | A year * |
|---|---|---|---|---|---|
| $10,000 | 10% | $45 | $1,045 | 10.45% | $12,540 |
| $20,000 | 9% | $65 | $1,865 | 9.32% | $22,380 |
| $30,000 | 8% | $85 | $2,485 | 8.28% | $29,820 |
| $40,000 | 7.5% | $95 | $3,095 | 7.74% | $37,140 |
| $60,000 | 7% | $115 | $4,315 | 7.19% | $51,780 |
| $100,000 | $5,389 plus 6.5% above $76,981 | $115 | $7,000 | 7.00% | $84,003 |
| $150,000 | $7,533 plus 6% above $109,974 | $115 | $10,050 | 6.70% | $120,595 |
| $200,000 | $10,832 plus 5.5% above $164,961 | $115 | $12,874 | 6.44% | $154,490 |
| $300,000 | $13,856 plus 5% above $219,947 | $115 | $17,974 | 5.99% | $215,684 |
The brand reported every rate, step and fixed fee. We applied them to each monthly sales level to get the last two columns.
Going from $10,000 to $60,000 a month cuts the rate by 3.26 points *. That is worth $23,472 a year at that larger volume against paying the entry rate *.
Above $76,981 the royalty is a base plus a marginal rate. So the first $76,981 of every month is charged at the same $5,389 regardless of what follows it.
The fixed fee tops out at $115 a month. That is $1,380 a year, trivial against the percentage, and unchanged across the top five groups.
The groups may be changed or removed on 30 days’ notice. A single flat rate of up to 10% may be substituted, so the ladder is a current policy.
A new owner pays 10% plus the fixed fee at first. That rate applies until the SERVPRO integration program is complete, which at $20,000 a month is $2,160 a year *.
What it costs to open
Opening investment
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $100,000 | $100,000 |
| Equipment and products package | $112,000 | $112,000 |
| Vehicle | $5,000 | $69,900 |
| Insurance, three months | $5,010 | $25,300 |
| Additional funds, three months | $32,250 | $50,000 |
| Total | $263,305 | $385,570 |
| Payable to the brand | $212,000 | |
The brand reported every figure. The high total adds $1,110 for each 1,000 people above the maximum, plus any real estate costs.
Discounts available
- SERVPRO takes 2.5% ($5,300) off the $212,000 Standard Purchase Price (fee plus equipment package) when it is paid in cash at signing or the note is paid off within 90 days.
- SERVPRO may cut the purchase price by up to $1,250 for a first-time franchisee referred by an existing franchisee, in place of the referral fee.
From Item 5 of the SERVPRO 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The brand’s share is 80.5% of the low total *. That share is $100,000 of license and $112,000 of equipment, both fixed whatever the territory.
Paying cash saves $5,300. That is 2.5% of the purchase price, also available by clearing the note within 90 days *.
A converting restoration business may pay $25,000 to $75,000 for equipment. SERVPRO otherwise charges $112,000, so this is the largest single concession available, worth up to $87,000 *.
Three months of working capital assumes an owner-operated business. It excludes all wages and any pay to the owner. More cash is needed across the first three to seven months, so $32,250 is a minimum.
Half a million dollars of limited service and repair cover is required for the top referrals. That cover is what admits a franchise to the “Select” insurer and commercial client referral streams.
Territory and the system
Franchised outlets, 2023 to 2025
| Year | Start | Opened | Terminated | Non-renewed | End | Transfers |
|---|---|---|---|---|---|---|
| 2023 | 2,114 | 98 | 8 | 3 | 2,202 | 106 |
| 2024 | 2,202 | 94 | 8 | 2 | 2,286 | 137 |
| 2025 | 2,286 | 79 | 10 | 1 | 2,354 | 139 |
| Three years | n/a | 271 | 26 | 6 | n/a | 382 |
Every figure is as the brand reported it, with zero company-owned outlets in any of the three years.
Openings were more than eight times exits. 271 against 32 *, and the system grew 11.4% across the three years *.
More franchises changed hands than opened. 382 transfers against 271 openings *, so buying an operating business is the more common route in.
California, New York and Texas accounted for 53 of the 2025 transfers. That is 38% of that year’s total *, the deepest resale markets in the system.
The territory holds 50,000 to 80,000 people and may overlap another. The brand reserves the right to include part of yours in someone else’s, and relocating the territory is prohibited outright.
Internet, social media, retail, catalog and telemarketing stay with the brand. Inside your territory, without compensation, so demand generation runs largely through referral relationships.
Questions we get asked
Questions an owner asks
How much does a SERVPRO franchise make?
SERVPRO’s 2026 FDD, issued 15 April 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A SERVPRO franchise costs $263,305 to $385,570 to open, including a $100,000 initial franchise fee. SERVPRO charges a 10% royalty on a volume ladder, a $45 to $115 monthly fixed fee and a 2.5% Brand Fund Fee.
What fees does SERVPRO charge?
SERVPRO charges a royalty on a nine-step ladder plus a fixed monthly fee of $45 to $115. On our reading the effective rate is 10.45% at $10,000 of monthly volume, 7.19% at $60,000 and 5.99% at $300,000. The contract rate is 10% with the ladder applied as a current discount policy. SERVPRO also charges a Brand Fund Fee of up to 3% of monthly Gross Volume, currently 2.5% with a $1,550,000 cap on the Gross Volume it applies to, and a software license fee of $200 a month.
Does all revenue pay the same rate at SERVPRO?
Reconstruction, construction and property repairs sit on a separate ladder at 4.5% falling to 3%, once yearly reconstruction volume passes $43,989. Fire, smoke, water, mold, bioremediation and disinfection work stays on the full ladder, and so do tear-out, demolition and disposal.
How much is the discount worth at SERVPRO?
At $40,000 a month, on our reading, SERVPRO charges $1,530 on reconstruction against $3,095 on mitigation, roughly half. Since the job mix decides which applies, the estimate has to be split line by line.
When do new owners reach the ladder at SERVPRO?
New SERVPRO owners reach the ladder after the integration program. Until then new franchisees, and buyers of a franchise that billed under $100,000 in the prior twelve months, pay 10% plus the fixed fee. At $20,000 a month that is $2,160 a year more on our reading.
How much does a SERVPRO franchise cost to open?
A SERVPRO franchise costs $263,305 to $385,570 to open, of which $212,000 goes to the brand as a $100,000 license fee and a $112,000 equipment package. Paying cash saves $5,300, and a converting restoration business may pay $25,000 to $75,000 for equipment instead of $112,000.
How is territory defined at SERVPRO?
SERVPRO sets territories by population, generally 50,000 to 80,000 people, using census tract data and Nielsen projections. On our reading the $100,000 fee works out at $1.25 to $2.00 a head, and extra population costs $1,110 for each 1,000, $1.11 a head. It is expressly non-exclusive and may overlap another franchise.
How do people get in at SERVPRO?
Usually by buying. From 2023 to 2025 there were 382 transfers, 271 openings and 26 terminations. One SERVPRO owner had signed and not opened at the end of 2025, and 75 new franchises are projected.
Which two numbers should run monthly at SERVPRO?
Watch monthly sales against the rate steps, because crossing one changes the bill. Watch the share of sales that comes from rebuilding work. It pays about half the royalty rate.
- The filing gives no revenue figures. The filing makes no financial performance representation, so there is no disclosed sales number for any location.
- 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.
- The filing gives no range. The filing does not show the highest and lowest locations, so the spread inside the system is unknown.
- The filing gives no attainment figure. The filing does not say how many locations reached the average it publishes.
- The filing shows no ramp. The filing does not show how a new location builds up, so the first-year curve has to be assumed.
Questions worth putting to SERVPRO
These are questions the SERVPRO filing leaves open. An owner or a buyer can put them to SERVPRO directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What did the highest and lowest locations sell last year, and what explains the gap?
- 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 SERVPRO 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 ladder step are you on?
We review your unit economics and cash forecast and build your reporting around an effective royalty from 10.45% to 5.99%, a reconstruction rate at roughly half. A job mix that decides which one you pay.
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
SERVPRO reads against the rest of the restoration group: 1-800 WATER DAMAGE · DRYmedic · Paul Davis · PuroClean · Rainbow Restoration · Restoration 1. 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 SERVPRO Franchisor, LLC’s 2026 FDD and is unaudited by us, we are unaffiliated with the brand, calculations of our own are marked with an asterisk 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. SERVPRO® 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: SERVPRO Franchisor, LLC, 2026 Franchise Disclosure Document, issued 15 April 2026.