It’s never simply fall, winter, spring, or summer. It’s also flood, tornado, fire, and hurricane season. As a result, the year-round demand for home and commercial restoration services has created a multi-billion dollar industry. Get wind of these five leading franchises investors can buy into.
ServPro repairs damage from water and fire, removes mold and biohazards and also provides cleaning services. Since 2010, ServPro has been ranked among the top 10 companies in Entrepreneur magazine’s Franchise 500 and was most recently named #7. The initial franchise fee is $44,000 and the total investment cost falls between $138,550 and $187, 200. The ongoing royalty fee varies between 3 and 10 percent and the term of franchise agreement is five years and renewable. A $100,000 net worth and $85,000 of liquid cash are required of franchisees. Absentee ownership is not allowed as ServPro’s franchising vision is to “help entrepreneurs succeed.”
ServiceMaster provides commercial and residential disaster restoration as well as general floor care and cleaning. The company, ranked #35 on Entrepreneur magazine’s Franchise 500 list for 2014, currently has over 3,000 units in the United States and is looking to expand worldwide. With initial franchise fees between $23,900 and $67,000 and ongoing royalty fees between 5 and 10 percent, the total investment ranges from $49,585 and $180,580. After five years, the franchise agreement is renewable. As a prerequisite, franchisees must have a net worth between $50,000 and $75,000 as well as at least $20,000 in available liquid cash. ServiceMaster does not permit absentee ownership.
Rainbow International offers home and commercial restoration and cleaning from damage due to fire, water, smoke, and more. This restoration franchise is unique from most in that it can be run from home, although absentee ownership is not allowed. The initial fee for a Rainbow International franchise is $28,000, with a total investment expense between $156,175 and $256,100. The financial requirements for a franchisee are a net worth of $250,000 and $50,000 of liquid capital. There is an ongoing royalty fee ranging between 3 and 7 percent. The renewable term of franchise agreement lasts 10 years and veterans receive 25 percent off the franchise fee.
AdvantaClean is another restoration franchise providing service for indoor air quality such as water removal, mold remediation, air duct and dryer vent cleaning. AdvantaClean brands itself as a “recession-resistant and low cost” home-based company. A $45,000 franchise fee is required of franchisees with a $200,000 net worth and $75,000 in liquid capital. The total investment tops out between $204,300 and $218,300, with an ongoing royalty fee of 10 percent. One term of franchise agreement is 10 years and renewable. As a participant in the IFA VetFran program to support our nation’s armed forces, AdvantaClean also offers $2,500 off the initial fee for qualifying veterans.
Paul Davis Restoration, Inc. offers cleanup, remodeling, and property damage services. A leader in the industry in North America, Paul Davis has consistently been named among the Franchise Business Review’s Franchisee Satisfaction Award winners. Along with a longstanding professional reputation, this company offers franchisees exclusive territory rights, certification opportunities, and first-in-market products and services. The initial investment fee is $75,000 and the minimum total investment is $200,000. Paul Davis charges a 4 percent ongoing royalty fee and a renewable, five-year term of franchise agreement. Franchisees must have a net worth of $350,000 and at least $180,000 of available liquid cash to invest in a “company worth knowing.”
By Erin Cizek
Nelson Mandela once said, “Our children are our greatest treasure. They are our future.” To invest in a child education franchise is to truly invest in the future of students- and your business. The tutoring and child education industry is expected to grow by at least 5 percent in the next few years, and these five franchises are setting the curve. Huntington Learning Centers, Inc. provides supplemental academic services and exam preparation. In 2014, the company ranked #311 on Entrepreneur magazine’s Franchise 500. There are currently locations in 38 states and the chain is looking to expand. The initial franchise fee is $22,000 and the total investment lies between $98,300-$198,200, according to their website. A net worth of $150,000 and $60,000 of available liquid cash is required, but no background in education is necessary to open a center. Huntington does, however, provide a training program for all new franchisees because absentee ownership is not allowed. There is an ongoing royalty fee of 9.5 percent, and the term of financial agreement is 10 years and renewable. Kumon Math and Reading Centers apply the Kumon method of a strong foundation in the basics to help children steadily increase their math and reading skills. With over 2,000 North American locations, Kumon also wants to increase their number of units worldwide. The company, which has been named the top tutoring service franchise by Entrepreneur magazine for thirteen straight years, has a franchise fee of $1,000 and an ongoing royalty fee of $32-36/student/mo. The minimum franchise lease term is five years and the total investment varies between $72,187 and $149,319. The financial requirements include a net worth of $150,000 and $70,000 of available liquid cash. Kumon does not require a teaching background, but encourages franchisees with some business experience and “a passion for and dedication to education and working with children.” Absentee ownership is not permitted, and like Huntington, Kumon provides a franchisee training/instructor development program. Sylvan Learning Centers is another personalized instructional service, and its new, online model called “Sylvan Satellites” was listed as one of the Franchise Times’ “20 To Watch” in January 2013. This online platform may help Sylvan to branch into more types of communities. The franchise fee falls between $42,000 and $48,000, with the total investment between $151,179 and $267,250. Sylvan’s ongoing royalty fee is 8-9 percent and the term of franchise agreement is renewable after 10 years. Training is provided, but franchisees must first have a net worth of $250,000 and $75, 000 of available liquid cash. All current franchisees are also owner/operators, and as a veteran incentive, there is a 10 percent discount on the franchise fee. Goddard Systems, Inc. is the franchisor of The Goddard School, an educational childcare facility. In 2014, it was named the top US childcare franchise by Entrepreneur magazine for the thirteenth year in a row. The number of schools has increased each year and the company is looking to grow beyond their current 410 franchise units. The initial franchise fee is $135,000 and the ongoing royalty fee is 7 percent. There is a required net worth of $650,000 and $150,000 of available liquid cash for a total investment of between $704,700 and $880,200. The financial agreement is a renewable 15-year term, and because 20 percent of all franchisees own more than one unit, veterans receive $20,000 off the franchise fee. Absentee ownership is not allowed at The Goddard School, a franchise for entrepreneurs who want to “go into business for themselves, not by themselves.” Mathnasium Learning Centers exclusively provide math instruction through the personalized “Mathnasium Method.” Since its establishment in 2002, this fast-growing franchise has expanded to more than 450 locations on four continents. According to their website, the franchise fee is around $40,000 and the total investment expense ranges from $99,250 to $139,000. For veterans, there is a 40 percent discount on the franchise fee. Mathnasium charges 10 percent for the ongoing royalty fee and the term of franchise agreement is five years and renewable. The financial requirements for franchisees are a net worth of $100,000 and $55,000 of available liquid cash.
By Erin Cizek