Servpro Franchise Cost Profit Opportunities For Sale
Jun 16, 2020
Servpro offers an unrivaled possibility for success thanks to its blooming success and solid track record. They provide thorough assistance, in-depth instruction, and a potentially very profitable return on investment. All you have to do is resolve to adopt Servpro as your own. Servpro is a leading franchise in the restoration industry, and it has shown impressive growth and performance over the years. In 2022, the company had global sales of $3.35 billion. In business for more than 50 years, Servpro is still going strong. The franchise prospects provided by this organisation are unmatched; they offer high-quality goods and services that assist in preventing damage to people’s homes and businesses brought on by fire, water, and other disasters. They ensure that every consumer feels heard and cared for throughout the process owing to their customer-focused approach. As a result, they are now among the most popular franchises in the sector.Hard effort is valued more than any other quality at Servpro, which makes it a fantastic option for people who are serious about realising their dreams. They don’t just provide you with everything you need to start working right away; they also offer continuing support to make sure your franchise is successful for years to come. Servpro can be the ideal option if you’re prepared to tackle life as a business owner with genuine commitment!
What is Servpro?
The Servpro franchise network is an established, full-service organisation of professionals that provides premium fire, water, and smoke damage restoration services for residential and commercial customers.The organisation boasts an average of 1,500 active franchisees in over 1,750 locations who are committed to restoring customers’ property with the highest level of quality and service. Servpro provides its franchisees with the training, resources, and support needed to run their businesses successfully.Moreover, Servpro not only focuses on helping restore properties after disasters occur; they also provide preventative services such as cleaning and maintenance. Their service offerings include carpet cleaning, furniture repair, upholstery cleaning, water extraction, dehumidification, and air scrubbing. With all these services at their disposal, you can be sure that your customers’ properties can look new after a disaster event or before the start of a new business or building project.
Is Servpro a good franchise opportunity?
It’s no secret that franchising is a great way to start your own business. One of the most popular options is Servpro, a property restoration and cleaning franchises that is ideal for entrepreneurs who want to operate their own businesses but don’t have a lot of experience in the industry.So why should you consider Servpro? Here’s what you need to know
Training and support- Servpro provides extensive training and support for all its franchisees.
Brand Recognition- Servpro has been providing professional services for over 45 years, and its reputation speaks for itself.
Low cost of entry- The cost of starting a Servpro franchise is much lower than what other franchises require.
Servpro franchises provide great opportunities for entrepreneurs looking to break into the property restoration business without having an extensive background in the industry or significant capital investments upfront.
Facts That Nobody Told You About Servpro
So, you’re interested in learning more about the Servpro franchises, but maybe you don’t know everything you need to know. Here are a few facts that nobody told you about the Servpro franchise
Servpro is North America’s leading commercial and residential restoration company, which means they have a tonne of experience with large-scale restorations and property mitigation services.
The company is also focused on safety—with an average of 24 million hours of safety training per year, they understand the importance of keeping their professionals safe while on duty.
Servpro has a wide range of services that can help with fire damage, water damage, mold issues, and many other common issues that can affect residential and commercial properties.
With offices in 50 states and Puerto Rico, there’s sure to be a Servpro near you that can help out with all your needs. Plus, since they’re always looking for ways to expand their business, they may even be expanding into your area soon!
One thing that a lot of people don’t know is that they also offer emergency services 24/7 to help quickly respond to any disasters or emergencies, which is incredibly important if something needs immediate attention.
Finally, one great reason to look into the Servpro franchise is their commitment to green products and practices, like using cleaning agents that contain no phosphates or petroleum distillates. This demonstrates their commitment to sustainability and eco-friendly business practices.
These are just some of the facts about Servpro; there are plenty more reasons why it might be a great choice for you!
How many Serpro franchises are there?
There are 1977 Servo franchise locations, out of which 1964 are in the United States and 13 globally. You can use the Servpro franchise locator on its website.
Still, there are plenty of Servpro franchise opportunities(open territories and locations) available in the United States, can also explore resale (existing) opportunities for sale also.
Servpro Industries, LLC, 801 Industrial Blvd, Gallatin, TN 37066, USA.
How much is a Servpro franchise cost?
The startup cost for a Servpro franchise varies widely depending on the size of the territory you are purchasing, but typical first-year costs are around $216,905.
How much is the cost to buy a Servpro franchise?
These franchise startup costs include
Initial Franchise Fee
Equipment and Supplies
Computer hardware and software
Vehicle and uniforms
Additional fees you should also plan to pay include ongoing royalty fees, which are usually 5% of your sales. You’ll also want to plan for ongoing marketing expenses—Servpro recommends spending at least 1% of your total sales on marketing.The good news is that the Servpro brand has an excellent reputation in the marketplace, which means you can leverage that reputation when marketing your business. Plus, diverse services make it easier for you to target a range of customers in different industries.
Servpro Franchise Price and Costs
Servpro Franchise Fee
Servpro Franchise Cost
3- 10% of monthly gross sales
1% of monthly gross sales
Term of Agreement
Is franchise term renewable?
Renewable Franchise Fees
No additional franchise fee for renewal
How much do Servpro franchise owners make?
It’s difficult to provide an exact figure for how much franchise owners of Servpro make, as earnings can vary depending on several factors, such as location, size, competition, and the owner’s management skills.Servpro Franchise owners’ profitability(salary) can be influenced by the demand for restoration and cleaning services in their area, the efficiency of their operations, and their ability to maintain a strong customer base. However, Servpro is a well-established brand with a solid reputation, which can contribute to the success of its franchisees.To get a more accurate average of potential revenue, income, and profit, it’s best to speak with existing franchise owners of Servpro or contact the franchisor directly to request financial performance information.
Servpro Training for Franchises
The Servpro has a comprehensive training and support system in place to ensure that your business is successful. As soon as you become a franchisee, you will receive access to the extensive training program, which will include initial training on how to handle fire and water damage, mold remediation, air ducts and HVAC cleaning, business management training, marketing and sales strategy, and more.You’ll also get ongoing support from the Servpro headquarters team and other franchise owners. This support includes help with marketing initiatives, ongoing technical advice, and help desk support. Plus, you’ll get access to the Servpro Learning Management System (LMS), which is an online library of courses related to the services that your business offers.Servpro also has an online community of business owners who provide their own best practises to one another on topics like marketing, finance, operations, and more. Plus, if you ever need additional assistance with running or growing your business, Servpro also has an experienced team of business development managers who are available during regular business hours to help you out.
Servpro Operations for Franchises
You might not know that Servpro started as a simple operation, founded in 1967 and offering basic water damage repair services. But today, it has become the leader in cleaning and restoration services, with more than 2000 franchises across North America.
Low investment costs
Servpro is attractive to potential franchise owners because setting up a new business doesn’t require a huge investment. A Servpro franchise requires an initial one-time fee of $80,000 and then an ongoing royalty fee of 7%. And while you will have to pay other related costs, such as equipment and supplies, your total investment will still be lower than that of most small businesses.
Expansion of new services
Since its inception, Servpro has continuously evolved and expanded its range of services. It now offers fire damage restoration services in addition to water damage repair services. It also provides HVAC maintenance cleaning, carpet cleaning, and mould remediation for residential and commercial properties, allowing you to tap into different markets and increase your reach even further.
Superior Training and Support
Finally, Servpro offers an in-depth training program for franchise owners as well as ongoing support from trainers and mentors who can help provide advice or answer any questions you may have about running your business operations. This training includes everything from customer service basics to useful marketing tips that will help keep your business successful for years to come.
How are Servpro open territories granted to franchise?
Servpro grants franchise territories based on population, demographics, and existing business locations. Generally speaking, a single franchise can serve a maximum of 75,000 people in any given area. This helps Servpro franchisees build strong relationships within their territories as well as keep their operations manageable.But that’s not all—Servpro also has something called “clustering opportunities,” which gives franchisees the chance to buy up to four additional franchises in close proximity to their original location. That way, you can better serve a larger area with multiple teams and resources.
What is the franchise term of agreement and renewal?
When you purchase a Servpro franchises, you’ll receive a franchise term of the agreement. This document outlines the terms and conditions of your agreement with Servpro. It includes everything from guidelines for royalty payments to the details of renewing your contract.It’s important to pay attention to the details of your franchise agreement. After all, it is essentially a contract that lays out the rules and expectations for both you and Servpro’s. It can also be renewed multiple times, so understanding its provisions is critical.
Franchise Term of Agreement
The Term of Agreement provides the foundation for your business relationship with Servpro, so it’s essential to understand what it covers. Generally speaking, this document will include
Royalty payment rules and requirements
The rules for advertising contributions
a list of approved suppliers
Long-term business strategy guidelines
The renewal process for when the term ends
A clause about resolving disputes if necessary.
Knowing what’s included in your franchise agreement will help you make decisions that adhere to both parties expectations and protect everyone long-term. Plus, it makes renewing the document much easier when the time comes!
Financial assistance to franchises?
If you’re wondering if Servpro provides financial assistance to franchises, the answer is yes! Servpro has resources available to help franchisees achieve success.From cash-flow assistance to real estate investment opportunities, Servpro has a wide range of financing options for franchisees. They can leverage a variety of financial solutions, including working capital loans and other forms of financing such as:
Small Business Administration (SBA) loans
Accounts Receivable Financing
For more established franchisees, Servpro offers opportunities to invest in real estate projects related to the services they provide. These investments offer great return potential while also providing long-term stability and growth potential in the services they provide. These investments offer great return potential while also providing long-term stability and growth potential. Servpro’s team is also available to help determine what financing is best for each individual franchisee’s needs.Servpro has been in business for over 50 years and has a strong history of success, so you can be sure that the financial solutions they offer will be there when you need them. When you combine this with the lucrative potential of their services, it makes Servpro an attractive franchising option for anyone looking to start a business!
Pros and Cons of Owning a Servpro Franchise
It’s not easy to decide whether or not owning a Servpro is right for you. Before making the leap, it’s important to weigh the pros and cons of becoming a franchise owner.
Pros of Owning a Servpro Franchises
The biggest pro of franchising Servpro is that it gives you access to an already-established brand with a demonstrated track record. You’ll get resources, support, and marketing in addition to training and help when getting started. You can also benefit from the depth and breadth of Servpro’s products and services, as well as its national presence in more than 50 countries. And with the backing of a company with over 40 years in business, you’ll have access to resources that make running your own business easier and more efficient.
Cons of Owning a Servpro Franchises
While there are many upsides to owning a Serv-pro franchise, there are also potential downsides. To start, there could be significant up-front costs, including franchise fees, start-up costs, advertising fees, and more. Additionally, you may find yourself responsible for specific tasks such as hiring personnel or finding locations for new franchises, all of which takes time away from growing your business. Finally, because you’re tied to the corporate brand name, it could limit your ability to be creative or differentiate your business from others within the system.
What are Servpro franchise reviews and compalints?
Franchise reviews can provide insights into the experiences of current and former franchisees, as well as the overall reputation of the company. Here’s a summary of some common franchise reviews:
Many franchisees appreciate the strong brand recognition, training, and support provided by Servpro. Franchisees may be able to draw clients and expand their customer base by using the company’s well-established reputation in the restoration and cleaning sectors.
Several franchisees claim that the company’s distinctive software and technology aid them in streamlining their operations, making it easier to manage and grow their franchises.
Some reviews also point out the possibility of big income given the significant need for cleaning and repair services, particularly in disaster-prone areas.
Some franchisees, on the other hand, speak of difficulties, including juggling a job and personal life, handling the demands of a 24/7 operation, and surviving the competitive environment.
It’s crucial to remember that every franchisee will have a different experience, and that success can be greatly influenced by a variety of variables, including geography, competition, and managerial abilities.
Reviews of Servpro franchises as a whole show that the business has a solid support network, worthwhile training, and a recognisable brand. However, potential franchisees should carefully consider their personal goals, resources, and market conditions before investing in a Servpro. Speaking with current and former franchisees can provide valuable insights into the day-to-day operations and potential challenges associated with owning a Servpro.Servpro Franchise RankingsHere are some of the recent rankings for Servpro with their respective reference website links:
Entrepreneur Magazine’s Franchise 500: Ranked #8 in the 2023 Franchise 500 list. You can find the ranking on Entrepreneur’s website.
Franchise Times Top 200+: In the 2022 Franchise Times Top 200+ list, ranked #12. You can find the ranking on Franchise Times’ website.
Franchise Business Review’s Top 200 Franchises: was included in the 2022 Franchise Business Review’s Top 200 Franchises. You can find the ranking on Franchise Business Review’s website.
Franchise Deck Analysis and Overview
Before you make the decision to invest in Servpro franchises, it’s important to weigh the potential risks against the potential rewards. This entails taking a close look at a few crucial elements related to the choice to engage in a firm, such as the cost of entry, the anticipated return on investment (ROI), and the venture’s overall profitability.
Cost of Entry
Initially, the cost of entry should be taken into account. The initial start-up costs for investing in a franchise of Servpro can run anywhere around $216,905. This includes the initial franchise fee of $80,000 and expenses such as any equipment you might need to purchase, leasing or purchasing office space or storage space for inventory, insurance costs, and local marketing costs.
Expected Return on Investment (ROI)
Another important factor is your expected return on investment (ROI). The average ROI for Servpro franchises is roughly 25%. Generally speaking, it takes between 18 and 24 months to begin seeing positive cash flow from running your own business. However, this can vary depending on location, pricing structure, and other factors.
Finally, it’s important to consider how profitable owning a Sevpro franchise could be for you, owners control their own pricing structure and have considerable autonomy when it comes to running their business’s day-to-day operations, profitability can vary greatly depending on franchise management. That said, most Servpro franchises see an average return of 5–7% annually after expenses are accounted for.
Conclusion: Should You Buy the Servpro franchises?
If you’re looking for an opportunity that can provide you with a steady income, the Servpro franchise may be the answer for you. With its strong brand recognition and extensive network of franchises throughout the US, it offers a great way to build a business and make a living.Here are some of the benefits of owning a Servpro franchises
a low startup cost compared to many other franchises
Comprehensive training and support from the head office
Access to national accounts can help you grow your business.
A well-known brand and respected name that can help attract customers
The potential for high earnings and long-term career growth
Ultimately, whether the franchise is right for you depends on your individual circumstances, but it’s certainly worth considering as an option if you’re looking to start a business in the home restoration industry.You can explore other cleaning services franchises
You may have a lot of questions about whether the franchising Servpro is right for you—and that’s a great thing! Making an educated decision is the right move toward success in business. Let’s take a look at some of the frequently asked questions regarding the Servpro franchises.
1. Is the Servpro franchise profitable?
The answer here largely depends on how effectively you manage your business and how well you understand your local market’s needs. Many franchise owners report high levels of profitability and satisfaction after making the jump to owning their own business with Servpro’s.
2. Can you make money owning a Servpro?
Yes, Servpro franchisees can make significant profits. Franchises offer an excellent opportunity to build equity and wealth; however, as with any business venture, there are no guarantees of profits or success. It will be up to you and your team to ensure that your business succeeds in meeting its stated goals.
3. Is Servpro a franchise?
Yes, Servpro has been a franchised company since 1967, providing services in all 50 states in the US as well as Canada and Thailand. The business model has always been centered around superior customer service delivery in order to generate leads and build relationships, which can then lead to returns on investment (ROI).
4. How much is a Servpro franchise?
A single-unit franchisee who meets all other financial criteria can typically expect to pay an initial cost of around $216,905, depending on location and other factors, including how much equipment needs to be purchased initially as well as ongoing costs such as marketing materials and payroll for employees.
5. How do Servpro franchises make money?
Servpro franchises make money by providing a range of restoration, cleaning, and related services to residential and commercial clients. Their primary revenue streams come from the following services:
Water Damage Restoration: Servpro franchises respond to water damage caused by flooding, leaks, or other water-related issues. To recover the damaged regions, they offer services for water extraction, drying, dehumidification, and sanitization.
Fire Damage Restoration: Franchisees provide services for cleaning, deodorising along with repairing premises and goods that have been damaged by flames.
Mold Remediation: Servpro franchises help clients address mold issues by providing assessment, containment, air filtration, and removal services.
Storm Damage Restoration: Franchisees assist customers in recovering from storm-related damages, such as wind, hail, or flood damage.
Cleaning Services: Servpro franchises also offer various specialized cleaning services for residential and commercial clients. These services cover areas such as air ducts, carpets, upholstery, biohazard cleanup, and deodorization.
Commercial Services: In addition to residential services, Servpro franchises cater to commercial clients by providing large-scale restoration and cleaning services, tailored to the unique needs of businesses.
Franchisees generate revenue by charging customers for these services, often through a combination of flat fees and hourly rates, depending on the nature of the job. The overall profitability of a franchise depends on factors such as location, demand for services, operational efficiency, and the franchisee’s ability to maintain a strong customer base.