911 Restoration Franchise Costs & Fees
Date of Incorporation: 2002
Franchising Since: 2007
Headquarters: Van Nuys, California
Business Description: 911 Restoration Franchise Inc. is the franchisor. The franchised business provides emergency clean-up from fire damage and mold damage, as well as providing mold inspections, carpet cleaning, duct cleaning and crawl space cleaning.
Franchise Offer: The franchise offered is for the right to own and operate a single “911 Restoration” emergency response services business. The franchisor offers both new start-up and conversion franchises.
Financial Assistance: In its discretion and if franchisees meet its criteria, including a minimum credit score of 680, the franchisor may offer to finance up to 50% of the initial franchise fee. If the franchisor finances up to 50% of the initial franchise fee, the amount financed must be paid over 12 months to 36 months with interest at 8% per month. Except as described, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease or obligation.
Training and Assistance: The training program is conducted at the franchisor’s headquarters in Van Nuys, California, for approximately two to four weeks, based on the trainees’ prior experience in each subject. There is no additional fee to train franchisees and one other person. The franchisor will provide additional advisory assistance and training that it feels is advisable in the operation of the System, on the terms and conditions as it sets forth in the Manual. The franchisor may periodically telephone or visit franchisees for the purposes of rendering advice and consultation with respect to the operation of the Franchised Business, assessing their overall performance and determining whether they are conducting the Franchised Business in compliance with the standards of the System. Once a year, at franchisees’ cost and expense, franchisees must attend the franchisor’s annual refresher training program, which will be held at the franchisor’s headquarters or at another location it specifies. In its discretion, the franchisor may choose to hold an annual meeting or convention of its franchisees to conduct additional training, announce new products and/or services or discuss any other matters of interest.
Territory: The Franchise Agreement grants franchisees the right to operate their Business at the single location designated in the Franchise Agreement and only within the designated, protected territory described in the Franchise Agreement. The size of the Territory is determined based on population and the Territory will have an approximate population of 100,000 people, although franchisees may purchase a larger Territory. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.
Term of Agreement and Renewal: The length of the initial franchise term is 7 years. If requirements are met, franchisees can renew for an additional 7-year term.
Obligations and Restrictions: Franchisees must at ah times faithfully honestly, and diligently perform their contractual obligations. System Standards may regulate the staffing levels and employee and/or independent contractor's qualifications, training, dress, and appearance of the Franchised Business. Franchisees need not participate full-time in the day-to-day operation of the Franchised Business, but they must devote substantial and continuing efforts to the operation of the Franchised Business. If they do not participate in the daily operations, franchisees must hire a manager to oversee the Franchised Business’ daily operation. Franchisees must operate the Franchised Business in an efficient and professional manner following the highest ethical and moral standards. Franchisees must comply with all standards of quality and service prescribed by the franchisor.
Estimated Number of Units: 45
|Name of Fee||Low||High|
|Initial Franchise Fee||$15,000||$60,000|
|Equipment, Furnishings and Fixtures||$0||$11,000|
|Rent (3 months)||$0||$4,500|
|Initial Inventory and Operating Supplies||$15,000||$20,000|
|Insurance (3 months)||$1,500||$2,700|
|Travel and Living Expenses While Training||$0||$3,500|
|Additional Funds (3 to 6 months)||$12,000||$20,000|
|Type of Fee||Amount|
|Royalty Fee for a New Start-Up Franchise||10% of Gross Revenue for Restoration Services; 3% of Gross Revenue for Non-Restoration Services.|
|Royalty Fee for a Conversion Franchise||Sliding scale percentage dependent upon Gross Revenue, the franchisee’s year of operation, and whether the franchise is Restoration or Non-Restoration.|
|Local Advertising||Franchisees must spend at least $100 per day on local advertising.|
|Advertising Cooperative||To be determined, based on the franchisee’s location and market, not to exceed 3% of Gross Revenue.|
|Advertising Fund Fee||Up to 3% of Gross Sales.|
|Initial Training Fee (Additional or Replacement Employees)||The then-current training fee, plus expenses. Current training fee $500 for technicians and $1,500 for inspector.|
|Initial Follow-Up On-Site Visit||Franchisees must reimburse the trainer's expenses, which will vary depending the distance the trainer will travel to your location.|
|Late Fee||$50 per day.|
|Administrative Services Fee||25% of last Royalty Fee reported to be due to the franchisor.|
|Audit Fee||Will vary under the circumstances (estimated to be between $750 and $2,500)|
|Gross-Up Fees||Varies with circumstances.|
|Computer System Maintenance||$0 to $600|
|Proprietary Products||Varies with circumstances.|
|Insurance Premiums||Reimbursement of our costs, plus 10% administrative fee.|
|Costs and Attorneys’ Fees||Varies with circumstances.|
|Indemnification||Varies with circumstances.|
|Liquidated Damages||If the franchisor terminates the Franchise Agreement for cause, the franchisee must pay within 15 days after the effective date of termination liquidated damages equal to the average monthly Royalty Fees the franchisee paid or owed to us during the 12 months of operation preceding the effective date of termination multiplied by 24 (the number of months in 2 full years), or the number of months remaining in the term of the Franchise Agreement, had it not been terminated, whichever is greater.|
|Supplier Evaluation||Varies with circumstances, but not to exceed $500|
The above information has been taken from the FDD of 911 Restoration. Year of FDD: 2016
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