911 Restoration Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2007

Headquarters: Van Nuys, California

Estimated Number of Units: 335

Franchise Description: 911 Restoration Franchise Inc. is the franchisor. The franchised business provides emergency clean-up from fire damage, water damage, mold damage and mold inspections, carpet cleaning, duct cleaning and crawl space cleaning. The franchisor offers traditional franchises, conversion franchises, and micro-market franchises.
Training Overview: The franchisor will offer a mandatory training program prior to the opening of the 911 Restoration business for franchisees, to be conducted at virtually, at its headquarters in Van Nuys, California, at the franchisee’s location, at a certified Flood House facility, and/or potentially at the location of an existing franchisee. This training generally lasts between 14 and 18 days. Once the franchised business has been open for at least three months, the franchisor may, in its sole discretion, send a representative to the franchised business to offer advice and assistance to franchisees and their supervisorial or managerial personnel. The franchisor may provide additional advisory assistance and training that it deems necessary 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 their cost and expense, franchisees must attend the franchisor’s annual conference, which will be held at the franchisor’s headquarters or at another location it designates. 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. If and when held, the annual meeting or convention will be mandatory for all franchisees.

Territory Granted: 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, exclusive territory described in the Franchise Agreement. The size of the territory is determined based on population and the franchisee’s territory. The territory will be described in terms of contiguous zip codes, town boundaries or county boundaries, or the franchisor may depict the territory on a map attached as an attachment to the Franchise Agreement. The franchisor will use the U.S. Census Bureau and other similar resources to obtain the population data it will use to determine the territory.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their contractual obligations. System standards will 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.

Term of Agreement and Renewal: The length of the initial franchise term is seven years. If requirements are met, franchisees can renew for an additional seven-year term.

Financial Assistance: In its discretion and if franchisees meet its criteria, the franchisor may offer to finance up to 50% of the actual initial franchise fee. Except as described, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor may reduce its initial franchise fee by 35% for the first franchised business purchased by a qualified veteran of the United States Armed Services if he or she (i) purchases the franchised business franchise individually or (ii) will own a majority interest in the entity that signs the Franchise Agreement as franchisee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$29,000	$49,000
Leasehold Improvements	$0	$5,000
Equipment, Furnishings and Fixtures	$35,000	$60,000
Technology Setup Fee	$300	$300
Service Vehicle	$1,500	$60,000
Signage	$1,000	$3,000
Rent (3 months)	$0	$4,500
Initial Inventory and Operating Supplies	$5,000	$10,000
Security Deposits	$0	$1,500
Insurance (3 months)	$0	$2,700
Business Launch Fee	$10,000	$10,000
Initial Training Fee	$2,500	$3,500
Travel and Living Expenses While Training	$0	$4,000
Computer System	$0	$2,000
Permits/Licenses	$0	$2,000
Professional Fees	$3,000	$5,000
Additional Funds for three to six months	$35,000	$100,000
Telephone	$100	$200
Miscellaneous	$2,500	$5,000
ESTIMATED TOTAL*	$124,900	$327,700

*The estimated initial investment range covers from a micro-market franchise up to a traditional or conversion franchise.

 
Other Fees

Type of Fee	Amount
Royalty Fee for a Traditional Franchise or a Micro-Market Franchise	9% of gross revenue for restoration services; 3% of gross revenue for non-restoration services. Minimum fees apply after the 7th month of the Franchise Agreement.
Royalty Fee for a Conversion Franchise	See FDD.
Local Advertising	$3,500 per month.
Advertising Cooperative	Not to exceed 3% of gross revenue.
National Advertising Fund Fee	During the first 6 months after signing the franchise agreement: 1% of collected gross revenue. Beginning in the 7th month after signing the franchise agreement: the greater of 1% of gross revenue or $100 per month.
Additional or Replacement Training Fee	The then-current training fee (currently $500 to $1,000 per person based on qualifications), plus expenses.
Call Center	Currently $195.
Optional Program Fees	Estimating for mitigation is currently 1% of the job cost. The franchisor may form an estimating program, and if formed, costs will be 1% of the job cost.
Lead Fee	$10,000
Transfer Fee	$5,000 if transferring to a buyer who is not a 911 Restoration franchisee. $2,500 if transferring to another 911 Restoration franchisee.
Renewal Fee	$2,500 to $7,500
Delayed Opening Fee	$1,000 per month beyond scheduled opening date.
QuickBooks Software License Fee	QuickBooks on-line with 5 available users – monthly fee per current pricing. The current listed non-promotional price is $99 USD/month (5-users per franchisee) for a single EIN.
Holdover Royalty	The royalty fee plus 2.5% of gross revenue.
Late Fee	$50 per day.
Interest on Late Payments, Late Fees, Insufficient Funds	18% per annum or highest rate allowed by law.
Audit Fee	Will vary under the circumstances (estimated to be between $5,000 and $8,500).
Job File Audit Fee	A fee not to exceed $50 for an audit of certain job files. The audit fee is subject to change upon notice.
Technology Fees	The then current fees; currently, (i) a one-time setup fee of $300; and (ii) a monthly fee of $495.
National Account Program Fee	5% of gross revenue from national account customers (excluding revenue from construction services and jobs with gross revenue under $500).
CRM Fee	One-time setup fee plus monthly fees, as established by CRM vendor.
Computer System Maintenance	$0 to $600
Proprietary Products	Will vary under the circumstances.
Insurance Premiums	Insurance premiums to maintain recommended coverage as a franchise owner.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under 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 the franchisor 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	Will vary under circumstances, but not to exceed $500.
Catastrophic Event Admin Fee	Currently, $0.
Convention; Annual Conference Fee	The then-current registration fee. Currently, $500 to $1,000 per year.

The above information has been compiled from the FDD of 911 Restoration. Year of FDD: 2025.
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