SERVPRO Franchise Costs, Fees & FDD

Year Business Began: 1967

Franchising Since: 1969

Headquarters: Gallatin, Tennessee

Estimated Number of Units: 2,285

Franchise Description: Servpro Franchisor, LLC is the franchisor. Franchisees will primarily provide professional residential and commercial cleaning; fire, smoke, water, wind, and other damage cleaning, restoration, mitigation, repair and reconstruction; mold remediation and bioremediation services; and cleaning and disinfection to limit the survival of viruses and emerging viral pathogens.
Training Overview: Franchisees and each owner actively involved in operating the franchise must complete the five step initial training program called the Business Development Program (BDP). Two owners will receive the five-step BDP: Step 1: Prerequisite Progress (preparing the business prior to classroom attendance/on-the-job training, which includes franchisees completing required training (a third-party software) and 3-5 days of on-the-job training with an approved existing franchise); Step 2: Prerequisite Consultation (virtual and/or on-site franchise business consultant meeting); Step 3: New Franchise Training Program (NFTP, 15-day learning platforms or classroom is offered via a combination of online and classroom-based training at the franchisor’s headquarters in Gallatin, Tennessee); Step 4: Business Set-up (5 days on-site or virtual franchise business consultant/business development specialist meetings); and Step 5: Business Consultations (5 days on-site or virtual franchise business consultant meetings). Additional or “refresher” training programs, as well as seminars and related activities regarding the operation of the franchise and the system, will be provided as the franchisor deems appropriate. The franchisor will also hold an annual convention.

Territory Granted: A designated franchise operating territory generally contains 50,000 to 80,000 in population. A larger territory may be allowed under exceptional circumstances (e.g., densely populated urban areas or a high percentage of the prospective territory is impoverished). Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that Servpro owns, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: Franchisees, or their principals or owners (if franchisees are a business entity), must directly perform or directly supervise the operation of the franchise. All owners of the franchise must personally complete the annual franchise financial and operational business reviews and attend the convention (once per year in the summer). The operating principal must participate in all other periodic business consultations typically conducted at the franchisee’s primary business location, attend all area meetings (twice per year), and view Servpro TV episodes and all training programs required by the franchisor from time to time. Franchisees must offer and sell only the goods and services which conform to the franchisor’s standards and specifications. Franchisees must offer the goods and services that the franchisor designates as required for all franchisees. Franchisees must maintain in their inventory the minimum amount of professional cleaning products and equipment. Franchisees must comply with all applicable laws and regulations, including federal regulations, and obtain all appropriate governmental approvals for the franchise.

Term of Agreement and Renewal: The length of the franchise initial term is five years. Franchisees can renew for additional five-year terms, if requirements are met.

Financial Assistance: The franchisor may agree to finance a portion of the franchisee’s acquisition of a franchise from the franchisor, subject to credit approval and meeting the then-current financing criteria. The franchisor may at its discretion, or its affiliate may at its discretion, finance the purchase of equipment or vehicles. The franchisor and its affiliates do not directly or indirectly offer any financing arrangements to franchisees except as disclosed above. Whether, and on what terms, franchisees can obtain financing from the franchisor will depend on a variety of factors, including the franchisee’s creditworthiness and the type of security the franchisee can offer. The franchisor and its affiliates do not receive any direct or indirect payments for placing financing or guarantee the franchisee’s obligations to third parties.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$100,000	$100,000 plus $1,110 per 1,000 population over maximum
Vehicle	$5,000	$69,900
Equipment and Products Package	$108,000	$108,000
Supplies	$4,100	$9,100
Insurance	$5,010	$25,300
Advertising and Promotional	$270	$1,600
Training, Travel, Lodging and Food	$600	$2,000
Deposits, Permits and Licenses	$750	$2,750
Legal & Professional Fees, Accounting Services, On­-Line Tax Table Service and QuickBooks Pro or QuickBooks Online Training	$1,700	$2,200
Xactimate and/or Other Third Party Estimating and Pricing Software and Training	$1,100	$2,700
Additional Funds - 3 months	$32,250	$50,000
Real Estate	$0	$6,000
ESTIMATED TOTAL	$258,780	$379,500 + $1,110 per 1,000 over maximum population plus any real estate costs

 
Other Fees

Type of Fee	Amount
Royalty Fee	Ranges from 3% to 10% of the monthly gross volume.
Fixed Fee	$45 - $115 based on the monthly gross volume.
Minimum Royalty Fee	$100
Brand Fund Fee	Currently, 3% of the monthly gross volume.
Electronic Funds Transfer Fee	$1.50 per transaction.
Transfer Fee	Up to $35,000. Transfer to trust for estate planning: Currently $2,500, subject to change up to $5,000.
Initial Training Fee	The franchisor will provide initial training to additional persons or for the franchisee’s employees on a space-available basis at a cost of $1,000 each for the new franchise training program.
Water Damage Restoration Technician (WRT) Training and Certification	The fee can vary from $300 to $800 per person for training and $100 for the certification by the Institute of Inspection Cleaning and Restoration Certification (IICRC).
Applied Structural Drying (ASD) Training and Certification	The fee can vary from $500 to $1,500 per person for training and $100 for certification by the IICRC.
Subrogation Training	The fee can vary from $75 - $150.
Lead Paint Training and Certification (EPA's Lead Renovation, Repair and Painting Rule (RRP Rule))	The cost can vary from $550 - $1,000.
New Training Programs	The franchisor may charge the then-current training fee for training courses.
Failure to Complete BDP Steps 1, 2, and 3	Loss of convention allowance and required to pay minimum royalty and fixed fees.
Convention Registration Fee	Varies.
Lead Fee	Franchisees will be charged the then-current fee for leads dispatched or referred by the franchisor or its affiliates (not to exceed $75 for each).
Commercial Job Fee	The franchisor may charge a fee not to exceed 10% of total invoice for all commercial jobs received from the Customer Care Center, Commercial Large Loss Division or any Servpro affiliate.
Servpro Disaster Response Program Fee	5% of the gross volume for each job.
Servpro Disaster Response Host Fee	Franchisees will pay the local “host” franchisee in whose operating territory they perform services a fee not to exceed 5% of gross volume for each job the other franchisee submits to the franchisor and the franchisee produces.
Servpro Concierge Program Fee	5% of the gross volume for each job.
Third-Party Electronic Assignment Administrative Fee	A fee not to exceed $75 for leads assigned electronically through third-parties; this fee is subject to change upon notice.
Job File Audit Fee	A fee not to exceed $50 for the franchisor’s audit of certain select national accounts and national accounts job files. The audit fee is subject to change upon notice.
Renewal Fee	$5,000 if timely and an additional $1,000 if the renewal date is extended (but not to exceed 120 days).
Administrative Fee	$500 per license.
UCC Filing Fee	$100 per UCC filed or amended.
Resale Referral Fee	Up to 10% of gross sales price, including goodwill, equipment and license.
ServproNET	Initial hook-up to the franchisor’s network using its internet access package is included in its equipment and products package.
Software License and Technology Agreement	$200 per month per franchise license, regardless of common ownership, subject to change.
Restocking Fee	15%
Late Reports or Late Payment	$50 late fee for each report or payment made after its due date.
Examination	The franchisor’s cost of conducting an examination is $500 per day whether conducted from its offices or the franchisee’s premises, plus lodging and travel costs to and from the franchisee’s location.
Failure to Keep Records	Up to $5,000 per month.
Territorial Policy Violations	Up to $5,000 per occurrence or up to 2 times the amount involved in each violation whichever is greater.
Indemnification	The franchisor’s actual costs.
Miscellaneous	The franchisor’s actual costs.
Taxes	Amount imposed by federal, state, and local tax authorities on any fees or amounts payable to the franchisor by the franchisee.

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