Lightspeed Restoration Franchise Costs, Fees & FDD

Year Business Began: 2023

Franchising Since: 2023

Headquarters: Flower Mound, Texas

Estimated Number of Units: 20

Franchise Description: The franchisor is Lightspeed Restoration, LLC. The franchisor’s immediate parent company is Home Franchise Concepts, LLC. Franchisees offer water and fire damage restoration and indoor air quality services to residential and commercial customers.
Training Overview: Franchisees or their manager must complete the initial training program to the franchisor’s satisfaction before they begin operating the franchised business. Training and certifications consist of two phases: (1) third party industry certifications; and (2) Academy training. The FDD contains the list of third party industry certification classes and completion of associated tests that are a prerequisite to attending Academy training. Academy training lasts for 12-14 days and is conducted both virtually and in person at the HFC Experience Center in Coppell, Texas. The classroom and hands-on training conducted in the HFC Experience Center currently lasts for 80 hours spread over 10 days. In addition to the above pre-opening training, you are required to complete the FSRT and OCT certification courses offered through the IICRC within 12 months of opening or prior to performing fire restoration work, whichever is the earlier. Upon reasonable notice and at no charge to franchisees, the franchisor may require franchisees or their designated personnel to attend additional training courses, seminars, conferences or other programs that the franchisor considers relevant or appropriate to the successful operation of the system.

Territory Granted: Franchisees must operate their Lightspeed Restoration business from an approved location, which must be a leased commercial office/warehouse. The approved location will need approximately 1,500 to 2,000 square feet of secure storage for the office and equipment and inventory. The approved location must be within the protected territory granted to the franchisee under the Franchise Agreement. During the term of the Franchise Agreement, the franchisor will grant franchisees a protected territory. The size of the protected territory may vary from other system franchisees based on the location and demographics surrounding the premises. Typically, a protected territory will consist of a minimum population of 200,000, depending upon geography, demographics, and other factors.

Obligations and Restrictions: Franchisees (or their principals) must devote their personal full-time attention, skill and best efforts to the management and operation of the Lightspeed Restoration business and to promote and increase the demand for the products and services within the protected territory. Franchisees (or their principals) agree not to own, maintain, engage in, be employed by or have any interest in any other business other than the Lightspeed Restoration business. Upon written request, the franchisor may permit franchisees to employ a manager to manage the day‐today operations of the Lightspeed Restoration business, provided the designated manager meets the qualifications. Franchisees must offer for sale all products and services which the franchisor prescribes and only those products and services which the franchisor prescribes.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for two consecutive five-year terms if requirements are met.

Financial Assistance: If franchisees meet the credit standards, the franchisor will, at the franchisee’s request, provide financing for part of initial territory fee or part of the additional territory fee for second and subsequent territories purchased at the same time as the first territory. The franchisor does not guarantee any notes, leases, or obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$5,000	$5,000
Initial Territory Fee	$44,000	$78,000
Travel and Living Expenses While Training (per person)	$1,000	$1,500
In-Person Training for Additional Personnel ($1,500 per person)	$0	$1,500
Vehicle	$0	$49,000
Real Estate Rent and Security Deposits	$1,000	$5,000
Initial Equipment Package	$58,000	$58,000
Technology Systems Package	$0	$3,000
Office Equipment, Furniture and Supplies	$400	$1,000
Credit Card Processing Technology	$30	$500
Auto Insurance	$1,800	$3,500
Commercial General Liability, Contractor's Environmental Liability, Professional Liability, Contractor's Equipment, Employment Practices, Workers' Compensation, Property Insurance	$3,000	$4,000
Contractor's License and Bonds	$0	$1,500
Licenses and Certifications	$3,000	$5,000
Professional Fees	$2,000	$5,000
Initial Marketing	$10,000	$15,000
Additional Funds - Before Opening and First 3 Months	$25,000	$50,000
ESTIMATED TOTAL (up to two territories)	$154,230	$286,500

 
Other Fees

Type of Fee	Amount
Royalty	For one or two territories, the greater of: (a) the monthly royalty fee as calculated in the table below or (b) $500 per month for the first year and $1,000 per month thereafter. For three territories, the greater of the minimum royalty and the monthly royalty fee set forth in the FDD.
National Advertising Fund Payment	For one or two territories, the greater of 2% of bank deposits for the preceding month or $500. For three territories, for the first year, the greater of 2% of bank deposits for the preceding month or the amount set forth in the FDD.
Advertising Cooperative Fees	Not currently imposed. If imposed in future, will not exceed the national advertising fund payment.
Technology Fee	For one or two territories, currently $750 per month for first territory; $250 for second and subsequent contiguous territories. Additional non-contiguous territories then-current fee for a first territory. For three territories, for first year, the Technology Fee for multiple territories is as set forth in the table in the FDD.
Additional Email Account Fees	$25 per additional account per year.
Training for Additional Personnel	$1,500 per additional attendee.
Additional Territory Fee	An amount equal to the then-current initial territory fee if franchisees buy an additional territory in the future.
National Account Fees	The franchisor negotiates each program individually with the national account.
Encroachment Payment	100% of the gross sales in another franchisee's territory.
Fees on Transfer	If selling to a new franchisee, greater of $24,950 or 6% of sale price up to a maximum of $50,000. If selling to an existing franchisee, $5,000 transfer fee per territory.
Transfer Lead Referral Fee	The then-applicable lead referral fee, currently $15,000 or the amount of any broker fees that the franchisor must pay a third party (not an employee of the franchisor’s).
Renewal Fee	$5,000
Insufficient or Late Payment Fee	Currently $300, subject to change.
Convention Fee	Currently $750 plus travel, accommodation and some meals. Fee will vary depending on venue and location but will not exceed $2,000 annually.
Optional Meetings and Trainings	As determined by the franchisor, but generally $100 - $1,500 depending on venue and mode of delivery plus travel, accommodation and some meals.
Additional Training Requested by the Franchisee	Currently $500 per day, plus travel and expenses.
Audit	Cost of inspection or audit.
Insurance Reimbursement	Franchisees must reimburse the franchisor’s costs.
Costs and Attorneys’ Fees	Varies.
Indemnification	Varies.

The above information has been compiled from the FDD of Lightspeed Restoration. Year of FDD: 2024.
Franchise Direct's Disclaimer