As you explore possible business opportunities, consider industries that have potential for growth no matter what the economic conditions. One such sector is restoration, which IBISWorld says is a $7 billion industry that’s climbing 4.5% in the U.S. and coming in at $210 billion globally. Starting a restoration business from scratch can prove challenging, so a stronger proposition is business ownership through franchising, such as with a company like ServiceMaster Restore. Understanding the financial landscape and the inherent advantages of a franchise can guide your decision-making-- here’s a look at what you can expect financially and strategically from owning a restoration franchise.
Understanding the Restoration Industry
The restoration industry serves a critical role in helping both residential and commercial property owners recover from damage caused by water, fire, mold, and other disasters. Given the unpredictable nature of these events, the demand for restoration services remains consistent, making this an ideal opportunity to grow a strong business . In recent years, particularly with increasing instances of natural disasters due to climate change , along with aging infrastructure , the industry has seen significant growth.
Potential Earnings from a Restoration Franchise
This is a significant business investment, so naturally you’re wondering, “how much do restoration companies make?”
While earnings can vary based on a multitude of factors including location, market size, and the scale of your operations, the potential for substantial profit is significant.
ServiceMaster Restore, a restoration industry leader for 65 years, has a strong market presence, offering an advantage in terms of trust and reliability—qualities that clients desperately seek in times of disaster. Our brand recognition alone can help you secure a larger volume of contracts than an independent restoration business.
Revenue figures in the restoration industry can be quite compelling. For instance, ServiceMaster’s most recent franchise disclosure document (FDD), Item 19, which discloses our financial performance as a restoration franchise , shows that the top quartile in single franchise ownership groups, reports average gross service sales of $2,911,828. For some of our franchisees, this translates to annual revenues in the six-figure range. Remember, when determining, “how much do restoration companies make?” the variability is influenced by your ability to leverage the proven business model, including marketing strategies, training programs, and national accounts.
Why Choose a Restoration Franchise Over an Independent Business?
Choosing between a franchise and an independent business is a pivotal decision. Here are a few reasons why opting for a franchise like ServiceMaster Restore could be the ideal fit for your business goals:
- Brand Recognition: Owning a franchise gives you instant access to a recognized brand. ServiceMaster Restore is known for its commitment to quality and reliability, which can take years to establish if you start an independent restoration business from scratch.
- Comprehensive Training and Support: Franchises offer extensive training programs and continuous support in operations, marketing, and sales. This is invaluable in the restoration industry where the quality of service directly impacts the business’ reputation.
- Proven Business Model: Franchises provide a roadmap to success that has been tested and refined over time. This model includes efficient operational practices, effective marketing strategies, and a network of existing clients, including national accounts, that can provide a steady flow of work.
- Economies of Scale: As part of a franchise network, you’ll benefit from economies of scale. This means lower costs for supplies, equipment, and insurance thanks to bulk purchasing agreements negotiated by your franchisor.
- Regulatory Guidance: While the restoration industry is highly regulated, franchisors provide guidance on compliance with complex industry standards and government regulations, which can vary by location.
What to Consider Before Making Your Decision
As you contemplate this opportunity, consider your personal and business goals. Are you prepared to handle the challenges of running a restoration business, from managing staff and coordinating with insurance companies to handling the operational challenges that come with disaster management? It's also vital to evaluate your financial readiness to ensure you have what you need to invest in a franchise, including initial setup costs, ongoing fees, and adherence to the franchisor’s business policies.
Choosing ServiceMaster Restore
ServiceMaster’s promise of exceptional service has solidified our reputation as a reliable partner for prominent insurance companies nationwide, which has the power to propel your business forward.
To help franchisees understand the industry standards for restoration practices, we established the ServiceMaster Restore Quality Restoration Vendor (QRV) program. This initiative ensures that our franchises excel in delivering customer satisfaction, maintaining ethical estimating and billing practices, providing continuous training for staff, enhancing communication strategies, and employing the latest technological advancements.
Ready to get started as a franchise owner with ServiceMaster Restore? Fill out our online form and we’ll be in touch.