Servpro Franchise – How to Open, Cost & Profit

Servpro Franchise Startup Cost, Profit & Opportunities

Servpro is a cleaning and restoration company founded in 1967 by Ted and Doris Isaacson.

Two years later, it began franchising. Its cleaning and restoration services cater to disaster restoration, commercial & residential cleanup and repairs, mold & remediation, carpet & upholstery cleaning, and its clients’ HVAC and air duct cleaning, among others.

Why Servpro Franchise

There are lots of reasons to consider the Servpro brand. If you’re looking for a quick start, this is where you should look. Servpro helps you get started the fastest way possible by deploying various support services, which will be discussed in more detail shortly.

Serve also offers its franchisees a chance to grow their business. Your franchise unit or units only serve as your first step. With dedication and commitment, you can expand your business to more locations.

More importantly, it is Servpro’s dominant brand in the cleaning and restoration industry. Its commitment to the growth of its partners has enabled it to grow into a national brand.

  • Achievements

Its achievements also count for something. Over its 53 years of existence, Servpro has conducted itself professionally in serving the needs of clients and partners (franchisees).

This hasn’t gone unnoticed, as many accolades, rankings, and awards have come her way over the years.

A few of these include consecutive rankings by Entrepreneur Magazine in 2004 (#1 in restoration services category), 2010, right up to this day as one of the top franchises to invest in.

Other recognition has come from CNN money, Dunn & Bradstreet,, the Wall Street Journal, and the Nashville Business Journal, among others.

Financial Requirements

Owning a Servpro franchise rests on meeting its financial requirements, among others.

The financial requirement comprises the estimated initial investment, the liquid cash requirement, and ongoing fees. We’ll discuss each of these to give you a better picture of what to expect.

However, Servpro reserves the right to alter any of these. You’ll need to find out what presently applies. Its Franchise Disclosure Document (FDD) should hold all such information.

  • Estimated Initial Investment

Servpro’s estimated initial investment ranges from $160,075 to $213,950. To break this down into its constituent parts, the estimated initial investment includes a franchise fee starting from $50,000.

The vehicle cost ranges from $2,000 to $35,000 plus equipment & products package starting at $66,750.

Supplies cost starts from $3,850 to $8,500, insurance costs between $4,000 to $5,750. Advertising & promotional ranges from $250 to $1,500, real estate starts at $0 to $3,000, training, travel, lodging and food costs between $550 to $1,900 while deposits, permits and licenses costs $700 to $2,550.

Costs for legal & professional fees, accounting services, online tax table service, and QuickBooks Pro training start at $975 to $1,500. Xactimate is estimating & pricing software and training ranging from $1,000 to 2,500.

Franchisees will need an additional $30,000 to $35,000 for the first three months of their operations.

While those mentioned above are included in the estimated initial investment, several other fee types may apply.

These include restocking fees, examination fees, territorial policy violations, taxes, indemnification, reinstatement fee, commercial hefty loss fee, and resale referral fee.

  • Liquid Cash Requirement

Interested investors are mandated to meet the franchisor’s liquid cash requirements of $105,000 to $110,000. This is the minimum liquid capital you must have to own this franchise opportunity.

  • Royalty Fees

Royalty fees include the ongoing royalty and ad royalties. The ongoing royalty takes up about 3 to 10% of gross sales. At the same time, the ad royalty fee constitutes 3% of gross sales.


Financing is an integral part of doing business.

Hence, Servpro has ensured that it makes such provisions available. Prospective franchisees benefit from its in-house financing program that covers the franchise fee, equipment, and inventory.

Additional options include its financing arrangement with third-party sources.

These sources offer financing to cover several relevant areas of operations such as inventory, the franchise fee, start-up costs, and equipment.


An elaborate training program is organized by the franchisor.

This is also known as the Business Development Program or the BDP. It is a 5-step process in which the franchisee and every other person who will be actively involved in running the franchise must attend.

Step 2 involves prerequisite progress. This consists in preparing the business before classroom attendance. Step 2 is called prerequisite consultation.

It involves on-site trainer meetings, while step 3 is called the New Franchisee Training Program. This is a 15-day classroom training session.

Business Setup in step 4 and includes a 6-day on-site trainer visit. The last step is known as Business Consultations. As the name implies, the trainer gets to consult with the trainer for six days.

Franchise Term And Renewal

As a Servpro franchisee, your ownership term is for five years. However, you can renew for an additional five-year term as long as you meet set requirements.


Support for franchisees comes by way of ongoing marketing support. Ongoing support includes newsletter releases, meetings/conventions, a toll-free line, and a grand opening.

Others include online support, security & safety procedures, field operations, proprietary software, and a franchise intranet platform.

Marketing support includes access to the franchisor’s cooperative advertising, use of its ad templates, and SEO. Others include national and regional advertising, social media advertising, and website development.

Getting Started

To begin the application process or request more information, you’ll need to fill out and submit its online form. The franchisor, through a representative, contacts you shortly after through a call.

Further details are provided about the franchise opportunity and answers to questions you have.

From here on, you’re guided through the entire application process and should have no difficulties. The franchisor communicates any additional requirements for getting started.

Servpro franchise has been covered with as much information as necessary to get you started. Franchise validation is an integral part of the process.

Here, you get to discuss with existing franchisees about their experiences. This gives you the confirmation or confidence you need to move forward.