When it comes to cleaning and restoration services, Servpro is one of the most well-known names in the industry. If you're interested in owning a Servpro franchise, it's important to understand the costs involved. In this article, we'll break down the Servpro franchise cost and explore what you can expect as a franchise owner.
Initial Franchise Fee
The first cost you'll encounter as a Servpro franchise owner is the initial franchise fee. This fee ranges from $49,000 to $79,000, depending on the size of the franchise territory. This fee gives you the right to use the Servpro name and trademark, as well as access to the company's proven business formula.
Training Programs
In addition to the initial franchise fee, new franchise owners are required to complete the Servpro franchise training program. This program includes a combination of classroom training and experiential training at the company's corporate training facility in Gallatin, Tennessee. The cost of the training program is included in the initial franchise fee, but lodging and travel costs are the responsibility of the franchise owner.
Ongoing Fees
Once your Servpro franchise is up and running, you'll be responsible for a number of ongoing fees. These fees include:
Royalty Fee: As a Servpro franchise owner, you'll be required to pay a royalty fee based on your monthly gross volume. This fee ranges from 3% to 10%, depending on your monthly sales.
National Call Center Fees: If you choose to use Servpro's national call center to handle customer inquiries and job dispatching, you'll be charged a fee for each call.
Job File Audit Fee: Servpro performs regular job file audits to ensure compliance with company standards. Franchise owners are responsible for the cost of these audits.
Resale Referral Fee: If you decide to sell your Servpro franchise, you'll be charged a resale referral fee of 5% of the gross sales price.
Other Costs
In addition to the fees outlined above, there are a number of other costs associated with owning a Servpro franchise. These include:
Equipment and Products Package: Servpro franchise owners are required to purchase an equipment and products package from the company. This package includes everything you'll need to get started with your restoration services.
Inventory Management Tasks: Franchise owners are responsible for managing their own inventory of cleaning and restoration products and equipment.
Local Tax Authorities: Franchise owners are responsible for complying with all local tax authorities, including sales tax and business license fees.
Financing Fee: If you choose to finance the initial franchise fee, you'll be charged a financing fee.
UCC Filing Fee: If you choose to finance any other costs associated with your Servpro franchise, such as equipment purchases, you may be charged a UCC filing fee.
Professional Fees: Franchise owners may incur professional fees related to legal and accounting services.
Renewal Fee: Franchise owners are required to renew their franchise agreement every 10 years. There is a fee associated with this renewal.
Audit Fee: In addition to the job file audit fee, franchise owners may be subject to additional audits and associated fees.
Transfer Fee: If you decide to transfer ownership of your Servpro franchise, you'll be charged a transfer fee.
Benefits of Owning a Servpro Franchise
Despite the costs associated with owning a Servpro franchise, there are a number of benefits to consider. For example, Servpro is a tried and true brand with a proven track record of success. The company has been in business since 1967 and has grown to become a leader in the restoration industry. As a Servpro franchise owner, you'll have access to the company's business development program, national training center, and ongoing training programs to help you maintain and grow your business.
Additionally, Servpro has a strong network of franchise owners who are committed to supporting each other and sharing best practices. This franchise community can be a valuable resource for new business owners who are looking to learn from the experiences of others.
Servpro also provides a completely automated stream for keeping account health, and offers professional accounting services, which can be particularly helpful for those without prior accounting experience.
Servpro franchise owners also benefit from the company's national accounts program, which provides access to certain select national accounts, such as insurance industry employees and scale Amazon businesses. This can be a great way to expand your customer base and grow your business.
Finally, Servpro is dedicated to ongoing innovation and improvement. The company invests in its franchise system, including third party licensed software, franchisor's third party integration, and international partnerships. This dedication to growth and improvement can be a major benefit for franchise owners who want to stay on the cutting edge of the industry.
Conclusion
Owning a Servpro franchise can be a rewarding and profitable experience. While there are certainly costs associated with starting and running a franchise, the benefits can far outweigh the initial investment. With access to Servpro's proven business formula, national training center, ongoing training programs, and strong franchise community, you'll have the support and resources you need to build a successful business in the cleanup and restoration services category.
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