Home services FDD 2026 Evidence confidence: High

1-800 WATER DAMAGE franchise

A franchisee runs a property restoration business offering water damage restoration, mold remediation, odor removal and fire, smoke and related cleaning, working from a leased office with garage space and a branded service vehicle, and may add reconstruction services with licensing, training and franchisor approval.

Total investment (Item 7)
$143K – $312K
Disclosed excl. real estate purchase
Franchise fee
$59K – $65K
Disclosed
Royalty
7%–10% of gross sales
Disclosed + ad fund 2% of gross sales
Average unit sales (AUV)
$770,375
Disclosed 78 units, CY2025 (Jan 1 - Dec 31, 2025)
Outlets (2025-12-31)
160
Disclosed 160 franchised · 0 company
Franchised units, 2023–2025
−7 (-4.2%)
Derived from Item 20
Operating model:
Owner-operator required Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 15
Page
PDF p. 55
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

You must devote your full time and personal best efforts to the day-to-day operation of the Business.

Item 15 requires the franchisee to devote full time and personal best efforts to day-to-day operation and to be available 24 hours a day, seven days a week because of the emergency nature of the work. During the term neither the franchisee nor immediate family may engage in any other business or hold an interest in any competitor. Items 11 and 17 refer to a Designated Manager who may be trained alongside the Managing Owner, but Item 15 does not offer a manager-run or absentee alternative, and failing to personally supervise day-to-day operation is a curable default under Item 17. Every owner, owner's spouse, member, member's spouse or officer of an entity franchisee must personally guarantee the agreement.

Conditions and responsibilities →

What stands out

  • Total estimated initial investment for a new standard single-Territory franchise is $142,903 to $312,398, of which $110,000 to $115,950 goes to the franchisor or its affiliates ($59,000-$64,950 franchise fee plus a mandatory $51,000 initial package).
  • Royalty on remediation sales starts at 10% of Gross Sales and steps down to 9%, 8% and 7% at $500,000, $1,000,000 and $2,000,000 of annual sales, plus 2% to the brand marketing fund, $750 a month technology fee and $399 a month software fee.
  • Item 19 discloses 2025 gross sales only, for 78 franchisees open all year: average $770,375.03 and median $481,891.35 per owner. Because 32 of those owners held multiple Territories, the per-Territory figures are lower — $512,050.52 for single-Territory owners.
5 more observations
  • No cost, expense or profit data appears anywhere in Item 19, and the sales figures were self-reported by franchisees and not audited.
  • Franchised outlets fell from 175 to 160 during 2025 and from 178 at the end of 2023, as terminations rose to 25 and openings fell to 10. There are no company-owned outlets.
  • The Territory is expressly non-exclusive: other franchisees and franchisor-owned outlets may service customers inside it without limitation, though no one else may advertise there or open an office there.
  • Minimum monthly Gross Sales requirements begin at $10,400 in months 13-24 and rise to $41,500 after month 48; missing them for three consecutive months allows termination or the placement of a competitor in the Territory.
  • Item 15 requires full-time owner operation with 24/7 availability, and every owner and owner's spouse must personally guarantee the agreement.

Things to verify

  • Ask why terminations rose from 8 to 25 a year across 2023-2025 and request the Exhibit G list of former franchisees; note the FDD says some franchisees have signed provisions limiting what they can say.
  • When comparing the $770,375.03 average with other brands, confirm it is a per-owner figure covering 148 Territories, not an average unit volume; the single-Territory average of $512,050.52 is the closer comparison for a first unit.
  • Ask what the bottom quartile looks like at the Territory level — the bottom 25% of owners averaged $133,478.66 and one franchisee that operated all year reported $0.
5 more questions
  • Confirm what the $51,000 Initial Package includes item by item, since it is paid to the franchisor and affiliates CDI and BHI are the only approved suppliers for tools, equipment and apparel.
  • Model the minimum obligations independent of sales: $500 minimum monthly royalty from month 13, $1,149 a month in technology and software fees, and the escalating minimum Gross Sales thresholds.
  • Clarify how referrals actually flow — third-party administrator, NORA and call-centre leads are the protected part of the Territory but participation is not guaranteed and can be redirected for non-compliance.
  • Verify whether a Designated Manager can satisfy the day-to-day supervision obligation, since Item 15 requires the franchisee's own full time while Items 11 and 17 refer to a Designated Manager.
  • Ask about the relationship with affiliate 1-800 BOARDUP, whose licensed providers also perform fire, water and storm restoration, and about the Preferred Referral obligation to BELFOR for reconstruction work.
Model estimateDefault base scenario: $12,165 / yearIllustrative cash flow after manager pay and debt service, before taxes, capital expenditure and unmodeled fees.
Inspect & adjust the assumptions →

Category cost placeholders, not a forecast. Owner operation is required; a manager-pay deduction does not make this an absentee model. This snapshot uses the default inputs; the calculator below updates when you edit them.

Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.

Read the full research overview

1-800 WATER DAMAGE franchisees run an emergency property-restoration business — water damage mitigation, mold remediation, odor removal and fire and smoke cleaning — from about 1,200 square feet of leased office and garage space with one branded service vehicle and at least one full-time service technician. Reconstruction work can be added with licensing, training and franchisor approval. The franchisor is a Delaware LLC formed in 2015 that bought the brand from predecessor LLB Group, which franchised the concept from 2002; it is part of BELFOR Franchise Group and ultimately BELFOR Holdings.

A new standard franchise is estimated at $142,903 to $312,398 for one Territory of roughly 350,000 population, with $110,000 to $115,950 of that payable to the franchisor or its affiliates: a $59,000 initial franchise fee (up to $64,950 for a larger Territory) plus a mandatory $51,000 initial equipment, tools and marketing package. A conversion route for existing restoration businesses runs $71,403 to $290,548. Ongoing fees are a declining royalty on remediation sales starting at 10% and falling to 7% above $2,000,000, a 2% brand marketing fund contribution, a $750 monthly technology fee and a $399 monthly software fee, with a $500 minimum monthly royalty from month 13. No minimum local advertising spend is required, and no liquidity or net-worth requirement is stated in the reviewed source.

Item 19 reports 2025 gross sales for the 78 franchisees, holding 148 of 160 Territories, that were open all year: an average of $770,375.03 and a median of $481,891.35. Those are per owner, not per Territory — 17 owners held three or more Territories. The per-Territory view is lower: $512,050.52 average for the 46 single-Territory owners, and $312,374.52 and $377,273.51 for Territories held by two- and three-plus-Territory owners. The spread is wide, with a top quartile averaging $1,949,637.72, a bottom quartile averaging $133,478.66 and a lowest reported figure of $0. No cost, margin or profit figures are disclosed, and the sales data are self-reported and unaudited.

The system is contracting. Franchised outlets went from 167 at the start of 2023 to 178, then 175, then 160 at the end of 2025 — a net loss of 7 over three years, with terminations climbing from 8 to 19 to 25 while openings fell from 20 to 10. There are no company-owned outlets and none were reacquired. Twenty-three transfers occurred over the period, and 20 new openings are projected for the next year. Notable contract terms: a five-year term, a non-exclusive Territory with no protection against other franchisees servicing customers inside it, escalating minimum monthly sales requirements from $10,400 to $41,500, a full-time owner-operator obligation with 24/7 availability, personal guarantees from owners and their spouses, an 18-month post-term non-compete with a 50-mile radius, and arbitration in Ann Arbor, Michigan. Item 3 lists one concluded franchisor-initiated suit against a former franchisee and two mid-2000s regulatory matters involving the predecessor; Item 4 discloses no bankruptcy.

View ratings and their supporting evidence

Transparent ratings

How these are computed

Each dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.

System performance

How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.

System Growth 2 / 5
-4.2% franchised units, 2023–2025
Inputs
  • Franchised outlets 167 → 160 (Item 20, Table 3)
  • Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Unit Stability 1 / 5
10.3% average annual franchised attrition
Inputs
  • Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
  • Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Investment Efficiency 5 / 5
3.38× sales-to-investment
Inputs
  • AUV $770,375 (disclosed) ÷ midpoint investment $227,651 = 3.38×
  • Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
Evidence & disclosure quality

How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.

Financial Disclosure Quality 3 / 5
3 of 5 disclosure points
Inputs
  • Item 19 present (+1)
  • Average plus median or a distribution (+1)
  • Population 93% of franchised units, clearly described (+1)
Evidence Confidence High
12 of 12 key fields disclosed (100%). Document current. AI-assisted extraction independently machine-verified against the cited source document: 74 of 77 material fields confirmed (69 with the exact page cite re-confirmed); 3 corrected during verification.
Labeled indicators (not scored)
Franchisor Track Record
Franchising 24 years (since 2002) · 160 outlets · Item 3: 3 matter(s) disclosed · Item 4: none disclosed
Multi-Unit Scalability
There is no area development agreement. A buyer may sign up to three franchise agreements at one time, and the franchisor discounts the Initial Franchise Fee… · Owner-operator required
Operational Intensity
Owner-operator required

Initial investment

FDD Items 5 and 7

Format shown: Standard Franchise — one new single Territory of about 350,000 population, leased office with garage, one service vehicle

$142,903–$312,398 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.

View full investment breakdown — Items 5 & 7
Initial franchise fee (the named Item 5 fee only)
$59,000 Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 5
Page
PDF p. 15
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

you must pay an initial fee to us of $59,000 (the "Initial Franchise Fee") for a single Territory with a population of approximately 350,000 people

Base fee $59,000 for a 350,000-population Territory, plus $170 per thousand population above that (Item 7's own example: 385,000 population = $64,950); stated cap is 500,000 population (theoretical max $84,500). Veteran (-$11,800), first-responder (-$2,500) and multi-territory (-$10,000) discounts, and financing, are excluded per instructions. Other required Item 5 payments to the franchisor are listed separately below — this figure is the named fee only.

$64,950 Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 5
Page
PDF p. 15
As of
2026-03-30
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

you must pay an initial fee to us of $59,000 (the "Initial Franchise Fee") for a single Territory with a population of approximately 350,000 people

Base fee $59,000 for a 350,000-population Territory, plus $170 per thousand population above that (Item 7's own example: 385,000 population = $64,950); stated cap is 500,000 population (theoretical max $84,500). Veteran (-$11,800), first-responder (-$2,500) and multi-territory (-$10,000) discounts, and financing, are excluded per instructions. Other required Item 5 payments to the franchisor are listed separately below — this figure is the named fee only.

Other required initial payments to the franchisor (Item 5)
  • Initial Package Fee: $51,000 — Fixed package (equipment, software implementation/usage fees, small tools/safety package, marketing materials, logo wear, and an $850 convention allowance) required of every new Standard Franchise, plus sales tax.
Total Item 5 payments to franchisor/affiliates
$110,000 Derived
Method
Derived by arithmetic from disclosed figures in 2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC.
Formula
initial franchise fee + 1 other mandatory Item 5 payment(s): Initial Package Fee
$115,950 Derived
Method
Derived by arithmetic from disclosed figures in 2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC.
Formula
initial franchise fee + 1 other mandatory Item 5 payment(s): Initial Package Fee
Total initial investment — low
$142,903 Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 7 — Item 7A Standard Franchise — TOTAL ESTIMATED INITIAL INVESTMENT & ADDITIONAL EXPENSES
Page
PDF p. 27
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

The printed low total foots exactly to the table's own line items.

Total initial investment — high
$312,398 Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 7 — Item 7A Standard Franchise — TOTAL ESTIMATED INITIAL INVESTMENT & ADDITIONAL EXPENSES
Page
PDF p. 27
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

The printed high total foots exactly to the table's own line items. The spread is driven mainly by the vehicle line ($6,000 to $115,000).

Midpoint of range
$227,651 Derived
Method
Derived by arithmetic from disclosed figures.
Formula
(Item 7 low + Item 7 high) ÷ 2
Real estate purchase included?No — assumes a leased site
Additional funds assumed3 months
Required liquid capital
Not disclosed in the reviewed source Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC; we do not fill gaps with estimates or third-party figures.

The cover page, Item 1, Item 5 and Item 7 state no minimum liquid capital requirement for a candidate.

Required net worth
Not disclosed in the reviewed source Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC; we do not fill gaps with estimates or third-party figures.

No minimum candidate net worth is stated anywhere in the reviewed source. The only net-worth reference is the Michigan state addendum's standard escrow notice, which concerns the franchisor's own financial statements, not the buyer.

Item 7 Table A covers one new Standard Franchise in a single Territory. No purchase of land or buildings is contemplated — the FDD states the estimate assumes leased premises of roughly 1,200 square feet of commercial office space with a garage. Additional funds cover only the first three months after opening and exclude an owner's salary or draw, operating losses beyond that period, and personal living expenses. Sales tax on the Initial Package and on the vehicle, vehicle delivery and licensing are all excluded. Both the Standard and Conversion tables foot exactly to their printed totals on our arithmetic. A second Item 7 table covers Conversion Franchises ($71,403-$290,548) and is recorded under alternative_formats. Expansion units for existing franchisees ($49,000 initial franchise fee) and units for franchisees of affiliated BELFOR Franchise Group brands (25% off) are described in Item 5 but have no separate Item 7 table. Item 5 also notes that in 2025 seven franchisees used a $10,000 promotional discount on additional territory purchases.

Item 7 line items (14)

ExpenditureLowHigh
Initial Franchise Fee per Territory — Paid to the franchisor at signing; high adds one Additional Fee increment.$59,000$64,950
Initial Package Fee / Marketing and Operations Package / Equipment and Products Package — Paid to the franchisor at signing; not charged on additional franchises awarded later.$51,000$51,000
Food and lodging while at training (excludes transportation) — Assumes two attendees sharing one hotel room.$1,800$2,500
Vehicle with upfitting — Must be leased or bought through an approved supplier; high assumes a new vehicle with truck-mount unit.$6,000$115,000
Full-time Service Technician — Low assumes the managing owner works alongside one technician; high assumes a certified crew leader plus a technician.$6,336$16,896
Business telephone fee$0$150
High-speed internet, anti-virus software and email$267$477
Computer system$0$2,875
Insurance — First three months of the required coverages.$4,500$8,750
Rent — About 1,200 sq ft of commercial office space with a garage for the service vehicle.$3,000$15,000
Leasehold improvements$0$1,200
Security and utility deposits$1,000$3,000
Licenses and permits$0$600
Additional funds — first 3 months — Working capital excluding items shown separately; excludes owner salary or draw.$10,000$30,000

Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC (table begins PDF p. 27) — rows inherit the table's citation rather than carrying fifteen identical ones.

Other formats disclosed in Item 7 (1)
FormatLowHighFee
Conversion Franchise — existing restoration business with $100,000+ annual sales in each of its last two fiscal years$71,403$290,548$34,000

Ongoing fees

FDD Item 6

Royalty

7%–10% of gross sales Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 6 — Other Fees table — Royalty; Note 1 at p. 23
Page
PDF p. 19
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

10% of Gross Sales of up to $499,999.99 per year

Remediation Services use a declining calendar-year scale on Gross Sales: 10% up to $499,999.99, 9% above $500,000, 8% above $1,000,000 and 7% above $2,000,000. A rate earned in one year carries into the whole of the following year and reverts if the threshold is missed. A new franchisee therefore starts at 10%. Reconstruction Services are charged at 10% until Remediation Gross Sales pass $500,000, then 3%. Royalty is debited monthly by the 10th on the prior month's Gross Sales, which are recognised on the earlier of customer payment or 180 days after invoice. From the 13th month a minimum monthly royalty of $500 applies. If the franchisee is in default the franchisor may reset the rate to the highest tier.

Brand advertising fund

2% of gross sales Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 6 — Other Fees table — Brand Marketing Fund Contributions; Item 11.5 at p. 40
Page
PDF p. 20
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

A 2% of Gross Sales monthly contribution to the Brand Marketing Fund, debited with the royalty. The fund is directed by the franchisor with a committee of four franchisees; it is not independently audited, unspent money carries forward, and franchisor- or affiliate-owned outlets do not contribute. In the year ended December 31, 2025 the fund was spent on media placement (69%), administrative costs (25%), production (4%) and public relations (2%). The franchisor may reimburse itself from the fund for administration and for certain litigation costs.

Local marketing

0% of gross sales Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 11 — Item 11.4 — Local Marketing and Advertising
Page
PDF p. 39
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Item 11.4 says the franchisee must actively advertise within the Territory and that the franchisor recommends, but does not require, spending in excess of 3% of Gross Sales locally. All advertising materials must be approved by the franchisor before first use.

Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.

View all recurring fees and conditions
Royalty
7%–10% of gross sales Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 6 — Other Fees table — Royalty; Note 1 at p. 23
Page
PDF p. 19
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

10% of Gross Sales of up to $499,999.99 per year

Remediation Services use a declining calendar-year scale on Gross Sales: 10% up to $499,999.99, 9% above $500,000, 8% above $1,000,000 and 7% above $2,000,000. A rate earned in one year carries into the whole of the following year and reverts if the threshold is missed. A new franchisee therefore starts at 10%. Reconstruction Services are charged at 10% until Remediation Gross Sales pass $500,000, then 3%. Royalty is debited monthly by the 10th on the prior month's Gross Sales, which are recognised on the earlier of customer payment or 180 days after invoice. From the 13th month a minimum monthly royalty of $500 applies. If the franchisee is in default the franchisor may reset the rate to the highest tier.

Remediation Services use a declining calendar-year scale on Gross Sales: 10% up to $499,999.99, 9% above $500,000, 8% above $1,000,000 and 7% above $2,000,000. A rate earned in one year carries into the whole of the following year and reverts if the threshold is missed. A new franchisee therefore starts at 10%. Reconstruction Services are charged at 10% until Remediation Gross Sales pass $500,000, then 3%. Royalty is debited monthly by the 10th on the prior month's Gross Sales, which are recognised on the earlier of customer payment or 180 days after invoice. From the 13th month a minimum monthly royalty of $500 applies. If the franchisee is in default the franchisor may reset the rate to the highest tier.
Advertising / brand fund
2% of gross sales Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 6 — Other Fees table — Brand Marketing Fund Contributions; Item 11.5 at p. 40
Page
PDF p. 20
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

A 2% of Gross Sales monthly contribution to the Brand Marketing Fund, debited with the royalty. The fund is directed by the franchisor with a committee of four franchisees; it is not independently audited, unspent money carries forward, and franchisor- or affiliate-owned outlets do not contribute. In the year ended December 31, 2025 the fund was spent on media placement (69%), administrative costs (25%), production (4%) and public relations (2%). The franchisor may reimburse itself from the fund for administration and for certain litigation costs.

A 2% of Gross Sales monthly contribution to the Brand Marketing Fund, debited with the royalty. The fund is directed by the franchisor with a committee of four franchisees; it is not independently audited, unspent money carries forward, and franchisor- or affiliate-owned outlets do not contribute. In the year ended December 31, 2025 the fund was spent on media placement (69%), administrative costs (25%), production (4%) and public relations (2%). The franchisor may reimburse itself from the fund for administration and for certain litigation costs.
Required local marketing
0% of gross sales Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 11 — Item 11.4 — Local Marketing and Advertising
Page
PDF p. 39
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Item 11.4 says the franchisee must actively advertise within the Territory and that the franchisor recommends, but does not require, spending in excess of 3% of Gross Sales locally. All advertising materials must be approved by the franchisor before first use.

Item 11.4 says the franchisee must actively advertise within the Territory and that the franchisor recommends, but does not require, spending in excess of 3% of Gross Sales locally. All advertising materials must be approved by the franchisor before first use.
Technology / software
$1,149/month Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 6 — Other Fees table — Technology Fee; Item 11.6 at p. 42
Page
PDF p. 20
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

A separate mandatory Software Fee, currently $399 per month, covers the WATER DAMAGE franchise management software and its upgrades. Both are the franchisor's then-current fees and may rise with the third-party vendor's cost plus up to a 15% administration charge. XactAnalysis is provided within the software and Xactimate charges roughly $16 per estimate uploaded. The franchisee also buys the computer system (estimated $2,875) and has no contractual limit on the franchisor's access to the data in it. Citation audit 2026-09-04: Sum of two Item 6 rows on this page: Technology Fee $750/mo + Software Fee $399/mo = $1,149.

A separate mandatory Software Fee, currently $399 per month, covers the WATER DAMAGE franchise management software and its upgrades. Both are the franchisor's then-current fees and may rise with the third-party vendor's cost plus up to a 15% administration charge. XactAnalysis is provided within the software and Xactimate charges roughly $16 per estimate uploaded. The franchisee also buys the computer system (estimated $2,875) and has no contractual limit on the franchisor's access to the data in it. Citation audit 2026-09-04: Sum of two Item 6 rows on this page: Technology Fee $750/mo + Software Fee $399/mo = $1,149.
Advertising cooperative
0% of gross sales Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 11 — Item 11.5 — Brand Marketing Fund, Advertising Cooperative and Advertising Committee
Page
PDF p. 41
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

The franchisor reserves the right to require cooperatives to be formed, changed, dissolved or merged. Item 8 likewise says there are no distribution cooperatives or purchasing arrangements at present.

The franchisor reserves the right to require cooperatives to be formed, changed, dissolved or merged. Item 8 likewise says there are no distribution cooperatives or purchasing arrangements at present.
Transfer fee
25% (see basis) Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 6 — Other Fees table — Transfer Fee
Page
PDF p. 19
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

25% of the Initial Franchise Fee in force at the time of transfer, with a floor of $10,000; at the current $59,000 fee that is $14,750. Item 5 says the franchisor currently waives the Initial Franchise Fee for a buyer acquiring by transfer. If the franchisor engages a third-party broker at the seller's request, a broker fee of roughly 10% of the sale price or $30,000, whichever is higher, is also payable. A $500 fee applies to changing the legal entity that owns the franchise.

25% of the Initial Franchise Fee in force at the time of transfer, with a floor of $10,000; at the current $59,000 fee that is $14,750. Item 5 says the franchisor currently waives the Initial Franchise Fee for a buyer acquiring by transfer. If the franchisor engages a third-party broker at the seller's request, a broker fee of roughly 10% of the sale price or $30,000, whichever is higher, is also payable. A $500 fee applies to changing the legal entity that owns the franchise.
Renewal fee
10% (see basis) Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 6 — Other Fees table — Renewal Fee
Page
PDF p. 19
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

10% of the then-current Initial Franchise Fee, which at $59,000 would be $5,900. No renewal fee is charged on the first renewal; it applies to the second and any later renewal. The franchisor may raise or lower the Initial Franchise Fee by up to 15% per year of the term, which moves the renewal fee with it. The Initial Package Fee is waived on renewal, but new or additional equipment may be required at the franchisee's expense.

10% of the then-current Initial Franchise Fee, which at $59,000 would be $5,900. No renewal fee is charged on the first renewal; it applies to the second and any later renewal. The franchisor may raise or lower the Initial Franchise Fee by up to 15% per year of the term, which moves the renewal fee with it. The Initial Package Fee is waived on renewal, but new or additional equipment may be required at the franchisee's expense.
Royalty + ad fund (% of sales)
9% Derived
Method
Derived by arithmetic from disclosed figures.
Formula
Sum of royalty 7% and ad fund 2% where both are a percent of sales

Fee schedule (29 fees; 13 verified against the source, 16 single-pass)

Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.

FeeAmountFrequencyMandatoryVerificationCiteNotes
Royalty Tiered (base 7%) (min $500/monthly) monthly Yes verified (tie-break) Item 6, p. 19 Reconstruction Services are charged separately at 10% of Gross Sales until cumulative Remediation Gross Sales exceed $500,000 in the year, then 3% for as long as the franchisee remains qualified to offer Reconstruction Services. The franchisor may reset the Royalty to the highest tier while the franchisee is in default (including delinquent reporting). Pass A's low-to-high ordering (7 / 10) is kept because it matches the record's /fees/royalty encoding and the schema's range semantics; Pass B's inverted ordering (value 10, range_high 7) is rejected. Pass B's fifth tier (3%, null thresholds) is dropped from the ladder because it belongs to a different service line, not a revenue threshold, and would corrupt a tiered_percent lookup; it is retained in conditions. Tier upper bounds follow the source's own '$499,999.99' phrasing. Royalty is auto-debited by the 10th for the prior month's Gross Sales, recognised on the earlier of customer payment or 180 days after invoice. Calculator audit 2026-09-03: Note 1 switches the whole royalty rate prospectively once calendar-year Gross Sales cross a threshold (and holds it through the following year) rather than charging each band's rate on the slice of revenue inside it, so the bands are threshold t
Transfer Fee 25% of fixed (min $10,000) one time No single-pass Item 6, p. 19 Due upon Franchisor drafting the transferee's new Franchise Agreement. [Listed by one verification pass only (A); not independently confirmed.] Franchisor may increase/decrease the Initial Franchise Fee up to 15%/year of the Term, which can change this fee.
Transfer - Broker Fee $10 (min $30,000) one time No single-pass Item 6, p. 19 Only if franchisee authorizes franchisor to enlist a third-party broker to locate the transferee. [Listed by one verification pass only (A); not independently confirmed.] Payable to franchisor if it paid the broker, or to the broker directly if franchisor did not.
Renewal Fee 10% of fixed per event No single-pass Item 6, p. 19 Not charged on the first renewal; charged on the second and all subsequent renewal terms. [Listed by one verification pass only (A); not independently confirmed.] Franchise Agreement for the renewal term may include materially different terms, including Royalty rate and/or Territory.
Technology Fee $750 monthly Yes verified (2-pass) Item 6, p. 20 Debited automatically by the 10th of the month.
Software Fee $399 monthly Yes verified (2-pass) Item 6, p. 20 Debited automatically by the 10th of the month; may rise with third-party vendor cost plus up to 15% administration fee.
Brand Marketing Fund Contributions 2% of gross sales monthly Yes verified (2-pass) Item 6, p. 20 Debited with the Royalty; committee of 4 franchisees; not independently audited; unspent funds carry forward; franchisor/affiliate outlets exempt.
Local Advertising (recommended, not required) Not stated varies No verified (2-pass) Item 11, p. 39 No minimum is mandated; this is a recommendation only, disclosed in Item 11.4, not a line in the Item 6 table. Included per the audit procedure's instruction to capture local-advertising obligations from Item 11, even though it is not mandatory here.
Referral Fee 0%–10% of other per event No verified (tie-break) Item 6, p. 20 Item 6 Note 8 (p. 25): paying referral fees is 'optional and agreed to by you and the referring business', and 'you are not required to accept' leads from sources that charge them. TPA participation may also carry an application fee and a per-referral cost that vary by TPA and are not quantified. Pass B's amount_type/percent encoding (value 0, range_high 10) is correct because the table states an explicit percentage range; Pass A's 'variable' with a null value discards the disclosed low end. Pass A's frequency 'per_event' is correct because the Due Date column says 'Upon invoice'. Pass A's model_treatment 'excluded_immaterial' is rejected: up to 10% of invoice on referred work is not immaterial in a TPA-driven industry.
Late Report Fee $50 per event No single-pass Item 6, p. 20 Only if a required report is filed late. [Listed by one verification pass only (A); not independently confirmed.] May increase up to 10%/year of the Term.
Late Payment Fee $50 weekly No single-pass Item 6, p. 21 Only for any payment not paid when due. [Listed by one verification pass only (A); not independently confirmed.] May increase up to 10%/year of the Term.
Non-Sufficient Funds (NSF) Fee $50 per event No single-pass Item 6, p. 21 Only when franchisor debits the account and funds are insufficient. [Listed by one verification pass only (A); not independently confirmed.] May increase up to 10%/year of the Term.
Administrative Fee $500 per event No single-pass Item 6, p. 21 As incurred, upon request or requirement. [Listed by one verification pass only (A); not independently confirmed.] May increase up to 10%/year of the Term.
Transfer of Corporation Fee $500 per event No single-pass Item 6, p. 21 Due if franchisee changes the legal entity that owns the Franchise, other than one initial transfer prior to commencing business. [Listed by one verification pass only (A); not independently confirmed.] May increase up to 10%/year of the Term.
Non-Compliance Fee $2,500–$5,000 per event No single-pass Item 6, p. 21 Triggered by advertising/soliciting/servicing outside the Territory without consent, or other non-compliance. [Listed by one verification pass only (A); not independently confirmed.] This is in addition to, not in lieu of, other remedies. May increase up to 10%/year of the Term. Internal inconsistency: the Item 6 table row says 100% of the job invoice (as used here), but Note 3 on the same page describes the same fee as the greater of $2,500 OR 20% of the invoice - the two disclosures of the same fee do not match.
Conventions, Regional Meetings and/or Additional Training $1,000 annual Yes verified (2-pass) Item 6, p. 22 Franchisee must attend the annual Convention (Item 11.12); fee offsets meeting room, meals, A/V, workbooks, speakers, etc. Payable to and collected by third parties (venues, etc.), not the franchisor directly; may increase up to 10%/year of the Term. Calculator audit 2026-09-03: The FDD states a per-person ceiling, not an exact charge, so value_is must be 'ceiling' rather than an implied exact rate. (p. 22; "The then-current fee, which is presently $1,000 maximum per person to attend the")
Convention Non-Attendance Fee $1,000 annual No single-pass Item 6, p. 22 Only due if franchisee fails to attend the Convention without prior written permission. [Listed by one verification pass only (A); not independently confirmed.] May increase up to 10%/year of the Term.
Collection Fee 35% of other per event No single-pass Item 6, p. 22 Only when franchisor collects payment on franchisee's behalf from customers 90+ days delinquent. [Listed by one verification pass only (A); not independently confirmed.]
Interest (on overdue amounts) 18% of other varies No single-pass Item 6, p. 22 Only on amounts overdue. [Listed by one verification pass only (A); not independently confirmed.]
Audit Fee $2,500–$6,000 (min $2,500) per event No single-pass Item 6, p. 22 Only if franchisor finds it necessary to inspect/audit (e.g., suspected underreporting or failure to furnish records/reports on time). [Listed by one verification pass only (A); not independently confirmed.] If understatement > 3% of Gross Sales, an additional 10% penalty on the understated amount applies.
Insurance (franchisor-procured) Not stated varies No verified (tie-break) Item 6, p. 22 Charged only if the franchisee fails to maintain the types and amounts of insurance specified in Item 8; the franchisee must pay the franchisor on demand. Failure to maintain insurance is a default. Pass B's entry under this id is a different item: Item 7A's Insurance row of $4,500-$8,750 (p. 26), which Item 7 Note 8 says 'estimates the cost to attain insurance for the first three months of operation' and is payable to third-party carriers. That figure is part of the initial investment ($142,903-$312,398) and is deliberately NOT carried into the fee schedule, which would double count it; it is also not a recurring quarterly charge, so Pass B's frequency 'quarterly' with value 4500 would misstate it. New York franchisees face higher statutory coverage requirements.
Indemnification Not stated varies No single-pass Item 6, p. 23 As incurred. [Listed by one verification pass only (A); not independently confirmed.]
Attorneys' Fees Not stated varies No single-pass Item 6, p. 23 As incurred. [Listed by one verification pass only (A); not independently confirmed.]
Additional Training $50 per event No verified (tie-break) Item 6, p. 23 Item 6 Note 7 (p. 23): attendance at periodic refresher courses and conferences (not more than one per year) is required and Service Technicians may also be required to attend, but the franchisor only 'may charge fees'. The franchisee separately bears all travel and living expenses. The fee may rise by up to 10% each year of the Term. Verified in the Item 6 table on p. 23; a genuine Item 6 line that Pass B did not list separately (Pass B folded refresher training into its 'convention-and-refresher-training' entry). Distinct from the Regional Meetings/Additional Training row (up to $1,000 per person, payable to third parties) and from the $1,000 Convention Non-Attendance Fee.
Testing, New Product or New Supplier Approval $500 (min $500) per event No single-pass Item 6, p. 23 Only if franchisee requests approval of a new product/service or supplier. [Listed by one verification pass only (A); not independently confirmed.]
Minimum monthly payment (minimum Royalty) $500 monthly Yes verified (tie-break) Item 6, p. 19 Applies from the 13th month of operations (the 'Transition Date'); the franchisee pays the greater of the Royalty due or $500 per month. Kept even though the royalty entry also carries the same floor in its `minimum` object: overlaps_with 'royalty' plus model_treatment 'included_elsewhere' means the economics engine cannot double count it, and a standalone entry surfaces a disclosed minimum mandatory payment that comparison readers look for.
Advertising cooperative contribution Not stated varies No verified (tie-break) Item 11, p. 41 No cooperative currently exists and participation is not required; the franchisor reserves 'the right to require that advertising cooperatives be formed, changed, dissolved or merged' in the future, with no amount or maximum stated. Confirmed on p. 41. Kept as an explicit amount_type 'none' entry so the absence is documented rather than merely missing, consistent with the /fees/cooperative field being recorded as 0%. It does not overlap the 2% Brand Marketing Fund, which is a separate, unrelated requirement.
QuickBooks Online Plus accounting software (required) $42 monthly Yes verified (tie-break) Item 11, p. 42 Required for the whole term; the franchisor may change the required software at its discretion. An approved Professional Services Automation (PSA) package is also required, with no cost disclosed. Confirmed on p. 42; a mandatory recurring third-party cost that Pass A omitted.
XactAnalysis estimate upload transaction fee $16 varies Yes verified (tie-break) Item 11, p. 41 XactAnalysis is currently supplied as part of the mandatory WATER DAMAGE Software, so the charge is unavoidable in ordinary operation but scales with job volume. Page corrected to 41 (Pass B cited 42); the sentence sits on p. 41, one page before the QuickBooks sentence.

Fees are debited automatically from the franchisee's bank account. Beyond the royalty, 2% brand fund, $750 technology fee and $399 software fee, Item 6 lists a long schedule of situational charges, most of which the franchisor may increase by up to 10% a year. Audit costs of an estimated $2,500-$6,000 plus 18% interest fall on the franchisee where an inspection is triggered by late or missing reports, and an understatement of Gross Sales greater than 3% adds a penalty of 10% of the understated amount. Three outside technician certifications costing about $310 in total are required after initial training. Insurance requirements are extensive and include a pollution policy covering mold, bacteria and fungi.

Financial performance (Item 19)

What the franchisor actually disclosed
Average unit sales
$770,375
Disclosed Average annual Gross Sales per reported franchisee (owner) in CY2025 — 78 franchisees operating 148 Territories; not a per-Territory average
Median unit sales
$481,891
Disclosed
Population
78 units
93% of franchised units · CY2025 (Jan 1 - Dec 31, 2025)
Cost or profit data?
No — sales only
historical sales

Who is represented: All 78 franchisees, operating 148 Franchised Businesses (Territories), that were open and operating for the whole of calendar 2025. Excluded are 8 franchisees operating 12 Franchised Businesses that were not open the entire year, either because they opened during 2025 or because a transfer caused a period of closure. At December 31, 2025 the system had 86 franchisees in 160 Territories, so the tables cover about 91% of franchisees and 92.5% of Territories. There are no company-owned outlets. Importantly, Table 1's statistics are computed per franchisee (owner), not per Territory: an owner with three Territories contributes one combined revenue figure. Table 2 restates the same population by number of Territories owned and is the only place a per-Territory average appears. The sales data were self-reported by franchisees in monthly Gross Sales reports and were not audited; one franchisee that operated all year reported no sales and is carried in the tables at $0.

Qualifications: Gross Sales only — the Item 19 contains no cost, expense, margin or profit data. The FDD lists royalties, technology and software fees, local advertising, brand fund contributions, rent, inventory, payroll and payroll taxes, owner compensation, benefits, insurance, taxes, professional fees, interest, depreciation and amortisation as excluded. Figures were self-reported by franchisees in monthly Gross Sales reports and were not audited. The main table measures franchisees (owners), not Territories, so multi-Territory owners inflate the headline average relative to a single-unit buyer's likely revenue. Twelve Territories held by 8 franchisees were excluded because they were not open all year, which removes new openings and transfer-disrupted units from the sample. The bottom quartile average is $133,478.66 and the lowest reported figure is $0, including one franchisee that operated all year but filed no sales report. Footnotes 6 and 7 state group sizes (38 and 57 franchisees) and an attainment count (25) that differ from the table rows (39, 59 and 26). The franchisor will provide written substantiation on reasonable request.

View full Item 19 disclosure and tables

The FDD makes a historical Gross Sales representation for calendar 2025 covering the 78 franchisees, holding 148 of the system's 160 Territories, that were open the whole year. The broadest figure is an average of $770,375.03 in annual Gross Sales with a median of $481,891.35, but both are calculated per franchisee rather than per Territory: 32 of the 78 owners held more than one Territory and 17 held three or more. The second table restates the same population by Territory count, and there the picture for a single-unit buyer is clearer — 46 franchisees with one Territory averaged $512,050.52 with a median of $353,606.73, while Territories held by multi-unit owners averaged $312,374.52 (two Territories) and $377,273.51 (three or more). On our own arithmetic across all 78 reported franchisees, total reported sales of about $60.1 million spread over 148 Territories works out near $406,000 per Territory. The spread is very wide: the top quartile of owners averaged $1,949,637.72 while the bottom quartile averaged $133,478.66, only 25 of 78 owners reached the overall average, and the lowest reported figure is $0. Nothing in Item 19 addresses costs or profit, so no conclusion about earnings can be drawn from it.

Disclosed sales metrics
MetricSubsetValueUnitsPeriodCite
Average annual Gross Sales — all reported franchisees
25 of the 78 franchisees exceeded this average (about 32% on our arithmetic; the FDD gives the count, not a percentage, for the Total row). Per owner, not per Territory.
All reported franchisees (per owner)
Average
$770,37578CY2025FDD p.61
Median annual Gross Sales — all reported franchiseesAll reported franchisees (per owner)
Median
$481,89178CY2025FDD p.61
Highest annual Gross Sales reported by any franchisee
Table 2 shows this figure comes from the group owning three or more Territories.
All reported franchisees (per owner)
High
$4,408,41178CY2025FDD p.61
Lowest annual Gross Sales reported by any franchisee
A footnote to Table 2 says one franchisee that operated throughout 2025 did not report sales and the franchisor could not state its revenue; that outlet appears as $0.
All reported franchisees (per owner)
Low
$078CY2025FDD p.61
Average annual Gross Sales — top 25% of franchisees
32% of units met or exceeded
Group range $944,433.45 to $4,408,411.22; 6 of 19 met or exceeded the group average.
Top 25% franchisees
Quartile avg.
$1,949,63819CY2025FDD p.61
Median annual Gross Sales — top 25% of franchiseesTop 25% franchisees
Quartile median
$1,506,01719CY2025FDD p.61
Average annual Gross Sales — top 50% of franchisees
36% of units met or exceeded
Group range $490,870.80 to $4,408,411.22; 14 of 39 met or exceeded the group average.
Top 50% franchisees
Quartile avg.
$1,299,28139CY2025FDD p.61
Median annual Gross Sales — top 50% of franchiseesTop 50% franchisees
Quartile median
$912,98239CY2025FDD p.61
Average annual Gross Sales — top 75% of franchisees
31% of units met or exceeded
Group range $257,242.01 to $4,408,411.22; 18 of 58 met or exceeded the group average.
Top 75% franchisees
Quartile avg.
$989,99458CY2025FDD p.61
Median annual Gross Sales — top 75% of franchiseesTop 75% franchisees
Quartile median
$707,12858CY2025FDD p.61
Average annual Gross Sales — bottom 25% of franchisees
55% of units met or exceeded
Group range $0.00 to $249,108.07; 11 of 20 met or exceeded the group average.
Bottom 25% franchisees
Quartile avg.
$133,47920CY2025FDD p.61
Median annual Gross Sales — bottom 25% of franchiseesBottom 25% franchisees
Quartile median
$145,84020CY2025FDD p.61
Average annual Gross Sales — bottom 50% of franchisees
56% of units met or exceeded
Group range $0.00 to $472,911.90; 22 met or exceeded the group average. Note 6 describes the group as 38 franchisees while the table row shows 39.
Bottom 50% franchisees
Quartile avg.
$241,47039CY2025FDD p.61
Median annual Gross Sales — bottom 50% of franchiseesBottom 50% franchisees
Quartile median
$249,10839CY2025FDD p.61
Average annual Gross Sales — bottom 75% of franchisees
44% of units met or exceeded
Group range $0.00 to $912,981.82. The table row shows 59 franchisees and 26 exceeding the average; Note 7 describes the group as 57 franchisees with 25 exceeding.
Bottom 75% franchisees
Quartile avg.
$390,61259CY2025FDD p.61
Median annual Gross Sales — bottom 75% of franchiseesBottom 75% franchisees
Quartile median
$354,43159CY2025FDD p.61
Average annual revenue per Territory — owners of one Territory
46 owners holding 46 Territories, so average revenue per owner and per Territory are the same figure. Range $0 to $2,186,264.67.
Franchisees owning 1 Territory
Average
$512,05146CY2025FDD p.62
Median annual revenue per owner — owners of one TerritoryFranchisees owning 1 Territory
Median
$353,60746CY2025FDD p.62
Average annual revenue per owner — owners of two Territories
15 owners holding 30 Territories. Range $295,782.33 to $1,581,910.39.
Franchisees owning 2 Territories
Average
$624,74915CY2025FDD p.62
Median annual revenue per owner — owners of two TerritoriesFranchisees owning 2 Territories
Median
$469,80315CY2025FDD p.62
Average annual revenue per Territory — owners of two TerritoriesTerritories held by 2-Territory owners
Average
$312,37530CY2025FDD p.62
Average annual revenue per owner — owners of three or more Territories
17 owners holding 72 Territories. Range $164,288.59 to $4,408,411.22.
Franchisees owning 3+ Territories
Average
$1,597,86417CY2025FDD p.62
Median annual revenue per owner — owners of three or more TerritoriesFranchisees owning 3+ Territories
Median
$1,392,92117CY2025FDD p.62
Average annual revenue per Territory — owners of three or more TerritoriesTerritories held by 3+-Territory owners
Average
$377,27472CY2025FDD p.62

Read: What Item 19 actually tells you.

System health (Item 20)

Outlets, openings, exits and transfers by fiscal year · U.S. only
01325 2023: 20 opened 2023: 9 exits 2023 2024: 17 opened 2024: 20 exits 2024 2025: 10 opened 2025: 25 exits 2025 178 175 160 franchised year-end opened / exits
OpenedExits (terminations, non-renewals, reacquired, ceased-other)Franchised outlets at year end
Openings (2023–2025)
47
Exits
54
52 terminated · 0 not renewed · 0 reacquired · 2 other
Transfers
23
resales between franchisees
Avg. annual attrition
10.3%
Derived exits ÷ start-of-year units
Projected openings next FY
20
Disclosed · 4 signed, not open
Franchised share
100%
Derived
View detailed Item 20 tables and source notes
Item 20 Table 3 — status of franchised outlets
Fiscal yearStartOpenedTerminatedNot renewedReacquiredCeased — otherEndTransfersCompany-owned (end)
202316720800117860
20241781719001175100
2025175102500016070

Disclosed 2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC, Item 20, Tables 1–3 (PDF p. 64). All five tables list U.S. states only and no company-owned outlet appears in any year. Table No. 3 foots exactly in each year on our arithmetic. Table No. 1 labels the franchised row 'Franchised - Traditional'; an outlet corresponds to a Territory. Direction of travel: the system added 11 outlets in 2023, lost 3 in 2024 and lost 15 in 2025, a net decline of 7 over the three years, from 167 at the start of 2023 to 160 at the end of 2025. The change is driven by terminations rather than openings failing to occur: terminations rose from 8 to 19 to 25 while openings fell from 20 to 17 to 10. No outlets were reacquired by the franchisor and none were recorded as non-renewals. Transfers ran at 6, 10 and 7. Item 20 also states that in some instances current and former franchisees have signed provisions restricting their ability to speak openly about their experience with the franchisor.

Source data notes (11) — inconsistencies found in the FDD itself during verification

Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.

  • [D/minor] Table 1 / Table 3: Pass B reported that Table 1 and Table 3 agree for all three years (167 to 178 in 2023, 178 to 175 in 2024, 175 to 160 in 2025) and that every Table 3 TOTALS row reconciles as start + opened - terminations - non-renewals - reacquired - ceased other = end. — Independently re-summed all 38 state rows of Table 3 (pp. 65-68) for each year: 2023 = 167 / 20 / 8 / 0 / 0 / 1 / 178, 2024 = 178 / 17 / 19 / 0 / 0 / 1 / 175, 2025 = 175 / 10 / 25 / 0 / 0 / 0 / 160. Every column foots exactly to the printed TOTALS row on p. 68 and every row reconciles (167+20-8-1=178; 178+17-19-1=175; 175+10-25=160). Table 1 on p. 64 prints the identical start/end/net figures. No discrepancy; not an error of any kind.
  • [D/minor] Table 3: Pass B reported clean carry-forward: 2023 end 178 = 2024 start 178, and 2024 end 175 = 2025 start 175. — Confirmed on the printed TOTALS rows (p. 68) and at state level. No discontinuity anywhere in the three-year series, so the site's derived growth series needs no adjustment.
  • [D/minor] Table 2: Pass B reported that Table 2's state rows foot to 6 / 10 / 7 transfers. — Re-added the Table 2 state rows (pp. 64-65): 2023 Colorado 1 + Washington 4 + Wisconsin 1 = 6; 2024 California 1 + Florida 2 + Georgia 1 + Minnesota 2 + New York 4 = 10; 2025 Colorado 1 + Florida 1 + New Jersey 3 + Texas 2 = 7. All three printed totals foot exactly.
  • [D/minor] Table 3 2025: Pass B observed two consecutive years of contraction: openings 20 / 17 / 10 against terminations 8 / 19 / 25, net +11 / -3 / -15, with the 2025 termination count about 14% of the 175 outlets that started the year. — Not a table inconsistency. All figures verified against the Table 3 TOTALS rows (p. 68) and corroborated by Table 1 (p. 64); 25 / 175 = 14.3%. This is a substantive trend rather than a data defect, and the printed totals it rests on are corroborated.
  • [E/minor] Table 3: Pass B flagged that non-renewals and reacquisitions are zero in every state and every year, so essentially every exit is booked as a termination, with only two outlets across three years recorded as 'ceased operations - other reasons' (Texas 2023, Arizona 2024); with a five-year initial term, zero non-renewals over three years is unusual. — Verified: the Non-Renewals and Reacquired by Franchisor columns are 0 in all 38 state blocks for 2023-2025, and the only 'Ceased Operations - Other' entries are Texas 2023 (1) and Arizona 2024 (1), matching the printed totals 1 / 1 / 0 (p. 68). The FDD offers no footnote explaining the categorisation, so whether genuinely no agreement reached its expiry unrenewed or all exits were simply coded as terminations cannot be settled from the document. Severity is minor because the exit MIX is in doubt, not the totals: end-of-year counts are corroborated by Table 1 and each row foots.
  • [D/minor] Table 1 / Table 4: Pass B noted no company-owned outlets exist at any point (Table 1 Company Owned rows and all of Table 4 are zero) while Item 1 discloses that parent BELFOR owns and operates 154 restoration outlets in the U.S. and Canada. — Legitimate definitional boundary, not an inconsistency. Item 20 covers outlets operated under the 1-800 WATER DAMAGE franchise system only; BELFOR's 154 outlets (Item 1, p. 9) are the parent's own restoration business and are correctly outside Tables 1 and 4. Worth surfacing editorially because Item 1.4 acknowledges franchisees may compete with BELFOR-owned businesses, but it does not change any Item 20 figure.
  • [D/minor] Table 5 2025: Pass B flagged that Table 5 projects 20 new franchised outlets in the next fiscal year - double the 10 actually opened in 2025 and equal to the three-year peak - while only 4 signed-but-unopened agreements exist. — Table 5 (p. 69) is a forward-looking projection and is not required to reconcile to signed agreements or to prior-year openings, so the two columns legitimately differ by definition; the printed row (4 signed, 20 projected, 0 company-owned) foots to its state rows. No historical metric is affected, but the site should present the 20 as a franchisor projection, not as pipeline, given 2025 actual openings were 10 against 25 terminations.
  • [D/minor] Table 5 2025: Pass B noted that all 4 signed-but-not-opened agreements are in Tennessee, a state absent from Table 3 in all three years, and that Table 5 also carries New Jersey and Texas rows of all zeros. — Both are normal Table 5 behaviour, not errors: a state with no existing outlets can hold signed agreements (Tennessee is a genuine market entry), and all-zero rows are simply states carried into the table with nothing to report. Confirmed against Table 3 (Tennessee appears in no year) and Table 5 (p. 69).
  • [D/minor] Table 1 / Item 19 2025: Pass B noted that Item 20 counts Territories rather than franchisee businesses: Item 19 states that as of December 31, 2025 there were 86 franchisees operating in 160 Territories, matching Table 1's 160 outlets, so '160 outlets' overstates distinct franchisee businesses by roughly 2x. — Legitimate table-definition difference that is expressly reconciled by the document: Item 19 (p. 61) says 'As of December 31, 2025, there were 86 franchisees operating in 160 Territories', and Table 1 (p. 64) prints 160 outlets at end of 2025. The outlet count is correct on its own definition (one outlet = one Territory); only the reader's inference about owner count would be wrong. Item 19 itself segments franchisees by 1, 2 and 3+ Territories.
  • [D/minor] Table 1: Pass B noted Table 1 labels its franchised row 'Franchised - Traditional' although no non-traditional franchised outlet type appears anywhere in Item 20. — A boilerplate label only (p. 64). The 'Franchised - Traditional' row totals equal the Total Outlets row in every year, so all franchised outlets are captured; there is no missing outlet class and no figure is affected.
  • [D/minor] Table 2 / Table 3: Pass B noted the 23 transfers over three years (6 / 10 / 7) do not appear anywhere in Table 3, and that ownership turnover of 23 against 160 outlets is therefore invisible in the status table. — Correct by definition and required by the FTC table format: a transfer to a new owner does not open or close an outlet, so it must not appear in Table 3's status columns; Table 2 (pp. 64-65) is the only place it is reported. No double counting exists, and Table 3 still foots without the transfers. The site should read transfers from Table 2 only and not net them into attrition.
Company-owned outlets (Table 4)
YearStartOpenedReacquired from franchiseeClosedSold to franchiseeEnd
2023000000
2024000000
2025000000

Read: How to read Item 20.

Ownership and operations

Items 11, 12, 15, 17
Owner-operator required Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 15
Page
PDF p. 55
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

You must devote your full time and personal best efforts to the day-to-day operation of the Business.

Item 15 requires the franchisee to devote full time and personal best efforts to day-to-day operation and to be available 24 hours a day, seven days a week because of the emergency nature of the work. During the term neither the franchisee nor immediate family may engage in any other business or hold an interest in any competitor. Items 11 and 17 refer to a Designated Manager who may be trained alongside the Managing Owner, but Item 15 does not offer a manager-run or absentee alternative, and failing to personally supervise day-to-day operation is a curable default under Item 17. Every owner, owner's spouse, member, member's spouse or officer of an entity franchisee must personally guarantee the agreement.

. Read the supervision, training and territory conditions before assuming passive ownership.

Risk and legal observations ↓

View operating requirements, territory and contract term
Owner involvement (Item 15)
Owner-operator required Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 15
Page
PDF p. 55
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

You must devote your full time and personal best efforts to the day-to-day operation of the Business.

Item 15 requires the franchisee to devote full time and personal best efforts to day-to-day operation and to be available 24 hours a day, seven days a week because of the emergency nature of the work. During the term neither the franchisee nor immediate family may engage in any other business or hold an interest in any competitor. Items 11 and 17 refer to a Designated Manager who may be trained alongside the Managing Owner, but Item 15 does not offer a manager-run or absentee alternative, and failing to personally supervise day-to-day operation is a curable default under Item 17. Every owner, owner's spouse, member, member's spouse or officer of an entity franchisee must personally guarantee the agreement.

Item 15 requires the franchisee to devote full time and personal best efforts to day-to-day operation and to be available 24 hours a day, seven days a week because of the emergency nature of the work. During the term neither the franchisee nor immediate family may engage in any other business or hold an interest in any competitor. Items 11 and 17 refer to a Designated Manager who may be trained alongside the Managing Owner, but Item 15 does not offer a manager-run or absentee alternative, and failing to personally supervise day-to-day operation is a curable default under Item 17. Every owner, owner's spouse, member, member's spouse or officer of an entity franchisee must personally guarantee the agreement.
Initial training
Two stages. The Jumpstart Training Program is a self-guided pre-opening programme the Managing Owner and any Designated Manager must finish within two months of signing, covering the financial plan, system standards, territory review, initial advertising, insurance, office lease, permits and vehicles, done in the franchisee's home market with home-office support. Business Manager and Technical Operations Training then runs up to 12 days at the franchisor's Ann Arbor, Michigan headquarters or another designated location and must be completed within four months of signing; failure to complete it terminates the agreement. The published curriculum is 80.25 classroom hours of business operations (sales 5, marketing 3, software and technology 5.25, business operations 67; Ann Arbor or virtual) plus a technical block of 32 classroom hours and 39 on-the-job hours in Ann Arbor. There is no training fee, but travel and living costs are the franchisee's and extra attendees cost $50 per person per day. A discretionary 90-day transitional observation period may follow. Afterwards the franchisee must obtain three outside certifications (water restoration technician, applied structure drying, applied microbial remediation) costing about $310, attend the annual convention, and attend up to one refresher session a year. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 11 — Items 11.9 to 11.12 and the Initial Training Program tables at p. 45
Page
PDF p. 44
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Reconstruction Services require a separate optional training programme and either that programme or a general contractor's licence.

Multi-unit / development options
There is no area development agreement. A buyer may sign up to three franchise agreements at one time, and the franchisor discounts the Initial Franchise Fee by $10,000 on each additional agreement bought in that initial purchase. An existing franchisee in good standing can buy an Expansion Franchise at a $49,000 Initial Franchise Fee, and a franchisee of an affiliated BELFOR Franchise Group brand can take up to two Standard Franchises at 25% off, in both cases with the Initial Package possibly reduced or waived. Territory can also be enlarged within one agreement by paying $170 per thousand population above 350,000, up to a 500,000 cap. Item 12 states the franchise agreement gives no option or right of first refusal to acquire additional franchises in the Territory or contiguous areas. Item 19 shows 32 of 78 reported franchisees held more than one Territory in 2025 and 17 held three or more. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 5 — Items 5.1, 5.4 and 5.5; Item 12.2 at p. 48
Page
PDF p. 16
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558
Territory (Item 12)
The Territory is a set of ZIP codes of about 350,000 population, capped at 500,000, sized using data from demographics vendor GbBIS. It is expressly not exclusive. What is protected is limited: no other 1-800 WATER DAMAGE business may advertise in the Territory or open an office there, and the franchisee receives third-party administrator, NORA and call-centre referrals for its ZIP codes. There is no protection at all on servicing customers — other franchisees and franchisor-owned outlets may accept jobs and serve customers inside the Territory without limitation, and the franchisee may itself take third-party administrator assignments outside its Territory. The franchisor's affiliate 1-800 BOARDUP also has licensed providers performing fire, water and storm restoration. Advertising or opening an office outside the Territory without consent is a default carrying the non-compliance fee. Protections lapse while the franchisee is out of compliance, and if the Minimum Gross Sales Requirement is missed for three consecutive months the franchisor may terminate, place another franchisee or company outlet in the Territory, or let others advertise and sell there. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 12 — Items 12.1, 12.2 and 12.4
Page
PDF p. 47
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

You will not receive an exclusive Territory.

Initial term
5 years Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 17 — Item 17(a) — Length of the franchise term
Page
PDF p. 56
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Five years, with two further consecutive five-year terms available on renewal.

Renewal
Two additional consecutive five-year terms. To renew the franchisee must be in compliance, not have made certain repeated defaults, give notice in the required window, sign the then-current franchise agreement (which may contain materially different terms, including a different royalty rate or Territory), upgrade and remodel as necessary, and sign a general release. No renewal fee is charged on the first renewal; the second and any later renewal cost 10% of the then-current Initial Franchise Fee. The Initial Franchise Fee and Initial Package Fee are not recharged on the first renewal, though new or additional equipment may be required at the franchisee's expense. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 17 — Item 17(b) and 17(c); Item 5.6 at p. 18
Page
PDF p. 56
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558
Staffing
The franchisee must employ a full-time experienced Service Technician responsible for performing and overseeing remediation work, and failing to employ a Service Technician or Designated Manager for two consecutive months is a curable default. Item 7 prices the low end of the labour line at a managing owner working alongside one technician and the high end at a certified crew leader plus a technician. Item 15 requires 24/7 availability to respond to service requests. Service Technicians must sign non-disclosure and confidentiality agreements at the start of employment and may be required to attend up to one refresher session a year. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 7 — Item 7 Note 5; Item 15 at p. 55; Item 6 Note 7 at p. 25
Page
PDF p. 26
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Risk and legal observations

Items 3, 4, 8, 15, 17 — summarized neutrally

Litigation: 3 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed

View legal disclosures, restrictions and guarantees
Litigation (Item 3)3 matter(s) disclosed Disclosed
Item 3 discloses three matters, all concluded. Two involve the predecessor, LLB Group, Inc. (formerly The Cure Service Group, Inc.), and date from the mid-2000s: a July 2006 settlement with the California Corporations Commissioner in which LLB Group and two officers acknowledged selling unregistered franchises in California between 2002 and 2004 and using disclosure documents that omitted certain prior lawsuits and convictions involving a former chief executive; and a February 2006 Assurance of Discontinuance with the New York Department of Law after LLB Group acknowledged its 2003 New York filings may have been incomplete, under which it offered its New York franchisee rescission (declined) and paid $4,750 in costs. The third is franchisor-initiated: in January 2024 the franchisor sued a former franchisee and two individuals in the Eastern District of Michigan for breach of contract, unjust enrichment and trademark infringement after the former franchisee ceased operating and began running a competing business using its former 1-800 WATER DAMAGE profiles; the parties settled confidentially in December 2025 with a lump-sum payment to the franchisor. No franchisee-initiated actions are disclosed.
Bankruptcy (Item 4)None disclosed Disclosed
Item 4 states that no bankruptcy is required to be disclosed.
Personal guaranty
Required Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 15
Page
PDF p. 55
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Where the franchisee is an entity, each owner, owner's spouse, member, member's spouse or officer must personally guarantee the franchisee's obligations and be bound personally by every provision, monetary and non-monetary, including the non-compete. The cover page carries a state-required Spousal Liability risk notice warning that a spouse with no ownership interest must sign a guarantee putting marital and personal assets at risk.

Non-compete
In term, the franchisee, Managing Owner, any Designated Manager and immediate family members may not engage in any capacity in another business offering remediation, cleaning or restoration services similar to those of the business or of the franchisor's affiliates, use confidential information or system materials in another business, or act to the detriment of the marks. After expiration or termination the same people are barred for 18 months from engaging in any capacity in Remediation Services or entering a business relationship with the franchisee's customers or former customers, within the Territory, within the Territory of any other 1-800 WATER DAMAGE operator, or within a 50-mile radius of the Territory. Both covenants are stated to be subject to state law, and the franchisor notes that at least one state's addendum limits covenants extending beyond the granted Territory. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 17 — Item 17(q) at p. 59 and 17(r)
Page
PDF p. 60
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Personal guarantors are bound by the covenant. Employees in technician, sales or account-management roles must sign non-disclosure agreements that also restrain servicing or soliciting customers.

Transfer restrictions
Transfer is defined broadly to include any direct or indirect assignment, sale, gift, encumbrance, lease, merger, change of control or disposition of the agreement, the business, its assets or any equity interest. The franchisor must approve but says it will not unreasonably withhold consent, subject to 19 listed conditions including full compliance and payment of all accrued obligations, the transferee meeting current standards and not operating a competing business, the transferee signing the then-current franchise agreement and completing training, general releases from both parties, franchisor approval of the material purchase terms, and payment of the transfer fee and any broker fee. The franchisor holds a right of first refusal: the interest must first be offered to it on the same terms as any bona fide offer, less the transfer fee, and it has 30 days to decide. It has no separate option to purchase the business. On death or disability the business must be transferred within six months, though qualifying heirs may continue to operate it. The transfer fee is 25% of the then-current Initial Franchise Fee with a $10,000 floor; a broker fee of about 10% of the sale price or $30,000, whichever is higher, may also apply, and Item 20 records 6, 10 and 7 transfers in 2023, 2024 and 2025. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 17 — Items 17(k) to 17(p)
Page
PDF p. 58
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558
Termination / non-renewal
The franchisee has no contractual termination right beyond whatever law allows, and the franchisor cannot terminate without cause. Curable defaults carry a 15-day cure period and cover 16 grounds including non-payment, failing to employ a Service Technician or Designated Manager for two consecutive months, failing to personally supervise day-to-day operation, servicing a customer in another Territory without permission and failing to maintain hours of operation. A much longer list of non-curable grounds allows immediate termination on notice, among them failing to complete required training, three or more similar cure notices in two years, three or more defaults in any 12 months, three insufficient-funds events in 12 months, understating Gross Sales by 3% or more on three occasions in two years, missing the convention, buying from an unapproved supplier, and failing to achieve minimum sales for three consecutive months. Insolvency, bankruptcy filings and unauthorised transfers terminate the agreement automatically. On termination the franchisee must pay all amounts owed, de-identify, return confidential information and customer lists, and observe the 18-month non-compete. The Michigan addendum voids termination without good cause and a cure opportunity of up to 30 days for franchisees protected by that statute. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 17 — Items 17(d) to 17(i)
Page
PDF p. 56
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Item 20 records 8, 19 and 25 terminations in 2023, 2024 and 2025 against 20, 17 and 10 openings.

Supplier restrictions (Item 8)
All products and supplies used in the business must be bought from the franchisor, its affiliates or designated vendors. The mandatory $51,000 Initial Package is sold by the franchisor, and affiliates CDI and BHI are the only approved suppliers for small tools, the equipment and safety package and branded apparel. Vehicles must be leased or purchased through approved suppliers, with specified colour, decals and condition standards. The franchisor supplies and owns the business telephone number, provides the proprietary WATER DAMAGE software the franchisee must use, and may designate the computer hardware and any future point-of-sale system. Some officers hold ownership interests in affiliates BELFOR, BHI and CDI. Alternative suppliers can be proposed but approval is discretionary, takes up to ten days, and the franchisee reimburses review costs whatever the outcome. The franchisor states it may mark up and profit on required purchases and that the franchisee receives no material benefit from purchasing through required sources. In the year ended December 31, 2025 the franchisor derived $48,413.22, about 0.7% of its total revenues of $7,212,056, from required purchases and leases; affiliates BHI, CDI and WMS derived $7,938.38, $472,573.27 and $128,955.00 respectively from selling vehicles, equipment and supplies to franchisees. Items bought to specification are estimated at about 65% of establishment purchases and 20-25% of ongoing purchases (20-25% and 5-25% for conversions). Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 8 — Items 8.1, 8.2, 8.9, 8.10 and 8.11 at p. 35
Page
PDF p. 31
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558

Required insurance includes commercial general liability of $2,000,000 aggregate, $1,000,000 auto liability, a $2,000,000 umbrella and a $1,000,000 pollution policy covering mold, bacteria and fungi. There is currently no required insurance provider.

Dispute resolution
Disputes must first be brought to the franchisor's President under an internal procedure. After that, claims go to arbitration in Ann Arbor, Michigan under the American Arbitration Association's Commercial Arbitration Rules. Claims not subject to arbitration must be brought in state or federal court in Washtenaw County, Michigan or the U.S. District Court for the Eastern District of Michigan. Michigan law governs except where federal law applies. All of these provisions are stated to be subject to state law, and the cover page carries a required Out-of-State Dispute Resolution risk notice. Disclosed
Source
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Document
FDD 2026, issued 2026-03-30
Item
Item 17 — Items 17(u), 17(v) and 17(w)
Page
PDF p. 60
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640558
Other observations
  • Minimum Gross Sales Requirement: from month 13 the business must reach $10,400 in monthly Gross Sales, rising to $21,500 in months 25-36, $30,000 in months 37-48 and $41,500 thereafter. Missing it for three consecutive months lets the franchisor terminate or place competitors in the Territory (Item 12.4).
  • A minimum monthly royalty of $500 applies from the 13th month regardless of sales, and the cover page carries a required Minimum Mandatory Payments risk notice.
  • The Territory is non-exclusive for servicing: other franchisees and franchisor-owned outlets may take jobs inside it without limitation (Item 12.2).
  • Terminations rose in each of the last three years, from 8 in 2023 to 19 in 2024 and 25 in 2025, while openings fell from 20 to 10; the franchised count fell from 178 at the end of 2023 to 160 at the end of 2025.
  • Item 20 states that in some instances current and former franchisees have signed provisions restricting their ability to speak openly about their experience with the franchisor.
  • Out-of-territory advertising or servicing carries a non-compliance fee of the greater of $2,500 or 20% of the job invoice; other non-compliance carries $5,000 per instance.
  • An audit triggered by late or missing reports is charged to the franchisee at an estimated $2,500-$6,000 plus 18% interest, and understating Gross Sales by more than 3% adds a penalty of 10% of the understated amount.
  • The franchisor may increase or decrease the Initial Franchise Fee by up to 15% per year of the term, which moves the transfer and renewal fees with it, and may raise most other Item 6 fees by up to 10% a year.
  • Reconstruction work requires separate licensing, training and written approval; if the franchisee cannot perform it, the customer must be referred to the franchisor or affiliate BELFOR.
  • The agreement places no limit on what data the franchisor may access in the franchisee's computer system or how it may use it (Item 11.6).

Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.

Illustrative unit economics

Model estimate

Model estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology.

Assumptions (editable)

This FDD reduces the rate when sales cross a threshold, for the remainder of that year plus the following year — so the same revenue costs more in the year the threshold is first crossed than in a year that starts already qualified. The trace and totals update with your choice.

Source: Item 6 Note 1, 2026 FDD, PDF p. 23: once calendar-year Gross Sales exceed a threshold, the reduced rate applies “for the remainder of the calendar year in which you exceeded $500,000, plus the entire following calendar year” — which is why a threshold-crossing year and a previously-qualified year price the same revenue differently.

Base case = disclosed AUV $770,375. Downside = Disclosed Bottom 25% franchisees (CY2025) ($133,479). Upside = 115% of AUV. Investment financed = Item 7 midpoint. Source-based fee amounts (disclosed, or derived from disclosed components) are locked to the FDD; change the revenue cases and assumptions instead.

Line (annual)DownsideBaseUpside
Revenue (AUV basis)$133,479$770,375$885,931
− Cost of goods / supplies assumption$26,696$154,075$177,186
− Payroll (excl. owner) assumption$50,722$292,743$336,654
− Occupancy assumption$4,004$23,111$26,578
− Other operating expenses assumption$16,017$92,445$106,312
− Royalty disclosed
threshold-crossing year: 10% × $500,000 + 9% × $270,375 = $74,334 (each reduction applies prospectively, from the point the threshold is crossed)
$13,348$74,334$84,734
− Technology Fee disclosed
$750/month × 12 = $9,000
$9,000$9,000$9,000
− Software Fee disclosed
$399/month × 12 = $4,788
$4,788$4,788$4,788
− Brand Marketing Fund Contributions disclosed
2% of gross sales = $15,408
$2,670$15,408$17,719
− Conventions, Regional Meetings and/or Additional Training disclosed
$1,000 per year
$1,000$1,000$1,000
− QuickBooks Online Plus accounting software (required) disclosed
$42/month × 12 = $504
$504$504$504
= Modeled operating result before the items below (EBITDA-style)$4,730$102,968$121,457
− Manager compensation assumption$65,000$65,000$65,000
= Modeled result after manager compensation−$60,270$37,968$56,457
− Illustrative debt service assumption$25,803$25,803$25,803
= Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees−$86,073$12,165$30,654
Modeled operating margin3.5%13.4%13.7%

This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 1 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.

Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:

  • XactAnalysis estimate upload transaction fee (Item 11, p. 41) — Annual cost = $16 x estimates uploaded; needs a job-volume assumption.

Overlap control: Minimum monthly payment (minimum Royalty) is a floor on “Royalty” ($6,000/yr) — already exceeded at this revenue, so not an additional charge.

Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.

Sources and provenance

Primary source: 2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC · issued 2026-03-30. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.

View all sources, provenance and verification notes
DocumentObtained fromDatesStatus
2026 Franchise Disclosure Document — 1-800 WATER DAMAGE International, LLC
Registry file 640558 · 262 pages
Cover reads 'Issuance date: March 30, 2026'; running footer reads 'Franchise Disclosure Document 2603'. Wisconsin registration effective 3/30/2026, status Registered. Direct document link: https://apps.dfi.wi.gov/apps/FranchiseSearch/details.aspx?id=640558&hash=696076814&search=external&type=GENERAL
Wisconsin Department of Financial Institutions — Franchise Registration SearchIssued 2026-03-30
Retrieved 2026-08-29
Newest available at retrieval
Extraction record

AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-08-31): two independent AI reading passes plus tie-break re-inspection of every disagreement; 74 of 77 material fields confirmed (69 with the exact page citation re-confirmed), 3 corrected, 0 unresolved, 3 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.

Fields flagged as uncertain (7)
  • investment.franchise_fee_low
  • investment.franchise_fee_high
  • fees.royalty.value
  • item19.headline_auv
  • item19.population_count
  • franchisor.business_since
  • franchisor.franchising_since
Extraction notes (13)
  • franchise_fee_low/high record only the Initial Franchise Fee row of Item 7 ($59,000-$64,950). The mandatory $51,000 Initial Package Fee is also payable to the franchisor at signing but is consideration for equipment, tools and marketing materials rather than for the franchise right; adding it gives the $110,000-$115,950 the cover page says must be paid to the franchisor or its affiliates. Both figures are set out in the franchise_fee notes.
  • fees.royalty is recorded as the 7%-10% declining scale that applies to Remediation Services, the core revenue stream every franchisee provides. A new franchisee starts at 10%. Reconstruction Services carry a separate 10% rate that drops to 3% once remediation gross sales pass $500,000; that rate is described in the note rather than used as the headline low, because reconstruction requires separate licensing and approval and is not offered by every franchisee.
  • item19.headline_auv is the broadest average the FDD discloses, but it is computed per franchisee (owner), not per Territory. The 78 reported franchisees operated 148 Territories. On our own arithmetic 78 x $770,375.03 = about $60.1 million of reported sales, which over 148 Territories is roughly $406,000 per Territory; that derivation is not stated in the FDD and is not recorded as a fact. The disclosed per-Territory averages from Table 2 are carried as separate metrics.
  • item19.population_count is 78, the number of franchisees in the main table, not the 148 Territories they operated. population_share_of_system uses Territories: 148 of 160 = 92.5%.
  • Item 19 footnotes 6 and 7 disagree with their own table rows: Note 6 calls the Bottom 50% group 38 franchisees where the row shows 39, and Note 7 calls the Bottom 75% group 57 franchisees with 25 exceeding the average where the row shows 59 and 26. The table rows were used and the discrepancy is recorded in the metric notes and caveats.
  • Both Item 7 tables foot exactly to their printed totals, and Item 20 Table No. 3 foots in all three years.
  • franchisor.business_since and franchising_since are set to 2002, when predecessor LLB Group, Inc. began offering and selling 1-800 WATER DAMAGE franchises. The current franchisor was formed on April 16, 2015, acquired the brand on May 6, 2015 and began offering franchises on October 15, 2015; Item 1 states it has never operated a business of the type offered.
  • No minimum liquid capital or net worth requirement for candidates appears anywhere in the reviewed source, so both are recorded as not_disclosed.
  • fees.local_marketing and fees.cooperative are recorded as 0 with disclosed evidence because the FDD affirmatively states that no minimum local advertising spend is required and that no advertising cooperative currently exists, not because the topics are unaddressed.
  • Item 20 counts outlets as Territories. Item 19 confirms 86 franchisees held the 160 Territories at December 31, 2025, so the outlet count is roughly double the number of owners.
  • Verification 2026-08-31: correct /investment/franchise_fee_low 59000 → 110000
  • Verification 2026-08-31: correct /investment/franchise_fee_high 64950 → 115950
  • Verification 2026-08-31: correct /fees/technology {'value': 750, 'unit': 'usd_month', 'range_high': None} → {'value': 1149, 'unit': 'usd_month', 'range_high': None}

We do not host or redistribute FDD PDFs. Search the registry linked above by franchisor name to obtain the document. Found an error? Report a correction with the field and the primary source.

Franchisor
1-800 WATER DAMAGE International, LLC
Parent: BELFOR Franchise Group, LLC; ultimately BELFOR Holdings, Inc. / ASP BF Intermediate Sub, LLC
HQ: Ann Arbor, MI
In business since 2002 · franchising since 2002

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