Servpro franchise
A franchisee operates a Servpro restoration and cleaning business from a leased office/warehouse, providing residential and commercial cleaning, fire, water, smoke and storm damage mitigation and restoration, mold remediation and related reconstruction within a non-exclusive territory.
Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise)
- Document
- FDD 2026, issued 2026-04-15
- Item
- Item 15
- Page
- PDF p. 67
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641001
You or Your principals or Owners (if You are a business entity) must directly perform or directly supervise operation of the Franchise.
The franchisee, or the principals and owners if the franchisee is an entity, must directly perform or directly supervise operation of the business, and on-site supervision for an entity must be by a designated Owner/Operating Principal, shareholder, partner or member who has completed the training programme. All owners must personally complete the annual financial and operational business reviews and attend the annual Convention; the Operating Principal must attend all business consultations and the twice-yearly headquarters meetings. An employee may not stand in for the owner at training or these duties. Owners may not hold an interest in a competing business or share a warehouse, office, primary place of business or employees with another franchisee.
What stands out
- Total initial investment of $263,305 to $385,570, of which $212,000 is payable to the franchisor and its affiliate at signing — a $100,000 franchise fee plus a mandatory $112,000 equipment and products package.
- No Item 19 financial performance representation: the FDD discloses no sales, cost or profit figures for any outlet.
- Royalty is contractually 10% of Gross Volume with tiered volume discounts down to a 5% marginal rate (3% on reconstruction work); new franchisees pay the full 10% plus a $45–$115 monthly fixed fee until discounts are earned, and a $100 monthly minimum royalty applies regardless of sales.
5 more observations
- Brand Fund fee of up to 3% of Gross Volume plus a $200 per month software licence; no minimum local advertising spend is imposed.
- Entirely franchised system growing every year: 2,114 outlets at the start of 2023 to 2,354 at the end of 2025, with no company-owned units and low closures (26 terminations, 6 non-renewals over three years).
- Openings slowed from 98 (2023) to 79 (2025) while franchisee-to-franchisee transfers rose to 139, so resales now outpace new openings.
- Territory is non-exclusive and may overlap; owners must personally supervise, all entity owners and spouses guarantee the agreement, and a two-year post-term non-compete reaches 25 miles beyond the former territory.
- One litigation matter disclosed, brought by the franchisor against former franchisees in 2025; no bankruptcy disclosed.
Things to verify
- With no Item 19, ask Exhibit M franchisees directly about annual Gross Volume, seasonality and the time to reach break-even, and confirm what confidentiality provisions allow them to discuss.
- Model the royalty at realistic early-stage volumes: the full 10% plus fixed fee applies until volume discounts are earned, and no discount is available before a report month beginning six months after the agreement is signed.
- Confirm how much of the business is expected to come from franchisor-referred National, Select National and Commercial Accounts leads, and price in the lead fees (up to $75), commercial job fee (up to 10% of invoice) and 5% disaster response and commercial select programme fees.
5 more questions
- Only three months of additional funds are in the Item 7 estimate and it excludes payroll and owner's draw — build a separate working-capital plan covering staff from day one.
- Check whether the target territory is at the 80,000-population maximum and what additional population at $1,110 per 1,000 would cost, and ask which neighbouring territories overlap.
- Verify insurance cost in the specific market: Item 7 covers only three months of some coverages and excludes vehicle and workers' compensation insurance entirely.
- Ask what the franchisor's current position is on the volume-discount thresholds, which it may eliminate on 30 days' notice in favour of a flat rate of up to 10%.
- Confirm how Gross Volume would be applied to any existing restoration, construction or related business the buyer already owns, since the definition can pull that revenue into the royalty base.
Economics: No calculator is offered because no annual average unit sales disclosed in Item 19. Model availability
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
A Servpro franchisee runs a property restoration and cleaning business - water, fire, smoke and storm damage mitigation, mold and bioremediation, contents cleaning and related reconstruction - from a leased office and warehouse inside an assigned territory of roughly 50,000 to 80,000 people. The work is largely insurance-driven, and much of the franchisor's support structure is built around national and commercial account referral programmes the franchisee must qualify for.
Item 7 puts the total initial investment at $263,305 to $385,570, before any real estate purchase and before extra territory population. Of that, $212,000 goes to the franchisor and its affiliate at signing: a $100,000 initial franchise fee plus a mandatory $112,000 Equipment and Products Package. Only three months of additional funds are built in, and the estimate excludes employee wages and any owner's draw. The contract royalty is 10% of Gross Volume, reduced by a volume-discount table to a 5% marginal rate at high volumes; the '3% to 10%' range in Item 6 reaches 3% only on designated reconstruction work. A new franchisee pays the full 10% plus a $45-$115 monthly fixed fee until discounts are earned, with a $100 minimum royalty regardless of sales, and the franchisor may drop the discounts on 30 days' notice. A Brand Fund fee of up to 3% and a $200 monthly software licence sit on top.
There is no Item 19. The franchisor makes no representation about outlet sales, costs or profits, so the document supplies no revenue benchmark at all; a buyer would have to build one from franchisee conversations, and Item 20 notes that some current and former franchisees have signed provisions limiting what they can say.
Item 20 shows a large, steadily growing, entirely franchised system: 2,114 outlets at the start of 2023 rising to 2,354 at the end of 2025, with no company-owned units in any year and low attrition - 26 terminations and 6 non-renewals across three years, none reacquired. Openings slowed from 98 to 94 to 79 while transfers between franchisees rose from 106 to 137 to 139, so by 2025 the resale market moved nearly twice as many outlets as new openings. The franchisor projects 75 new franchises next fiscal year.
Item 3 discloses one matter, a 2025 suit the franchisor brought against three former California franchisees over unpaid royalties and audit non-compliance; Item 4 discloses no bankruptcy. The territory is expressly non-exclusive and may overlap. Owners must personally supervise, all entity owners and their spouses must guarantee the agreement, and a two-year post-term non-compete extends 25 miles beyond the former territory. Required purchases from affiliates produced $59,154,000 of revenue for Servpro Industries in 2025. Neither a liquidity nor a net-worth requirement is disclosed in the reviewed source.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach 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.
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”.
Inputs
- Franchised outlets 2114 → 2354 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
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
Inputs
- No annual average unit sales disclosed
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.
Inputs
- Item 19 not present
Details
- Missing: Item 19 present, Annual AUV
- Franchisor Track Record
- Franchising 49 years (since 1977) · 2,354 outlets · Item 3: 1 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- Additional licences and resales are possible but not guaranteed: the FDD states the franchisee has no right to buy additional new franchises and the franchis… · Owner-operator required
- Operational Intensity
- Owner-operator required
Initial investment
FDD Items 5 and 7Format shown: Standard single 'associate license' territory of 50,000-80,000 population, leased office/warehouse
$263,305–$385,570 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) | $100,000 Disclosed
Disclosed as 'initial franchise license fee (minimum initial franchise fee)'. A 2.5% cash discount ($5,300) applies to the Standard Purchase Price for paying in cash or paying a note in full within 90 days; this is a discount, not the standard price. The fee also scales with territory population above the standard 50,000-80,000 range. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $212,000 Disclosed
Item 5 states: 'The Standard Purchase Price is $212,000. It includes an initial franchise license fee of $100,000 and a standard Equipment and Products Package costing $112,000.' |
| Total initial investment — low | $263,305 Disclosed
Sum of the Item 7 low column; the printed total and the sum of the line items agree exactly. The cover page repeats the same figure. |
| Total initial investment — high | $385,570 Disclosed
The printed high total is '$385,570 plus $1,110 per 1,000 over maximum population, plus any real estate costs'. Adding the printed high line items gives $385,620, $50 more than the printed total — see extraction notes. |
| Midpoint of range | $324,438 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise); we do not fill gaps with estimates or third-party figures. No minimum liquid-capital requirement appears on the cover pages or in Items 1, 5, 7, 10, 11 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise); we do not fill gaps with estimates or third-party figures. No minimum net-worth requirement is stated in the reviewed document. |
The chart assumes a new single-territory franchise operated from a rented office/warehouse; it excludes purchase of real property, employee wages during the start-up period, and any owner's draw, and it assumes only three months of additional funds. The franchisor states it cannot estimate when or whether positive cash flow or break-even will be reached and has not provided reserve funds for that. Conversion candidates — existing restoration or construction businesses joining the system — pay the same $100,000 franchise fee but Item 5 estimates their equipment and products purchase at roughly $25,000 to $75,000 instead of $112,000, depending on how much conforming equipment they already own; no separate Item 7 table is provided for conversions, so no conversion total is recorded here. Financing of part of the franchise fee may be available from the franchisor subject to creditworthiness (Item 10).
Item 7 line items (13)
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee — High end adds $1,110 per 1,000 population above the standard territory maximum. | $100,000 | $100,000 |
| Vehicle — Low end assumes painting and decaling an existing conforming vehicle; high end assumes buying a new one. At least one vehicle is required; purchase from the affiliate is optional. | $5,000 | $69,900 |
| Equipment and Products Package — Mandatory purchase from a franchisor affiliate; includes extractors, dehumidifiers, air movers, cleaning products and the ServproNET access package. | $112,000 | $112,000 |
| Supplies — Office set-up, iPad, safety and utility supplies; affiliate and independent vendors. | $4,100 | $9,100 |
| Insurance — First three months of general liability, pollution, property casualty, bailee, cyber and Limited Service and Repair cover; excludes vehicle and workers' compensation insurance. | $5,010 | $25,300 |
| Advertising and Promotional | $270 | $1,600 |
| Training, Travel, Lodging and Food — Stated after applying the training expense allowance for up to two owners. | $600 | $2,000 |
| Deposits, Permits and Licenses | $750 | $2,750 |
| Legal and Professional Fees, Accounting, Tax Table Service, QuickBooks Online and WRT Training | $1,700 | $2,200 |
| Xactimate and other estimating/pricing software and training | $1,500 | $4,500 |
| Additional Funds — 3 months — Assumes an owner-operated business; excludes all employee wages, salaries, benefits and any owner's draw. | $32,250 | $50,000 |
| Real Estate — Purchase of real property is not required; the figure covers renting a business location inside the territory. | $0 | $6,000 |
| Contents Digital Inventory Software — Charged monthly by an independent vendor. | $125 | $270 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise) (table begins PDF p. 31) — rows inherit the table's citation rather than carrying fifteen identical ones.
Ongoing fees
FDD Item 6Royalty
3%–10% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise)
- Document
- FDD 2026, issued 2026-04-15
- Item
- Item 6 — Other Fees — Royalty fee row and Note 4
- Page
- PDF p. 17
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641001
Currently ranges from 3% to 10% of Your monthly Gross Volume with a 10% cap
Item 6 states the royalty currently ranges from 3% to 10% of monthly Gross Volume with a 10% cap. The contract rate is 10%, reduced by a monthly volume-discount table: for standard services the marginal rate falls from 10% on the first $13,197 of monthly Gross Volume to 5% above $219,947; designated Reduced Rate Services (reconstruction, construction, property repairs) run from 4.5% down to a 3% marginal rate. A new franchisee pays the full 10% plus the fixed fee until discounts are earned, and none is available before a report month beginning six months after signing. The franchisor may eliminate or change the thresholds on 30 days' notice, up to a single flat 10% (4.5% for Reduced Rate Services). Gross Volume is defined broadly.
Brand advertising fund
3% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise)
- Document
- FDD 2026, issued 2026-04-15
- Item
- Item 11 — Advertising — Brand Fund
- Page
- PDF p. 46
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641001
currently up to 3% of your monthly Gross Volume
Item 11 describes the Brand Enhancement Fund Fee as currently up to 3% of monthly Gross Volume, made up of about 0.5% for the National Accounts Core/Regional Program plus 2.5% for the National Brand Fund Program, the latter charged only on the first $1,550,000 of annual Gross Volume (a cap the franchisor may raise on 30 days' notice). Reduced Rate Services are charged 0.25%. The Item 6 fee table words this differently, saying up to 3% may be collected and that 2.5% is currently collected; the 2.5% figure matches the National Brand Fund portion only. Franchisees on pre-October-1985 agreements are not required to contribute. The fund is administered by Servpro Industries with sole control over spending; an unaudited annual statement is provided.
Local marketing
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 — Servpro Franchisor, LLC (Unit Franchise); we do not fill gaps with estimates or third-party figures.
No minimum local advertising spend is imposed. Item 11 requires the franchisee to market and to maintain a Google Business Profile listing and a listing in the primary telephone directory serving the territory, following the Brand Identity Guide and Territorial Policy, and Item 8 requires the franchisor's website and internet advertising templates, but no required dollar amount or percentage is stated. Item 7 estimates $270 to $1,600 of start-up advertising and promotional spend.
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 | 3%–10% of gross sales Disclosed
Item 6 states the royalty currently ranges from 3% to 10% of monthly Gross Volume with a 10% cap. The contract rate is 10%, reduced by a monthly volume-discount table: for standard services the marginal rate falls from 10% on the first $13,197 of monthly Gross Volume to 5% above $219,947; designated Reduced Rate Services (reconstruction, construction, property repairs) run from 4.5% down to a 3% marginal rate. A new franchisee pays the full 10% plus the fixed fee until discounts are earned, and none is available before a report month beginning six months after signing. The franchisor may eliminate or change the thresholds on 30 days' notice, up to a single flat 10% (4.5% for Reduced Rate Services). Gross Volume is defined broadly. Item 6 states the royalty currently ranges from 3% to 10% of monthly Gross Volume with a 10% cap. The contract rate is 10%, reduced by a monthly volume-discount table: for standard services the marginal rate falls from 10% on the first $13,197 of monthly Gross Volume to 5% above $219,947; designated Reduced Rate Services (reconstruction, construction, property repairs) run from 4.5% down to a 3% marginal rate. A new franchisee pays the full 10% plus the fixed fee until discounts are earned, and none is available before a report month beginning six months after signing. The franchisor may eliminate or change the thresholds on 30 days' notice, up to a single flat 10% (4.5% for Reduced Rate Services). Gross Volume is defined broadly. |
|---|---|
| Advertising / brand fund | 3% of gross sales Disclosed
Item 11 describes the Brand Enhancement Fund Fee as currently up to 3% of monthly Gross Volume, made up of about 0.5% for the National Accounts Core/Regional Program plus 2.5% for the National Brand Fund Program, the latter charged only on the first $1,550,000 of annual Gross Volume (a cap the franchisor may raise on 30 days' notice). Reduced Rate Services are charged 0.25%. The Item 6 fee table words this differently, saying up to 3% may be collected and that 2.5% is currently collected; the 2.5% figure matches the National Brand Fund portion only. Franchisees on pre-October-1985 agreements are not required to contribute. The fund is administered by Servpro Industries with sole control over spending; an unaudited annual statement is provided. Item 11 describes the Brand Enhancement Fund Fee as currently up to 3% of monthly Gross Volume, made up of about 0.5% for the National Accounts Core/Regional Program plus 2.5% for the National Brand Fund Program, the latter charged only on the first $1,550,000 of annual Gross Volume (a cap the franchisor may raise on 30 days' notice). Reduced Rate Services are charged 0.25%. The Item 6 fee table words this differently, saying up to 3% may be collected and that 2.5% is currently collected; the 2.5% figure matches the National Brand Fund portion only. Franchisees on pre-October-1985 agreements are not required to contribute. The fund is administered by Servpro Industries with sole control over spending; an unaudited annual statement is provided. |
| Required local marketing | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise); we do not fill gaps with estimates or third-party figures. No minimum local advertising spend is imposed. Item 11 requires the franchisee to market and to maintain a Google Business Profile listing and a listing in the primary telephone directory serving the territory, following the Brand Identity Guide and Territorial Policy, and Item 8 requires the franchisor's website and internet advertising templates, but no required dollar amount or percentage is stated. Item 7 estimates $270 to $1,600 of start-up advertising and promotional spend. |
| Technology / software | $200/month Disclosed
$200 per month per franchise license regardless of common ownership, beginning the first day of the third month after signing, subject to increase for cost changes or CPI-U. Covers the proprietary WorkCenter lead-entry, estimating, reporting and job-file software; the initial hook-up to ServproNET is included in the Equipment and Products Package. Separate technology-linked charges include $1.50 per electronic funds transfer, up to $50 for job file and audit-rules technology, and an independently billed contents digital inventory subscription of $125 to $270 per month. $200 per month per franchise license regardless of common ownership, beginning the first day of the third month after signing, subject to increase for cost changes or CPI-U. Covers the proprietary WorkCenter lead-entry, estimating, reporting and job-file software; the initial hook-up to ServproNET is included in the Equipment and Products Package. Separate technology-linked charges include $1.50 per electronic funds transfer, up to $50 for job file and audit-rules technology, and an independently billed contents digital inventory subscription of $125 to $270 per month. |
| Advertising cooperative | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise); we do not fill gaps with estimates or third-party figures. No separate cooperative contribution is disclosed. Regional marketing is run through 39 Subregions whose spending is decided by a majority of the franchisees in each Subregion, but it is funded out of the 0.5% National Accounts Core/Regional portion of the Brand Fund Fee rather than by an additional charge. Item 8 states there are no purchasing or distribution cooperatives. |
| Transfer fee | $35,000 one-time Disclosed
Item 6 states a then-current non-refundable transfer fee of up to $35,000 for any transfer of an interest in the franchise or the entity that owns it; the fee covers New Franchise Training Program attendance for two resale owners and is not refunded if the sale falls through. A transfer to a trust for estate planning costs up to $10,000. If the franchisor or an affiliate finds or refers the buyer, a resale referral fee of up to 10% of the gross sales price including goodwill, equipment and licence is also payable. Item 6 states a then-current non-refundable transfer fee of up to $35,000 for any transfer of an interest in the franchise or the entity that owns it; the fee covers New Franchise Training Program attendance for two resale owners and is not refunded if the sale falls through. A transfer to a trust for estate planning costs up to $10,000. If the franchisor or an affiliate finds or refers the buyer, a resale referral fee of up to 10% of the gross sales price including goodwill, equipment and licence is also payable. |
| Renewal fee | $5,000 one-time Disclosed
$5,000 if renewed on time, plus $1,000 for each additional 30 days if the renewal date is extended, up to a maximum of 120 days. $5,000 if renewed on time, plus $1,000 for each additional 30 days if the renewal date is extended, up to a maximum of 120 days. |
| Royalty + ad fund (% of sales) | 6% Derived
|
Fee schedule (38 fees; 26 verified against the source, 12 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.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty fee | Tiered (base 5%) | monthly | Yes | verified (tie-break) | Item 6, p. 27 | Contract rate is 10%, reduced by the Note 4 volume-discount table. New franchisees pay a flat 10% plus the Fixed Fee: no discount is available before a report month beginning 6 months after execution of the Franchise License Agreement, and earlier only after 4 months of operation, volume over $10,000/month and 3 completed Business Consultations. Discounts are disallowed during late payment, underreporting or noncompliance, and thresholds may be eliminated or changed on 30 days' notice. Item 6's headline '3% to 10%' spans two rate tables: the standard table in Note 4 runs 10% down to a marginal 5%, and the 3% low end is reached only under the separate Reduced Rate Services table, carried as entry reduced-rate-royalty. This entry therefore covers standard services only (5%-10%). Neither pass's pair was usable: Pass A gave 10/10 (uninformative) and Pass B gave value 10 with range_high 3 (inverted against the low-to-high convention used elsewhere in the schedule). The record's headline /fees/royalty 3-10% still correctly quotes Item 6. Citation audit 2026-09-04: Royalty is tiered by monthly Gross Volume (Note 4 table, page 27); stored 5% is the top-tier rate for volume above $219,947. Citation audit 2026-09-04: page corrected 17 -> 27 — the standard 5% band prints in the Note 4 volume table (p. 27); the Item 6 row (p. 17) prints only the 3%-10% range. |
| Fixed fee | Tiered (base $45) | monthly | Yes | verified (tie-break) | Item 6, p. 18 | Payable every month alongside the royalty; subject to CPI-U increases on 30 days' notice. Reduced Rate Services carry their own fixed amounts of $0/$495/$935/$1,320 by band, recorded on the reduced-rate-royalty entry. Both passes agree on 45-115 monthly. Corrections applied: basis is 'fixed' rather than 'gross_sales' (the charge is a dollar amount, not a percentage), and model_treatment is 'fixed_annual' rather than 'tiered_percent' so the engine does not treat it as a second percentage of revenue on top of royalty. |
| Minimum royalty fee | $100 (min $100/monthly) | monthly | Yes | verified (2-pass) | Item 6, p. 18 | Applies as a floor under the Royalty fee; also reinstated (with Fixed Fee) as a penalty if a franchisee fails to complete required FDIP/BDP training steps. Matches the cover page's highlighted 'Mandatory Minimum Payments' special risk. |
| Brand Fund Fee (Brand Enhancement Fund Fee) | 3% of gross sales | monthly | Yes | verified (tie-break) | Item 6, p. 18 | The franchisor may change the percentage, the $1,550,000 cap and the Reduced Rate Services treatment on 30 days' written notice. Franchisees whose agreements pre-date October 1, 1985 are not required to contribute. Pass A (3%) is right on the current total and Pass B (2.5%) reads only the Item 6 cell. Item 11 (PDF p.46) states the fee 'currently consist[s] of 1/2% of Your Gross Volume ... (National Accounts Core/Regional Program) plus 2 1/2% of Your annual Gross Volume', i.e. 3% today; the Item 6 remark names only the 2.5% component. Item 6 also calls the 2.5% base 'monthly Gross Volume' while Item 11 calls it 'annual Gross Volume' - a wording inconsistency in the source; the $1,550,000 cap makes sense only on an annual base. |
| Electronic funds transfer fee | $2 | per event | Yes | verified (tie-break) | Item 6, p. 18 | All payments to the franchisor must be made by electronic funds transfer through a designated third-party vendor, so the fee attaches to every royalty/Fixed Fee/Brand Fund payment. Amount agreed by both passes. Frequency corrected to per_event: the Item 6 Amount cell reads '$1.50 per transaction' and the Due Date cell 'At the same time payment is made', not a monthly charge. |
| Transfer fee | Not stated | one time | Yes | single-pass | Item 6, p. 18 | Payable before any transfer of interest in the Franchise or the entity owning it becomes effective. [Listed by one verification pass only (A); not independently confirmed.] |
| Transfer to trust for estate planning fee | Not stated | one time | No | single-pass | Item 6, p. 18 | Only if franchisee requests transfer to a trust and meets then-current requirements. [Listed by one verification pass only (A); not independently confirmed.] |
| Initial training fee (additional attendees) | $1,000 | one time | No | single-pass | Item 6, p. 18 | Free for 2 Owners with a signed Franchise Fee/Transfer Fee; space-available for employees who sign a training agreement. [Listed by one verification pass only (A); not independently confirmed.] |
| Water Damage Restoration Technician (WRT) training and certification | $300–$800 | one time | Yes | single-pass | Item 6, p. 19 | Required to provide services for insureds of National Accounts. [Listed by one verification pass only (A); not independently confirmed.] |
| Applied Structural Drying (ASD) training and certification | $500–$1,500 | one time | Yes | single-pass | Item 6, p. 19 | Must be completed as part of initial training. [Listed by one verification pass only (A); not independently confirmed.] |
| Subrogation Training | $75–$150 | one time | No | single-pass | Item 6, p. 19 | Required to provide services for insureds of certain Select National Accounts. [Listed by one verification pass only (A); not independently confirmed.] |
| Lead paint training and certification (EPA RRP Rule) | $550–$1,000 | one time | Yes | single-pass | Item 6, p. 19 | Required for work on pre-1978 homes where lead paint may be disturbed. [Listed by one verification pass only (A); not independently confirmed.] |
| New training programs fee | Not stated | varies | No | verified (tie-break) | Item 6, p. 19 | Charged only if the franchisor requires new or additional training courses because of a change or modification to the System. No training or travel allowance is provided. Cancellations fewer than 14 days before a course forfeit the full course fee, converted to a 12-month training credit. Kept as the Item 6 'New training programs' row only. The WRT, ASD, subrogation and EPA RRP certification amounts belong to separate Item 6 rows that are due 'Before initial training' and are already carried as one-time entries. |
| Convention registration fee | Tiered (base $719) | annual | Yes | verified (tie-break) | Item 6, p. 20 | Item 15 obliges every Owner to attend Convention once a year, so the owner registration recurs annually. It is deducted from the Convention Allowance (up to 10% of Royalties paid, excluding Fixed Fees and Brand Fund Fees) where the franchisee has a balance; otherwise it is payable directly. The allowance is forfeited for late payment or reporting, failure to complete NFTP within 90 days, Territorial Policy non-compliance, or not attending in full. Amounts agreed by both passes. mandatory set to true: Item 15 (PDF page 57) lists attending Convention once per year among the franchisee's obligations, so the owner registration is a recurring cost rather than an optional one. The Convention Allowance offset is recorded here rather than as its own schedule entry because it is a rebate, not a fee. |
| Lead fee | $75 | per event | No | verified (tie-break) | Item 6, p. 21 | Applies only if and when the franchisee qualifies to receive leads under the franchisor's then-current qualification and performance criteria; qualification can be suspended for non-compliance or inaccurate job-file uploads. Both passes read the same $75 ceiling; Pass B's structure is adopted because it records the $50/$15/$50 sub-fees in the same row of Item 6. value carries the ceiling and maximum states that it is a ceiling. |
| Commercial Job Fee | 10% of other | per event | No | verified (tie-break) | Item 6, p. 21 | Applies only to commercial leads dispatched through franchisor channels, not to self-generated commercial work. Both passes read the same 10% ceiling. Single entry: the record currently carries commercial-job-fee twice (once from each pass) with different value/range_high shapes. |
| Servpro Disaster Response Program Fee | 5% of gross sales | per event | No | verified (2-pass) | Item 6, p. 22 | Applies only to jobs performed through the Disaster Response Program. |
| Servpro Disaster Response Host Fee | 5% of gross sales | per event | No | verified (tie-break) | Item 6, p. 22 | Applies when the franchisee performs a Disaster Response job submitted by another franchisee in that franchisee's territory. The position can be reversed, in which case the franchisee receives the fee. Both passes read 5%. overlaps_with is left null against Pass B's 'disaster-response-program-fee': the two fees stack on the same job rather than one being a component of or a credit against the other, so linking them would wrongly suppress one. |
| Commercial Select Program Fee | 5% of gross sales | per event | No | verified (tie-break) | Item 6, p. 22 | Applies only to franchisees participating in the Commercial Select Program (Exhibit U participation agreement). Both passes read 5%; only the shape (value vs range_high) and category differed. Category kept as other_recurring, matching the sibling Disaster Response fees, which are also job-level revenue shares rather than call-centre lead charges. |
| Third-Party Electronic Assignment and Other Source Assignment Fee | $75 | per event | No | verified (tie-break) | Item 6, p. 22 | Charged where clients require or submit an electronic assignment through a third party or work-order system, and on local jobs that use the third-party pricing database integration. Both passes read $75/$40. Category moved from technology to call_center: the Item 6 remark describes a per-assignment charge on leads and jobs, not a technology licence. |
| Job File Audit Fee | Tiered (base 30%) | per event | No | verified (tie-break) | Item 6, p. 22 | Charged when a National Accounts or Select National Accounts client requires the franchisee's job file to be audited. Both passes read the same amounts; Pass B's tier list is adopted because it also captures the $50 job-file/audit-rules technology charge stated in the same row. The Item 6 cell is internally loose - it states a $90 ceiling 'for each audit' and then $30 per audit for three audits - so $90 is treated as the per-job-file cap. |
| Renewal fee | $5,000 | one time | Yes | single-pass | Item 6, p. 23 | Payable before renewal of the Franchise License Agreement. [Listed by one verification pass only (A); not independently confirmed.] |
| Administrative fee | $500 | per event | No | verified (tie-break) | Item 6, p. 23 | Charged for any modification to the Franchise License Agreement requested by the franchisee or required by the franchisor because of the franchisee's actions, or when the franchisor provides services for which no fee is specified. Listed by Pass A only; verified in the Item 6 table. Pass B's schedule stops short of the situational fees. |
| UCC filing fee | $100 | per event | No | single-pass | Item 6, p. 23 | Charged only if franchisor files/amends a UCC as a result of a license modification. [Listed by one verification pass only (A); not independently confirmed.] |
| Resale referral fee | Not stated | one time | No | single-pass | Item 6, p. 23 | Charged only if franchisor/affiliate finds or refers the purchaser of a resale. [Listed by one verification pass only (A); not independently confirmed.] |
| ServproNET® future update fee | Not stated | varies | No | verified (tie-break) | Item 6, p. 23 | Only if and when the franchisor charges for a future ServproNET® update. Listed by Pass A only; verified in the Item 6 table. |
| Software License and Technology Agreement fee | $200 | monthly | Yes | verified (2-pass) | Item 6, p. 24 | Begins the 1st day of the 3rd month after signing; subject to increase for cost changes or CPI-U. Matches /fees/technology field. |
| Restocking fee | 15% of other | per event | No | verified (tie-break) | Item 6, p. 24 | Charged on all permitted equipment or product returns. Listed by Pass A only; verified in the Item 6 table. conflicts.json paired it against Pass B's EFT entry. |
| Late reports or late payment fee | $50 | per event | No | verified (tie-break) | Item 6, p. 24 | Triggered by a late Royalty, Fixed Fee, Brand Fund Fee or other payment or report. Also causes loss of the Convention Allowance and the Royalty Volume Discount and suspension of lead dispatches. Listed by Pass A only; verified in the Item 6 table. |
| Examination (audit) fee | $500 | per event | No | verified (tie-break) | Item 6, p. 24 | Charged only where an examination of business records finds underreported Gross Volume or underpaid fees. The franchisee also loses the Royalty Volume Discount and Convention Allowance for the entire Period of Noncompliance and pays 2% monthly interest on delinquent amounts. Listed by Pass A only; verified in the Item 6 table. |
| Failure to keep records fee | Not stated | monthly | No | verified (tie-break) | Item 6, p. 24 | Assessed only if an examination of business records finds that the franchisee did not comply with its record-keeping obligations. Imposition of liquidated damages may be restricted by state law (Note 5). Listed by Pass A only; verified in the Item 6 table. |
| Territorial Policy violations (liquidated damages) | Not stated | per event | No | verified (tie-break) | Item 6, p. 25 | Assessed for each violation of the Territorial Policy. The franchisor may also disallow the Convention Allowance, referral fees and Territorial Commissions and remove the franchisee from National, Select National and Commercial Accounts participation. Imposition of liquidated damages may be restricted by state law (Note 5). Listed by Pass A only; verified in the Item 6 table. conflicts.json paired it against Pass B's convention-allowance entry. |
| Indemnification | Not stated | varies | Yes | verified (tie-break) | Item 6, p. 25 | Owed upon demand under the indemnification provisions of the agreements between the franchisee and the franchisor. Listed by Pass A only; verified in the Item 6 table. |
| Miscellaneous (dispute costs) | Not stated | varies | No | single-pass | Item 6, p. 25 | Only if a dispute over the relationship/Agreement arises and franchisee does not prevail on all issues. [Listed by one verification pass only (A); not independently confirmed.] |
| Taxes (sales/use/gross receipts pass-through) | Not stated | varies | Yes | single-pass | Item 6, p. 25 | Excludes income tax. [Listed by one verification pass only (A); not independently confirmed.] |
| Contents Digital Inventory Software | $125–$270 | monthly | Yes | verified (2-pass) | Item 7, p. 31 | Paid to an independent vendor for contents/inventory management software. |
| Xactimate / Cotality (CoreLogic) licences and training | Not stated | varies | No | verified (tie-break) | Item 11, p. 51 | Required to participate in and qualify for referrals from National Accounts, Select National Accounts and Commercial Accounts that mandate the software. More than one licence or version may be needed because clients require different versions. Listed by Pass B only; verified in Item 11 and against the Item 7 line 'Xactimate and/or other third party estimating and pricing software and training' at $1,500-$4,500, due 'As Incurred'. |
| Required insurance coverage | Not stated | annual | Yes | verified (tie-break) | Item 7, p. 31 | Mandatory under Item 8. Vehicle and workers' compensation insurance are additional and the franchisor states it cannot estimate them. Limited Service and Repair coverage with $500,000 per-occurrence and aggregate limits is required to take Select insurance and commercial client referrals. Tail coverage for up to 3 years is required on a sale or transfer. Listed by Pass B only. Recorded with value null because the FDD discloses only a 3-month start-up estimate, not an annual premium. |
Item 6 lists a long schedule of situational charges beyond the recurring items above, including a $500 per licence administrative fee for agreement modifications, $100 per UCC filing, a 15% restocking fee on permitted returns, $500 per day plus travel for an examination of business records where under-reporting is found, up to $5,000 per month for record-keeping failures, and liquidated damages of up to $10,000 per occurrence (or twice the amount involved) for Territorial Policy violations. Additional training and certification costs are payable to third parties, including IICRC Water Damage Restoration Technician ($300–$800 plus $100), Applied Structural Drying ($500–$1,500 plus $100), subrogation training ($75–$150) and EPA lead paint training ($550–$1,000).
Financial performance (Item 19)
What the franchisor actually disclosedNo financial performance representation. The 2026 FDD does not disclose sales, costs or profits for any outlet (Item 19). Any revenue or profit figure you see for Servpro elsewhere did not come from the franchisor’s disclosure document. We do not estimate an AUV where none is disclosed. The reviewed document makes no financial performance representation. Because Item 19 is empty, nothing in the FDD indicates what a Servpro franchise typically bills, what it costs to run, or how results vary by territory or tenure. The only quantitative signals available in the document are the Item 20 outlet counts, the Item 7 investment estimates, and the fee schedule in Item 6. The franchisee roster in Exhibit M is the franchisor-provided route to performance information, though Item 20 also notes that current and former franchisees have signed confidentiality provisions during the last three fiscal years that in some cases restrict their ability to speak openly about their experience.
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2,114 | 98 | 8 | 3 | 0 | 0 | 2,202 | 106 | 0 |
| 2024 | 2,202 | 94 | 8 | 2 | 0 | 0 | 2,286 | 137 | 0 |
| 2025 | 2,286 | 79 | 10 | 1 | 0 | 0 | 2,354 | 139 | 0 |
Disclosed 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise), Item 20, Tables 1–3 (PDF p. 73). The system grew every year, entirely through franchised outlets: net +88 in 2023, +84 in 2024 and +68 in 2025, a three-year net gain of 240 on a 2,114 opening base, with no company-owned outlets at any point. Closures were modest - 8, 8 and 10 terminations and 3, 2 and 1 non-renewals - with none reacquired by the franchisor and none ceasing for other reasons. Openings slowed from 98 to 94 to 79 while transfers rose from 106 to 137 to 139, so 2025 resales nearly doubled new openings. Two arithmetic points in Table No. 3: the printed 2023 Totals row shows 98 openings but the 50 state rows sum to 99, which is what reconciles to the printed 2,202 year-end; and in 2025 the state rows sum to 9 terminations against the 10 in the Totals row (Kentucky falls 33 to 32 with no cause recorded). The printed Totals rows are used here.
Source data notes (10) — 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.
- [C/minor] Table 3 2023: The printed TOTAL row for 2023 reads 2114 start, 98 opened, 8 terminations, 3 non-renewals, 0, 0, 2202 end. That does not foot: 2114 + 98 - 8 - 3 = 2201, not 2202. This is also the validator warning for this brand. Re-adding all 50 state rows for 2023 gives 2114 start, 99 opened, 8 terminations, 3 non-renewals, 0, 0 and 2202 end - every state row foots individually, and the state start and end columns sum exactly to the printed totals. Only the TOTAL row's Outlets Opened cell is out of line, and with 99 the row foots. — Confirmed on the page image (PDF page 82): the document really does print 98, so this is not an extraction error. The correct openings figure is 99; the printed 98 understates by one. The end-of-year total 2,202 is corroborated three ways - Table 1's franchised row (2114 to 2202, +88, PDF page 73), the sum of the state end column, and the 2024 start figure - so only the openings count is affected. One unit is 0.05% of the 2,114 start-of-year franchised base.
- [C/minor] Table 1 vs Table 3 2023: Table 1 reports franchised net change of +88 for 2023 (2114 to 2202) while Table 3's printed 2023 activity columns net to +87 (98 opened less 8 terminations less 3 non-renewals). The two tables agree on the start and end counts and disagree only on activity. — Same one-unit defect as the TOTAL-row footing failure. Table 1's +88 corroborates 99 openings (99 - 8 - 3 = 88), confirming that Table 3's printed 98 is the erroneous cell. Both tables' start and end figures stand.
- [C/minor] Table 3 2025: The 2025 TOTAL row reads 2286 start, 79 opened, 10 terminations, 1 non-renewal, 0, 0, 2354 end and foots exactly. The 50 state rows, however, sum to only 9 terminations. The gap is Kentucky, whose 2025 row prints 33 at start, zero in every activity column and 32 at end - a one-outlet decline with no cause recorded. Every other state row foots in all three years. — Confirmed on the page image (PDF page 79): Kentucky 2025 really is printed as 33 / 0 / 0 / 0 / 0 / 0 / 32, so this is a defect in the source's state detail, not an extraction error. The Kentucky decline is almost certainly the tenth termination counted in the TOTAL row. The TOTAL row is the corroborated figure: it foots, its 2,354 end matches Table 1 and Item 1's statement that 2,354 Servpro Businesses were in operation at December 31, 2025. No total-level metric changes; only the state-level cause attribution for Kentucky is wrong.
- [D/minor] Table 3: Columns 7 and 8 (Reacquired by Franchisor, Ceased Operations - Other Reasons) are zero for every state in all three years, while Table 2 records 106, 137 and 139 transfers a year - about 5-6% of the franchised base and rising - against only 11, 10 and 11 combined terminations and non-renewals. — Legitimate table-definition difference rather than an error. The franchisor has never operated a Servpro Business (Item 1 and Table 4, all zeros), so reacquisitions are genuinely zero, and outlets changing hands appear in Table 2 as transfers rather than in Table 3's activity columns, where the outlet never leaves the system. The consequence for the site is interpretive: disclosed attrition (about 0.4-0.5% a year) measures departures from the system, not owner turnover, which runs an order of magnitude higher.
- [D/minor] Table 2: Pass B's check of the Table 2 state rows against the printed totals: 106 (2023), 137 (2024), 139 (2025). — Re-verified: the state rows sum exactly to the printed totals in all three years. No discrepancy.
- [D/minor] Table 5: Pass B's check of Table 5: the 37 state rows sum to 1 franchise agreement signed but not open (New Jersey) and 75 projected new franchises for the next fiscal year, against 79 actually opened in 2025 and 94-99 in 2023-2024. — Re-verified: the state rows sum exactly to the printed totals of 1 and 75, and Table 5's company-owned column is zero throughout. No discrepancy. The thin signed-but-not-open pipeline against a 75-opening projection is a disclosure characteristic, not a data defect.
- [D/minor] Table 4: Table 4 is all zeros across every column and year. — Re-verified on the page image (PDF page 82). Consistent with Table 1's company-owned rows and with Item 1's statement that the franchisor has never operated a Servpro Business. No discrepancy.
- [D/minor] Table 1 / Table 3: Carry-forward across years: 2202 end 2023 = start 2024 and 2286 end 2024 = start 2025, in Table 1 and Table 3 alike; 2,354 also matches Item 1's count at December 31, 2025. — Re-verified: carry-forward is clean in both tables and corroborated by Item 1. This is what allows the 2023 and 2025 defects above to be rated minor - every start and end figure the site uses is independently confirmed.
- [D/minor] Item 20 (all tables): The Item 20 tables are U.S.-only. Item 1 separately discloses 38 Servpro Businesses operating in Canada under Servpro Industries (Canada) ULC as of December 31, 2025, which appear nowhere in Item 20. — Legitimate scope difference: FTC Item 20 tables cover U.S. outlets, so the Canadian units are correctly absent. The site should keep using the U.S. TOTAL rows and should not add the 38 Canadian units to them; the difference only matters if a systemwide unit count is quoted alongside other brands' global figures.
- [D/minor] Table 1 2023: The PDF text layer renders Table 1's 2023 Total Outlets row out of order, placing 2202 and +88 on the line above the year and the 2114 start value. — Text-layer artifact only, with no effect on the data. Confirmed on the page image (PDF page 73): the Total Outlets 2023 row is 2114 start, 2202 end, +88, identical to the Franchised row. Both passes and the record already read it correctly.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise)
- Document
- FDD 2026, issued 2026-04-15
- Item
- Item 15
- Page
- PDF p. 67
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641001
You or Your principals or Owners (if You are a business entity) must directly perform or directly supervise operation of the Franchise.
The franchisee, or the principals and owners if the franchisee is an entity, must directly perform or directly supervise operation of the business, and on-site supervision for an entity must be by a designated Owner/Operating Principal, shareholder, partner or member who has completed the training programme. All owners must personally complete the annual financial and operational business reviews and attend the annual Convention; the Operating Principal must attend all business consultations and the twice-yearly headquarters meetings. An employee may not stand in for the owner at training or these duties. Owners may not hold an interest in a competing business or share a warehouse, office, primary place of business or employees with another franchisee.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Owner-operator required Disclosed
The franchisee, or the principals and owners if the franchisee is an entity, must directly perform or directly supervise operation of the business, and on-site supervision for an entity must be by a designated Owner/Operating Principal, shareholder, partner or member who has completed the training programme. All owners must personally complete the annual financial and operational business reviews and attend the annual Convention; the Operating Principal must attend all business consultations and the twice-yearly headquarters meetings. An employee may not stand in for the owner at training or these duties. Owners may not hold an interest in a competing business or share a warehouse, office, primary place of business or employees with another franchisee. The franchisee, or the principals and owners if the franchisee is an entity, must directly perform or directly supervise operation of the business, and on-site supervision for an entity must be by a designated Owner/Operating Principal, shareholder, partner or member who has completed the training programme. All owners must personally complete the annual financial and operational business reviews and attend the annual Convention; the Operating Principal must attend all business consultations and the twice-yearly headquarters meetings. An employee may not stand in for the owner at training or these duties. Owners may not hold an interest in a competing business or share a warehouse, office, primary place of business or employees with another franchisee. |
|---|---|
| Initial training | Initial training is the five-step Franchise Development Integration Program, which must be completed before opening. Its core is the 12-day New Franchise Training Program (NFTP) at the franchisor's Gallatin, Tennessee headquarters — 6 pre-visit virtual days, 6 on-site days and up to 6 follow-up days — totalling 96.5 classroom hours and 16 hours of on-the-job training, offered four times a year. Around it sit a self-study prerequisite phase the franchisor expects to take 45 to 60 days (including 3 to 5 days of on-the-job training at an approved franchise, QuickBooks, Xactimate, EPA lead-paint and IICRC water damage certification), a prerequisite consultation, a 5-day business set-up step of at least 40 hours over two weeks, and five days of business consultations. At least one Owner/Operating Principal active in day-to-day operations must attend and complete NFTP within 90 days of signing. Training is free for two owners; additional attendees cost $1,000 each. Franchisees generally open 60 to 120 days after signing. Disclosed
|
| Multi-unit / development options | Additional licences and resales are possible but not guaranteed: the FDD states the franchisee has no right to buy additional new franchises and the franchisor has no obligation to sell them, and the same applies to resales from other franchisees. Existing franchisees must meet qualification criteria to buy more, including at least 12 months of operation, a qualifying minimum Gross Volume, current equipment standards, specified staffing levels, other financial criteria and agreement to Gross Volume commitments; a third or subsequent licence adds growth-ready volume requirements. The initial fee may be adjusted for an existing franchisee buying an additional licence, and renewals of additional acquisitions are governed by a volume-renewal addendum. No area development or master franchise programme is described. Franchisees receive no options or rights of first refusal over nearby territory. Disclosed
|
| Territory (Item 12) | The territory is expressly non-exclusive. The franchisor may license others to perform the same services inside the franchisee's Operating Territory, may overlap territories, may open company-owned locations, and may sell in the territory through the internet, online stores, social media, retail, catalogue, telemarketing or direct marketing, under the same or different marks, without compensation. A territory generally contains 50,000 to 80,000 population measured by Census Bureau tracts and Nielsen projections, with larger areas allowed only in exceptional cases such as dense urban or heavily impoverished areas. Additional population can be bought at $1,110 per 1,000. The franchisee cannot relocate the territory, must site the business and mailing address inside it, and may only use telephone numbers with area codes serving it. A separate Territorial Policy, which the franchisor may change or discontinue at will, governs where the franchisee may advertise and work and can require commissions or referral fees on work performed in another franchisee's territory. Disclosed
|
| Initial term | 5 years Disclosed
Shorter conditional terms may be granted to existing franchisees buying additional franchises or to new franchisees buying two or more resale franchises; those terms carry Gross Volume, personnel and equipment conditions. |
| Renewal | Renewal is for successive 5-year terms if the franchisee meets the franchisor's requirements: 30 days' written notice before expiry, all monetary obligations current, no default under any agreement with the franchisor or its affiliates, full compliance during the term, required vehicles, equipment, supplies, products, uniforms and computer systems obtained, completion of any required training, execution of the then-current form of franchise agreement, which may contain materially different terms, a general release, proof of insurance, properly painted and decaled vehicles and uniformed staff, delivery of accountant-prepared accrual-basis year-end financial statements, delivery of federal and personal tax returns for the business and for each owner and spouse, and payment of the renewal fee. The franchisee may be required to repeat the 12-day NFTP at its own cost if the field operations manager considers it necessary. Disclosed
|
| Staffing | No typical employee headcount or operating hours are disclosed. Item 7 states its three-month additional funds estimate is based on an owner-operated business and excludes all wages, salaries and benefits for employees and any owner's draw, so the stated initial investment range does not carry payroll. Item 15 prohibits sharing employees with another franchisee, and Item 6 charges $1,000 per additional owner or employee attending initial training beyond the two owners covered. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 1 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 1 matter(s) disclosed Disclosed One matter is disclosed, brought by the franchisor. In March 2025 the franchisor terminated the licences of three California franchises for failure to pay royalties and other amounts and failure to comply with an audit, then sued the former owners in the U.S. District Court for the Middle District of Tennessee for breach of contract, seeking enforcement of the franchise agreements, recovery of unpaid amounts and enforcement of its trademark rights under the Lanham Act. The FDD states the defendants did not answer the complaint and does not report a final outcome. No franchisee-initiated or regulatory actions are disclosed. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy is required to be disclosed. |
| Personal guaranty | Required Disclosed
If the franchisee is a legal entity, each individual shareholder, partner or member and their spouses — including anyone the owner marries later — must sign a guaranty assuming and agreeing to pay all obligations under the franchise agreement, and spouses must separately agree to be bound by its terms. A Guaranty Agreement is attached to the FDD as Exhibit H, and separate confidentiality and non-competition agreements are required for non-owner spouses and resale buyers. |
| Non-compete | During the term the franchisee cannot be involved in any competing business and cannot hold an interest in or a business relationship with any competitor of the franchisor. After termination or expiry a two-year restriction applies: no involvement in a competing business within the former Operating Territory, within a 25-mile radius of its exterior boundaries, or within a 25-mile radius of any location — inside or outside the former territory — where the franchisee produced or performed a large loss, storm or catastrophe job generating more than $100,000 in Gross Volume. Employees attending training and non-owner spouses must sign matching confidentiality and non-competition agreements naming the franchisor as a third-party beneficiary. Disclosed
|
| Transfer restrictions | Any transfer of an interest in the agreement or any ownership change requires the franchisor's approval under its then-current criteria. Conditions include providing information on the buyer, no existing default, payment of all outstanding debts, the buyer qualifying and completing training, payment of the transfer fee of up to $35,000, provision of the purchase agreement, signature of the then-current franchise agreement by the buyer, a general release from the seller, and purchase of up to three years of insurance tail coverage. The franchisor holds a right of first refusal: it must be given 30 days' notice and a copy of the proposed purchase agreement and may buy on the same price and terms. If the franchisor or an affiliate finds or refers the buyer, a resale referral fee of up to 10% of the gross sales price including goodwill, equipment and licence is payable. Transfer on death or disability to an heir requires the heir to meet the qualification criteria. Disclosed
|
| Termination / non-renewal | The franchisor cannot terminate without cause. Curable defaults carry a 30-day cure period subject to state law and include failure to pay fees, failure to observe standards, transferring without consent, refusing an inspection or audit, health and safety violations, and selling unauthorised products. Non-curable defaults allowing immediate termination include insolvency, abandonment or ceasing to operate, material misrepresentation or false reports, conviction of a felony involving breach of trust, theft or violence, threats to public health or safety, disclosure of confidential information, failure to maintain insurance, failure to cure after notice, and repeated defaults whether or not cured. A default under any agreement with the franchisor is a default under all of them. The franchisee may terminate only by selling the business or giving 120 days' written notice while current on all obligations and signing a general release. On termination the franchisee must de-identify completely, transfer social media accounts and telephone numbers, repaint vehicles, hand over customer and contract data, cooperate in an audit and observe the non-compete. Disclosed
|
| Supplier restrictions (Item 8) | Purchasing is tightly controlled. The mandatory $112,000 Equipment and Products Package must be bought from a franchisor affiliate, and equipment, cleaning products, inventory and supplies must come from the franchisor, its affiliates or approved vendors. The franchisor and its affiliates are the only approved source for the ServproNET access package and the WorkCenter office management system, which must be used on every job; QuickBooks Online is the only permitted source of job invoices; and website and internet advertising templates must come solely from the franchisor or its affiliate. The franchisee generally has no right to buy from an unapproved supplier. Vehicles need not be bought from the affiliate but must meet specifications. The franchisor estimates required purchases at 45% to 55% of first-90-day set-up cost and about 10% to 15% of ongoing operating expenses, and states that in the year ended December 31, 2025 Servpro Industries' revenue from these required purchases was $59,154,000. Required Limited Service and Repair insurance is available only through RRRG, a captive insurer in which Servpro Industries holds stock. Disclosed
|
| Dispute resolution | All disputes must first be mediated, with cost shared equally, and most unresolved disputes then go to arbitration. Litigation must be brought in the Sumner County, Tennessee Circuit or Chancery Court or the U.S. District Court for the Middle District of Tennessee unless state law overrides; arbitration is held within 40 miles of the franchisor's principal business address. Tennessee law applies unless state law overrides, with arbitration governed by the Federal Arbitration Act. The FDD's Special Risks page flags out-of-state dispute resolution as a state-required risk, and the Michigan notice records that the franchisor intends to enforce its arbitration clause notwithstanding the Michigan provision barring out-of-state arbitration. Disclosed
|
- The cover page flags two state-required special risks: out-of-state dispute resolution in Tennessee, and mandatory minimum payments — a $100 monthly minimum royalty plus fixed fee is owed regardless of sales.
- Royalty volume discounts are discretionary: the franchisor may eliminate or change the volume thresholds on 30 days' notice and convert to a flat rate of up to 10% of Gross Volume (4.5% for Reduced Rate Services).
- Gross Volume is defined broadly enough to capture revenue from separate businesses owned or controlled by the franchisee or its owners where the services are the same as, similar to or connected with the franchise services, with the franchisor deciding what falls inside the definition.
- Territorial Policy violations can draw liquidated damages of up to $10,000 per occurrence or twice the amount involved, whichever is greater, plus loss of the Convention Allowance and removal from the National, Select National and Commercial Accounts programmes.
- Attendance is compulsory: all franchisor-sponsored events, business consultation reviews and headquarters meetings are mandatory for owners, and attending less than 100% of mandatory meetings can lead to suspension from the National Accounts and Commercial Accounts programmes.
- Item 20 states that current and former franchisees have signed confidentiality provisions during the last three fiscal years that in some cases restrict their ability to speak openly about their experience with the system.
- There is no active franchisee advisory body: the Franchise Communication Board was deactivated in 2001 and the Franchise Advisory Board that ran from 2015 to 2020 is inactive, and there are no trademark-specific franchisee organisations.
- The franchisor is a special-purpose entity created in a 2019 securitisation; day-to-day support and franchise sales are performed by the predecessor, Servpro Industries, LLC, under a management agreement.
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
Not disclosedNo model is offered for Servpro because no annual average unit sales disclosed in Item 19. We do not manufacture estimates where the disclosure does not support them.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise) · issued 2026-04-15. 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
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Servpro Franchisor, LLC (Unit Franchise) Registry file 641001 · 401 pages Cover reads 'Issuance date of this Franchise Disclosure Document: April 15, 2026'; running footer reads 'UNIT FTC-04/15/2026'. Wisconsin registration effective 4/15/2026, status Registered. This is the unit (single-territory) franchise document; the franchisor reserves the right to introduce non-traditional formats later. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-15 Retrieved 2026-08-29 | Newest available at retrieval |
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; 56 of 65 material fields confirmed (52 with the exact page citation re-confirmed), 0 corrected, 0 unresolved, 9 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 (5)
- investment.franchise_fee_low - recorded as the $100,000 Item 7 franchise fee row, not Item 5's $212,000 'Standard Purchase Price', which adds the mandatory $112,000 equipment package.
- investment.franchise_fee_high - held at $100,000; Item 7's high cell reads '$100,000 plus $1,110 per 1,000 population over maximum', an open-ended amount with no fixed high figure.
- fees.royalty.value - set to 3 as the low end Item 6 states, but 3% is the marginal rate for Reduced Rate reconstruction work only; standard services floor at a 5% marginal rate, headline rate 10%.
- fees.ad_fund.value - set to 3 per Item 11 (0.5% + 2.5%); the Item 6 table says 2.5% is currently collected, which appears to describe only the National Brand Fund portion.
- item20.franchised_status[2023].opened - the printed Totals row shows 98, but the 50 state rows sum to 99.
Extraction notes (8)
- Item 19 contains no financial performance representation, so headline_auv, headline_median and all Item 19 metrics are null with evidence not_disclosed.
- Item 7 arithmetic: the low column sums exactly to the printed $263,305 total. The high column line items sum to $385,620, $50 more than the printed $385,570 total. The printed totals are recorded; the difference is small and its source is not identifiable from the text.
- Item 20 Table No. 3 arithmetic: the 2023 Totals row (2,114 + 98 − 8 − 3) computes to 2,201 against a printed year-end of 2,202, which triggers a validator warning. Summing the 50 state rows for 2023 gives 99 openings, which reconciles to 2,202, so the Totals row appears to understate openings by one. The 2024 and 2025 Totals rows foot correctly; in 2025 it is the state rows that fall one short, with Kentucky dropping from 33 to 32 without a recorded cause.
- No liquidity or net-worth requirement is stated anywhere in the reviewed document (cover pages, Items 1, 5, 7, 10, 11 and 15 were checked), so both are recorded as not_disclosed rather than inferred.
- No required local advertising spend and no separate advertising cooperative contribution are disclosed; regional marketing is funded from the 0.5% National Accounts Core/Regional portion of the Brand Fund Fee and decided by franchisee-majority vote in 39 Subregions.
- franchisor.business_since and franchising_since are 1977, the year the predecessor Servpro Industries, LLC was established and began franchising the system. The current franchisor entity, Servpro Franchisor, LLC, was formed in August 2019 and has offered franchises since November 2019 following a securitisation transaction.
- Page citations are physical PDF pages in the 401-page Wisconsin registry document, which run eight pages ahead of the FDD's own internal page numbers.
- Item 5 describes conversion candidates (existing restoration or construction businesses) whose equipment purchase is estimated at $25,000 to $75,000 rather than $112,000, but the FDD provides no separate Item 7 table for conversions, so no alternative-format totals are recorded.
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.
Compare Servpro
Other home services franchises: 1-800 WATER DAMAGE, 1-800-GOT-JUNK?, Budget Blinds, Merry Maids, Molly Maid, Mr. Handyman. See all →