Rainbow International Franchise Cost, Revenue & Review 2026
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Rainbow International franchise requires a total initial investment of $185K – $352K, including a $60K franchise fee. Per the latest FDD, average unit revenue was $1.1M[2]. SBA 7(a) loans show a 13.8% charge-off rate across 116 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified
Overview
- Investment
- $185K – $352K
- 65th pct Cleaning & Ma…
- Avg gross sales
- $1.1M
- 39th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 328
- 78th pct Cleaning & Ma…
- SBA charge-off
- 13.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $185K – $352K including a $60K franchise fee.
- Average unit revenue of $1.1M/year (median $602K).
- Verdict A (Strongest tier), verdict score 74/100 (higher is better). SBA loan charge-off rate of 13.8% across 116 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Rainbow International SPV LLC
- Parent company
- Neighborly Assetco LLC
- Ultimate parent
- Nest Holdings LP (controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. / KKR)
- Predecessor
- Rainbow International LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Michael Anthony Davis
- Incorporated in
- Delaware
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $480.8M
- vs $461.7M prior year
Overview
About
Water, fire, and smoke damage restoration, mold remediation, reconstruction, and cleaning services (carpet, upholstery, hard surface) for residential and commercial customers; optional air duct cleaning services available with additional equipment/training purchase.
- CEO
- Michael Anthony Davis
- Headquarters
- Texas
- Founded
- 1980
Can you afford it, and what does the money buy?
Entry cost runs 14% below the typical cleaning & maintenance franchise.
Source: FDD · Items 5–7
FDD Item 7
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $40K | $100K |
| Equipment, build-out, other | $85K | $192K |
| Total initial investment | $185K | $352K |
Source: Rainbow International FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $185K – $352K
- Middle of category vs category
- Liquid capital req'd
- $40K – $100K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- License Fee: 6% of Gross Sales in months 1-12; then month…
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $32 |
| Training fee | $6K |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Inventory (initial) | $41K – $66K |
What do units actually make?
Average unit sales land near the cleaning & maintenance norm.
Source: FDD · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$117K
11.0% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
35 mo
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $602K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical_gross_sales
- Sample size
- 284 units
- vs category median 32 · large
- Range (low → high)
- $2K→$14.5M
- Cohort dispersion (min → max)
- Quartile band
- $113K→$2.8M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
Compared against 201 Cleaning & Maintenance brands
vs Cleaning & Maintenance averages
How Rainbow International Compares
Is the system healthy?
Source: FDD · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 328
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 11
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 116
- Loan volume
- $31.5M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 13.8%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 86.2%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 23
- Defaults
- 16
- Typical loan rate
- 8.0%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 5629
- Jobs supported
- 738
- 2.4 per loan
- Lender concentration
- 64%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Rainbow International charge-off rate by loan vintage
Top lenders financing Rainbow International franchisees
Showing 3 of 23 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans charge off at 13.8% — 14% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Franchisor/Predecessor prevailed in a 2024 judgment (affirmed on appeal March 2026, rehearing pending) against former franchisees Cheyenne Partners/Kitts for breach of non-compete, trade secret misappropriation, and unpaid fees, receiving $541,036 (plus $71,773 to affiliate Grounds Guys) in damages; defendants' counterclaims under Michigan Franchise Investment Law, Sherman Act, fraud, etc. were all denied. Separately, franchisor filed suit in October 2025 against a franchisee (Rapid Response Disaster Services) to collect monies owed.
Largest disclosed settlement: $541,036
Bankruptcy (Item 4)
Disclosed in last 7 years
No bankruptcy involving the Franchisor, its predecessor, or officers. Item 4 discloses bankruptcy proceedings of unrelated portfolio companies controlled by KKR (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) - none involve the Franchisor.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
What are you signing up for?
Source: FDD · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 200,000 to 500,000 population |
| Franchisor can compete | No |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | McLennan County, Texas |
| Litigation count | 2 |
View Item 3 litigation summary
Franchisor/Predecessor prevailed in a 2024 judgment (affirmed on appeal March 2026, rehearing pending) against former franchisees Cheyenne Partners/Kitts for breach of non-compete, trade secret misappropriation, and unpaid fees, receiving $541,036 (plus $71,773 to affiliate Grounds Guys) in damages; defendants' counterclaims under Michigan Franchise Investment Law, Sherman Act, fraud, etc. were all denied. Separately, franchisor filed suit in October 2025 against a franchisee (Rapid Response Disaster Services) to collect monies owed.
Items 10, 11
Training & Operations
- Classroom training
- 205 hrs
- On-the-job training
- 36 hrs
- Training location
- Waco, Texas (franchisor's offices) or virtual/webinar; Field Training at an operating franchised business location
- Ongoing training
- Required
- Field support
- 36 hrs/yr
- On-site visits per year
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Rainbow International franchise?
The total investment to open a Rainbow International franchise ranges from $185K – $352K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Rainbow International franchise owners earn?
According to Item 19 of the Rainbow International FDD, the average gross sales per unit is $1.1M. The median is $602K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Rainbow International's franchise failure rate?
Based on SBA 7(a) loan data, Rainbow International has a charge-off rate of 13.8% across 116 loans, meaning 13.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Rainbow International franchise locations are there?
As of their most recent FDD filing, Rainbow International has 328 total units in the United States, including 328 franchised units and 0 company-owned units.
Is Rainbow International a good franchise to buy?
FranchiseVerdict rates Rainbow International as a A-grade franchise with a verdict score of 74 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.