Restoration 1
Bottom line
- Total investment $127K – $310K including a $60K franchise fee.
- Average unit revenue of $1.2M/year (median $645K). Estimated payback in 1.2 years.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 144 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Restoration 1 unit return on the cash you put in?
Unlevered ROIC · per unit
49%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Restoration 1 units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$979K
on $4.9M purchase
Total debt
$3.9M
SBA $2.4M + senior + seller note
Overview
About
Restoration 1 franchisees operate water damage, fire damage, and mold remediation services for residential and commercial clients. Day-to-day operations include emergency response coordination, damage assessment, restoration project management, equipment deployment, and customer communication. Franchisees may perform hands-on restoration work or manage crews handling mitigation, drying, cleaning, and reconstruction services.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Restoration 1 presents meaningful caution-level risk: stagnant growth, unresolved franchisee litigation, unprotected territories, and absence of Item 19 financial data limit transparency and upside visibility.
Score breakdown · what drove the 46 / 100 rating
- 01MINORStagnant unit growth (1.7% YoY) suggests market saturation or franchisee dissatisfaction
- 02HIGHMultiple litigation cases and arbitration settlements indicate franchisor-franchisee relationship issues and potential misrepresentation claims
- 03MINORUnprotected territory creates direct competition risk between franchisees and potential cannibalization
- 04MINORHigh royalty structure (7% of gross or minimum fee) with no Item 19 financial disclosure limits ability to verify income claims
- 05MINORVirginia registration violation suggests compliance or operational lapses by franchisor
- 06MINORRelatively modest average net income ($175K) against total investment range ($126.5K-$309.5K) yields 0.57x-1.39x annual ROI in year one only
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
60 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Restoration 1 · FDD (2025) PDF