Restoration 1Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Restoration 1 franchise requires a total initial investment of $127K – $310K, including a $60K franchise fee. Per the 2025 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 11.1% charge-off rate across 111 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $127K – $310K
- 47th pct Cleaning & Ma…
- Avg gross sales
- $1.2M
- 39th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 298
- 75th pct Cleaning & Ma…
- SBA default
- 11.1%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 5.6x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 298 to 289 over 3 years. Investigate why operators are leaving.
80% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $127K – $310K including a $60K franchise fee.
- Average unit revenue of $1.2M/year (median $645K), with an estimated 80% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 25/100. SBA loan charge-off rate of 11.1% across 111 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- RESTORATION 1 FRANCHISE HOLDING, LLC
- Parent company
- Stellar Brands, LLC
- Incorporated in
- DE
- HQ
- 2929 Carlisle St., Suite 100, Dallas, Texas 75204
- Auditor
- Huselton, Morgan & Maultsby, P.C.
- Audited financials
- Franchisor revenue
- $18.8M
- vs $18.3M prior year
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.
- CEO
- Jessica Wescott
- Headquarters
- TX
- Founded
- 2010
- FDD year
- 2025
- States available
- 41
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $40K | $75K |
| Equipment, build-out, other | $27K | $175K |
| Total initial investment | $127K | $310K |
Source: Restoration 1 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$135K
11.0% margin
Unlevered ROIC
49%
EBITDA / total invested capital
Payback
25 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $127K – $310K
- Near category avg vs category
- Liquid capital req'd
- $40K – $75K
- Near category avg vs category
- Franchise fee
- $14K – $64K
- Near category avg vs category
- Royalty
- Greater of: (a) 7% of Collected Gross Revenue (or 3.5% fo…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 1.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $525 |
| Transfer fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $645K
- Avg net profit
- $175K
- Reported as Net Profit in FDD Item 19
- Cash-on-cash
- 80.3%
- Based on Net Profit / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 140 units
- vs category median 31 · large
- Range (low → high)
- $22K→$18.2M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 204 Cleaning & Maintenance brands
Revenue is 5.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Cleaning & Maintenance averages
How Restoration 1 Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 298
- Opened
- 29
- Last reporting year
- Closed
- 24
- Turnover rate
- 8.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.7%
- Net unit change last year
- 3-yr CAGR
- +3.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 13
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 111
- Loan volume
- $25.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 11.1%
- 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)
- 84.2%
- 5-yr charge-off
- 20.7%
- Loans approved 2021+
- Active lenders
- 32
- Defaults
- 6
Vintage analysis
Restoration 1 charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Restoration 1's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 8-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Huselton, Morgan & Maultsby, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 25 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based Market Territory |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 7 |
Items 10, 11
Training & Operations
- Classroom training
- 110 hrs
- On-the-job training
- 8 hrs
- POS system
- Xcelerate
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Xcelerate
Item 20 · call current owners
Franchisee Contacts
60 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Restoration 1 · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Restoration 1 franchise?
The total investment to open a Restoration 1 franchise ranges from $127K – $310K, 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 Restoration 1 franchise owners earn?
According to Item 19 of the Restoration 1 FDD, the average gross sales per unit is $1.2M. The median is $645K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Restoration 1's franchise failure rate?
Based on SBA 7(a) loan data, Restoration 1 has a charge-off rate of 11.1% across 111 loans, meaning 11.1% 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 Restoration 1 franchise locations are there?
As of their most recent FDD filing, Restoration 1 has 298 total units in the United States, including 298 franchised units and 0 company-owned units. 29 new units were opened in the latest reporting year.
Is Restoration 1 a good franchise to buy?
FranchiseVerdict rates Restoration 1 as a A-grade franchise with a risk score of 25 out of 100, 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.
For franchisors
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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.