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Restoration 1 Franchise Cost, Revenue & Review 2026

Cleaning & MaintenanceTXFranchising since 2020
BAbove averageAbove average64/100Editorial grade from public filings; not investment advice.
Investment
$127K – $310K
Disclosed sales
$1.2M
gross sales, not profit
SBA charge-off
11.1%
on 111 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-02145FDD 2025Data QualityStandard76%
Owner-operator requiredNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

Restoration 1 is a property-restoration franchise handling water, fire, and mold damage mitigation and repair for homes and businesses. Franchisees run field crews on emergency restoration jobs, often through insurance.

FranchiseVerdict summary · 2026

A Restoration 1 franchise requires a total initial investment of $127K – $310K, including a $60K – $64K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average revenue per franchisee was $1.2M. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 11.1% charge-off rate across 111 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.

Overview

Investment
$127K – $310K
48th pct Cleaning & Ma…
Avg gross sales
$1.2M
Per franchisee, not per outlet
Royalty
7.0%
38th pct Cleaning & Ma…
Units
298
78th pct Cleaning & Ma…
SBA charge-off
11.1%
% of SBA 7(a) loans not repaid · median varies by category

Quick verdict · Cleaning & Maintenance · color = vs category peers

Total Investment
$127K – $310K
Median $169K
above median ↑, worse than category
Franchise Fee
$60K – $64K
Median $47K
above median ↑, worse than category
Liquid Capital Req'd
$40K – $75K
Median $30K
above median ↑, worse than category
Avg Revenue
$1.2M
Median $538K
Per franchisee, not per outlet
Royalty Rate
7.0%
Median 7.0%
near median
Ongoing Fees
9.0% of rev
Median 8.3%
near median
SBA Charge-Off Rate
11.1%
111 loans · Median 9.8%
above median ↑, worse than category
System Size
298 units
Median 51 units
above median ↑, better than category
Turnover Rate
8.1%
Median 3.4%
above median ↑, worse than category
Territory
Exclusive
No other outlet of the brand may open inside it
Owner-Operator
Required
You must run it yourself
Litigation
7 cases
Review carefully

Green = favorable by >10% vs Cleaning & Maintenance median · 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

  • COSTTotal investment $127K – $310K including a $60K franchise fee, 7.0% ongoing royalty.
  • RETURNSAverage revenue per franchisee of $1.2M/year (median $645K). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
  • RISKVerdict B (Above average), verdict score 64/100 (higher is better). SBA loan charge-off rate of 11.1% across 111 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
  • GROWTHPositive: net +5 franchised outlets in the latest year (29 opened, 24 closed); 2 signed but not yet open (Item 20).
  • FLAG24 units terminated last reporting year (8.1% of the system). Ask existing franchisees why.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
Archive Franchise Network, LLC
Parent company
Archive Enterprises, Inc. (affiliate - owns IP); Alpha Contents Restoration, LLC (affiliate - operates similar business)
CEO title
Founder and President/CEO
Eric W. Ten Eyck
Incorporated in
Nevada
HQ
1960 East McFadden Avenue, Santa Ana, California 92705
Auditor
Huselton, Morgan & Maultsby, P.C.
Audited financials
Franchisor revenue
$18.8M
vs $18.3M prior year

Overview

About

CEO
Eric W. Ten Eyck
Headquarters
TX
Founded
2020
FDD year
2025
States available
41

Can you afford it, and what does the money buy?

Entry cost runs 29% above the typical cleaning & maintenance franchise.

Total investment (Item 7)$127K – $310KCited, not corroborated — printed on page 20 of the 2025 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$59,900Verified — printed on page 14 of the 2025 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty7.0%Cited, not corroborated — printed on page 15 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Ad fund2.0%Cited, not corroborated — printed on page 15 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$40K – $75K

Source: FDD 2025 · Items 5–7

FDD Item 7 · 2025 filing

Initial investment breakdown

Restoration 1: Item 7 initial investment breakdown
Cost componentLowHigh
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.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$127K – $310K
Middle of category vs category
Liquid capital req'd
$40K – $75K
Bottom third — review vs category
Franchise fee
$60K – $64K
Bottom third — review vs category
Royalty
7.0%
Set by a formula · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Ongoing fees · Item 6

Restoration 1: Item 6 recurring fees
FeeAmount
Royalty7.0% of gross sales
Marketing / ad fund2.0%
Technology fee$525
Transfer fee$5K
Renewal fee$10K
Total fee load9.0% of rev

What do units actually make?

Average unit sales run 128% above the cleaning & maintenance norm.

Avg gross sales$1.2M

Averaged per franchisee, not per outlet - not comparable with per-outlet figures

Cited, not corroborated — printed on page 52 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$645KCited, not corroborated — printed on page 52 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typegross sales
Sample size140 franchisees

Source: FDD 2025 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Restoration 1 until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$276K

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.

Returns model · single-unit ROIC

What would one Restoration 1 unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per franchisee, per year (NOT per outlet)FDD
FDD Item 19 reports $1,224,339 per franchisee — not per outlet. Every other input below is for ONE unit; replace this with a single-unit figure before relying on the ROIC.
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $127K–$310K (midpoint used)
FDD reports $40K–$75K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$276K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

What 25 units return when you use SBA financing

Model B · Return on Equity: Debt-Financed Acquisition

Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).

This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.

What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2025 FDD

Financial Performance

Averaged per franchisee, not per outlet - not comparable with per-outlet figures

Avg gross sales
$1.2M
Per franchisee, per year — not per outlet
Median gross sales
$645K
Per franchisee, not per outlet

Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.

Item 19 type
gross sales
Sample size
140 franchisees
vs category median 32 · large
Reporting year
2023
Fiscal year the figures cover
Source filing
FDD 2025
Disclosed in the 2025 filing, covering 2023
Transparency
4 / 10
vs category median 4 / 10 · typical
Gross sales rank
No comparison data
Investment cost rank48th
Lower investment ranks lower (better)
Royalty rate rank38th
Lower royalty = lower percentile (better)
Unit count rank78th
vs Cleaning & Maintenance peers
Risk score rank33th
Lower risk = lower percentile (better)

Compared against 191 Cleaning & Maintenance brands

Showing the headline figures — all 149 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Unit economics

The average franchisee generates $1.2M/year in gross sales. Median is $645K — top performers pull the average up, so a typical unit earns less.

Fee burden

Total ongoing fee load of 9.0% (near the Cleaning & Maintenance median).

Disclosure

Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Cleaning & Maintenance medians

How Restoration 1 Compares

Metric
Restoration 1
Category median
vs median
Investment
$218K
$169Kmiddle half $115K–$269K · n=170
Above median, worse than category
Revenue
$1.2M
$538Kmiddle half $349K–$1.1M · n=59
Not compared

Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown

Unit Count
298
51middle half 12–108 · n=169
Above median, better than category

Category median of published Cleaning & Maintenance brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units298Cited, not corroborated — printed on page 54 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Turnover rate8.1% (favorable vs category)

Source: FDD 2025 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
298
Opened
29
Last reporting year
Closed
24
Terminated
24
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Turnover rate
8.1%
Company-owned
0
Corporate units in the system
% franchised
67%
vs corporate-owned

Last fiscal year · Item 20 exits and transfers

Terminated
24
Not renewed
0
Transferred
0
Reacquired
0
Franchisor bought back
Signed, not yet open
2
0.01 per open outlet · Item 20 Table 5
Projected new
0
Franchisor's next-year forecast
2022
289
Franchised units
2023
293+4
Franchised units
2024
298+5
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 39 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 39 states
No contacts on file

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.

Where the owners are · Item 20 owner list

171 current owners across 39 states.

  • TX 22
  • CA 10
  • GA 10
  • FL 8
  • CO 7
  • MI 7
  • VA 7
  • CT 6
  • IL 6
  • MO 6
  • WA 6
  • AL 5
  • +27 more states

Counts only, from the list the franchisor prints in Item 20; 24 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

C
SBA Lending Health
Average SBA lending record · 11.1% charge-off
Total loans
111
Loan volume
$25.1M
Median loan
$150K
50th percentile
Charge-off rate
11.1%
on 111 loans · 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)
88.9%
5-yr charge-off
20.7%
Loans approved 2021+
Active lenders
32
Defaults
6
Typical loan rate
7.8%
avg rate to borrowers
Franchised industry avg
12.9%
brand beats franchise avg ↓
Jobs supported
532
2.7 per loan
Lender concentration
35%
top lender's share

Borrower mix: 80% went to startups / new businesses, 20% to established operators

Franchise vs independent — in remediation services, franchised businesses charge off at 12.9% vs 10.4% for independents — franchising is associated with 24% higher SBA default risk in this category.

Vintage analysis

Restoration 1 charge-off rate by loan vintage

BrandNational avg
Restoration 1 charge-off rate by loan vintage. Showing 5 vintages from 2018 to 2022. Rates range from 0.0% to 66.7%.0%5%10%15%20%25%30%35%40%45%50%55%60%65%70%'18'19'20'21'22

Top lenders financing Restoration 1 franchisees

United Midwest Savings Bank National Association28 loans35.7%
The Huntington National Bank9 loans0.0%
Peoples Bank6 loans0.0%

Showing 3 of 32 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.

Total loans
2
Loan volume
$1.6M
Charge-off rate
N/A
Jobs created
7

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Restoration 1 from SBA 7(a) FOIA data.

Principal loss rate
3.5%
Avg SBA guarantee
76%
Avg interest rate
7.79%
Avg chargeoff amount
$113K
Lender concentration
34.6%
Job velocity
2.7 per $100K
Startup risk premium
+19.4pp
NAICS benchmark
10.2%
NAICS 562910
Jobs supported
532

Top SBA lendersTop lender holds 35% of loans

#LenderLoansVolumeDefault %
1United Midwest Savings Bank National Association28$4.1M35.7%
2The Huntington National Bank9$898K0.0%
3Peoples Bank6$676K0.0%
4Live Oak Banking Company5$1.5M0.0%
5Readycap Lending, LLC4$1.7MN/A
6Stearns Bank National Association3$417K50.0%
7Celtic Bank Corporation2$270K0.0%
8Community National Bank2$95K0.0%
9Legacy National Bank2$147K0.0%
10West Bank2$210K0.0%

Geographic failure vector

StateLoansDefaultsRate
CACalifornia10250.0%
OHOhio6125.0%
TXTexas61100.0%
GAGeorgia50--
MIMichigan500.0%
NYNew York500.0%
COColorado400.0%
MSMississippi400.0%
ARArkansas300.0%
AZArizona30--

SBA 7(a) lending trend

2018
15
2019
11
2020
10
2021
14
2022
9
2023
9
2024
9
2025
4

Borrower profile

Startup57 (70%)
Existing (2+ yr)12 (15%)
New (< 2 yr)8 (10%)
Unanswered2 (2%)
Ownership change2 (2%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

What could kill this investment?

SBA loans charge off at 11.1% — 31% below the 16.0% national norm, i.e. lower lender-observed risk.

SBA charge-off11.1% · 111 loans
Verdict score64/100 (higher is better)
Litigation7 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average64Verdict score 64/100
High confidence±4 pts
6068

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · Huselton, Morgan & Maultsby, P.C.

Franchisor revenue (Item 21)

Yr 1: $18.8MYr 2: $18.3M

Franchisor entity revenue (not unit-level)

Franchisor entity itself reported $0 revenue in both FY2022 and FY2023 per audited financial statements

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: Yes
  • Kickbacks from required suppliers: Yes
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes
  • Can negotiate own supplier terms: No

Score breakdown · what drove the 64 / 100 verdict

  1. 01MINORNear-zero net worth $13,144, zero revenue
  2. 02MINORTiny 3-unit early-stage system

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 149 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail7 matters · Item 3

Litigation cases

The franchisor

Pending (1)

  • Restoration 1 Franchise Holding, LLC v. Coast 2 Coast Restoration LLC, Robert A. Lee, Jr. and Anthony Aceto

    pending

    Brought against a franchisee · filed 2023-03-13 · United States District Court for the Northern District of Texas · Case No. 23-cv-005490

    “Restoration 1 Franchise Holding, LLC v. Coast 2 Coast Restoration LLC, Robert A. Lee, Jr. and Anthony Aceto,United States District Court for the Northern District of Texas (Case No. 23-cv-005490), filed March 13, 2023. We filed a lawsuit against our former franchisee, Coast 2 Coast Restoration LLC (“Coast 2 Coast”),”Page 12 of the 2025 FDD, Item 3

Concluded (6)

  • Aaron Cline v. Restoration 1 Franchise Holding, LLC

    settled

    Brought by a franchisee · filed 2016 · American Arbitration Association · Case No. 01-16-0002-0987

    “Aaron Cline v. Restoration 1 Franchise Holding, LLC filed with the American Arbitration Association (Case No. 01-16-0002-0987). On or about May 27, 2016, Aaron Cline, a California franchisee, our former franchisee, filed a demand for arbitration against us asserting claims for fraudulent and deceptive trade practices and misrepresentations in our disclosure document.”Page 13 of the 2025 FDD, Item 3

    Outcome:“On August 29, 2016, the parties settled all claims whereby the parties agreed to terminate the plaintiff’s Restoration 1 franchise agreement and exchanged mutual releases.”

  • Abraham Newman v. Restoration 1 Franchise Holding, LLC and Andor Kovacs

    concluded

    Brought by a franchisee · filed 2015-08-10 · American Arbitration Association · Case No. 01-15-0004-6266

    “Abraham Newman v. Restoration 1 Franchise Holding, LLC and Andor Kovacs filed with the American Arbitration Association (Case No. 01-15-0004-6266), August 10, 2015.”Page 13 of the 2025 FDD, Item 3

    Outcome:“On January 31, 2016, the parties agreed to terminate the plaintiffs’ Restoration 1 franchise agreements and exchanged mutual releases.”

  • Gregory Wayne Stephens v. Restoration 1 Franchise Holding, LLC and Andor Kovacs

    concluded

    Brought by a franchisee · filed 2015-08-10 · American Arbitration Association · Case No. 01-15-0004-6267

    “Gregory Wayne Stephens v. Restoration 1 Franchise Holding, LLC and Andor Kovacs, filed with the American Arbitration Association (Case No. 01-15-0004-6267), August 10, 2015. Former franchisees filed demands for arbitration against our principal and us asserting claims for contractual violations, misrepresentations, and deceptive and unfair trade practices.”Page 13 of the 2025 FDD, Item 3

    Outcome:“On January 31, 2016, the parties agreed to terminate the plaintiffs’ Restoration 1 franchise agreements and exchanged mutual releases.”

  • Leo Reyes v. Restoration 1 Franchise Holding, LLC and Andor Kovacs

    settled

    Brought by a franchisee · filed 2015 · American Arbitration Association · Case No. 01-15-0005-2169

    “Leo Reyes v. Restoration 1 Franchise Holding, LLC and Andor Kovacs filed with the American Arbitration Association (Case No. 01-15-0005-2169). On or about September 30, 2015, Leo Reyes, our former franchisee, filed a demand for arbitration against our principal and us asserting claims for misrepresentations/fraud, violation of the Florida Deceptive and Unfair Trade Practices Act”Page 13 of the 2025 FDD, Item 3

    Outcome:“On January 31, 2016, the parties settled all claims whereby the parties agreed to terminate the plaintiff’s Restoration 1 franchise agreement and exchanged mutual releases.”

  • Restoration 1 of Boca Raton, LLC, Abraham Newman, and Erick Aguilar v. Restoration 1 Franchise Holding, LLC and Andor Kovacs

    concluded

    Brought by a franchisee · filed 2015-08-15 · American Arbitration Association · Case No. 01-15-0004-06979

    “Restoration 1 of Boca Raton, LLC, Abraham Newman, and Erick Aguilar v. Restoration 1 Franchise Holding, LLC and Andor Kovacs filed with the American Arbitration Association (Case No. 01-15-0004-06979), August 15, 2015.”Page 13 of the 2025 FDD, Item 3

    Outcome:“On January 31, 2016, the parties agreed to terminate the plaintiffs’ Restoration 1 franchise agreements and exchanged mutual releases.”

  • Commonwealth of Virginia, ex rel. State Corporation Commission v. Restoration 1 Franchise Holding, LLC and Andor Kovacs

    settled

    Government or regulatory action · Virginia State Corporation Commission · Case No. SEC-2014-00028

    “Commonwealth of Virginia, ex rel. State Corporation Commission v. Restoration 1 Franchise Holding, LLC and Andor Kovacs, (Case No. SEC-2014-00028). On July 16, 2014, we entered into a Settlement Order with the Virginia State Corporation Commission based upon the allegation that we offered and sold a franchise in Virginia after our Virginia registration had lapsed.”Page 13 of the 2025 FDD, Item 3

    Outcome:“We neither admitted nor denied the allegations but nonetheless agreed to the terms of the Settlement Order whereby we paid $1,000 to”

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term10 yrs
TerritoryExclusive (favorable vs category)
Initial training118 hrs

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term10 years
Allowed renewalsℹ1
Territory typeExclusive territory
Protected territoryNo
Exclusive territoryℹYes
Territory sizeℹ250,000 to 1,000,000 households
Online sales rightsRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorRequired
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ20 mi
Right of first refusalℹYes
RoFR response window30 days
Transfer requires consentYes
Termination notice30 days
Termination groundsℹ22
Curable defaultsℹ11
Mandatory arbitrationYes
Jury trial waiverYes
Governing lawTexas
Litigation count7

Items 10, 11

Training & Operations

Classroom training
110 hrs
On-the-job training
8 hrs
Ongoing training
Required
Site selection
franchisor approval of franchisee-proposed site; minimum 5,000 sq ft warehouse/industrial space
Franchisor financing
Not offered
Item 10
POS system
Xcelerate
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: Xcelerate

Item 20 · call current owners

Franchisee Contacts

195 owners to call

Name · phone · city · state. Extracted from FDD Item 20

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260-348-••••IN
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855-620-••••
847-830-••••IL
864-520-••••SC
515-523-••••IA

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. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns Restoration 1?

Restoration 1 is franchised by Archive Franchise Network, LLC. Its parent company is Archive Enterprises, Inc. (affiliate - owns IP); Alpha Contents Restoration, LLC (affiliate - operates similar business). Source: FDD Item 1, 2025 filing.

What is Item 19 in the Restoration 1 FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Restoration 1 FDD and qualifies whose outlets they describe.

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 B-grade franchise with a verdict score of 64 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.