Restoration 1 Franchise Cost, Revenue & Review 2026
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. 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]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $127K – $310K
- 48th pct Cleaning & Ma…
- Avg gross sales
- $1.2M
- 33rd pct Cleaning & Ma…
- Royalty
- N/A
- 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
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
- COSTTotal investment $127K – $310K including a $60K franchise fee.
- RETURNSAverage unit revenue of $1.2M/year (median $645K).
- RISKVerdict F (Weakest tier), verdict score 25/100 (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).
- TERMSNo 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
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 30% below the typical cleaning & maintenance franchise.
Source: FDD 2025 · Items 5–7
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.
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
- 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
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 |
What do units actually make?
Average unit sales run 36% above the cleaning & maintenance norm.
Source: FDD 2025 · 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
$135K
11.0% margin
Unlevered ROIC
49%
EBITDA / total invested capital
Payback
25 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
49%
Within the 30–60% "attractive franchise" band
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%.
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
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
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $645K
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
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 192 Cleaning & Maintenance brands
Revenue is 5.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.2M/year in gross sales. Median is $645K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 5.6x.
Fee burden
Total ongoing fee load of 9.0% (near the Cleaning & Maintenance average).
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 averages
How Restoration 1 Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 298
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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).
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)
- 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
Top lenders financing Restoration 1 franchisees
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.
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.
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.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
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 verdict
- 01MINORNear-zero net worth $13,144, zero revenue
- 02MINORTiny 3-unit early-stage system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | 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
195 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 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. 2 new units were opened in the latest reporting year.
Is Restoration 1 a good franchise to buy?
FranchiseVerdict rates Restoration 1 as a F-grade franchise with a verdict score of 25 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.
For franchisors
Are you the franchisor?
If you represent Restoration 1, you can request corrections or provide updated information.
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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.