ServiceMaster Restore
Bottom line
- Total investment $267K – $443K including a $73K franchise fee.
- Average unit revenue of $2.7M/year (median $1.3M).
- Rated STRONG with a risk score of 43/100. SBA loan default rate of 0.0% across 423 loans (below the industry average).
- System contracting at -6.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 ServiceMaster Restore unit return on the cash you put in?
Unlevered ROIC · per unit
66%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ServiceMaster Restore units return on equity?
Equity IRR · 5-yr
45.1%
6.44× MOIC
Year-1 DSCR
1.97×
EBITDA ÷ debt service
Equity required
$2.6M
on $10.8M purchase
Total debt
$8.2M
SBA $5.0M + senior + seller note
Overview
About
ServiceMaster Restore franchisees operate water damage restoration, fire damage remediation, and mold remediation services for residential and commercial customers. Day-to-day operations involve emergency response dispatch, job assessment and mitigation, equipment deployment, customer communication, and billing/invoicing. Franchisees manage field technicians, coordinate with insurance adjusters, and handle sales/marketing within their territory.
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 · 18 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
ServiceMaster Restore presents CAUTION-level risk due to declining unit economics, absence of profitability disclosure, litigation history involving fraud allegations, unprotected territory, and high royalty burden on undisclosed net income.
Score breakdown · what drove the 43 / 100 rating
- 01MINORDeclining unit count (-1.0% YoY) suggests system contraction and potential saturation or franchisee dissatisfaction
- 02MINORNo Item 19 (average net income) disclosure creates opacity around actual profitability despite $2.7M average revenue
- 03HIGHHistory of litigation involving misrepresentation, fraud, and breach of contract allegations against predecessors raises due diligence concerns
- 04MINORUnprotected territory exposes franchisees to direct competition from other ServiceMaster Restore locations and brand cannibalization
- 05MEDHigh royalty structure (10% of gross sales or $750 minimum) reduces net margins, especially problematic without disclosed net income benchmarks
- 06HIGHPending vendor program removal litigation suggests potential franchisor relationship deterioration and operational instability
- 07MINOR5-year term is relatively short; renewal not guaranteed, creating long-term business continuity risk
- 08MEDInitial investment range ($266K-$442K) is substantial given unit decline and lack of profitability transparency
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
48 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ServiceMaster Restore · FDD (2025) PDF