Servpro Franchise Cost, Revenue & Review 2026
- Investment
- $259K – $380K
- Disclosed sales
- not disclosed
- SBA charge-off
- 6.5%
- on 714 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
SERVPRO is a cleanup and restoration franchise handling fire, water, mold, and storm damage for homes and businesses. Franchisees run field crews on emergency mitigation, restoration, and reconstruction jobs, often working with insurers.
FranchiseVerdict summary · 2026
A SERVPRO franchise requires a total initial investment of $259K – $380K, including a $100K franchise fee and an ongoing 3.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 6.5% charge-off rate across 714 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $259K – $380K
- 76th pct Cleaning & Ma…
- Avg gross sales
- N/A
- Royalty
- 3.0%
- 1st pct Cleaning & Ma…
- Units
- 2,286
- 87th pct Cleaning & Ma…
- SBA charge-off
- 6.5%
- % 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 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 $259K – $380K including a $100K franchise fee, 3.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 65/100 (higher is better). SBA loan charge-off rate of 6.5% across 714 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +84 franchised outlets in the latest year (94 opened, 10 closed); 2 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Servpro Franchisor, LLC
- Parent company
- Servpro Master Issuer, LLC / Servpro SPV Guarantor, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Commodore Parent Holdings, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- Servpro Industries, LLC (franchisor 1977-Oct 2019); Servpro Intellectual Property, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President (Servpro Industries)
- John Sooker
- Incorporated in
- Delaware
- HQ
- 801 Industrial Boulevard, Gallatin, Tennessee 37066
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $324.7M
- vs $313.1M prior year
Overview
About
- CEO
- John Sooker
- Headquarters
- Tennessee
- Founded
- 1977
- FDD year
- 2025
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 88% above 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 | $100K | $100K |
| Working capital (3–6 mo) | $32K | $50K |
| Equipment, build-out, other | $127K | $230K |
| Total initial investment | $259K | $380K |
Source: SERVPRO 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
- $259K – $380K
- Bottom third — review vs category
- Liquid capital req'd
- $32K – $50K
- Middle of category vs category
- Franchise fee
- $100K – $100K
- Bottom third — review vs category
- Royalty
- 3.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Transfer fee | $35K |
| Renewal fee | $5K |
| Inventory (initial) | $4K – $9K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
SERVPRO makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one SERVPRO unit return on the cash you put in?
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.
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 annual revenue, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Cleaning & Maintenance median of 8.3%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 11.4% CAGR over 3 years across 2,286 units — operators are staying and new ones are joining.
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 Servpro Compares
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?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,286
- Opened
- 94
- Last reporting year
- Closed
- 10
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +11.4%
- Net unit change over 3 years
- 3-yr CAGR
- +11.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 8
- Not renewed
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 90
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 50 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.
Where the owners are · Item 20 owner list
2,182 current owners across 50 states; 17 former (terminated, transferred or not renewed) listed separately.
- CA 261
- TX 175
- FL 157
- NY 106
- PA 99
- IL 91
- NC 76
- OH 75
- NJ 72
- MI 66
- GA 65
- TN 55
- +38 more states
Counts only, from the list the franchisor prints in Item 20. 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.
- Total loans
- 714
- Loan volume
- $301.9M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 6.5%
- on 714 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)
- 93.5%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 184
- Defaults
- 37
- Typical loan rate
- 6.5%
- avg rate to borrowers
- Franchised industry avg
- 17.1%
- brand beats franchise avg ↓
- Jobs supported
- 7,031
- 2.3 per loan
- Lender concentration
- 7%
- top lender's share
Borrower mix: 25% went to startups / new businesses, 75% to established operators
Franchise vs independent — in residential remodelers, franchised businesses charge off at 17.1% vs 22.4% for independents — franchising is associated with 24% lower SBA default risk in this category.
Vintage analysis
Servpro charge-off rate by loan vintage
Top lenders financing Servpro franchisees
Showing 3 of 184 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Servpro from SBA 7(a) FOIA data.
- Principal loss rate
- 2.6%
- Avg SBA guarantee
- 69%
- Avg interest rate
- 6.45%
- Avg chargeoff amount
- $211K
- Lender concentration
- 7.0%
- Job velocity
- 2.3 per $100K
- Startup risk premium
- -1.5pp
- NAICS benchmark
- 9.5%
- NAICS 236118
- Jobs supported
- 7,031
Top SBA lendersTop lender holds 7% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 50 | $19.8M | 10.4% |
| 2 | Simmons Bank | 45 | $11.9M | 2.4% |
| 3 | Live Oak Banking Company | 44 | $35.3M | 7.7% |
| 4 | PNC Bank, National Association | 28 | $6.2M | 11.1% |
| 5 | The Huntington National Bank | 23 | $9.5M | 6.2% |
| 6 | JPMorgan Chase Bank, National Association | 22 | $7.8M | 0.0% |
| 7 | Manufacturers and Traders Trust Company | 17 | $3.6M | 0.0% |
| 8 | TD Bank, National Association | 15 | $3.9M | 0.0% |
| 9 | U.S. Bank, National Association | 15 | $4.2M | 9.1% |
| 10 | Bank of America, National Association | 14 | $1.7M | 33.3% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 66 | 5 | 8.9% |
| PAPennsylvania | 57 | 4 | 8.7% |
| CACalifornia | 55 | 2 | 5.0% |
| FLFlorida | 42 | 3 | 9.7% |
| NCNorth Carolina | 42 | 0 | 0.0% |
| ILIllinois | 33 | 1 | 4.3% |
| MAMassachusetts | 26 | 0 | 0.0% |
| MIMichigan | 26 | 1 | 4.5% |
| NJNew Jersey | 23 | 2 | 10.5% |
| MNMinnesota | 21 | 2 | 13.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 6.5% — 59% 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
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Servpro Franchisor, LLC v. Placer Complete Restoration, Inc. et al. (M.D. Tenn., Case No. 3:25-cv-00255), filed March 4, 2025, for breach of contract/unpaid royalties and trademark enforcement after terminating 3 franchise licenses for nonpayment and audit noncompliance.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 65 / 100 verdict
- 01MINORStrong financials: net income $238.1M, net worth $911.2M
- 02HIGH1 litigation matter across 2,286 units - immaterial
- 03MINORNo Item 19 disclosure (sole minor note)
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail1 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Servpro Franchisor, LLC v. R. Rimualdo Enterprises, Inc. and Ralph Rimualdo
pendingBrought against a franchisee · filed 2024-02-22 · US District Court, Middle District of Tennessee · 3:24-cv-00200
“Servpro Franchisor, LLC v. R. Rimualdo Enterprises, Inc. and Ralph Rimualdo: US District Court, Middle District of Tennessee; Case Number 3:24-cv-00200. Servpro Franchisor, LLC (“Servpro”) terminated the Servpro of Southern Saratoga County franchise license on September 25, 2023 for failure to pay royalties and comply with an audit.”Page 15 of the 2025 FDD, Item 3
Outcome:“This matter is in the preliminary stages of litigation.” (page 16)
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 6.0% 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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 65,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Within 40 miles of franchisor's principal business address (Gallatin/Sumner County, Tennessee) at time of arbitration demand |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 1 |
View Item 3 litigation summary
Servpro Franchisor, LLC v. Placer Complete Restoration, Inc. et al. (M.D. Tenn., Case No. 3:25-cv-00255), filed March 4, 2025, for breach of contract/unpaid royalties and trademark enforcement after terminating 3 franchise licenses for nonpayment and audit noncompliance.
Items 10, 11
Training & Operations
- Classroom training
- 96 hrs
- On-the-job training
- 16 hrs
- Training location
- Servpro headquarters, Gallatin, Tennessee
- Ongoing training
- Required
- Field support
- 16 hrs/yr
- On-site visits per year
- Site selection
- Franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- WorkCenter / ServproNET
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: WorkCenter / ServproNET
Item 20 · call current owners
Franchisee Contacts
2,199 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SERVPRO franchise?
The total investment to open a SERVPRO franchise ranges from $259K – $380K, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SERVPRO franchise owners earn?
SERVPRO makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns SERVPRO?
SERVPRO is franchised by Servpro Franchisor, LLC. Its parent company is Servpro Master Issuer, LLC / Servpro SPV Guarantor, LLC. The ultimate parent named in the FDD is Commodore Parent Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the SERVPRO 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 SERVPRO FDD and qualifies whose outlets they describe.
What is SERVPRO's franchise failure rate?
Based on SBA 7(a) loan data, SERVPRO has a charge-off rate of 6.5% across 714 loans, meaning 6.5% 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 SERVPRO franchise locations are there?
As of their most recent FDD filing, SERVPRO has 2,286 total units in the United States, including 2,286 franchised units and 0 company-owned units. 94 new units were opened in the latest reporting year.
Is SERVPRO a good franchise to buy?
FranchiseVerdict rates SERVPRO as a B-grade franchise with a verdict score of 65 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.
For franchisors
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If you represent SERVPRO, 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.