Servpro Franchise Cost, Revenue & Review 2026
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 $263K – $386K, including a $100K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 6.5% charge-off rate across 714 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $263K – $386K
- 77th pct Cleaning & Ma…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 2,354
- 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 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 $263K – $386K including a $100K franchise fee.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), 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).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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
- Ultimate parent
- Commodore Parent Holdings, LLC
- 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
- $285.5M
- 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 is about average for a 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 | $131K | $236K |
| Total initial investment | $263K | $386K |
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
- $263K – $386K
- 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
- Royalty currently ranges from 3% to 10% of monthly Gross …
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Fixed Fee of $45-$115 per month based on monthly Gross Volume, plus $100 minimum monthly royalty fee |
| 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one SERVPRO unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
22%
Below the 30–60% attractive-franchise band
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 average of 9.7%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 11.4% CAGR over 3 years across 2,354 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 averages
How Servpro Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,354
- Opened
- 94
- Last reporting year
- Closed
- 2
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.5%
- 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
3-year detail · Item 20
- Opened (3yr)
- 79
- Closed (3yr)
- 0
- Terminated (3yr)
- 10
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 139
- Reacquired (3yr)
- 0
- Franchisor bought back
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.
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%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Servpro'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
- 35-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
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)
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
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 | none |
| 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
FDD download
SERVPRO · FDD (2025) PDF
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 $263K – $386K, 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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 2,354 total units in the United States, including 2,354 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 A-grade franchise with a verdict score of 65 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 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.