FranchiseVerdict
SERVPRO logo
FV-02287·STRONGExcellent81

Servpro

Cleaning - Commercial & JanitorialFranchising since 1977Website
Investment
$241K – $302K
90th pct Commercial & …
Avg revenue
65th pct Commercial & …
Royalty
Units
2,202
98th pct Commercial & …
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $241K – $302K including a $90K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 1034 loans (below the industry average).
  • System growing at 1230% CAGR over 3 years with 2202 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
SERVPRO FRANCHISOR, LLC
Parent company
Commodore Parent Holdings, LLC
Incorporated in
Delaware
HQ
801 Industrial Boulevard, Gallatin, TN 37066
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$285.5M
vs $313.1M prior year

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 SERVPRO unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $241K–$302K
Working capital
$
FDD reports $32K–$38K

Unlevered ROIC · per unit

24%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$75K
EBITDA margin
10.0%
Total invested
$306K
Payback
49 mo
Unit-level 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 Yale describes.

Overview

About

SERVPRO franchisees operate emergency restoration and cleaning services, responding to water damage, fire damage, mold, and biohazard cleanup for residential and commercial clients. Day-to-day work involves managing technicians, coordinating with insurance adjusters, handling customer calls, scheduling jobs, and managing equipment. Revenue comes from insurance-backed claims, direct-pay customers, and commercial contracts.

CEO
Brett Ponton
Founded
2019
FDD year
2024
States available
50

Item 7 · what it costs

The Vitals

Total investment
$241K – $302K
All-in to open one unit
Liquid capital
$32K – $38K
Cash you must have on hand
Franchise fee
$90K
Royalty
Ranges from 3% to 10% of monthly Gross Volume
Ad fund
3.0%
typical 3–5%
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
2,202
Opened
98
Last reporting year
Closed
12
Turnover rate
0.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+4.2%
Net unit change last year
3-yr CAGR
+12.3%
Compounded over last 3 years
2022
2,202+88
Franchised units
2023
2,114
Franchised units
2024
1,960
Franchised units

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

Item 20 · 4 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
Available · 4 states
Not registered

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.

Total loans
1,034
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

46
Risk · 0-100
STRONG46 / 100

SERVPRO presents moderate-to-caution risk: lack of financial transparency, unprotected territory, active litigation over compliance, and slow growth suggest profitability challenges that franchisees cannot independently validate before investing $241k+.

Score breakdown · what drove the 46 / 100 rating

  1. 01MINORNo Item 19 financial disclosure (avg revenue/net income) prevents ROI validation and comparison to $241k-$302k investment
  2. 02MINORUnprotected territory creates direct competition risk from other SERVPRO franchisees and company-owned units
  3. 03HIGHActive litigation over royalty enforcement and trademark suggests compliance/collection issues within franchise network
  4. 04MINORRoyalty structure ranges 3%-10% with no clarity on how percentage is determined—creates unpredictable profit margins
  5. 05MINORSlow unit growth (4.2% YoY) in mature 2,202-unit system indicates market saturation or franchisee struggles
  6. 06MINOR5-year term is shorter than industry standard (typically 10 years), creating renewal uncertainty and reinvestment risk

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
population based
Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Not allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Tennessee

Item 11

Training & Operations

Classroom training
53 hrs
On-the-job training
138 hrs
POS system
QuickBooks Online, WorkCenter, DryBook Mobile
Operating tech stack

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

100 numbers

Locked
(714) 533-••••
CA
(205) 314-••••
AL
(256) 233-••••
AL

One-time purchase · CSV download · Validation questions included

FDD download

SERVPRO · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above