Surface Specialists Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Surface Specialists is a home restoration franchise specializing in bathtub, tile, and countertop repair and refinishing. Franchisees run local operations, handling on-site refinishing jobs and managing scheduling and customers.
FranchiseVerdict summary · 2026
A Surface Specialists franchise requires a total initial investment of $43K – $56K, including a $36K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $296K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $43K – $56K
- 4th pct Home Services
- Avg gross sales
- $296K
- 4th pct Home Services
- Royalty
- 5.0%
- 5th pct Home Services
- Units
- 44
- 42nd pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services 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 $43K – $56K including a $36K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $296K/year (median $132K).
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better).
- DECLINESystem contracting at -8.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Surface Specialists Systems, Inc.
- Predecessor
- Surface Specialists Systems, Inc. (Missouri) / Surface Specialists Systems, Inc. (Minnesota)
- Prior franchisor entity
- CEO title
- President, Treasurer and Director
- Dan Kaplan
- Incorporated in
- North Carolina
- HQ
- 621-B Stallings Road, Matthews, North Carolina 28105
- Auditor
- Davies, Goldstein & Associates CPA’s PLLC
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.2M prior year
Overview
About
- CEO
- Dan Kaplan
- Headquarters
- NC
- Founded
- 2001
- FDD year
- 2026
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 78% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $36K | $36K |
| Working capital (3–6 mo) | $4K | $10K |
| Equipment, build-out, other | $3K | $11K |
| Total initial investment | $43K | $56K |
Source: Surface Specialists 2026 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
- $43K – $56K
- Top 40% of category vs category
- Liquid capital req'd
- $4K – $10K
- Top 40% of category vs category
- Franchise fee
- $36K – $36K
- Top 40% of category vs category
- Royalty
- 5.0%
- Gross Receipts · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 76% below the home services norm.
Source: FDD 2026 · 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
$39K
13.0% margin
Unlevered ROIC
68%
EBITDA / total invested capital
Payback
18 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 Surface Specialists unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
68%
Above the 30–60% band. Verify revenue is per-unit average
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 Surface Specialists units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$356K
on $1.8M purchase
Total debt
$1.4M
SBA $0.9M + 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: 2026 FDD
Financial Performance
- Avg gross sales
- $296K
- Per unit, per year
- Median gross sales
- $132K
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
- 44 outlets
- vs category median 32
- Range (low → high)
- $4K→$2.1M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 321 Home Services brands
Revenue is 6.0x 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 $296K/year in gross sales. Median is $132K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 6.0x.
Fee burden
Total ongoing fee load of 6.0% — below the Home Services average of 8.9%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -8.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Home Services averages
How Surface Specialists Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 44
- Opened
- 0
- Last reporting year
- Closed
- 3
- Turnover rate
- 6.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -8.3%
- Net unit change over 3 years
- 3-yr CAGR
- -8.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $52K
- Median loan
- $52K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
44-unit service franchisor with positive financials: $205K net worth, $298,922 net income, $1.2M revenue, audited and Item 19 disclosed. No litigation, bankruptcy, or distress. Slight -8.3% unit decline is minor.
Audited financials (Item 21)
Yes · Davies, Goldstein & Associates CPA’s PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 73 / 100 verdict
- 01MINORno litigation, no distress, no bankruptcy
- 02MINORfranchisor_net_worth $205K positive, net income $298,922
- 03MEDaudited, Item 19 disclosed
- 04MINORminor net_growth -8.3%
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 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Population |
| Protected territory | Yes |
| 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 | 10 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 73 hrs
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Surface Specialists · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Surface Specialists franchise?
The total investment to open a Surface Specialists franchise ranges from $43K – $56K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Surface Specialists franchise owners earn?
According to Item 19 of the Surface Specialists FDD, the average gross sales per unit is $296K. The median is $132K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Surface Specialists 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 Surface Specialists FDD and qualifies whose outlets they describe.
What is Surface Specialists's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Surface Specialists (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Surface Specialists franchise locations are there?
As of their most recent FDD filing, Surface Specialists has 44 total units in the United States, including 44 franchised units and 0 company-owned units.
Is Surface Specialists a good franchise to buy?
FranchiseVerdict rates Surface Specialists as a A-grade franchise with a verdict score of 73 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?
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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.