True North RestorationFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A True North Restoration franchise requires a total initial investment of $115K – $233K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $985K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $115K – $233K
- 14th pct Automotive
- Avg gross sales
- $985K
- 11th pct Automotive
- Royalty
- 7.0%
- 18th pct Automotive
- Units
- 18
- 11th pct Automotive
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 5.7x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $115K – $233K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $985K/year (median $579K).
- Verdict A (Top Quintile) with a risk score of 14/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- True North Restoration Franchising LLC
- Parent company
- True North Ventures, LP
- Predecessor
- Spectrum Cleaning and Restoration Network Denver CO LLC
- Prior franchisor entity
- Incorporated in
- CO
- HQ
- 634 Trade Center Drive, Chesterfield, Missouri 63005
- Auditor
- Whipplewood CPAs
- Audited financials
- Franchisor revenue
- $1000K
- vs $1.2M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- and predecessor
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate water damage, fire damage, and mold remediation restoration services for residential and commercial properties. Day-to-day activities include emergency response dispatch, damage assessment, client communication, project coordination with crews, insurance claim support, and restoration work management. Revenue comes from restoration services (2% royalty) and ancillary reconstruction services (7% royalty).
- CEO
- Justin Donat
- Headquarters
- MO
- Founded
- 2020
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Building and Improvements | $1K | $5K | |
| Office Equipment, Supplies and Furnishings | $300 | $2K | |
| Vehicle | $1K | $40K | |
| Computer Hardware, Software, Phone System and Related Equipment | $2K | $5K | |
| Technology Fees | $2K | $3K | |
| Opening Inventory of Cleaning Products, Supplies, Uniforms and Equipment | $32K | $45K | |
| Initial Training: Travel and Living Expenses | $2K | $3K | |
| General Liability, Worker's Compensation and other Insurance | $5K | $8K | |
| Grand Opening Marketing | $1K | $3K | |
| Online Marketing Services Startup Package | $11K | $11K | |
| Licenses and Permits | $100 | $5K | |
| Certification(s) | $500 | $2K | |
| Additional Funds for 3 months | $30K | $50K | |
| Total initial investment | $137K | $231K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$167K
17.0% margin
Unlevered ROIC
78%
EBITDA / total invested capital
Payback
15 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $115K – $233K
- Better than avg vs category
- Liquid capital req'd
- $30K – $50K
- Better than avg vs category
- Franchise fee
- $25K – $50K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $253 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $32K – $45K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $985K
- Per unit, per year
- Median gross sales
- $579K
- Item 19 type
- gross_sales
- Sample size
- 11 units
- vs category median 70 · small
- Range (low → high)
- $273K→$3.1M
- Cohort dispersion (min → max)
- Quartile band
- $339K→$2.3M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 221 Automotive brands
Revenue is 5.7x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Automotive averages
How True North Restoration Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 8
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +80.0%
- Net unit change last year
- 3-yr CAGR
- +125.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 15
- Franchisor's next-year forecast
- Transfer rate
- 0.5%
- Owners selling to other franchisees
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
Available to sell in · Item 12
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $1.1M
- Median loan
- $220K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into True North Restoration's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, rapidly expanding restoration franchise with undisclosed profitability, going concern issues, and insufficient franchisee financial data to validate the $985K revenue claim.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $49,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Whipplewood CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 14 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $985K avg revenue claim
- 02MINOR80% YoY unit growth is exceptional but only 18 total units suggests small, unproven system with high failure risk
- 03HIGHGoing Concern status is FALSE — indicates potential financial instability at franchisor level
- 04MINORWide investment range ($115K-$233K, 103% variance) suggests inconsistent unit economics or undefined scope
- 05MINORTiered royalty structure (7% vs 2%) creates complexity and potential revenue disputes over service categorization
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Zip code or County lines |
| Protected territory | Yes |
| Territory population | 350,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 76 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Albiware
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Albiware
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
True North Restoration · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a True North Restoration franchise?
The total investment to open a True North Restoration franchise ranges from $115K – $233K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do True North Restoration franchise owners earn?
According to Item 19 of the True North Restoration FDD, the average gross sales per unit is $985K. The median is $579K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is True North Restoration's franchise failure rate?
SBA 7(a) loan charge-off data is not available for True North Restoration (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 True North Restoration franchise locations are there?
As of their most recent FDD filing, True North Restoration has 18 total units in the United States, including 2 franchised units and 0 company-owned units. 8 new units were opened in the latest reporting year.
Is True North Restoration a good franchise to buy?
FranchiseVerdict rates True North Restoration as a A-grade franchise with a risk score of 14 out of 100, 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 True North Restoration, you can request corrections or provide updated information.
Claim this brandOther Automotive franchises
Compare similar franchise opportunities in the Automotive category
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.