How Much Does a 1-800 Water Damage Franchise Cost?
Data from the 2026 Franchise Disclosure Document
Investment Summary
Total Investment
$71K – $312K
Franchise Fee
$59K
Royalty
10.0%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for 1-800 Water Damage is $59K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a 1-800 Water Damage franchise requires a total investment of $71K – $312K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $10K to $30K.
Ongoing Costs
Beyond the initial investment, 1-800 Water Damage franchisees pay ongoing fees. The royalty fee is 10.0% of gross sales (Percentage of Gross Sales). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $750.
Net Worth & Liquid Capital Requirements
1-800 Water Damage requires working capital of $10K – $30K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to 1-800 Water Damage's Item 19 financial performance representation:
Median gross sales: $482K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View 1-800 Water Damage?
SBA Loans Issued
24
Default Rate
20.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. 1-800 Water Damage has 24 SBA-backed loans on record. The default rate is 20.0%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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