How Much Does a Restoration 1 Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$127K – $310K
Franchise Fee
$60K
Royalty
Greater of: (a) 7% of Collected Gross Revenue (or 3.5% for a conversion franchise during its initial 6 months) (other than Construction Gross Revenue); or (b) the Minimum Royalty Fee.
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Restoration 1 is $60K. 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 Restoration 1 franchise requires a total investment of $127K – $310K. 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 $40K to $75K.
Ongoing Costs
Beyond the initial investment, Restoration 1 franchisees pay ongoing fees. The royalty structure is: Greater of: (a) 7% of Collected Gross Revenue (or 3.5% for a conversion franchise during its initial 6 months) (other than Construction Gross Revenue); or (b) the Minimum Royalty Fee.. The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $525.
Net Worth & Liquid Capital Requirements
Restoration 1 requires working capital of $40K – $75K 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 Restoration 1's Item 19 financial performance representation:
Median gross sales: $645K
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 Restoration 1?
SBA Loans Issued
81
Default Rate
15.8%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Restoration 1 has 81 SBA-backed loans on record. The default rate is 15.8%, 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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