Support and Training
Yes
Description
Franchise Description: 911 Restoration Franchise Inc. is the franchisor. The franchised business provides emergency clean-up from fire damage, water damage, mold damage and mold inspections, carpet cleaning, duct cleaning and crawl space cleaning. The franchisor offers traditional franchises, conversion franchises, and micro-market franchises.
Training Overview: The franchisor will offer a training program to provide franchisees and their designated supervisorial or managerial personnel to be conducted at the franchisor’s headquarters in Van Nuys, California. This training generally lasts for six days. The franchisor may provide additional advisory assistance and training that it deems necessary on the terms and conditions as it sets forth in the manual. The franchisor may periodically telephone or visit franchisees for the purposes of rendering advice and consultation with respect to the operation of the franchised business, assessing their overall performance and determining whether they are conducting the franchised business in compliance with the standards of the system. Once a year, at their cost and expense, franchisees must attend the franchisor’s annual refresher training program, which will be held at the franchisor’s headquarters or at another location it designates. In its discretion, the franchisor may choose to hold an annual meeting or convention of its franchisees to conduct additional training, announce new products and/or services or discuss any other matters of interest. If and when held, the annual meeting or convention will be mandatory for all franchisees.
Territory Granted: The Franchise Agreement grants franchisees the right to operate their business at the single location designated in the Franchise Agreement and only within the designated, exclusive territory described in the Franchise Agreement. The size of the territory is determined based on population and the franchisee’s territory. To maintain territorial protection under the Franchise Agreement, franchisees must be in good standing under the Franchise Agreement and achieve a minimum gross revenue during the second and each subsequent year of the term of the Franchise Agreement.
Obligations and Restrictions: Franchisees must at all times faithfully honestly, and diligently perform their contractual obligations. System standards may regulate the staffing levels and employee and/or independent contractor's qualifications, training, dress, and appearance of the franchised business. Franchisees need not participate full-time in the day-to-day operation of the franchised business, but they must devote substantial and continuing efforts to the operation of the franchised business. If they do not participate in the daily operations, franchisees must hire a manager to oversee the franchised business’ daily operation. Franchisees must operate the franchised business in an efficient and professional manner following the highest ethical and moral standards. Franchisees must comply with all standards of quality and service prescribed by the franchisor. In order to be in good standing, a franchise should undertake its best efforts to try to maintain a 70/30 mix between mitigation and construction.
Term of Agreement and Renewal: The length of the initial franchise term is seven years. If requirements are met, franchisees can renew for an additional seven-year term.
Financial Assistance: In its discretion and if franchisees meet its criteria, the franchisor may offer to finance up to 50% of the actual initial franchise fee. Except as described, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $29,000 | $49,000 |
| Leaseholds Improvements | $0 | $5,000 |
| Equipment, Furnishings and Fixtures | $25,000 | $50,000 |
| Service Vehicle | $1,500 | $35,000 |
| Signage | $1,000 | $3,000 |
| Rent (3 months) | $0 | $4,500 |
| Initial Inventory and Operating Supplies | $5,000 | $10,000 |
| Security Deposits | $0 | $1,500 |
| Insurance (3 months) | $0 | $2,700 |
| Business Launch Fee | $1,500 | $1,500 |
| Initial Training Fee | $2,500 | $2,500 |
| Travel and Living Expenses While Training | $0 | $3,500 |
| Computer System | $0 | $2,000 |
| Permit/Licenses | $0 | $2,000 |
| Professional Fees | $3,000 | $5,000 |
| Additional Funds (3 to 6 months) | $0 | $50,000 |
| Telephone | $100 | $200 |
| ESTIMATED TOTAL* | $68,600 | $227,400 |
*The estimated initial investment range covers from a micro-market franchise up to a traditional or conversion franchise.
| Type of Fee | Amount |
|---|---|
| Royalty Fee for a New Start-Up Franchise | 10% of gross revenue for restoration services; 3% of gross revenue for non-restoration services. |
| Royalty Fee for a Conversion Franchise | Sliding scale percentage dependent upon gross revenue, the franchisee’s year of operation, and whether the services are restoration or non-restoration. |
| Local Advertising | Franchisees must engage in local business development and advertising as outlined in the manual. |
| Digital Marketing | Franchisees must spend at least $100 per day on digital marketing focused on lead development through currently approved sites for SEO, social media, and PPC campaigns. |
| Advertising Cooperative | To be determined, based on the franchisee’s location and market, not to exceed 3% of gross revenue. |
| National Advertising Fund Fee | Up to 1% of gross sales. |
| Additional or Replacement Supervisorial or Managerial Personnel Initial Training Fee | The then-current training fee, plus expenses. Current training fee: $500 for technicians and $1,500 for inspector. |
| Transfer Fee | $5,000 |
| Renewal Fee | $2,500 |
| Late Fee | $50 per day. |
| Audit Fee | Will vary under the circumstances (estimated to be between $5,000 and $8,500). |
| Technology Fees | $195 monthly. Set-up fee for CRM is a one-time fee of $300; 911 Restoration emails incur a yearly charge of $50 per email per year. |
| Computer System Maintenance | $0 to $600 |
| Proprietary Products | Will vary under the circumstances. |
| Insurance Premiums | Insurance premiums to maintain recommended coverage as a franchise owner. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
| Liquidated Damages | If the franchisor terminates the Franchise Agreement for cause, the franchisee must pay within 15 days after the effective date of termination liquidated damages equal to the average monthly Royalty Fees the franchisee paid or owed to the franchisor during the 12 months of operation preceding the effective date of termination multiplied by 24 (the number of months in 2 full years), or the number of months remaining in the term of the Franchise Agreement, had it not been terminated, whichever is greater. |
| Supplier Evaluation | Will vary under circumstances, but not to exceed $500. |
The above information has been compiled from the FDD of 911 Restoration. Year of FDD: 2021.