Servpro Franchise FDD, Profits & Costs (2025)
Servpro was founded in 1967 by Ted and Doris Isaacson in Sacramento, California, initially as a small painting business. It soon evolved into a franchisor specializing in cleaning and restoration services. By 1969, Servpro began franchising, focusing on fire, water, and mold damage restoration.
In 1979, it expanded by acquiring the Bristol-Myers Domesticare division, adding 175 franchises. In 1988, Servpro moved its headquarters to Gallatin, Tennessee, facilitating its national growth. By 2024, the company grew to over 2,260 franchise locations across the U.S. and Canada.
Known for handling both small cleanups and large disaster recovery efforts, Servpro has held the top spot in Entrepreneur Magazine’s Franchise 500 in the restoration services category for more than two decades.
In 2019, The Blackstone Group acquired a majority stake, strengthening Servpro’s market position. Today, Servpro continues to actively franchise, offering strong support and training for its franchisees.
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Initial Investment
How much does it cost to start a Servpro franchise? It costs on average between $241,000 – $302,000 to start a Servpro franchised business.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount (Low) | Amount (High) |
|---|---|---|
| Initial Franchise Fee | $90,000 | $90,000 plus $1,000 per 1,000 population over maximum |
| Vehicle | $2,200 | $37,600 |
| Equipment and Products Package | $104,000 | $104,000 |
| Supplies | $4,100 | $9,100 |
| Insurance | $4,300 | $6,200 |
| Advertising and Promotional | $270 | $1,600 |
| Training, Travel, Lodging, and Food | $600 | $2,000 |
| Deposits, Permits, and Licenses | $750 | $2,750 |
| Legal and Professional Fees | $1,700 | $2,200 |
| Xactimate and/or other software | $1,100 | $2,700 |
| Additional Funds – 3 months | $32,250 | $37,625 |
| Real Estate | $0 | $6,000 |
| Total | $241,270 | $301,775 plus $1,000 per 1,000 over maximum population, plus any real estate costs |
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
ServPro Franchise Disclosure Document
Frequently Asked Questions
How many Servpro locations are there?
As of the most recent data, Servpro operates over 2,250 locations across the United States and Canada. These locations are predominantly franchise-owned, with no specific indication that the company operates corporate-owned locations in its franchise model.
What is the total investment required to open a Servpro franchise?
The total investment required to open a Servpro franchise ranges from $241,000 to $302,000.
What are the ongoing fees for a Servpro franchise?
For a Servpro franchise, ongoing fees include a royalty fee that ranges from 3% to 10% of gross revenue, depending on the franchise’s performance and sales volume.
Additionally, franchisees are required to pay a marketing fee, which is typically 3% of their gross sales.
What are the financial requirements to become a Servpro franchisee?
To become a Servpro franchisee, you need a minimum net worth of $250,000 and at least $100,000 in liquid capital to cover startup costs and ensure smooth operations during the initial phase. These financial requirements help ensure that franchisees are financially prepared to sustain the business effectively.
Who owns Servpro?
Servpro is currently owned by The Blackstone Group, which acquired a majority stake in the company in March 2019. The Isaacson family, who founded the company in 1967, retains a minority ownership stake.
Disclaimer
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