Rainbow Restoration Franchise FDD, Profits & Costs (2025)
Rainbow Restoration is a well-established franchise brand known for delivering professional restoration solutions to both residential and commercial clients. Established in 1981 in Waco, Texas—where its headquarters remain—the company has grown into a recognized leader in the industry.
That same year, Rainbow Restoration launched its franchising program, fueling steady growth throughout the United States and beyond. Over the decades, it has built a reputation for reliability, quality service, and expertise in property recovery.
The franchise offers a broad portfolio of restoration and cleaning services. Its specialties range from water damage repair and fire or smoke restoration to mold remediation, odor control, carpet and upholstery care, and full reconstruction projects.
In addition, Rainbow Restoration supports customers with services such as air duct cleaning, emergency board-ups, and biohazard cleanup. This extensive lineup makes the brand a complete resource for homeowners and businesses facing property damage or disaster recovery needs.
Initial Investment
How much does it cost to start a Rainbow Restoration franchise? It costs on average between $159,000 – $331,000 to start a Rainbow Restoration franchised center.
This includes expenses for equipment, supplies, vehicles, and initial working capital. The total investment varies based on several factors, such as the size of the territory, the condition of the chosen facility, and whether the franchisee decides to lease or buy property for operations.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $40,000 + $400 per 1,000 additional population over minimum |
| Vehicle | $10,000 – $55,000 |
| Equipment, Supplies & Inventory | $40,461 – $65,000 |
| Insurance (Annual General Liability / Pollution / Workman’s Comp / Office) | $12,000 – $18,000 |
| Advertising & Promotional and Local Marketing Spending | $5,000 – $30,000 |
| Training (Technical, Business, ASD, 31IRST, OCT, AMRT), Travel, Lodging & Food | $6,400 – $10,200 |
| Deposits, Permits & Licenses | $1,675 – $3,600 |
| Professional Fees | $2,500 – $5,000 |
| Recruiting and Onboarding | $650 – $1,000 |
| Lead Safe Equipment, Supplies and Certification | $650 – $3,100 |
| Additional Funds – 6 to 9 Months | $40,000 – $100,000 |
| Real Estate | Not Included |
| Totals | $159,336 – $330,900+ (plus any additional franchise fee and real estate costs) |
Average Revenue (AUV)
How much revenue can you make with a Rainbow Restoration franchise? A Rainbow Restoration franchised business makes on average $613,000 in revenue (AUV) per year.
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Frequently Asked Questions
How many Rainbow Restoration locations are there?
As of the latest data, there were 330 franchised locations in the U.S.
What is the total investment required to open a Rainbow Restoration franchise?
The total investment required to open a Rainbow Restoration franchise ranges from $159,000 to $331,000.
What are the ongoing fees for a Rainbow Restoration?
Franchisees of Rainbow Restoration are required to pay a royalty fee that ranges between 3% and 8% of gross sales, depending on the territory and sales mix. In addition, they contribute a 2% marketing and advertising fee based on gross sales.
What are the financial requirements to become a Rainbow Restoration franchisee?
To become a Rainbow Restoration franchisee, you must have a minimum net worth of $350,000 and at least $100,000 in liquid capital.
How much can a Rainbow Restoration franchise owner expect to earn?
The average gross sales for a Rainbow Restoration franchise are approximately $0.61 million per location. Assuming a 15% operating profit margin, $0.61 million yearly revenue can result in $92,000 EBITDA annually.
Who owns Rainbow Restoration?
The Rainbow Restoration franchise is owned by Neighborly, a large franchisor of home service brands headquartered in Waco, Texas.
Disclaimer
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