1-800 Water Damage Franchise FDD, Profits & Costs (2025)
1-800 WATER DAMAGE is an expanding franchise in the property restoration sector, known for providing comprehensive solutions for water, fire, smoke, and mold damage. Established in 1981, the company joined the BELFOR Franchise Group, which has helped broaden its reach and enhance its services.
Headquartered in Ann Arbor, Michigan, the franchise began offering franchise opportunities in 2002, giving entrepreneurs the chance to enter a recession-proof market with high demand for restoration services.
What sets 1-800 WATER DAMAGE apart is its dedication to positively impacting local communities. Franchise owners are seen as reliable professionals who restore homes and properties to their original condition, often in times of urgent need.
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Initial Investment
How much does it cost to start a 1-800 Water Damage franchise? It costs on average between $71,000 – $316,000 to start a 1-800 Water Damage franchised center.
This includes costs for equipment, inventory, vehicle purchases, and initial operating expenses. The total amount can vary based on factors such as the franchise location, size of the territory, and whether the franchisee opts to lease or purchase the necessary equipment and vehicles. 1-800 Water Damage offers 2 types of franchises:
| 1-800 WATER DAMAGE Business Type | Initial Investment |
|---|---|
| Single Territory | $210,903 – $316,398 |
| Conversion 1-800 WATER DAMAGE Business | $71,203 – $294,548 |
We are summarizing below the main costs associated with opening a Standard 1-800 WATER DAMAGE Business. For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee per Territory | $59,000 – $64,950 |
| Initial Package Fee/Marketing and Operations Package/Equipment and Products Package Fee | $55,000 |
| Food and lodging while at training, not including the cost of transportation | $1,800 – $2,500 |
| Vehicle with upfitting | $70,000 – $115,000 |
| Full time Service Technician | $6,336 – $16,896 |
| Business Telephone Fee | $0 – $150 |
| High Speed Internet, Anti-Virus Software and Electronic Mail | $267 – $477 |
| Computer System | $0 – $2,875 |
| Insurance | $4,500 – $8,750 |
| Rent | $3,000 – $15,000 |
| Leasehold Improvements | $0 – $1,200 |
| Security Deposits/Utility Deposits | $1,000 – $3,000 |
| Licenses and Permits | $0 – $600 |
| Additional funds for the first 3 months | $10,000 – $30,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT & ADDITIONAL EXPENSES | $210,903 – $316,398 |
Average Revenue (AUV)
How much revenue can you make with a 1-800 Water Damage franchise? A 1-800 Water Damage franchised location makes on average $483,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $542,000 yearly revenue for similar restoration/disaster franchises. Below are a few 1-800 Water Damage competitors as a comparison:
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.
1-800 Water Damage Franchise Disclosure Document
Frequently Asked Questions
How many 1-800 Water Damage locations are there?
As of the latest data, 1-800 WATER DAMAGE has a total of 178 locations, all of which are franchised units, with no company-owned units.
What is the total investment required to open a 1-800 Water Damage franchise?
The total investment required to open a 1-800 Water Damage franchise ranges from $71,000 to $316,000.
What are the ongoing fees for a 1-800 Water Damage franchise?
The ongoing fees for a 1-800 WATER DAMAGE franchise include a royalty fee of 8% of gross sales. In addition, franchisees are required to pay a marketing fee, which is set at 3% of gross sales. These fees contribute to the support and development of the franchise network, including national marketing campaigns and ongoing business operations.
What are the financial requirements to become a 1-800 Water Damage franchisee?
To become a 1-800 WATER DAMAGE franchisee, candidates are required to have a minimum net worth of $300,000 and liquid capital of at least $100,000. These financial requirements ensure that franchisees have the necessary resources to support the initial investment and successfully operate their business.
How much can a 1-800 Water Damage franchise owner expect to earn?
The average gross sales for a 1-800 Water Damage franchise are approximately $0.48 million per location. Assuming a 15% operating profit margin, $0.48 million yearly revenue can result in $72,000 EBITDA annually.
Who owns 1-800 Water Damage?
1-800 WATER DAMAGE franchise is owned by the BELFOR Franchise Group, a part of the BELFOR network, which is a leading provider of property restoration services.
Disclaimer
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