Servpro franchise Cost, Profit, Failure Rate 2024

Servpro is one of the leading franchise opportunities on the market today. For those considering taking up a franchise, Servpro offers an attractive proposition with low start-up costs and a generous return on investment.

In this article, we take a closer look at what you need to know about the Servpro franchise: from its Franchise Fees and Total Investment to training and restrictions, renewal policies, and more.

We’ll also discuss how investing in a Servpro franchise could benefit your future financial success. So if you’re interested in learning more about becoming a part of the Servpro family, read on!

Servpro franchise

About The Servpro

Servpro is a restoration industry leader whose technicians can quickly respond to any size incident.

Flood and fire damage restoration is SERVPRO’s specialty, and we offer services for residential and industrial locations. 

Gadget’s restoration, mold remediation, and biohazard clearance are just a few of the various services provided by the franchise, which vary depending on the region. 

Servpro sets itself, besides other post-disaster cleanout and recovery companies, with a well-established, nationally known brand that has won numerous industry honors and awards.

Servpro History

The necessity for restoration services for homeowners prompted the formation of Servpro.

In 1967, Ted and Doris Isaacson established Servpro Industries in Sacramento, California, as a painting company. 

They turned the company into a franchisor of clean-up and restoration specialists with experience in cleaning and repair. In the US and Canada, Servpro has more than 1,700 franchises.

Servpro Franchise Model

Cost Or FeeAmount
Initial investments$159,325 – $213,200
Initial Franchise Fee$49,000
Ongoing Royalty Fee3% – 10%
Area RequirementN/A
Total Outlets1,700

Servpro Franchise Qualifications & Ideal Candidate

  • Damage restoration-related industries.
  • Residential and commercial construction and remodeling.
  • Services for property management (residential, commercial, governmental).
  • In the property insurance industry, there is a ready network of contacts.
  • Building upkeep is necessary.
  • Property insurance knowledge is essential.
  • Cleaning and janitorial services for businesses.
  • Experience in sales and management.

How Much Does A Servpro Franchise Owner Make?

As per sources, Servpro franchise owners make $150,000 in revenue annually on average. If we assume a profit margin of 20% as per the industry standard, the we can find out how much profit they take home.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%150000.00
Franchise Royalty Fees5.00%(7500.00)
Cost of Goods Sold (COGS)25.00%(37500.00)
Labor (Variable)13.00%(19500.00)
Total (Expenses)80.00%(120000.00)
Net Profit20.00%30000.00

As you can see, Servpro franchisees make net profit of $30,000 on average.

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Failure Rate Of Servpro Franchise

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2020, the growth rate was (90)/1774×100≈5.07%
  • In 2021, the growth rate was (96)/1864×100≈5.15%
  • In 2022, the growth rate was (154)/1960×100≈7.85%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Servpro grew from 2020 to 2022, showing a growth rate between 5.07% and 7.85%.

Payback Period Of Servpro Franchise

With a midpoint investment of $266,523 and a yearly profit of $30,000, the payback period of the Servpro franchise can be calculated.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $266,523 / $30,000 = 8.5 years

Based on these figures, it will take approximately 8-9 years to recoup the initial investment for Servpro. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Servpro Franchise Training & Support 

Servpro Franchise Training & Support

Servpro has been changing the repair industry since 1967. They established a National Training Centre in 1992 to provide restoration and mitigation techniques to Franchise Owners and insurance industry professionals and continued training at the regional level.

You’ll benefit from a 15-day in-house experiential training program at the corporate training center.

The training program includes all you need to know about:

  • Restoration after a fire
  • Water Purification
  • Mold Mitigation 
  • Carpet and Upholstery Cleaning

Servpro Benefits Of Owning A Franchise

Apart from the freedom that comes with owning a business, there are other advantages to franchising:

Quick Start

Swiftly launching a new business based on a tried-and-true business model.


Franchisors frequently provide in-depth training to franchisees, which is not always available when establishing a business.


Franchisees can take their enterprises to new heights with the supplied knowledge.

Servpro Assistance With Finances

The franchisor might agree to finance a portion of the franchisee’s purchase price if the franchisee has good credit and meets the existing financing conditions.

Servpro Finance, LLC, a franchisor subsidiary, may also agree to provide finance. 

The franchisor and its affiliates do not directly or indirectly offer franchisees financing.

Several circumstances will determine franchisees’ ability to acquire finance from the franchisor.

For those looking to open a franchise in the cleaning industry, possibilities include Vanguard Cleaning System, OpenWorks, Ductz Franchise, PuroClean and Stanley Steemer.

Servpro Comparison

Founded In19671977
Initial Investment$159,325 – $213,200$69,145 – $204,714
Total Outlets1,700 3489
Annual Revenue$640.0K$25 million

Frequently Asked Question 

What is the total number of Servpro locations?

In the US and Canada, Servpro has over 1,900 locations.

How does Servpro make money?

They charge royalty fees of 10% of total gross sales and advertising fees of 3%.

Is Servpro a franchise?

The SERVPRO franchise is an excellent franchise opportunity that fits all professions, trades, and backgrounds.

How much does a Servpro franchise cost?

Opening a Servpro franchise requires an investment of $159,325 – $213,200 and $49,000 as an initial franchise fee.

Who is the Owner of Servpro?

Servpro Industries, LLC is the parent company of the SERVPRO Franchise System. The company was founded in 1967 by Ted and Doris Isaacson in Sacramento, California.

Where is Servpro headquartered?

The headquarters of Servpro is located in Gallatin, Tennessee.

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