Cost to Start a ServiceMaster Restore Franchise in 2026
ServiceMaster Restore franchise startup costs run $202K–$406K — a mid-to-upper range restoration services franchise backed by one of the oldest and most recognized restoration brands in the U.S.
Servicemaster Restore franchise costs at a glance
Total investment
$202,000–$406,000
Franchise fee
$65,000
Royalty
10%
Liquid capital required
$60,000
Net worth required
$500,000
Source: Servicemaster Restore Franchise Disclosure Document (FDD) · as of 2026-07-27. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $202K–$406K (water, fire, and mold restoration services)
Franchise fee: $65,000
Ongoing royalty: 10% of gross sales
Advertising fee: 3% of gross sales
Net worth requirement: $500K+. Insurance-funded demand model provides consistent, recession-resistant revenue.
ServiceMaster Restore franchisees serve residential and commercial property owners following damage events. The business model is built around insurance carrier relationships: restoration work is authorized and paid by the insured's carrier, which means franchisees spend more time managing insurance adjuster relationships and job documentation than traditional consumer sales. The brand's scale and carrier partnerships are the primary value of the franchise fee.
2 Total startup investment (FDD via FTC 16 CFR Part 436)
Per ServiceMaster Restore's current Franchise Disclosure Document (FDD), required under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment runs $202K–$406K. The wide range reflects variability in territory size, local equipment pricing, and whether the franchisee operates from home or leases commercial space. Major cost categories include:
ServiceMaster Restore charges a royalty of 10% of gross sales — among the higher rates in the restoration category, reflecting the brand's scale and national insurance carrier relationships. The advertising contribution is 3% of gross sales, funding national marketing and brand maintenance programs. Franchisees also carry IICRC certification fees, insurance carrier program membership costs, and technology subscription fees.
4 Financing options
ServiceMaster Restore is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. The $202K–$406K investment range spans both SBA 7(a) and SBA 504 territory depending on project scope. Key financing paths include:
SBA 7(a) loan: Most common path — covers franchise fee, equipment, vehicles, and working capital in a single structure.
SBA 504 loan: Suitable if the franchisee is purchasing real estate for an operations facility.
Equipment financing: Restoration equipment packages can be financed as standalone equipment loans secured by the assets.
Vehicle financing: Commercial auto loans for service vans, preserving SBA capacity for other costs.
Working capital line of credit: Revolving facility to bridge insurance payment lag — insurance carriers typically pay 30–90 days after job completion.
Section 179 deduction: Qualifying restoration equipment and vehicle investments may be immediately expensed for tax purposes.
5 ROI timeline
Restoration franchise profitability is heavily influenced by insurance carrier relationships, territory density, and speed-to-response — insurers and policyholders reward franchisees who respond within hours. Franchisees who build adjuster relationships and invest in 24/7 response capability typically reach operating breakeven within 18–36 months. The insurance-funded model reduces collection risk compared to consumer-pay service businesses.
6 Who's a good fit
ServiceMaster Restore is best suited for operators who have prior service business experience, comfort managing field crews, and the organizational discipline to document jobs for insurance adjuster review. The $500K+ net worth requirement filters for candidates who can sustain working capital during the insurance reimbursement cycle. Candidates with backgrounds in construction, property management, or insurance tend to adapt quickly.
7 What lenders look for in a ServiceMaster Restore franchise application
SBA lenders underwriting ServiceMaster Restore applications under SBA SOP 50 10 8 evaluate five primary factors:
Insurance billing lag working capital: ServiceMaster Restore's revenue is primarily insurance-funded, with property carriers paying 30–90 days post job completion. SBA lenders require a working capital line of credit (typically $50K–$100K revolving) alongside the term loan to bridge the AR float. Lenders review accounts receivable aging methodology and the borrower's plan for managing carrier payment timelines.
Combined fee load DSCR stress test: ServiceMaster Restore's 13% combined fee load (10% royalty + 3% ad fund) is among the highest in restoration franchising. Lenders stress-test DSCR at the 13% fee structure applied to gross revenue — your pro forma should demonstrate 1.25×+ DSCR after royalties, vehicle costs, labor, and insurance expenses. Net margin after fees is the DSCR input, not gross revenue.
Equipment and vehicle collateral: Restoration equipment (extractors, dehumidifiers, air movers, thermal imaging) and service vans support the SBA collateral position. Lenders assess equipment recovery values at 30–50 cents on the dollar for used specialized restoration equipment — factor this into your collateral coverage analysis. New equipment packages from approved ServiceMaster vendors carry better recovery values.
Net worth and liquidity: ServiceMaster Restore requires $500K+ net worth from prospective franchisees. SBA lenders independently verify liquid capital of $60K–$100K above the equity injection requirement to confirm the borrower can absorb the insurance payment lag during ramp-up without defaulting on operating obligations.
IICRC certification plan: Lenders familiar with the restoration category ask about IICRC (Institute of Inspection, Cleaning and Restoration Certification) certification for the franchisee and key technicians. IICRC certification is required for preferred vendor programs with major property carriers — carrier program participation directly drives revenue opportunity and DSCR sustainability.
Use our SBA loan payment calculator to model your monthly debt service before applying. ClearValue Lending routes your file to the SBA-approved funding partners best matched to your file — apply at ClearValue Lending.
8 Apply at ClearValue Lending
ClearValue Lending works with restoration franchise operators at first location and multi-territory expansion. Start at small business financing or apply directly at Find my match. Your file routes to the funding partners best matched to your file.
Sources
ServiceMaster Restore is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
SBA 7(a) loans can finance franchise startup costs including franchise fees, equipment, vehicles, and working capital. — SBA 7(a) Loan Program
SBA 504 loans finance fixed assets including real estate and major equipment for eligible small businesses. — SBA 504 Loan Program
Frequently asked questions
How much does a ServiceMaster Restore franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $202K–$406K. The wide range reflects territory size, equipment configuration, and whether you operate from a home office or lease commercial space.
What is ServiceMaster Restore's royalty rate?
ServiceMaster Restore charges 10% of gross sales as an ongoing royalty, plus 3% for the advertising contribution fund. These are disclosed in the current FDD under the FTC Franchise Rule.
Can I use SBA financing for a ServiceMaster Restore franchise?
Yes. ServiceMaster Restore is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. SBA 7(a) is the most common path for the $202K–$406K investment range.
What net worth is required?
ServiceMaster Restore requires a net worth of $500K or more. This reflects both the total investment size and the working capital needed to manage insurance reimbursement cycles during early operations.
How does the insurance-funded model affect cash flow?
Most ServiceMaster Restore revenue comes from insurance-funded claims. Property insurers typically pay 30–90 days after job completion, so franchisees need a working capital line of credit to bridge the reimbursement gap. The upside is predictable demand — property damage occurs regardless of economic conditions.
What DSCR do SBA lenders require for a ServiceMaster Restore franchise SBA loan?
SBA lenders require a minimum DSCR of 1.25× at stabilized operations under SBA SOP 50 10 8. For ServiceMaster Restore, DSCR is calculated after the 13% combined fee load (10% royalty + 3% ad fund) and vehicle, labor, insurance, and IICRC expenses are applied to gross revenue. Because insurance payments lag 30–90 days, lenders separate the DSCR analysis from the working capital line underwriting — both must meet their respective benchmarks independently.
How much equity injection is needed for a ServiceMaster Restore franchise SBA loan?
SBA 7(a) financing for the $202K–$406K ServiceMaster Restore investment range typically requires 10–15% equity injection under SBA SOP 50 10 8 — approximately $20K–$60K depending on total project cost and the lender's internal policy. Equity injection must come from liquid borrower assets (cash, business savings, or ROBS-structured retirement funds) and cannot be borrowed. ServiceMaster Restore's $500K+ net worth requirement is separate from the SBA equity injection calculation.
Summary:
ServiceMaster Restore franchise startup costs run $202K–$406K — a mid-to-upper range restoration services franchise backed by one of the oldest and most recognized restoration brands in the U.S.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
