Servpro Franchise

Servpro, a Blackstone Group franchise, has been franchising since 1969 - 2 years after the concept was founded in 1967 , currently with 2,200 total locations in the home services sector, headquartered in TN. According to the 2024 FDD, the total initial investment ranges from $218K to $502K - a 130% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $54K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 10.0% of gross sales with an additional 3.0% national advertising fund contribution, bringing the combined ongoing cost to 13.0% of every dollar in sales. Critically, Servpro does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.2M, meaning the typical unit pays roughly $120K per year in royalty alone. Revenue is not profit, actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Servpro added units at a 2.7% net rate year-over-year (120 openings, 60 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.