1-800 Water Damage franchise
2022 filing · April 1, 2022Shares sales figures
1-800 Water Damage at a glance
A water damage restoration business offering water and fire cleanup, mold remediation, odor removal and carpet cleaning for homes and businesses. At the end of 2021 there were 154 1-800 Water Damage locations in the US, all franchised.
The business
- Franchisor
- 1-800 Water Damage International, LLC
- The company that sells the franchises
- Franchising since
- 2002
- 20 years of selling franchises
- Franchisor based in
- Ann Arbor, Michigan
What you pay
- Cost to open
- $170K–$295K
- A standard 1-800 Water Damage business in one territory
- Franchise fee
- $59,000
- For a single territory of about 350,000 people
- Royalty
- 7%–10% tiered
- On remediation services, 10% of yearly gross sales up to $499,999, 9% above $500,000, 8% above $1 million and 7% above $2 million; on reconstruction services, 10% until remediation sales pass $500,000 and 3% after that. Paid monthly, with a $500 monthly minimum from the second half of the first full year
- Brand fund
- 2%
- 2% of gross sales, paid monthly
- Renewal fee
- See terms
- 10% of the then-current Initial Fee
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- Some financing offered
Where it is
- US locations, 2021
- 154
- Franchised and company-owned
- Franchised
- 154
- Company-owned
- 0
Support and records
From 1-800 Water Damage International, LLC’s 2022 filing; revenue and net income from its audited financial statements, page 203; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
1-800 Water Damage among all franchises with the same figure.
| Figure | 1-800 Water Damage | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $232,537 | Costs less than 65% of franchises |
| Franchise feePaid once, when you sign | $59,000 | Higher than 85% of franchises |
| US locationsFranchised and company-owned | 154 | More than 83% of franchises |
| Sales per locationYearly, as the brand reports it | $584,702 | Lower than 64% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 2.5× | Higher than 72% of brands that share sales figures |
How much a 1-800 Water Damage franchise costs
Opening a standard 1-800 Water Damage business in one territory costs an estimated $170,089 to $294,984. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are vehicle with upfitting ($70,000 to $105,000) and initial fee per territory ($23,600 to $64,950). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Fee per Territory | $23,600 | $64,950 | |
| Initial Package Fee/Marketing and Operations Package/Equipment and Products Package Fee | $49,500 | ||
| Food and lodging while at training, not including the cost of transportation | $1,800 | $2,500 | |
| Vehicle with upfitting | $70,000 | $105,000 | |
| 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 | |
| Global Positioning System/Data Communications Services Fee | $86 | ||
| Rent | $3,000 | $9,000 | |
| 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 | $170,089 | $294,984 | |
Source: 1-800 Water Damage International, LLC, 2022 filing, page 26
1-800 Water Damage franchise fee
The franchise fee is $59,000, for a single territory of about 350,000 people. You pay it when you sign the franchise agreement.
Source: 1-800 Water Damage International, LLC, 2022 filing, page 17
Royalty and ongoing fees
| Royalty | On remediation services, 10% of yearly gross sales up to $499,999, 9% above $500,000, 8% above $1 million and 7% above $2 million; on reconstruction services, 10% until remediation sales pass $500,000 and 3% after that. Paid monthly, with a $500 monthly minimum from the second half of the first full year. |
|---|---|
| Brand or marketing fund | 2% of gross sales, paid monthly. |
| Technology Fee | Our then current fee, which is presently $500 |
| Transfer of Corporation Fee | $500 |
| Renewal Fee | 10% of the then-current Initial Fee |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: 1-800 Water Damage International, LLC, 2022 filing, pages 20 and 21
Other fees as filed, from pages 21–22. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures 1-800 Water Damage publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $584,702
- Median sales
- $440,552
Yearly figures for 2021, covering traditional single-territory franchisees open all of 2021 (80 locations). The average is about 2.5 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: 1-800 Water Damage International, LLC, 2022 filing, pages 65–66
SBA loans to 1-800 Water Damage franchisees
Lenders approved 35 SBA 7(a) loans for 1-800 Water Damage franchisees from 2005 to 2026, $8.72M in all. Of the 18 that have ended, 15 were paid in full and 3 were charged off. The other 17 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How 1-800 Water Damage compares
Of the 57 restoration franchises on this site, 1-800 Water Damage is the 36th cheapest to open and the 11th largest by number of locations.
| Figure | 1-800 Water Damage | Typical restoration brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $170K | $152K | $222K |
| Cost to open, high end | $295K | $255K | $477K |
| Franchise fee | $59K | $50K | $40K |
| Brand fund | 2% | 2% | 2% |
| Sales per location | $585K | $656K | $794K |
| US locations | 154 | 54 | 21 |
| Change in franchised locations, 0 yrs | +111% | +11.4% | – |
| Shares earnings figures | Yes | 44 of 57 | 2,147 of 3,352 |
Typical is the median across the 57 brands in restoration franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned |
|---|---|---|
| 2019 | 93 (+20) | 4 |
| 2020 | 140 (+47) | 2 |
| 2021 | 154 (+14) | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Locations are counted as territories: at the end of 2021, 95 owners ran 154 territories, including those run under the brand's managing operator model.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: cleaning franchise costs and franchise failure rates.
Source: 1-800 Water Damage International, LLC, 2022 filing, page 69
Who owns 1-800 Water Damage?
1-800 Water Damage franchises are sold by 1-800 Water Damage International, LLC. It is a subsidiary of BELFOR Franchise Group, LLC.
1-800 Water Damage is one of the 11 BELFOR Franchise Group brands here.
From 1-800 Water Damage International, LLC’s 2022 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 16. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: 1-800 Water Damage International, LLC, 2022 filing, litigation on page 16, bankruptcy on page 16
1-800 Water Damage filings
The figures on this page come from 1-800 Water Damage International, LLC’s 2022 filing, issued April 1, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 1, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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