Should a restoration contractor buy a water damage franchise?
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- Опубликовано: 26 дек 2022
- Is buying into a water damage restoration franchise worth it? That depends, there are pros and cons that each restoration contractor should know before they make a decision.
In today's video we explore the pros and cons of buying a restoration franchise. In the video I will give you 4 reasons why you WOULD want to buy into a franchise.
Then we will look at the top 3 reasons why you would NOT buy into a franchise.
If you have any curiosity at all, you don't want to miss this one!
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I own a franchise and have for 5 almost 6 years now. You have more restrictions of what you can and can’t do. You don’t own your business you’re a glorified employee of the franchise. They tell you what you can and can’t do. You’re better off going independent than buying a franchise. I’m already thinking about jumping ship and going independent. Love the content keep it coming
Are you into a restoration franchise?
Hi Shane, I'm really thinking about to purchase a franchise, and I have been in touch with a restoration company headquarter that I'm talking to, I'm in the industry since 2005 as a tech then a crew chief then I start my own business as a subcontractor doing water damage fires etc. I'm still a little be afraid to do the next step. This video was very educational and helped me open my eyes to some issues that I hadn't thought about. I think we need to talk.
I worked with Rainbow for over 5 years - and i got tired of the little support and high fees - i jumped to PD thinking that due to the better reputation it was going to be better bu WRONG! it was worst - I wanted to buy into PD but they asked for $500K in the bank plus the $250k down to start- and they didnt want to give me any information of what i was getting in return with that money until they confirm the financial info. plus working with the company i noticed the amount of $ fees they take - better support from corporate compared to Rainbow but the pressure and was terrible for them to get their money- they give you financial goals that you have to accomplish - I decided to go independent and if everything goes well we open our door next month. your videos are very helpful - thank you
Glad you like the content! Some like franchises (most don’t). I just wanted to offer some perspective
@jacquelinenieto6949 I'd love to have a conversation with you about your experience with PD. My husband and I are flying out next month to Meet the Team, and sign the Franchise Agreement.
Did you move forward with the PD sale? I am in the same boat and hesitant about a purchase.
@@WaldenppWe didn't...I realized it was more construction and that's not the business we want to get into. We want to do water mitigation.
Great info Shane!!! Keep making a difference!!!
Thanks, I appreciate the words
Any topics you want covered?
Let me know!
Independent for 19 years. Franchisee for 5. Latter has been significantly more profitable. Discounts on program work (which are insanely minimal) and franchise fees are still well under the marketing costs to keep the wheels turning as an independent. As franchise, in year 4, my gross rev and net rev already exceeded what it took 19 years to build as a sole prop (and it was not a small op).
To the comment about franchises having lower resale and being hard to sell, disagree if it's one of the larger players. The best offer I got on my sole prop was 25% of rev + firesale market value on the business property. I haven't heard of a location in our network getting anything less than 150% of GR + fair market value on the business property. Many have gone for 300% of GR + FMV on the property.
To each their own, but If I had a time machine, I'd go back 24 years and buy a franchise. I'd have retired 3-5 yrs ago.
Carmen, glad to hear from you.
The resell portion is accurate but not always right. To your point, some franchises do a very good job at gobbling up territories as the come available. As a rule, most don't do a good job.. but to your point, some do.
What was your niche as a sole prop? Which job types? Commercial vs Residential?
Now that you are with the franchise, what type of jobs are you doing with the program? Mit, recon, mold?
What is the average ticket (over a 10 job span)?
thanks for the feedback!
Franchised for 5 years and you made more in that time compared to running your own shop for 19 years? Were you working 10 hour weeks? Please help me make sense of that.
Great video Shane!
Thanks 🙏
Great new video look forward to the next one
Got some good ones coming!
Really solid stuff here. 100% agree with everything sid here. I have owned a PuroClean franchise since June 2018 (opened Jan 2019). We don't participate in any of the vendor programs (they are toxic in my opinion). I have talked to other owners of various franchise and independents and we spent almost the same doing start-up, but my "product" is head and shoulders above the independents. However, the overhead on the franchise is crippling. What would I do if I were to start over? I go back and forth on this question. I got into this having zero knowledge and I walked into my first job with confidence and knowing exactly what to do. However, as a business with employees, payroll ect, it's hard to look at the amount of royalties I pay and say it's worth it.
Thanks for the feedback Adam.
I try to give an honest opinion where I show all sides. It may not be a perfect video but I really tried to be objective in my analysis.
To your point, you do get some support and structure with a franchise.
Is it enough? Is it worth it? Those are different questions.
When you go independent, you get no support
What other franchises did you consider?
What led you to choose Puroclean?
@@TheRestorationContractor like you, I was pretty ignorant. I had some cash, I contacted a franchise broker, and made the selection. I looked at other businesses, but no other restoration franchise.
@@DoYouWantTaBeFreeI’m exploring a franchise now and have zero experience. Would you be willing to chat more about your experience and things you’ve learned throughout your time as a franchisee
@knowleshunter absolutely. I'm going to comment below with my email hopefully it doesn't block it.
Thanks for this free info. Exactly what I was looking for. Got yourself a new subr.
Thanks for the sub!
Shane you the man! Love your content. You’ll be hearing from me soon coach
💪💪let’s do it💪💪
Great information 👍
Thanks for sharing.
You got it.
Is there any other topics you'd like me to cover?
I'm a Canadian looking at a few different emergency restoration companies as a means to enter the US on an E2 visa. I would prefer to be an independent business owner but owning a franchise would expedite the visa process.
I really liked your analogy of buying into a franchise is like a marriage. Easy to get into, hard to get out of.
Hard to argue with your point... that said... joining a franchise is very expensive in the long run
Enjoying your content
Glad you like it. Let me know if there is any other topics you'd like covered.
If you ever need us you can text us too at 615-685-2128
Well said Shane, I’ve been on both sides of this equation
Thanks for the comment Rob. I try to be as objective as I can (not easy for me at times)
Glad to hear from you!
Brands/wraps. Need help here. Great video
Great question
I will do a video in that too
I spend over $10k on a branding logo package
I can walk you through what I learned
Question 🙋♂️- thinking about opening up a water restoration business in a Puerto Rico and wondering your opinion. I specialize in large loss reconstruction and remodeling projects big and small in Austin Tx. I am xactimate certified and get my own jobs related to put back but wondering if I should get into mitigation
Why go to Puerto Rico?
Shane I was just about to text to ask you which Frenchise would you recommend
I would suggest you trying to go it alone first. You can always join the franchise later
Happy to talk with you if you need: 615-685-2128
Hi, is financing a bottleneck for water damage restoration company?
Would it be possible to be a finance partner in a water restoration business? How would I find people who would be interested in partnering with me?
I suppose it could be... but, it wasn't an issue for us.
Drop any questions below!
Hell no! I was the fourth Restoration 1 franchise, myself and 8 other franchises fought our way out. They will give you no support or help, just milk you for a log you could create with design crowd in a week for $500
I've seen many of their guys struggle too
while the systems and money are usually good. The thing that bothers me is that the owner has nothig to do with the naming, branding etc. so you spend your time promoting someone elses name, wearing someone elses colors. then you have to give some of your money back to them, "they" are usually already multi millionaires and have plenty of money. Reminds me of a legal pyramid scheme.
Thanks for the feedback!
To your point, there are some pros and some cons.
I think you wound up where you were supposed to be.
I feel the independent tone in your voice!
Thanks for the comment. I read them all!
@@TheRestorationContractor haha that’s awesome, “the Independant tone” love it. Thanks for replying. Keep up the great content