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Top 200 Franchise by Entrepreneur – Rank no.7 – Servpro – US

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Products & Services: Insurance/disaster restoration & cleaning

Number of Locations: 1,614

Total Investment: $134.8K – 183.44K

Founded: 1967

Began Franchising: 1969

About Servpro

Servpro started out in 1967 as a painting business. Two years later, founders Ted and Doris Isaacson began franchising it as a cleaning and restoration company. In 1988, they moved the company from Sacramento, California to Gallatin, Tennessee in order to be within 600 miles of 50 percent of the U.S. population.

Servpro franchisees specialize in disaster restoration, offering cleanup and repairs to both commercial and residential customers whose property has suffered fire or water damage. They also offer mold remediation, carpet and upholstery cleaning, air duct and HVAC cleaning, and other related services.

Franchise Units

2013 1,611 3 0 0
2012 1,599 2 0 0
2011 1,580 1 0 0
2010 1,526 0 0 0
2009 1,478 0 0 0
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S. and Canada.

Startup Costs, Ongoing Fees and Financing

Total Investment: $134,800 – $183,450
Franchise Fee: $43,000
Ongoing Royalty Fee: 3-10%
Term of Franchise Agreement: 5 years, renewable

Net Worth: $100,000
Liquid Cash Available: $85,000


40% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 5 – 10. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).

Franchise Fee
Startup Costs
Accounts Receivable

How This Franchise Supports Franchisees

Training: Available at headquarters: 2-1/2 weeks. At franchisee’s location: 1 week. Business development program
Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
Marketing Support: Co-op advertising, Ad slicks, National media, Regional advertising,
Other marketing support: National accounts marketing

Franchise Ranking History

Franchise 500®: #7 (2013), #4 (2012), #8 (2011), #9 (2010), #28 (2009),
Fastest-Growing: #38 (2012), #43 (2011), #41 (2010), #57 (2009),
Top Home-Based: #1 (2012), #2 (2011), #2 (2010), #3 (2009),
America’s Top Global: #14 (2013), #3 (2012),

Servpro Industries, Inc. is a franchisor for more than 1,500 fire and water cleanup and restoration franchises in 48 states in the USA. The company is headquartered in Gallatin, Tennessee. Servpro franchises offer a range of residential and commercial cleaning and restoration services, including carpet cleaning, hardwood floors, HVAC systems, upholstery and more.

Servpro Industries, Inc. employs more than 200 corporate staff at its national headquarters and supports a network of more than 1,500 franchises.


Ted and Doris Isaacson launched Servpro in 1967 as a painting business in Sacramento, California. With a background in cleaning and restoration, Ted and Doris changed the direction of the company, becoming a franchisor of cleanup and restoration services.

After selling their first franchise in 1969 Servpro acquired the Bristol-Myers Domesticare Division and its 175 franchises in 1979. Servpro relocated their corporate headquarters from Sacramento to Gallatin in 1988, placing itself within 600 miles (970 km) of 50 percent of the U.S. population. At the time of the relocation, the Servpro system consisted of 647 franchises.

The company sold its 1,000th franchise in 2000. In 2005, Servpro moved to a 106,000-square-foot (9,800 m2), facility in Gallatin to provide more room for expansion. More than 1,600 franchises are in operation nationwide.

Training facility[edit]

Servpro has a training facility based at their headquarters.

The training center has two furnished, full-size residential structures to teach professional cleanup and restoration skills in fire and soot damage. The 1,200-square-foot (110 m2) ASD (Applied Structural Drying) house, located adjacent to the corporate facility, allows Servpro to teach a hands-on ASD certification course.


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