1-800 Water Damage

1-800 Water Damage Franchise FDD, Costs & Fees (2025)

1-800 Water Damage offers expert water damage restoration services, providing prompt and reliable solutions for properties affected by water-related emergencies.

1-800 WATER DAMAGE is a rapidly growing franchise in the property restoration industry, recognized for its comprehensive services that address water, fire, smoke, and mold damage. Founded in 1981, the franchise became part of the BELFOR Franchise Group, which has significantly expanded its reach and capabilities. 

The company is headquartered in Ann Arbor, Michigan, and began franchising in 2002, offering entrepreneurs an opportunity to join a recession-resistant industry with a strong demand for restoration services.

One of the key differentiators for 1-800 WATER DAMAGE is its commitment to making a meaningful impact in communities. 

Franchise owners are positioned as trusted experts who help restore homes and properties to their pre-loss conditions, often during critical times of need.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

1-800 Water Damage offers 2 types of franchises:

Business Type Initial Investment
1-800 WATER DAMAGE Business $210,903 to $316,398
Conversion 1-800 WATER DAMAGE Business $71,203 to $294,548

We are summarizing below the main costs associated with opening a Standard 1-800 WATER DAMAGE Business.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Standard 1-800 WATER DAMAGE Business

Type of Expenditure Amount
Initial Franchise Fee per Territory $59,000 - $64,950
Initial Package Fee/Marketing and Operations Package/Equipment and Products Package Fee $55,000
Food and lodging while at training, not including the cost of transportation $1,800 - $2,500
Vehicle with upfitting $70,000 - $115,000
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
Rent $3,000 - $15,000
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 ESTIMATED INITIAL INVESTMENT & ADDITIONAL EXPENSES $210,903 - $316,398

Franchise Disclosure Document

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Competitors

Below are some of

1-800 Water Damage

key competitors in the

Restoration/Disaster

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
1-800 Water Damage
2002
178
+
16%
16%
$59,000 - $64,950
7% to 10%

$71,000

-

$316,000

$xxx,xxx

n.a.

$483,000

n.a.

xx%

n.a.

n.a.

xx%

n.a.

No
Upgrade
No
No
Upgrade
No
2016
7
+
-30%
-30%
$49,000
3% - 5%

$65,000

-

$122,000

$xxx,xxx

n.a.

$0

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Yes
Upgrade
Yes
No
Upgrade
No
1967
41
+
0%
0%
$40,000
1% - 8%

$227,000

-

$445,000

$xxx,xxx

n.a.

$0

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Yes
Upgrade
Yes
No
Upgrade
No
2019
46
+
48%
48%
$35,000
7.00%

$52,000

-

$68,000

$xxx,xxx

n.a.

$154,000

n.a.

xx%

n.a.

n.a.

xx%

n.a.

No
Upgrade
No
No
Upgrade
No
2015
32
+
60%
60%
$49,000
2% - 6%

$214,000

-

$627,000

$xxx,xxx

n.a.

$1,015,000

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Yes
Upgrade
Yes
No
Upgrade
No
2020
45
+
2150%
2150%
$60,000
7.00%

$144,000

-

$272,000

$xxx,xxx

n.a.

$563,000

83.5%

xx%

n.a.

35.8%

xx%

n.a.

Yes
Upgrade
Yes
No
Upgrade
No
1952
2046
+
-9%
-9%
$72,500
10.00%

$255,000

-

$365,000

$xxx,xxx

n.a.

$494,000

n.a.

xx%

n.a.

n.a.

xx%

n.a.

No
Upgrade
No
No
Upgrade
No

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$49 / month
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

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Profit margin

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Franchise Disclosure Documents
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Watchlist

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Priority support

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Training 

The training provided by the 1-800 WATER DAMAGE franchise is comprehensive and designed to equip franchisees with both the technical skills and business acumen needed to succeed in the restoration industry. The training program includes:

  1. Initial Training Program: Franchisees undergo an extensive initial training program that covers all aspects of the restoration services offered by 1-800 WATER DAMAGE. This includes water, fire, smoke, and mold damage restoration techniques, as well as crime scene and trauma cleanup. The training ensures that franchisees are well-prepared to deliver high-quality restoration services from day one.
  2. Business Development Training: In addition to technical training, the franchise provides business development education. This includes guidance on how to create and implement a business plan, set realistic goals, hire and retain top talent, and build strong relationships within the community. The focus is on helping franchisees manage their businesses effectively and sustainably.
  3. Ongoing Support: After the initial training, 1-800 WATER DAMAGE offers ongoing support through regional business coaches and other resources. This includes assistance with marketing, customer service, and operational challenges, ensuring that franchisees have continuous access to the expertise needed to navigate the complexities of the restoration industry.
  4. Hands-On Training: The franchise also provides hands-on training in the use of specialized equipment and tools necessary for effective restoration work. This practical experience is crucial for franchisees to build confidence and competence in delivering the services that 1-800 WATER DAMAGE is known for.

Territory Protection

1-800 WATER DAMAGE franchise offers territory protection to its franchisees, ensuring that each franchisee has exclusive rights to a defined geographic area. 

This protection is designed to prevent market saturation and allows franchisees to operate without competition from other 1-800 WATER DAMAGE locations within their designated territory. 

The size of the territory is typically based on population density and other market factors, giving franchisees the opportunity to maximize their business potential in their area.

Number of units

2024
Franchised units

154

167

178

Company-owned units

0

0

0

Total units

154

167

178

Competitors

Mastertech Franchise Systems

Franchisees

?

7
+
-30%
-30%
Investment

?

$65,000 - $122,000

Steamatic

Franchisees

?

41
+
0%
0%
Investment

?

$227,000 - $445,000

Dryer Vent Squad

Franchisees

?

46
+
48%
48%
Investment

?

$52,000 - $68,000

United Water Restoration

Franchisees

?

32
+
60%
60%
Investment

?

$214,000 - $627,000

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