Rainbow Restoration Franchise FDD, Costs & Fees (2025)

Rainbow Restoration offers comprehensive disaster restoration services, specializing in water, fire, and mold damage restoration for residential and commercial properties.

Rainbow Restoration is a trusted franchise brand offering expert residential and commercial restoration services. It was founded in 1981 in Waco, Texas, where it still maintains its headquarters.

The company began franchising the same year, rapidly expanding across the United States and internationally. With decades of experience, Rainbow Restoration has built a strong reputation in the restoration and cleaning industry.

The franchise specializes in a wide range of restoration and remediation services. These include water damage restoration, fire and smoke damage repair, mold removal, carpet and upholstery cleaning, odor removal, and reconstruction services.

Rainbow Restoration also provides emergency board-up services, air duct cleaning, and biohazard cleanup. Its comprehensive service offerings make it a one-stop solution for property recovery needs.

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.

Type of Expenditure Amount
Initial Franchise Fee $40,000 + $400 per 1,000 additional population over minimum
Vehicle $10,000 – $55,000
Equipment, Supplies & Inventory $40,461 – $65,000
Insurance (Annual General Liability / Pollution / Workman's Comp / Office) $12,000 – $18,000
Advertising & Promotional and Local Marketing Spending $5,000 – $30,000
Training (Technical, Business, ASD, 31IRST, OCT, AMRT), Travel, Lodging & Food $6,400 – $10,200
Deposits, Permits & Licenses $1,675 – $3,600
Professional Fees $2,500 – $5,000
Recruiting and Onboarding $650 – $1,000
Lead Safe Equipment, Supplies and Certification $650 – $3,100
Additional Funds – 6 to 9 Months $40,000 – $100,000
Real Estate Not Included
Totals $159,336 – $330,900+ (plus any additional franchise fee and real estate costs)
Type of Expenditure Amount
Initial Franchise Fee $40,000 + $400 per 1,000 additional population over minimum
Vehicle $10,000 – $55,000
Equipment, Supplies & Inventory $40,461 – $65,000
Insurance (Annual General Liability / Pollution / Workman's Comp / Office) $12,000 – $18,000
Advertising & Promotional and Local Marketing Spending $5,000 – $30,000
Training (Technical, Business, ASD, 31IRST, OCT, AMRT), Travel, Lodging & Food $6,400 – $10,200
Deposits, Permits & Licenses $1,675 – $3,600
Professional Fees $2,500 – $5,000
Recruiting and Onboarding $650 – $1,000
Lead Safe Equipment, Supplies and Certification $650 – $3,100
Additional Funds – 6 to 9 Months $40,000 – $100,000
Real Estate Not Included
Totals $159,336 – $330,900+ (plus any additional franchise fee and real estate costs)

Franchise Disclosure Document

Competitors

Below are some of

Rainbow Restoration

key competitors in the

Restoration/Disaster

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
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EBITDA
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330

New
+
5%
5%

$40,000

$159,000

$331,000

n.a.

$613,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

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Number of units

Training

Rainbow Restoration provides a structured and multifaceted training program to equip franchisees and their staff with the knowledge required to operate successfully. The training includes foundational, technical, and software-based modules. Below are the key components:

  1. Initial Training Program (Phase I and II): This begins with a five-day Phase I training followed by an 11-day Phase II program. It covers business operations, customer service standards, and approved service delivery, conducted either at the franchisor’s headquarters in Waco, Texas or via remote sessions.
  2. Field Training: Franchisees may be required to complete up to five days of hands-on training at an existing franchised location. This segment emphasizes real-world service execution, reinforcing system standards.
  3. Ongoing and Refresher Training: Rainbow Restoration may mandate attendance at regional meetings, conventions, or further training sessions. These are meant to keep franchisees updated on system changes and service improvements.

Territory Protection

Rainbow Restoration provides limited territory protection to its franchisees under the terms of the franchise agreement. Each franchisee is granted a specific geographic area, typically with a population between 100,000 and 500,000, in which they are allowed to operate.

However, the franchisor explicitly states that the territory granted is not exclusive, and franchisees may face competition from other franchisees, company-owned outlets, or affiliates operating similar businesses.

Although Rainbow Restoration will not modify a franchisee’s designated territory without written permission, they reserve several rights that may impact territorial exclusivity. For instance, the franchisor may allow other franchisees or even third parties to provide services within a franchisee’s territory under certain conditions.

Competitors

Mastertech Franchise Systems

Mastertech Franchise Systems is a restoration and remediation franchise offering mold removal, water damage restoration, and biohazard cleanup services with certified professionals.

Franchisees

?

7
+
-30%
-30%
Investment

?

$65,000 - $122,000

Steamatic

Steamatic is a cleaning and restoration franchise providing services like air duct cleaning, carpet cleaning, mold remediation, and disaster recovery.

Franchisees

?

41
+
0%
0%
Investment

?

$227,000 - $445,000

Dryer Vent Squad

Dryer Vent Squad is a home services franchise focused on dryer vent cleaning, repair, and maintenance to improve home safety and energy efficiency.

Franchisees

?

46
+
48%
48%
Investment

?

$52,000 - $68,000

United Water Restoration

United Water Restoration is a disaster restoration franchise specializing in water damage mitigation, mold remediation, and fire restoration services.

Franchisees

?

32
+
60%
60%
Investment

?

$214,000 - $627,000

RestoPros

RestoPros is a disaster restoration franchise providing water, fire, mold, and storm damage restoration services for residential and commercial properties.

Franchisees

?

45
+
2150%
2150%
Investment

?

$144,000 - $272,000

ServiceMaster Restore

ServiceMaster Restore is a leading disaster recovery franchise offering fire, water, and mold damage restoration services with rapid response and expert care.

Franchisees

?

2046
+
-9%
-9%
Investment

?

$255,000 - $365,000