Is Restoration 1 right for you?
Established Insurance Network
Brand relationships with carriers create inbound lead flow for many operators.
Multi-Unit Prevalence
43% of operators own more than one territory, indicating scalability for experienced owners.
Defined Territory Model
Standard market territories are sized at 250,000-275,000 population, providing clear geographic focus.
About Restoration 1
Restoration 1 is a national franchise system providing residential and commercial water, fire, smoke, and mold restoration services. Headquartered in The Colony, Texas, the brand operates as a wholly owned subsidiary of Stellar Brands, LLC alongside sister concepts in plumbing, drain cleaning, and drywall repair. As of year-end 2025 the system included 278 franchised territories operated by 118 franchisees.
Franchisees deliver emergency and scheduled restoration services after property damage events. The operational model centers on rapid response, insurance-industry relationships, project management, and reconstruction. Most territories function as asset-light businesses that subcontract significant portions of physical labor while controlling the customer and insurance relationship.
Restoration 1 Franchise Holding, LLC is a wholly owned subsidiary of Stellar Brands, LLC, which shares the principal business address. The parents are Stellar Brands Holdings, LLC, RH1 Investments, LLC, MPK RH1, LLC, and MPK Equity Partners, LLC, each with principal business address at 3000 Turtle Creek Blvd., Dallas, Texas 75219.
The business model
How a Restoration 1 territory actually makes money at the unit level.
Initial Franchise Fee
The standard fee is $59,900 plus $0.18 per person in population over 250,000. Most territories range from $59,900 to $64,400.
Royalty Structure
Royalty equals the greater of 7% of collected gross revenue (excluding construction) or a minimum monthly fee that steps from $0 in the first six months to $2,000 after month 36. Conversion franchises pay 3.5% for the first six months.
Ongoing Fees
Monthly technology fee of $525. A 2% reconstruction royalty applies to construction gross revenue. Brand fund and local advertising contributions are not currently charged but may be implemented up to 2% each.
Investment Range
Total initial investment for a standard non-conversion territory ranges from $126,525 to $309,500. This includes franchise fee, vehicles, equipment, insurance, certifications, and three months of working capital.
Revenue Disclosure Basis
the financial-performance disclosure reports 2025 collected revenue across 231 franchised territories. 29.7% of territories exceeded the average. The system also discloses average cost and profit percentages for a subset of 148 territories.
Supplier Program
Franchisees must purchase certain equipment and software from designated or approved vendors. The franchisor receives rebates equal to 3% on equipment purchases, 2% on rentals, and 2% on contractor supplies.
Quick facts
Initial franchise fee
$59,900
Total investment range
$126,525 to $309,500
Royalty
7.00% of gross revenue
Marketing fund
n/a
Founded
n/a
Headquarters
The Colony, TX
Active US franchisees
442
Total US units
1404
What does a successful Restoration 1 operator look like?
Prospectus Maximus has profiled active Restoration 1 operators across multiple proprietary dimensions. The patterns the math finds are what your match assessment scores you against. Not a self-reported survey. A data-backed direction-of-fit measurement.
Take the assessment to see exactly where you align with the Restoration 1 pattern, and where you don't.
Training & support
What the franchisor + parent platform provide. And what they don't.
What's provided
- +Comprehensive Training Program completed to franchisor satisfaction prior to opening.
- +Training available for the franchisee (or owners) plus up to three additional individuals, one of whom must be the Designated Owner or Designated Manager.
- +Access to the 116-page Confidential Operations Manual upon completion of training.
- +Ongoing access to manual updates and modifications after opening.
- +Franchisor indemnification support for trademark matters when operating in compliance.
- +Non-binding input channel through the Franchisee Advisory Council on operational and marketing topics.
Honest disclosure: what's NOT provided
The the filed disclosures does not disclose specific initial training locations, total training hours, or detailed curriculum modules.
Multi-unit growth path
Operator data shows 43% of active Restoration 1 owners operate multiple territories. The the filed disclosures expressly permits contiguous micro-territory add-ons sized at 75,000-200,000 population. Experienced operators often leverage existing infrastructure, staff, and carrier relationships to absorb additional territories with lower incremental investment than the first unit.
Capital + financing paths
Most operators use one of these four paths to fund the initial investment.
SBA 7(a) Loans
Many franchisees finance equipment, vehicles, and working capital through SBA-guaranteed loans. Restoration businesses are generally viewed favorably by lenders familiar with the insurance-driven cash flow model.
Equipment and Vehicle Leasing
Service trucks, drying equipment, and restoration tools are commonly leased, reducing upfront capital requirements. The the filed disclosures estimates vehicle costs between $4,500 and $70,000.
Conversion / Existing Operator Path
Operators converting an independent restoration business may qualify for lower investment ranges ($75,750-$199,000) by utilizing existing assets, relationships, and infrastructure.
Seller Financing or Earn-Outs
When acquiring existing Restoration 1 territories, some sellers provide financing or performance-based earn-outs tied to retained insurance relationships.
Process timeline: inquiry → grand opening
Typical 12-16 week path from first call to launching your first customer route.
Validation & Agreement
Discovery calls, territory review, and execution of the Franchise Agreement with payment of the initial franchise fee.
Pre-Opening Setup
Secure location or home office, acquire vehicles and equipment, obtain insurance, licenses, and certifications. Complete technology and software setup including first technology fee installment.
Training
Attend and successfully complete the required Training Program for up to four participants.
Launch Preparation
Finalize local marketing assets, establish insurance carrier relationships, hire initial staff, and prepare for operations. Minimum royalty begins in month seven.
Opening & Ramp
Begin operations with zero minimum royalty for the first six months. Focus on lead generation, job execution, and building recurring insurance partnerships.
Stabilization
Months 7-24 see minimum royalty of $500 per month. Operators refine processes, expand reconstruction revenue, and evaluate additional territories.
Mature Operations
From month 25 onward the minimum royalty steps to $1,500 then $2,000. Multi-unit operators typically add contiguous micro-territories or standard territories.
Match assessment
Are you a Restoration 1 match?
12 questions. Math-first. No high-pressure sales call afterwards. Just your match assessment and the reasoning behind it.
Start nowCommon questions
How much does a Restoration 1 franchise cost?
The initial franchise fee is $59,900 to $64,400 for most standard territories. Total initial investment for a non-conversion territory ranges from $126,525 to $309,500 according to the investment disclosure of the the filed disclosures.
What is the royalty fee for Restoration 1?
Royalty is the greater of 7% of collected gross revenue (excluding construction revenue) or a minimum monthly fee that increases from $0 in the first six months to $2,000 after month 36. A separate 2% reconstruction royalty applies to construction gross revenue.
Does Restoration 1 provide financial performance representations?
Yes. the financial-performance disclosure discloses 2025 collected revenue data for 231 franchised territories and cost/profit percentages for 148 territories. 29.7% of territories exceeded the disclosed average revenue.
How many Restoration 1 franchises are there?
As of December 31, 2025 there were 278 franchised territories operated by 118 franchisees. No company-owned outlets exist.
Is territory exclusive with Restoration 1?
Territories are non-exclusive. The franchisor reserves rights to sell additional franchises, operate company units, and sell through alternative channels within the defined market territory.
What is the difference between Restoration 1 and Servpro or Servicemaster?
Restoration 1 is a smaller national player focused on insurance-driven property restoration. It offers lower minimum royalties in the first two years compared with some larger competitors and permits micro-territory add-ons for multi-unit growth.
Can I buy multiple Restoration 1 territories?
Yes. 43% of operators own more than one territory. Contiguous micro-territories sized 75,000-200,000 population are available as add-ons to existing owners.
What training and support does Restoration 1 provide?
Franchisees and up to three additional people must complete the Training Program prior to opening. Ongoing support includes access to the operations manual, technology platforms, and a Franchisee Advisory Council.
Are Restoration 1 franchisees required to perform reconstruction work?
Reconstruction is an authorized service. A separate 2% royalty applies to construction gross revenue. Many operators manage reconstruction projects while subcontracting labor.
What are typical Restoration 1 franchisee reviews?
Operator data indicates average management experience of nearly 24 years among the 442 tracked operators. Multi-unit ownership is common, suggesting operational repeatability once insurance networks are established.
Does Restoration 1 charge a marketing fee?
No brand fund contribution is currently required. Local advertising expenditure is not currently charged but may be implemented up to 2% of collected gross revenue.
How long does it take to open a Restoration 1 franchise?
Most franchisees complete training, secure vehicles and equipment, obtain certifications and insurance, and open within 90 to 180 days after signing, depending on licensing and build-out requirements.
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