FDD Analysis Report
1-800 WATER DAMAGE
1-800 WATER DAMAGE International, LLC
Key Metrics At-a-Glance
$49,000
$220,803 - $315,448
See FDD
of gross sales
See FDD
of gross sales
See FDD
32 units
N/A
Not disclosed
About This Franchise
# 1-800 WATER DAMAGE Franchise Intelligence Report
## Executive Summary
1-800 WATER DAMAGE operates in the essential property restoration sector with 180+ locations nationwide. The $170K-$315K investment is moderate for a service business, backed by BELFOR Franchise Group (industry leader). Average revenue of $483K with tiered royalties rewarding growth. Recession-resistant business serving insurance-funded claims.
## The Business
Established in 1981 and franchising since 2002, 1-800 WATER DAMAGE provides property restoration services for water, fire, smoke, and mold damage. Now part of BELFOR Franchise Group, the company benefits from industry-leading expertise and resources. Services are primarily insurance-claim funded, providing revenue stability.
## The Numbers
- **Total Investment**: $220,803 - $315,448 (standard) - **Conversion Investment**: $72,903 - $299,548 (existing business) - **Franchise Fee**: $59,000 - **Royalty** (tiered): - 10% up to $500K revenue - 9% from $500K-$1M - 8% from $1M-$2M - 7% above $2M - **Marketing Fee**: 3% of gross sales - **Net Worth Required**: $175,000 - **Liquidity Required**: $75,000 - **Veteran Discount**: 20% off franchise fee
**Revenue**: Average unit volume $483,000/year
## System Health
- 180+ locations nationwide - Part of BELFOR Franchise Group - Established 1981, franchising since 2002 - Stable, mature system
BELFOR backing provides resources, credibility, and infrastructure that independent restoration companies lack.
## Franchisee Experience
Comprehensive training platform included. Conversion option available for existing restoration businesses, reducing startup complexity. The tiered royalty structure incentivizes growth by reducing percentage as revenue increases.
## Risk Assessment
**Weather Dependent**: Revenue spikes during flooding, storms, and disasters but can be inconsistent in calm periods.
**Insurance Relationships**: Success depends on establishing relationships with insurance adjusters and being on preferred vendor lists.
**24/7 Operations**: Emergency restoration requires round-the-clock availability.
**Competition**: Competes with ServPro, ServiceMaster, and local independents.
**Labor Intensive**: Requires trained technicians for extraction, drying, and remediation work.
## Competitive Position
BELFOR backing provides significant competitive advantage - the parent company is the worlds largest disaster recovery company. The 1-800 branding supports consumer recall during emergencies. Established insurance relationships at corporate level can benefit franchisees.
## Validation Questions
1. What support is provided for insurance company relationships? 2. How seasonal is the revenue in different geographic markets? 3. What is the typical ramp-up time to profitability? 4. How does BELFOR corporate support franchisees vs company-owned operations? 5. What equipment financing options are available?
## Data Gaps
- Detailed revenue distribution across franchisees - Profit margins by service type - Geographic availability - Franchisee satisfaction scores
## Verdict: MODERATE-STRONG
Solid opportunity in recession-resistant restoration sector with strong corporate backing. Moderate investment with tiered royalties rewarding growth. Best for operators comfortable with 24/7 emergency service model and insurance industry dynamics.
Investment Analysis
Initial Investment Breakdown
The total initial investment ranges from $220,803 to $315,448.
| Expense Category | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,000 | $49,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $220,803 | $315,448 |
Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Royalty | See FDD of Gross Revenue | - |
| Brand Fund | See FDD of Gross Revenue | - |
Item 19: Financial Performance Representations
No Financial Performance Representations
This franchisor does not provide Item 19 financial performance representations. Approximately 35% of franchisors choose to disclose this information.
Recommendation: Request financial information directly from existing franchisees listed in Exhibit I during your due diligence. Contact 10-15 franchisees to gather revenue and profitability data before making an investment decision.
Learn more about Item 19 disclosures →Risk Assessment
Items to Review
No notable items identified
Positive Indicators
Review FDD for positive factors
Due Diligence Recommendations
Contact 10-15 existing franchisees to gather operational and financial insights
Franchisee interviews are the most valuable source of information about day-to-day operations and realistic financial expectations.
Have a franchise attorney review the Franchise Agreement
Professional legal review can identify unfavorable terms and potential negotiation points.
Research local market conditions and competition
Understanding your specific market is essential for success, regardless of system-wide performance.
Download Complete FDD
Access the full Franchise Disclosure Document including all 23 items, exhibits, and financial statements.
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Learn More About FDDs
New to franchise investing? Our educational guides will help you understand what to look for in the 1-800 WATER DAMAGE FDD.
The Ultimate Guide to FDDs
Learn how to read and analyze Franchise Disclosure Documents
Understanding Item 7: Initial Investment
How to evaluate franchise investment costs
FDD Item 5: Initial Fees Explained
What you pay upfront to become a franchisee
Item 20: Franchisee Information
Analyze system growth and contact franchisees
About 1-800 WATER DAMAGE Franchise
1-800 WATER DAMAGE is a franchise that offers entrepreneurs the opportunity to own and operate their own business within an established system. As of the 2026 Franchise Disclosure Document, the system has grown to 32 locations across the United States. This analysis provides prospective franchisees with key insights from the FDD to support informed investment decisions.
1-800 WATER DAMAGE Franchise Cost
The total initial investment required to open a 1-800 WATER DAMAGE franchise ranges from $220,803 to $315,448. This investment includes the initial franchise fee of $49,000, along with expenses for real estate, equipment, inventory, training, and working capital to sustain operations during the initial period. Ongoing fees include a royalty fee of See FDD of gross sales. Prospective franchisees should review Item 7 of the FDD for a complete breakdown of estimated initial investment costs.
1-800 WATER DAMAGE Item 19 Financial Performance
1-800 WATER DAMAGE does not provide financial performance representations in Item 19 of their FDD. Approximately 35% of franchisors choose to disclose this information. Without franchisor-provided financial data, prospective franchisees should contact existing franchisees directly to gather information about revenue, expenses, and profitability. The franchisee contact list in Exhibit I provides names and contact information for current and former franchise owners.
1-800 WATER DAMAGE Franchise Growth and System Health
The 1-800 WATER DAMAGE franchise system has shown stable performance based on unit count data from Item 20 of the FDD. Prospective franchisees should examine the historical data on unit openings, closings, and transfers to understand the system's trajectory and identify any concerning trends.
1-800 WATER DAMAGE Franchise Investment Considerations
The 1-800 WATER DAMAGE FDD contains important disclosures that prospective franchisees should carefully review before making an investment decision. Key factors to evaluate include the franchise fee structure, ongoing royalty requirements, territory rights, termination history, and franchisor support systems. Every franchise investment carries risk, and this analysis should be combined with professional legal and financial advice. Review the complete FDD and speak with current franchisees to gain a comprehensive understanding of the opportunity.
Due Diligence Recommendations for 1-800 WATER DAMAGE
Before investing in a 1-800 WATER DAMAGE franchise, prospective franchisees should:
- Contact multiple existing franchisees to gather operational and financial insights
- Have a franchise attorney review the Franchise Agreement and all exhibits
- Research local market conditions and competitive landscape
- Develop a detailed business plan with realistic financial projections
- Verify all information provided by the franchisor independently
Download the 1-800 WATER DAMAGE FDD
Access the complete 1-800 WATER DAMAGE Franchise Disclosure Document, including all 23 Items, exhibits, franchise agreement, and audited financial statements. FreeFDDs™ provides free access to FDDs to promote franchise transparency and help prospective franchisees make informed decisions. The FDD contains critical information that should be reviewed in its entirety before making any investment decision.
Disclaimer
This analysis report is provided for informational purposes only. The data presented has been extracted from the Franchise Disclosure Document and may contain errors or omissions.
Prospective franchisees should conduct their own due diligence, review the complete FDD document, and consult with qualified legal and financial advisors before making any investment decisions.