How much does a Restoration 1 franchise cost?
Restoration 1 has three non-interchangeable 2026 Item 7 ranges: $126,525–$309,500 for a new standard Market Territory, $75,750–$199,000 for a standard conversion, and $18,350–$114,250 for a micro Market Territory added to an existing contiguous standard territory. Each total includes an initial three-month operating allowance; debt service and owner salary are excluded. Source: 2026 FDD, Item 7, pages 11–17.
- Legal franchisor
- Restoration 1 Franchise Holding, LLC, a Delaware limited liability company and wholly owned subsidiary of Stellar Brands, LLC.
- Disclosure basis
- 2026 U.S. FDD issued May 1, 2026; Items 5, 6, and 7, with cost-relevant details from Items 8, 10, 11, and 17.
- Formats analyzed
- New standard Market Territory, standard conversion, and contiguous micro Market Territory add-on.
- Information checked
- July 22, 2026. No matching 2026 FDD was located on an official franchise-controlled public domain, so FDD citations are shown as unlinked Item and page references.
The current official franchise FAQ repeats the new standard investment range and states a $100,000 minimum liquid-capital requirement. Liquid capital is a qualification threshold, not the same figure as the total initial investment.
Capital snapshot
Why are there three different investment ranges?
The FDD separates three cost contracts because each format assumes a different starting asset base. The new-business format funds a full launch, a conversion may reuse an operating company’s assets and credentials, and a micro territory is only an incremental add-on for an existing franchisee with a contiguous standard Market Territory.
Each bar begins at the disclosed low estimate and ends at the disclosed high estimate on a common $0 to $309,500 scale.
Interpretation: the lowest published range belongs to the micro add-on because the estimate assumes an existing operation already supplies most premises, systems, and operating infrastructure. Source: 2026 FDD, Item 7, pages 11–14.
- New standard
- Full launch assumptions; the initial three-month allowance is $40,000–$75,000 for the initial three months.
- Standard conversion
- Low estimates assume qualifying assets and credentials already exist; the initial allowance is $2,000–$25,000.
- Micro add-on
- Incremental development for an existing contiguous operation; the initial allowance is $2,000–$25,000.
Read each low endpoint as a complete bundle of assumptions, not as a menu from which the cheapest line can be selected independently. An existing operator may qualify for a lower starting figure only when the assets already in place meet the current specifications, are available for the proposed operation, and do not require immediate replacement. The incremental option is narrower still: it presumes that the surrounding operation already supplies the office, administration, and much of the infrastructure. A practical comparison therefore starts with an asset-by-asset gap analysis. For every item already owned or leased, record its condition, remaining term, capacity, compliance status, and any cost needed to bring it into conformity. Any gap moves the buyer away from the published low endpoint.
What is included in the new standard franchise range?
The new-business range contains 17 line items plus the official total. That total must be used rather than adding selected low or high endpoints, because some assumptions depend on leasing, purchasing, existing assets, and timing.
Contract, premises, and equipment costs
These amounts are generally committed at signing or before opening. The low end often assumes leasing, limited improvements, or lower-cost configurations; the high end often assumes purchases or more extensive requirements.
| Expenditure | 2026 range | When paid | Key cost condition |
|---|---|---|---|
| Franchise Fee | $59,900–$64,400 | When signing the Franchise Agreement | Territory population drives the amount. |
| Technology Fee | $2,100 | Before opening and as incurred | Four months at $525 per Market Territory. |
| Real Estate / Rent | $0–$1,000 | When signing the lease | Non-conversion high estimate includes a two-month storage deposit. |
| Renovations and Improvements | $250–$500 | Before opening | Minor adaptation of the Franchised Business Office. |
| Encircle Software | $225–$2,500 | Before opening | Monthly installment or annual payment to the third-party licensor. |
| Office Equipment and Supplies | $300–$1,000 | Before opening | General office supplies and equipment. |
| Service Tools and Equipment | $1,200–$48,000 | Before opening | Low assumes three months of leasing; high assumes new purchases. |
| Uniforms | $250–$650 | Before opening | Varies with staffing and shirt quantity. |
Launch, compliance, and working-capital costs
The remaining categories cover the technology stack, personnel preparation, service mobility, compliance, professional support, and the first three months of operations.
| Expenditure | 2026 range | When paid | Key cost condition |
|---|---|---|---|
| Technology Systems Components | $1,650–$4,750 | Before opening | Hardware, connectivity, software, installation, freight, and taxes. |
| Training Expenses for 3 People | $4,700–$14,100 | During training | Travel and living expenses for one to three attendees. |
| Vehicle | $4,500–$70,000 | Before opening | Three months of leasing plus wrap at the low end; purchase and wrap at the high end. |
| Marketing Materials | $500–$2,500 | Before opening | Approved launch and local marketing materials. |
| Insurance | $7,000–$12,000 | Before opening | Estimated premiums for the first three months. |
| Licenses & Permits | $250–$5,000 | Before opening | Depends on state and local requirements. |
| Certifications | $2,200–$4,000 | Before opening | Includes assumed Mold and Fire certification costs and possible travel. |
| Professional Fees | $1,500–$2,000 | Before opening | Legal, accounting, entity formation, and contract review. |
| Additional Funds (3 months) | $40,000–$75,000 | As necessary | Working capital for operating expenses during the initial period. |
The disclosed total is also different from the cash that leaves the buyer’s account on a single day. Some entries are deposits, some are travel or setup expenses paid as they occur, and some may be financed or leased through third parties. That distinction affects timing but does not remove the obligation. A financed purchase can reduce the immediate outlay while creating payments that the opening estimate does not fully model. Quotes should therefore show the purchase price, deposit, taxes, freight, installation, required wrap or branding, financing charges, and the date on which each amount becomes binding. This approach also prevents a common error: combining a lease-based low assumption for one category with a purchase-based high assumption for another and calling the result an official scenario.
Restoration 1’s cost structure is built around storage, mobility, and a required technology stack
Operations may be administered from a personal residence or other approved office, but the current disclosure says off-site storage is required. A compliant van, required tools, and designated systems must be ready before opening authorization.
The official site describes the concept as home-based while requiring a registered storage location. See the official Restoration 1 franchise cost page and the official FAQ. The FDD controls the detailed cost assumptions.
These requirements are linked rather than isolated. The space must accommodate the operating setup and any separate storage arrangement must satisfy current standards; the transport choice must accommodate the required tools; and the digital setup must be ready before authorization to begin. A quote that treats only one part of that chain can understate the combined commitment. The buyer should ask vendors to identify capacity, installation, delivery, branding, connectivity, and replacement assumptions in writing. That record makes it easier to compare the disclosed range with the actual configuration and to identify costs that arise because of local conditions rather than the franchise contract itself.
When is the money paid before opening?
The franchisor does not require the full disclosed total as one payment to one recipient. The Franchise Fee is due at contract signing, third-party purchases and deposits are paid as incurred before opening, training travel is paid during training, and Additional Funds are spent during the first three operating months.
The resulting payment pattern is uneven. The contract payment occurs early, while vendor deposits, travel, coverage, and setup purchases accumulate during the development period. The operating allowance is then consumed after opening rather than held as a permanent reserve. A buyer can map this by week or month without inventing a new cost estimate: list the official category, expected recipient, quoted due date, refundable status, and committed funding source. The schedule should also show when a lender or leasing company will release funds, because an approved facility that is unavailable on the required date does not satisfy a payment obligation. State-specific deferral language should be reviewed separately with counsel rather than assumed to apply nationwide.
The official next-steps overview describes qualification, training, and launch at a high level. The binding timing and payment duties are in the Franchise Agreement and 2026 FDD.
Can the upfront Franchise Fee be reduced?
Yes, but the 2026 FDD limits each reduction to a defined situation and says discounts cannot be combined. The adjustment affects the upfront contract payment only; it does not reduce equipment, vehicle, insurance, training travel, working capital, or other startup categories.
- Second franchise
- $49,900 plus $0.18 for each person above 250,000 in the Market Territory, when purchased at the same time or within two years of the first business.
- Third or later franchise
- $39,900 plus $0.18 for each person above 250,000, under the same timing rule.
- Micro add-on
- $0.18 per person for a 75,000 to 200,000 population territory, producing a disclosed $13,500 to $36,000 Franchise Fee.
- Veteran discount
- $9,000 off the first Restoration 1 Business for an honorably discharged veteran who supplies qualifying documentation and, through an entity, maintains at least 51% ownership.
- Combination rule
- Discounts may not be combined; the franchisor resolves questions about application order.
The current official veteran opportunity page also confirms this first-unit veteran reduction. Source: FDD issued May 1, 2026, Item 5, pages 6–7.
Which fees continue after a Restoration 1 franchise opens?
The principal recurring obligations are the percentage charge and the monthly technology charge. Brand Fund and Local Advertising obligations are not currently charged under the current disclosure, but the agreements permit them to be activated up to disclosed maximums. Reconstruction Services and National Account work create separate fee bases.
Bars use a common $0 to $2,000 monthly scale.The franchisee pays the greater of the applicable minimum or the percentage-based Royalty Fee.
Interpretation: the minimum is waived initially and then rises in stages; the agreement permits inflation-based increases. Source: 2026 FDD, Item 6, pages 7–8.
| Recurring fee | Amount or basis | Timing | Important condition |
|---|---|---|---|
| Royalty Fee | Greater of 7% of Collected Gross Revenue, excluding Construction Gross Revenue, or the Minimum Royalty Fee | Monthly | Conversion franchise: 3.5% during the initial six months. |
| Reconstruction Royalty Fee | 2% of Construction Gross Revenues | Monthly | Applies only when Reconstruction Services are offered; additional to the regular Royalty Fee. |
| Technology Fee | $525 per month per Market Territory, subject to change | Monthly | Annual increases generally capped at 15% compounding unless direct costs are higher. |
| Additional User Accounts | $10–$25 per month per user, subject to change | Monthly | Includes extra software users and branded email addresses beyond the included quantity. |
| Brand Fund Contribution | Not currently charged; may be up to 2% of Collected Gross Revenue excluding Construction Gross Revenue | Monthly if activated | May be changed on 30 days’ written notice within the agreement maximum. |
| Reconstruction Brand Fund Contribution | Not currently charged; may be up to 0.5% of Construction Gross Revenues | Monthly if activated | Additional to the ordinary Brand Fund Contribution. |
| Local Advertising Expenditure | Not currently charged; may be up to 2% of Collected Gross Revenue | Monthly if activated | Must be spent locally or paid to the franchisor or its designee as directed. |
| National Account fees | Claims management: currently 5% of invoiced amount; dispatch: currently $0 | At time of job | Claims fee may rise to 15%; dispatch may rise to $75 per claim. |
For each month, the percentage calculation and the applicable floor must be compared on the same reported basis, and the higher result is due. The temporary reduction for an eligible converted operation changes the percentage during the stated introductory period; it does not eliminate the comparison with the floor. Charges described as inactive should not be treated as permanently absent, because the agreement allows activation within stated limits and notice rules. At the same time, an inactive percentage must not be added to a present-day budget as though it were already being collected. The correct reading is conditional: show the current obligation, the contractual maximum, the event or notice that can change it, and the revenue base to which it would apply. No annual dollar estimate is warranted without a disclosed sales figure.
The official FAQ summarizes the continuing percentage, but the disclosure adds the monthly floor, conversion exception, Construction Gross Revenue separation, and payment definitions. See the official cost and royalty FAQ. Source: 2026 FDD, Item 6, pages 7–11.
Which conditional fees can be triggered later?
Item 6 also contains event-driven charges that do not appear as normal monthly operating costs. Their relevance depends on conduct, transactions, additional services, or the end of the franchise relationship.
Which required purchases may change after opening?
Restoration 1 may update System Standards and require designated or approved products, services, suppliers, and Technology Systems. Item 8 estimates that specified or restricted purchases represent approximately 70% to 90% of purchases used to establish the business and 10% to 40% of purchases used to operate it.
Current designated categories include claims management, accounting, customer relations, learning management, reputation management, digital presence, job management, job documentation, invoicing, lead tracking, air movers, dehumidifiers, chemicals, uniforms, vehicle wraps, storage, and marketing services. Item 8 also says the franchisor currently receives supplier compensation equal to 3% of equipment purchases, 2% of equipment rentals, and 2% of contractor-supply purchases. Source: 2026 FDD, Item 8, pages 17–20.
Optional computer maintenance or support agreements are estimated at $200 to $350 per year, and future Technology Systems replacements or upgrades can be required. Source: 2026 FDD, Item 11, pages 26–27.
How much liquid capital is required, and does Restoration 1 finance the investment?
The current official franchise FAQ states that a new candidate needs at least $100,000 in liquid capital. A separate minimum net-worth figure was not verified in the current FDD or official qualification pages reviewed. That threshold should not be treated as the total cash needed, because the new-standard range begins at $126,525 and includes costs paid to several recipients over time.
Item 10 states that Restoration 1 Franchise Holding, LLC does not offer direct or indirect financing and does not guarantee a note, lease, or obligation. The official franchise financing page discusses retirement-account structures, SBA loans, and home-equity financing as possible third-party funding paths. Those descriptions are not loan approvals or guarantees.
- Total Initial Investment
- The official range for the applicable format, including listed pre-opening costs and three months of Additional Funds.
- Liquid Capital
- Cash or readily available assets used as a qualification measure; the official website currently states a $100,000 minimum for a new business.
- Net Worth
- Assets minus liabilities. No separate current buyer threshold was verified in the sources reviewed.
- Debt service
- Payments on borrowed money. The working-capital note expressly excludes loan payments.
- Owner compensation
- Salary or draws for the owners. The same note expressly excludes owner salary during the initial operating phase.
A funding plan should separate uses of money from sources of money. The uses side begins with the applicable official range, then identifies excluded personal needs, borrowing costs, and any cushion for a longer setup or slower collection cycle. The sources side identifies cash that is immediately available, amounts subject to lender conditions, lease proceeds restricted to particular assets, and any funds that cannot be used without tax or legal consequences. This separation prevents a qualification threshold from being mistaken for a complete budget. It also exposes timing gaps: a buyer may meet the stated screening requirement yet still lack enough unrestricted funds to make early payments, support personal living expenses, or carry obligations beyond the opening period. Third-party financing should be evaluated by proceeds, availability date, collateral, repayment terms, and fees—not merely by the headline approval amount.
The FTC Consumer’s Guide to Buying a Franchise explains why Items 5 through 7, continuing fees, personal living expenses, financing, and current franchisee verification should be reviewed separately.
What should a buyer verify before relying on the published range?
The published ranges are useful only when matched to the buyer’s actual format and current operating specifications. The most important diligence work is confirming which low-end assumptions genuinely apply and identifying cash needs the official total excludes.
What is the practical capital takeaway?
The verified cost answer is format-specific. The dominant variables are transport, required tools, reuse of existing assets, territory population, and the initial operating allowance.
The buyer must keep the total startup range, the upfront contract payment, the stated liquidity threshold, and continuing percentage or monthly charges separate. The largest unresolved cash question is not a hidden FDD line item; it is how much funding the buyer needs beyond the three-month working-capital window for debt service, owner compensation, and local operating conditions.