Servpro provides professional residential and commercial cleaning, and restoration of damage caused by fire, flood, and other disasters.

According to Servpro Industries, Inc. Franchise Disclosure Document, business will provide professional residential and commercial cleaning, and restoration of damage caused by fire, flood, and other disasters.

The total investment necessary to begin operation of a Servpro Industries, Inc. franchise for an associate license is from $156,075.00 dollars to $209,950.00 dollars. This includes $112,750.00 dollars that must be paid to the franchisor, consisting of $46,000.00 dollars for the license and $66,750.00 dollars for the required Equipment and Products Package, plus sales and use tax where applicable.

These estimates do not include any additional franchise or license fee for a larger operating territory or distribution area, rent for a business location or your salary during the initial start-up period.

JOIN THE PROFITABLE, RECESSION-RESISTANT INSURANCE RESTORATION INDUSTRY WITH DELTA DISASTER SERVICES


Delta customers get comprehensive reconstruction services to restore the structure to pre-loss condition from a single trusted vendor.

Delta Development Group grants franchises for the operation of commercial and residential property mitigation, reconstruction, remodeling and consulting businesses using the name “Delta Disaster Services ”. Since August 2016, we have also operated one Delta Services Business. We are not engaged in any other type of business activity.

As a Delta Disaster Services franchisee you get access to proprietary scalable processes to meet second year gross minimums of $1million, while servicing both commercial and residential customers with water, fire, and environmental losses.

Exclusive franchise territories are based on a minimum of 280,000 people up to 1 million. They're ideally located near or in a major metropolitan area servicing residential neighborhoods, commercial housing, and hospitality properties.

Servpro VS Delta Comparison

  Delta Disaster, Inc. Servpro
Number of locations (US) 8 1704
Startup Costs $162,755 - $332,220 $156,075 - $209,950
Territories open limited
Initial Franchise Fee $45,000 $46,000.00
Supplies, Equipment and Inventory $27,600 - $42,500 $66,750.00
Vehicle Lease: $400 - $700 / month Purchase: $2,000 - $35,000
Additional Funds (Working Capital) $52,755 - $65,000 $30,000 - $35,000
Contradictory to ServPro, Delta gives the opportunity to reconstruct and offers unlimited territories.

DELTA DISASTER FEES

Royalty

For construction services, reconstruction services, and asbestos abatement-related services, the greater of 4% of Gross Revenue or the Minimum Royalty. 

For mitigation services, which includes contents-related work and structural cleaning, the greater of 8% of Gross Revenue or the Minimum Royalty.

Paid by electronic funds transfer on the sixth day of each month for the preceding month.

Technology Support Fee

$299, Payable monthly by electronic funds transfer.

The purpose ofthe technology support fee (“Technology Support Fee”) is to defray the cost of providmg technology support to you.

Warranty Fund Contribution

1% ofGross Revenue, Payable monthly by electronic funds transfer.

Your warranty fund contnbution (“Warranty Fund Contribution”) will be contributed to the warranty fund (“Warranty Fund”) established to fund the service warranties provided to customers The total Warranty Fund Contribution will be capped at the amount set forth in the Operations Manual We have the right to adjust the cap upon thirty days wntten notice to you. Your obligation to pay us the Warranty Fund Contribution will commence two years after you begin operations.

Individual Advertising Expense

2% ofGross Revenue, Payable monthly

Your obligation to make the individual advertising expense (“Individual Advertising Expense”) for advertising and promotion will commence 90 days after you begin operations Prior to the time the Individual Advertising Expense obligation commences, you must spend a total of $6,000 on advertising and promotion in your Area of Primary Responsibility for the first 90 days after you commence operations (See ITEM 7) Salaries for your marketing support personnel are separate expenses that must not be included m the Individual Advertising Expense or the amount you must spend on advertising and promotion for the first 90 days after you commence operations.

National Marketing Fee

1% ofGross Revenue, Payable monthly by electronic funds transfer

You must pay us a national marketing fee (“National Marketing Fee”) in addition to the Individual Advertismg Expense and Start-Up Advertising The National Marketing Fee will be deposited into a national marketing fund (“National Marketing Fund”) Advertising materials and services will be provided to you through the National Marketing Fund The Franchise Agreement authorizes us to increase the amount ofthe National Marketing Fee to a maximum of 3% ofGross Revenue for the previous month If we increase the National Marketing Fee, your Individual Advertising Expense will be reduced by the same amount Your obligation to pay us the National Marketing Fee will commence two years after you begin operations.

Successor Franchise Fee

10% ofthe then-current Initial Franchise Fee, Payable at the time you sign the Successor Franchise Agreement

Estimating Software

Xactimate software SI 13 to $160 per month per license.

In order to secure favorable pricing for our franchisees, we have entered into a software license agreement with the licensor ofthe estimating software which we require you to use in connection with your Delta Services Business This fee could decrease as your number ofsoftware licenses increases and depending on the type oflicense you obtain Because this fee is a pass-through cost, we are not deriving any revenue from this fee While we will handle the administration of licenses to our franchisees, you must work directly with the software licensor regardmg any technical issues you encounter.

Software License Fees

Quickbooks Premier Contractor $450-$1,100 for three licensed users, proprietary Delta Management software $200 per month per location or license obtained.

You must comply with all terms and pay all fees that may be due under a software license agreement for any software you are required to use in the operation ofyour Delta Services Business. The fees to use each software program will vary based on the number of licensed users per location.

Technology Maintenance

$500-$1,500 per computer workstation

We impose no cap or limitation on the amount of expense you may incur for hardware and software upgrades.

SERVPRO FEES

Royalty
Ranges from 3% to 10% of Your monthly Gross Volume with a monthly minimum of $100 Paid Monthly, on a date We designate;
You must pay a percentage of the Gross Volume of Your Franchise. 
Fixed fee

$45-$115 based on Your monthly Gross Volume. 

You must pay a Fixed Fee based on Your monthly Gross Volume.

WorkCenterTM Office and WorkCenterTM Marketing

$175 per month for 60 months beginning the 1st day of the third month after You sign the Franchise License Agreement, subject to change at Our discretion. After the first 60 months, the fee will be $108 per month due the 1st of each month thereafter.

Included in Our Equipment and Products Package for franchisees entering NFTP at the end of September 2015. Replacement office and marketing management software and upgrade for Servpro Office Automation.This is Our proprietary estimating, reporting and office management software. See Item 11 for more information.

Convention registration fee

Currently $425, if registered by May 1st and $475, if registered after May 1st $185 Guest registration fee, if registered by May 1st $260 Guest registration fee, if registered after May 1 st Onsite registration will be $525

We charge You a registration fee to help defray a portion of Our cost of hosting the Annual National Convention. To assist You in attending Our National Convention each year, We return up to 10% of Your Royalties (not including Fixed Fees or Advertising fees) to You in the form of a Convention Allowance if You have paid Your accounts on time; You completed the New Franchise Training Program (NFTP) within 90 days after You signed the Franchise License Agreement; You are in compliance with Territorial Policy and You attend National Convention and meetings required by Your Trainer, in their entirety.

Advertising Fee

1⁄2% of Your Gross Volume, not including Gross Volume from Subcontract Services, plus 21⁄2% of Your annual Gross Volume on a calendar year basis, not including Gross Volume from Subcontract Services.

We may collect up to 3% of Your monthly Gross Volume as an Advertising Fee. Currently, Gross Volume subject to the 21⁄2% portion of the Advertising Fee is “capped” at $750,000. The “cap” will increase $50,000 per year for the foreseeable future. We may change the percentage, threshold, and the Sub-contractor Services Gross Volume exclusion by giving You 30 days written notice.

Initial Training fee

We will provide initial training to additional persons or for Your employees on a space-available basis at a cost of $1,000 each for the New FranchiseTraining Program; and $545.00 dollars for attendance at the Mold Remediation Course currently instructed by EHS Services, LLC 

Employee Certification Training Program

We may charge You Our then-current training fee, currently in the amount of $49.95 for the Crew Training Course and $19.95 for other courses for employees You recommend that qualify.

We make available training programs for You to provide to Your employees in the following areas:

o Crew Training Course;
o Water Restoration;
o Fire Restoration; and
o Carpet and Upholstery.

Third Party Electronic Assignment / Integration Administrative Fee

A fee not to exceed $50 for National Accounts and Select National Accounts job leads assigned through third-party licensed software; currently this fee is $20 and is subject to change upon notice; an additional fee for local jobs utilizing Our Third-Party integration technology not to exceed $20 per local assignment. Currently, local jobs utilizing this Third-Party integration technology are not charged a fee; howevever, fees may be charged in the future.

Franchise Website Packages

There is no cost for a Basic Website; Annual fees of $349 plus $89 for each additional Franchise for the Professional Website Package; Domain name registration and maintenance fees for Basic Websites are $35 per year per domain name; the Professional Website Package includes one domain name at no additional charge and each additional domain name is $25 per year.

You automatically receive a Basic Website at no charge. Professional Website Packages cost extra. Both packages have extra costs for domain registration and maintenance.