Steamatic VS Delta Comparison

  Delta Disaster, Inc. Steamatic (R)
Number of locations (US) 8 70
Startup Costs $162,755 - $332,220 $74,440 - $173,490
Territories open open
Initial Franchise Fee $45,000 Starts from $15,000
Supplies, Equipment and Inventory Purchase: $27,600 - $42,500 Purchase: $44,900 + any applicable sales tax
Steamatic went from 258 units to 70 in 2016, and does not report the number of 2017 units so far. 
The company does not offer reconstruction services, and seem to focus quasi-exclusively on carpet cleaning.

 

Steamatic performs services including catastrophe restoration and cleaning services to both structure and contents, residential and commercial carpet, hard surface, window coverings and furniture cleaning, and other retail cleanig services such as cleaning of air ducts and ventilation systems.

According to Steamatic, Inc. Franchise Disclosure Document, Steamatic grants franchises to use Steamatic Technology to perform Steamatic Services including catastrophe restoration and cleaning services to both structure and contents, residential and commercial carpet, hard surface, window coverings and furniture cleaning, and other retail cleaning services such as cleaning of air ducts and ventilation systems. Steamatic offers multiple levels of franchises depending on the size of the territory, the equipment required and the Steamatic Services to be provided.

The total investment necessary to begin operation of a Steamatic franchise ranges from $74,440.00 for a small market franchise located in a territory with a population of 75,000 or less, to $173,490.00 for a territory with a population of up to 200,000. This includes an amount that must be paid to the franchisor or its affiliate(s), ranging from $59 900.00 for a small market territory containing a population of 75,000 or less, to $86,900.00 for a territory containing a population of up to 200,000. For territories with populations in excess of 200,000, the total investment increases by $200 per 1,000, all of which must be paid to the franchisor or its affiliate(s).

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.

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

Warranty Fund Contribution

1% of Gross 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% of Gross 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% of Gross 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% of Gross 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 of software 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 of your 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.

STEAMATIC FEES

Royalty

Royalty Fee on Adjusted Gross Revenues starts at 8% each January 1 and can reduce to as low as 2%.

Royalty Fee on Subcontract Portion of Gross Revenues starts at 4% each January and can reduce to as low as 1 %.

Royalty Fee on Construction Portion of Gross Revenues is 2% until aggregate annual Gross Revenues reach $1,000,000, and 1% for the remainder of the calendar year.

Renewal Fee

$5,000/Submitted with notice of intent to renew.

After the initial 10-year term, your agreement must be renewed every 5 years. This amount is due at the time you give notice of intent to renew.

Fee for job in another franchisee’s Territory

10% of Gross Revenues/Same as royalty fee.

Payable to other franchisee if the Job is for Steamatic Services covered by the other franchise  owner’s franchise.

Advertising

5% of Gross Revenues/As incurred after the first 6 months.

You are required to expend this amount annually for local media advertising. It is payable to the person providing the services, which may be Steamatic.

Referral Fee for Jobs referred by Steamatic or special contractor

Varies depending on the Job. If you participate in an optional national account program that results in administrative fees, Steamatic may charge an administrative fee of up to 3%. Payable same as royalty fee unless billed and fee deducted by Steamatic.

Steamatic may bill your customer and deduct this fee before payment to you on national accounts.

Estimating Software

You will be required to lease/license Xactimate estimating Software from Xactware, Inc. A monthly charge of $250 (3 months = $750). Discounted to $650 if paid quarterly.

The initial payment for training resousces is included in the Technology Fee payable to Steamatic  and is not refundable. Other payments will be to third parties and are generally not refundable.

National Convention Registration Fee

$495 ($395 for early registration)/60 days prior to the date of the Convention.

This fee is payable to Steamatic. The registration fee does not include costs associated with travel, lodging or meals.

Website Fee

$230 per month (3 months = $690)/Payable by the 10th of each month.

Pavable to third party service provider. Fees are not refundable.