1-800 Water Damage charges a royalty fee of 10.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a 1-800 Water Damage franchise is approximately 12.0% of gross sales (2025 FDD). This includes the royalty fee, a 2.0% marketing/advertising fund contribution, a $500/month technology fee, and other recurring charges.

1-800 Water Damage has been involved in 1 litigation cases over the past 3 years (2025 FDD). There are currently 1 pending cases. There are no class action lawsuits pending.

No, the 1-800 Water Damage franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

1-800 Water Damage offers protected territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.

1-800 Water Damage currently operates 175 locations (2025 FDD) (175 franchised, 0 company-owned). The system contracted by 1.7% over the past year. The 3-year compound annual growth rate is 1.6%.

The 1-year franchisee turnover rate for 1-800 Water Damage is 11.4% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the 1-800 Water Damage FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $434K (average: $725K).

The initial franchise agreement term for 1-800 Water Damage is 10 years (2025 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 20 years.

1-800 Water Damage's post-termination non-compete clause restricts former franchisees from operating a competing business for 1.5 years within 50 miles of the former location (2025 FDD).

Yes, 1-800 Water Damage's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD).

1-800 Water Damage provides 151 hours of initial training over approximately 3 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.

1-800 Water Damage does not provide site selection assistance (2025 FDD). Franchisees are responsible for finding and securing their own location. The franchisor also provides technology support and systems.