Business Description

This acclaimed restoration and remediation franchise specializes in water, mold, and fire damage restoration. The company leverages government and commercial contracts with operations support from the franchise. The franchise unit was founded in 2016 and owns one of the largest territories in the Houston area. 

Given limited investment in sales and marketing, the company’s revenue has been largely correlated to storm events, making 2021 a record year from extreme weather in Texas. The company has a core team of 2 technicians and utilizes subcontractor agencies for larger projects. Owners oversee operations, maintenance, inventory, and any marketing. They are willing to support the new owner for 6 months to ensure a smooth transition.

Key Metrics

$619K 2023 Revenue

$223K 2023 SDE | 36% Margin

Background

Purchased in 2016, this restoration franchise has built a reputation for its expertise and responsiveness in addressing restoration needs within the local community. It holds exclusive rights to one of the largest territories in Houston and operates from a leased office and storage space, in addition to performing on-site operations. They hold licenses and GSA contracts that provide flexibility in the types of projects they can undertake. The franchise benefits from the parent company, including with established marketing strategies, website services, and back-office support, which enhance operational efficiency and growth potential. Ownership is currently operating under capacity for personal reasons. 

‍

Key business details

• Commercial & GSA Contracts: Franchise has established a strong presence in both government and commercial sectors, including with government agencies through the GSA. Revenue stream from government contracts and commercial agreements offers stability and further growth potential.
• Access to Franchise Resources: The support infrastructure streamlines operations for franchise owners, allowing them to focus on business growth and customer service while leveraging proven marketing and administrative resources provided by the franchisor.

Growth opportunities

• Expanding into untapped territories: With Houston experiencing rapid growth and the franchise's territory being spread out, there's an opportunity for the new owner to explore and market in previously untapped areas within the territory.
• Growing frequency of extreme weather events: Historical sales growth has been correlated to storm events, which are expected to become more frequent in the coming years.

• Hiring a full-time sales representative: 2021 revenue of $1.2M  indicates the company can serve a larger customer base with its current assets. The lack of a dedicated salesperson provides an opportunity for the new owner to bolster business development efforts. By hiring a sales rep, the company can actively pursue new clients, expand its customer base, and drive growth.
• Strategic partnerships: Partnering with specialized high-value restoration companies would provide access to premium projects beyond usual scope. Collaborations would enhance service offerings and expand revenue potential.