Restore is not a traditional franchise. Instead, it operates as a franchise-like business model. Here’s a quick overview of how the Restore business model works:
What is Restore?
Restore is a junk removal company founded in 2004 in Maryland. They provide full-service junk removal and recycling services for both residential and commercial clients across the United States and Canada.
Restore’s business model
Restore operates using a franchise-like business model. Individuals can purchase Restore franchises in order to operate their own local junk removal businesses under the Restore brand name and system.
However, there are some key differences between Restore and a traditional franchise:
- Restore franchisees do not pay an upfront franchise fee. Instead, they pay ongoing royalties.
- Restore provides franchisees with training, but it is shorter than traditional franchise training.
- Restore franchisees have access to the Restore system and brand name but operate their businesses independently.
Is Restore a traditional franchise?
No, Restore does not meet the legal definition of a traditional franchise. Here are some reasons why:
- Restore does not charge an upfront franchise fee. Traditional franchises require franchisees to pay an initial franchising fee, often $30,000 or more.
- Restore franchisees do not receive an exclusive territory. Traditional franchises grant franchisees exclusive rights to operate within a designated geographical territory.
- Restore exercises less control over franchisees than traditional franchisors. Franchisees have more flexibility in how they operate their local businesses.
For these reasons, Restore does not qualify as a legal franchise under FTC regulations.
Restore’s franchise-like system
Although not a traditional franchise, Restore does operate under a franchise-like business model. Here are some key elements of the Restore system:
- Branding – Restore franchisees use Restore’s name, logo, and branding.
- Training – Franchisees go through a short training program to learn Restore’s processes.
- Operations manual – Franchisees follow an operations manual for things like truck specs, uniforms, sales scripts, and more.
- Ongoing support – Restore provides franchisees with ongoing corporate support with things like marketing, technology, and operations.
- Royalties – Instead of an upfront fee, franchisees pay ongoing royalties to Restore based on revenue.
So while Restore franchisees operate as independent businesses, Restore provides guidance, systems, and branding so franchisees can capitalize on the Restore name.
The pros and cons of Restore’s franchise model
Restore’s unique franchise-like model has both advantages and disadvantages for franchisees.
- Lower cost of entry – The lack of a franchise fee makes opening a Restore franchise achievable for more potential franchisees.
- More flexibility – Restore franchisees have more leeway in how they run their local operations compared to a traditional franchise.
- Proven business model – Restore provides a proven junk removal business model that franchisees can adopt.
- Ongoing support – Franchisees still receive training and corporate support from Restore HQ.
- No exclusive territory – Without an exclusive territory, franchisees may compete against other Restore franchisees for business.
- Less training – The shorter training program may leave some franchisees feeling unprepared versus a traditional franchise training.
- No true independence – Franchisees must still follow Restore’s brand standards and operational system.
Requirements to open a Restore franchise
Restore has specific requirements individuals must meet in order to open up a Restore franchise location:
- Have a net worth of at least $30,000.
- Liquid assets available of at least $15,000.
- Be willing to personally participate in running the business full-time.
- No recent bankruptcies or convictions.
- Have adequate space to operate trucks.
- Live within the area you wish to operate.
Restore also requires franchisees to attend a short training program at Restore HQ before launching their franchise location.
What are the costs to open a Restore franchise?
The lack of a franchise fee makes Restore a relatively affordable franchise opportunity. Here are the primary costs to open a Restore franchise:
- Franchise fee – $0
- Truck – $50,000 to $75,000 to purchase or lease a truck
- Equipment – $10,000 to $15,000 for tools and equipment like dollies, debris bins, uniforms, etc.
- Insurance – $2,000 to $7,000 for business insurance costs annually
- Trailer – Optional. Around $5,000 to $10,000 to purchase.
In total, the initial investment to open a Restore franchise ranges from around $65,000 to $100,000. Ongoing expenses include royalties paid to Restore of 6% of revenue.
What is the Restore franchise owner salary potential?
As independent business owners, Restore franchisees’ earnings depend on how well they operate their franchise location. Revenue potential depends on factors like territory population, competition, and franchisee sales and marketing efforts.
According to Restore’s franchise disclosure document, in 2019:
- The top 50% of Restore franchisees generated over $1 million in annual revenue
- The top 25% of franchisees generated over $1.5 million in annual revenue
- The top 10% of franchisees generated over $2.2 million in annual revenue
After expenses, many successful Restore franchisees can earn a comfortable living. However, like any business, results ultimately depend on the franchisee’s skills, experience, and work effort.
What support does Restore provide franchisees?
As part of their franchise-like system, Restore provides training and support to franchisees in areas like:
- Pre-opening training – 2 weeks of training in operations, sales, and junk removal best practices
- Ongoing training – Optional training conferences and seminars
- Operations manual – Detailed operations manual covering all aspects of running the business
- Field operations – Support with dispatching, routing, and logistics optimization
- Pricing guidance – Data and guidance on optimal pricing in each territory
- Call center – Optional call center service to handle booking calls
- Brand standards – Guidance on using Restore branding and following brand policies
- Purchasing – Discounted pricing through Restore’s corporate partnerships
Franchisees are required to pay royalties to Restore in exchange for these services and for the right to use the Restore brand and system.
Can you make money with a Restore franchise?
Yes, it is possible to make money by owning a Restore franchise. However, like any business, success is not guaranteed. Profitability ultimately depends on factors like:
- How well the franchisee manages the business and controls costs
- Their ability to market and sell jobs
- Customer service and satisfaction
- Territory population and target customer base
- Competition from other junk removal companies
The top performing Restore franchisees can generate strong revenues and profit margins. But franchisees need business management skills and a strong work ethic. The Restore model provides a proven business system, but the rest is up to the franchisee.
Are Restore franchisees satisfied?
Most Restore franchisees appear satisfied with their decision to franchise with Restore. Here are some positives about being a Restore franchisee based on reviews:
- Restore provides good corporate and field support.
- The business model is proven to generate revenue.
- Restore focuses on environmentally responsible recycling practices.
- The work itself is flexible and can be rewarding.
- Restore franchisees feel part of a team, not isolated.
However, there are some drawbacks cited by Restore franchisees as well:
- Some wish they received an exclusive territory.
- A few felt the training program was too short.
- The work itself can be physically demanding.
- Building a customer base takes consistent time and effort.
Overall though, most Restore franchisees seem pleased with the business opportunity and their decision to franchise with Restore. Satisfaction levels appear in line with the junk removal industry overall.
Is a Restore franchise a good investment?
Investing in a Restore franchise can be a smart business decision for the right individual. Here are some pros of a Restore franchise as an investment:
- Relatively low cost of entry compared to many other franchises
- Restore’s brand recognition attracts customers
- The junk removal industry continues to grow steadily
- Restore franchisees receive good corporate support
- Healthy long-term earning potential for successful franchisees
However, there are also some potential cons to weigh:
- No exclusive territory means competing against other Restore franchisees
- Significant physical labor involved in daily operations
- Revenue relies heavily on the franchisee’s own sales and marketing efforts
- Need to have skills in labor management, customer service, sales, and marketing
For individuals with the right skill set and work ethic, a Restore franchise can be a profitable business investment. But like any small business, it involves effort and risk.
In summary, Restore operates under a unique franchise-like model that offers a proven junk removal business opportunity. While not a true franchise, the Restore model provides branding, systems, and support to franchisees. The relatively low cost of entry and brand recognition provide advantages.
To succeed as a Restore franchisee requires strong business acumen and work ethic. While the model reduces some risk, results ultimately depend on the franchisee’s skills and effort. For those willing to work hard though, a Restore franchise can be a smart investment with healthy earnings potential.
Restore fills a growing consumer demand for professional junk removal. With their franchise-like system, they provide a path for small business owners to capitalize on this demand. While not without effort and risk, the Restore opportunity offers a viable business model in a niche industry.