1-800-Textiles Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$57,700 - $939,000
Franchise Fee
$25,650
Total US Locations
46
Business Summary
1-800-Textiles operates a textiles restoration business. The franchise offers two types of businesses: a 'Spoke Business' that markets textile restoration services, bags, and collects textiles from customer locations, and transports them to a central facility (Hub) for cleaning and storage; and a 'Hub and Spoke Business' which includes all Spoke Business functions plus operating a Hub facility to inventory, clean, store, and return textiles to customers, as well as managing related insurance claims and customer relationships. The entire process of collecting, cleaning, storing, and returning textiles is referred to as a 'Job'.
Corporate History
1-800-Textiles Franchises, LLC was organized in 2020 and began offering franchises in 2022. The company does not have any predecessors. Its parent company is Textiles Holdco, LLC, also organized in 2020. An affiliate, 1-800-Textiles, LLC, may provide products and services to franchisees but does not offer franchises. Kevin Loner has served as President and CEO of 1-800-Textiles since its inception in 2020 and also founded 1-800-Packouts Franchise, LLC. John Wendt is the Vice President of Operations, and Rance Parker is the National Marketing Director, both with previous experience at 1-800-Packouts.
Financial Overview
Investment Range
$57,700 - $939,000
Franchise Fee (Low)
$25,650
Franchise Fee (High)
$62,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$198,500
Equipment Costs (High)
$645,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
1-800-Textiles Franchises, LLC's financial statements for the year ended December 31, 2023, show a negative net income of $334,609 and negative cash flow from operating activities of $77,380. The company also has negative members' equity of $320,105. While the auditor issued an unqualified opinion, these financial indicators suggest that 1-800-Textiles Franchises, LLC faces financial challenges.
Financing Details
1-800-Textiles does not offer direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations of the franchisee.
Performance Metrics
Total US Locations
46
Franchised Units
46
Corporate Units
0
Avg Square Footage
7,500
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
1-800-Textiles has no litigation history to report as no litigation is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
1-800-Textiles has no bankruptcy history to report as no bankruptcy is required to be disclosed in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, 1-800-Textiles franchisees must provide written notice of their intent to renew between 60 days and 6 months before the current term ends. They must not be in material breach of any agreements with the franchisor, have substantially complied with all terms throughout the agreement, and sign a general release of claims. Franchisees will also need to sign the franchisor's then-current franchise agreement, which may have different terms, and pay a renewal fee of $10,000 for a Hub and Spoke Business or $5,000 for a Spoke Business.
Training & Support Program
Franchisor Assistance
1-800-Textiles provides pre-opening assistance, including reviewing and approving the site and construction plans for Hub and Spoke Businesses, specifying management systems, and offering initial System/Procedure Training. The franchisor also provides advice and guidance for the initial opening, with optional on-site assistance available for a fee. After opening, franchisees receive ongoing guidance on business methods, national advertising, administrative procedures, and system changes, which may be provided through manuals, bulletins, emails, and consultations. Additional training programs and conferences are offered, and the franchisor revises manuals as needed. The franchisor also assists with supplier approval and assigns leads for Jobs originating in the franchisee's Spoke Territory (excluding national accounts).
Initial Training Hours
64
Training Location
Jasper, Georgia
Ongoing Support
After opening, 1-800-Textiles franchisees receive ongoing guidance on operational methods, national advertising and promotion, administrative, bookkeeping, accounting, and general operating procedures. The franchisor also assists with any changes to the business, services, standards, or operating procedures, provided through manuals, bulletins, emails, webinars, and consultations. Additional guidance and on-site assistance can be provided upon request and at the franchisee's expense. Franchisees may also be required to attend additional training programs, seminars, or conferences, for which a reasonable fee may be charged. The franchisor revises its operating manuals as necessary and reviews and approves suppliers. For Spoke Businesses, the franchisor assigns leads for Jobs originating in the Spoke Territory (excluding national accounts) and manages the distribution of the Spoke Share of Gross Sales.
Franchise Requirements
Ideal Candidate Profile
1-800-Textiles seeks an individual or an entity's Operating Principal who will be directly involved in the daily operations of the franchised business and hold authority over all business decisions. The ideal candidate must be capable of binding the franchise in all dealings with the franchisor and is prohibited from engaging in any other business or activity that conflicts with their franchise obligations. While previous experience in the restoration or mitigation business is not strictly prohibited, any such activities must be authorized by the franchisor and must integrate with the franchised business's services, with full access to financial records provided to the franchisor.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
1-800-Textiles grants Spoke Business territories typically not exceeding 250,000 people, and Hub Business territories typically not exceeding 2,000,000 people. The specific size is determined by the franchisor based on population density, demographics, and existing business operations. If a territory's population exceeds these limits, 1-800-Textiles may split it into two territories, requiring the franchisee to purchase an additional franchise to continue operating in the divided area. Franchisees also have protected rights within their designated Spoke and Hub Territories, meaning the franchisor will not authorize others to provide Field Services or physically locate a Hub within those areas under normal circumstances.
Staffing Notes
1-800-Textiles requires franchisees to hire all employees and staff for the franchised business, manage their employment terms and compensation, and ensure they are trained in accordance with the System. The business must be adequately staffed to meet customer demand. An Operating Principal is required to be directly involved in daily operations, and a Manager may be appointed to supervise the business, who must complete System/Procedure Training. If a Manager leaves and the Operating Principal cannot supervise on-site, a new manager must complete training within 60 days. Franchisees are solely responsible for employee actions and compliance with the System.