CORE Group Restoration Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$82,250 - $378,750
Franchise Fee
$55,000
Total US Locations
61
Business Summary
CORE Group Restoration franchises provide disaster recovery and property damage restoration services to residential and commercial customers. These services include damage mitigation, reconstruction, restoration and repair, cleaning, mold remediation, biological decontamination, disinfection, odor removal, and related services like floor, carpet, drapery, and upholstery cleaning. CORE Group Restoration allows existing restoration businesses to convert to its system, using its brand name and marks, and operating from their existing commercial facilities while adhering to CORE Group Restoration's system standards.
Corporate History
CORE Group Restoration Franchising, LLC (CGR) was formed as a Texas limited liability company on July 2, 2019. It operates under the name CORE Group Restoration and offers two distinct franchising models: CORE Elite and CORE Standard. Both models are designed for existing restoration businesses to convert into the CORE franchise system by utilizing CGR's brand and system standards from their current commercial locations. CGR began offering CORE Elite Franchises in July 2019 and CORE Standard Franchises in August 2020. An affiliate, CORE Group Restoration, Inc., was incorporated in March 2018 and owns the intellectual property licensed to CGR, also potentially providing referral work to franchisees. One of the affiliate's shareholders has been operating a similar business since 1991. CGR previously offered CORE Branded Franchises from August 2020 through April 2023.
Financial Overview
Investment Range
$82,250 - $378,750
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$85,000
Equipment Costs (Low)
$5,000
Equipment Costs (High)
$124,000
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
CORE Group Restoration Franchising, LLC's audited financial statements show increasing cash reserves, reaching $963,431 by the end of 2023, up from $235,668 in 2021. The company has maintained strong net income, with profits around $2.8 million in 2021 and 2023, and $1.7 million in 2022. While there have been significant member distributions each year, the company's financial position appears stable. The independent auditor issued an unqualified opinion, indicating the financial statements are presented fairly, and there are no stated concerns about the company's ability to continue operations. The company did increase its allowance for doubtful accounts in 2023, suggesting a slight increase in perceived credit risk for receivables that year.
Financing Details
CORE Group Restoration Franchising, LLC offers financing for up to 100% of the Initial Membership Fee, depending on the franchisee's qualifications and credit rating. The repayment terms can be 12, 24, or 60 months with monthly payments. A down payment between 0% and 50% of the loan amount is required. Interest rates range from 4.99% to 10%, which means monthly payments could be between $1,600 for a 60-month term and $6,500 for a 12-month term. Franchisees must sign a Promissory Note and Security Agreement, pledging the franchise and all business assets as security. The note requires personal guarantees from the franchisee, their spouse, and, if an entity, its owners and their spouses. CORE Group Restoration Franchising, LLC may also sell or assign these promissory notes to a third party.
Performance Metrics
Total US Locations
61
Franchised Units
61
Corporate Units
0
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
CORE Group Restoration Franchising, LLC has no litigation to disclose in this item.
Bankruptcy History
CORE Group Restoration Franchising, LLC has no bankruptcy history to disclose in this item.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their CORE Group Restoration franchise, franchisees must be in good standing, not be in default of their current Franchise Agreement, and must have satisfied all their financial obligations to CORE Group Restoration, its affiliates, or suppliers. They need to provide written notice of their intent to renew between 60 and 180 days before the current agreement expires. Franchisees must also sign CORE Group Restoration's then-current successor franchise agreement and any related documents, which may include different terms and conditions, such as higher fees and advertising contributions. Additionally, they are required to update their facility to meet current brand standards, sign a general legal release, and pay a non-refundable renewal fee equal to 25% of the then-current Initial Franchise Fee.
Training & Support Program
Franchisor Assistance
CORE Group Restoration Franchising, LLC provides various forms of assistance to its franchisees. Before opening, CORE Group Restoration helps with designating non-exclusive territories, consulting on site selection guidelines, and providing mandatory specifications for the branding of vehicles, locations, and overall trade dress. They also conduct an initial on-site review within the first 12 months, provide a list of approved suppliers and specifications for operating assets, and offer an optional CORE membership onboarding program via webinar (or in-person for a fee). Franchisees receive access to the Brand Standards Manual. Ongoing support includes informing franchisees of updated operating standards, providing advice on business operations based on reports and inspections, and offering guidance on advertising and marketing strategies. Additional training courses are available for new hires or as refreshers, though these may incur extra fees. CORE Group Restoration maintains a system website where compliant franchisees are listed as preferred service providers. Optional assistance includes modifying system standards, administering a brand fund, and potentially providing referrals for managed repair services through its ONCORE Repair program if franchisees opt-in and meet specific client demands.
Initial Training Hours
48
Training Location
Web-based training or onsite at your CORE Business
Ongoing Support
CORE Group Restoration Franchising, LLC provides ongoing support to its franchisees after they open. This includes informing them of updated system standards, offering advice and guidance on business operations, and assisting with advertising and marketing strategies. The franchisor also makes additional training courses available for newly-hired personnel or as refresher programs, though these may incur additional fees. Franchisees are listed on the system website and have continued access to confidential materials and trademarks. While attendance is optional for some training, franchisees are required to attend an annual meeting, and may be required to attend annual sales, marketing, and operations summit events, each incurring a fee.
Franchise Requirements
Ideal Candidate Profile
CORE Group Restoration Franchising, LLC seeks existing disaster recovery and property damage restoration businesses to convert into its franchise system. For CORE Elite Franchises, the ideal candidate business must have been operating for at least eight years and have averaged gross annual revenues exceeding $12 million over the prior three-year period. For CORE Standard Franchises, the business should have been in operation for at least three years and have gross annual revenues exceeding $3 million. While not mandatory, CORE Group Restoration Franchising, LLC recommends that the franchisee or a designated manager maintain a day-to-day role in the management of the CORE Business and complete their Onboarding Program.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Min Years Experience
3
Operational Details
Location Type
Commercial
Territory Type
Non-Exclusive
Territory Size Requirements
CORE Group Restoration Franchising, LLC territories are generally defined by county lines. For CORE Elite Franchises, the franchisor typically grants only one per region with a population of 5 million or fewer persons, reserving the right to grant additional Elite franchises for every 5 million persons in larger regions. For CORE Standard Franchises, one is generally granted per region with a population of 2 million or fewer persons, with additional Standard franchises possible for every 2 million persons in larger regions. For example, a region with 10 million people could have up to two Elite and five Standard franchises. If offered in the future, CORE Branded Franchises would have territories of about 750,000 persons, which might overlap with existing territories.
Staffing Notes
CORE Group Restoration Franchising, LLC does not prescribe specific staffing requirements, but it recommends that the franchisee or a designated manager take a day-to-day management role and complete the Onboarding Program. The System Standards may offer recommendations on staffing levels, employee qualifications, training, dress, and appearance, but franchisees are solely responsible for controlling their employees and the terms of their employment. Franchisees must ensure all employees, independent contractors, agents, or representatives who access confidential information sign a Confidentiality Agreement. Additionally, franchisees are required to conduct background checks on all employees and, for those performing services for National Accounts, must purchase annual drug screening and background checks from an approved third-party supplier.