CRS logo

CRS Franchise

Audited Financials
Restoration & Emergency ServicesEst. 2021Coraopolis, PA
www.crspackout.com

Risk Score

Pending analysis

Investment Range

$201,300 - $422,700

Franchise Fee

$52,250

Total US Locations

37

Business Summary

CRS Packout operates a professional restoration company that specializes in restoring personal property and goods damaged by events like floods, fires, or other tragedies. The company uses advanced technology and focuses on working with insurance carriers to digitally document all contents. CRS Packout offers services such as packing, cleaning, and storing clients' belongings until their structures are repaired. It also provides structure cleaning, which involves washing walls, ceilings, floors, and in-place contents for homes with minor damage. CRS Packout aims to be a leading provider for residential and commercial personal property restoration.

Corporate History

CRS Franchising, LLC was organized in Pennsylvania on August 19, 2021, and began its operations in March 2022 under the trade name CRS, which stands for Content Recovery Specialists. The company started offering franchises in April 2022. Prior to 2020, a Pennsylvania company called Duckstein Contracting Inc. operated a restoration business. In 2020, its 'Contents' division evolved into Content Recovery Specialists, LLC, which serves as the model for CRS Packout's franchised businesses.

Financial Overview

Investment Range

$201,300 - $422,700

Franchise Fee (Low)

$52,250

Franchise Fee (High)

$380,000

Royalty %

7%

Marketing %

1%

Equipment Costs (Low)

$7,800

Equipment Costs (High)

$140,000

Working Capital

$107,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The franchisor, CRS Franchising, LLC, received an unqualified audit opinion for its financial statements for the years ending December 31, 2024 and 2023. However, a special risk is highlighted in the FDD, noting that CRS Franchising, LLC's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. The auditor's report also includes a section on management's responsibility to evaluate conditions that raise substantial doubt about the company's ability to continue as a going concern, implying this was a consideration. CRS Franchising, LLC reported a net loss of $977,868 in 2024 and $143,636 in 2023, and had a member's deficit of $1,201,876 in 2024. These factors suggest potential financial challenges for the franchisor.

Financing Details

CRS Franchising, LLC does not offer any direct or indirect financing to its franchisees. This means that franchisees are responsible for securing their own funding, and CRS Franchising, LLC will not guarantee any notes, leases, or other financial obligations for them.

Performance Metrics

Total US Locations

37

Franchised Units

36

Corporate Units

1

Avg Square Footage

9,750

Franchising Since

2022

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, CRS Packout franchisees must not be in default, must have substantially complied with the agreement, and paid all fees on time. They need to provide written notice between six and twelve months before the current term expires. Franchisees will have to sign the franchisor's then-current franchise agreement, which may have different terms, including higher fees or a modified territory. They must also refurbish their business to meet current brand image and specifications, execute a general release of claims against the franchisor, complete any required training, and secure their right to operate at the current site for the renewal term.

Training & Support Program

Franchisor Assistance

Before opening, CRS Packout assists franchisees by reviewing and advising on potential business locations, providing an initial training program, lending a copy of its Operations Manual, supplying specifications for required equipment and signage, and helping to create a grand opening marketing plan. The franchisor may also provide additional pre-opening support as needed. After opening, CRS Packout maintains brand standards, operates social media accounts for the business, and manages a Brand Fund from which creative materials are available. The franchisor offers advice via phone or electronic communication for business development and problem-solving, with a fee for in-person support. CRS Packout also provides recommended procedures for administration, accounting, and inventory control, and maintains a brand website that includes franchisee business information.

Initial Training Hours

56

Training Location

Online, or corporate offices in Coraopolis, Pennsylvania, and/or franchisee's location

Ongoing Support

CRS Packout provides ongoing support by developing and maintaining brand standards. It establishes and manages social media accounts for franchisees' businesses and oversees the Brand Fund, making creative marketing materials available (though franchisees pay for reproduction). The franchisor offers advice via phone or email regarding business improvement and operational issues, with a potential fee for in-person support. CRS Packout also provides recommended administrative, bookkeeping, accounting, and inventory control procedures. It maintains a brand website that includes business information for each franchisee and updates marketing and promotion standards. Additionally, the franchisor may offer periodic mandatory or optional training programs, charging a daily fee if a new general manager attends.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Commercial

Owner Participation

Part-Time

Territory Type

Non-Exclusive

Territory Size Requirements

CRS Packout territories typically consist of a population of approximately 700,000 to 800,000 individuals, though this can vary based on factors like geographic size, with no territory smaller than 250,000 individuals. Territories are generally defined by postal zip codes, but in densely populated urban areas, they may be defined differently. The franchisor uses U.S. Census Data or other statistical sources to determine population figures. Franchisees can select their territory from available pre-defined options.

Staffing Notes

CRS Packout provides suggested staffing levels, hiring guidelines, and operational instructions in its manual, which franchisees can use for training new employees. Franchisees are solely responsible for all employment-related decisions. While the franchisor recommends the owner actively participate full-time, the minimum requirement is that the owner or a trained manager is on-site at least part-time (20 hours per week). All management and employees with access to confidential information must sign a Confidentiality Agreement.