FRSTeam Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$138,875 - $553,500
Franchise Fee
$53,750
Total US Locations
47
Business Summary
FRSTeam offers a franchise business that specializes in providing emergency and specialty dry cleaning and laundry services for clothing and fabrics, as well as electronics and contents restoration services. These services are typically needed after residential or commercial disasters, such as damage from smoke, fire, water, and mold. FRSTeam franchisees may also optionally provide contents restoration services, which require an additional addendum to their agreement.
Corporate History
FRSTeam, LLC was formed in 2020 through a conversion from its predecessor, FRSTeam, Inc., which was originally established on September 30, 2005. The underlying system and procedures for fabrics restoration were initially developed by Custom Commercial Dry Cleaners, Inc. starting in 1988. FRSTeam began offering franchises for restoration dry cleaning services in March 2006. The franchise system expanded to include electronics restoration services in April 2018 and contents restoration services in 2021.
Financial Overview
Investment Range
$138,875 - $553,500
Franchise Fee (Low)
$53,750
Franchise Fee (High)
$75,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$500
Equipment Costs (High)
$158,500
Working Capital
$105,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The independent auditor has issued an unqualified opinion on Empower Brands Franchising's consolidated financial statements for the years ending September 30, 2024, 2023, and 2022. However, the statements highlight significant net losses from continuing operations, with a net loss of $(20,809,581) in 2024 and $(28,270,634) in 2023. Additionally, Empower Brands Franchising recorded substantial losses from discontinued operations, including $(14,386,073) in 2024 and $(33,377,884) in 2023. The auditor's report also includes an emphasis of matters regarding the sale of certain subsidiaries (Intelligent Office System, LLC and Intelligent Office of Canada, Inc.) and the determination to discontinue operations related to Custom Commercial Dry Cleaners, LLC in 2024. A $30,000,000 legal settlement for an outstanding lawsuit was accrued in 2023 and paid in 2024.
Financing Details
FRSTeam may offer financing under limited and special circumstances to qualifying existing franchisees. This financing can cover up to 80% of the initial franchise fee for a period of up to 24 months. The annual interest rate for these loans is set at four percentage points above the prime interest rate on the Franchise Agreement's effective date, with a maximum legal rate of 10% per year for California franchisees. There is no penalty for prepayment. No security interest is required, and only the franchisee and, if an entity, its principal owners are required to sign the promissory note. FRSTeam does not sell, assign, or discount these financing arrangements to third parties.
Performance Metrics
Total US Locations
47
Franchised Units
36
Corporate Units
11
Avg Square Footage
12,500
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
FRSTeam has no litigation to report. Item 3 of its FDD states that no litigation is required to be disclosed.
Bankruptcy History
FRSTeam has no bankruptcy history to report. Item 4 of its FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, FRSTeam franchisees must provide written notice of their desire to renew between six and twelve months before the current agreement expires. They must correct any deficiencies identified by FRSTeam, upgrade their business location to meet current brand standards, and sign FRSTeam's then-current franchise agreement, which may have different terms, including potentially higher fees. Franchisees are also required to pay a renewal fee of $10,000 for a five-year term or a successor fee of $20,000 for a ten-year successor term, and all owners must sign a general release of claims against FRSTeam. Failure to execute the renewal agreement in a timely manner incurs a monthly fee of $1,000.
Training & Support Program
Franchisor Assistance
FRSTeam provides pre-opening support including initial training for the franchisee, general manager, and a sales representative at a designated location (e.g., Denver, CO). This initial training covers sales, operations, and system use. FRSTeam also provides an initial package of marketing materials and trademarked supplies, and guidance for initial opening advertising. During operations, FRSTeam provides use of the FRSTaid 3.0 operating system and ERIS software, offers guidance through manuals, bulletins, phone/email consultations, and maintains a national advertising program. Proprietary products may also be developed and required for use by franchisees. FRSTeam also assists with site approval for the business location.
Initial Training Hours
206
Training Location
Denver, CO and/or Franchisee's Location
Ongoing Support
FRSTeam provides ongoing support through the use of its proprietary FRSTaid 3.0 operating system and ERIS software. Franchisees receive guidance via the operations Manual, bulletins, written materials, and through telephone or email consultations with FRSTeam's headquarters. A general advertising program is maintained to benefit all franchisees. FRSTeam also provides periodic refresher training courses, conferences (two days), and conventions (three days) at times and locations it determines, for which fees may be charged. Franchisees must cover their registration, travel, and living expenses for these sessions.
Franchise Requirements
Ideal Candidate Profile
FRSTeam seeks entrepreneurs, existing restoration professionals, and dry cleaners who own and operate dry cleaning plants that meet FRSTeam's qualifications. The ideal candidates should have sufficient financial capacity and character, with their principals guaranteeing the franchisee's obligations. While direct participation is recommended due to the service nature of the business, it is not strictly obligated for the franchisee if a full-time manager is employed. The manager, who may be an owner, must be approved by FRSTeam and must successfully complete FRSTeam's manager training program. Franchisees must also employ at least one full-time, dedicated Sales Representative, who will coordinate with FRSTeam's sales and marketing personnel and complete required sales training.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
FRSTeam territories are defined using political boundaries, such as counties, cities, or zip codes, or a combination of these. Territory size is specifically measured by the number of households, with initial franchise fees varying based on whether the territory has more or less than 500,000 households, as reported by the U.S. Census Bureau.
Staffing Notes
FRSTeam requires franchisees to employ qualified personnel, including a full-time manager and at least one full-time, dedicated Sales Representative. The manager, who must be approved by FRSTeam and may be an owner, must devote full time to the management and operation of the business and successfully complete FRSTeam's manager training. The Sales Representative is responsible for local sales efforts, including telephone contacts and customer visits, and must also complete sales training. FRSTeam may require additional Sales Representatives depending on territory size. All employees must present a neat and clean appearance and render competent and courteous service to clients.