Prism Specialties Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$149,999 - $322,297
Franchise Fee
$48,000
Total US Locations
43
Business Summary
Prism Specialties offers franchise opportunities for businesses specializing in the recovery, repair, and restoration of items damaged by fire, water, and other disasters. These services include the restoration of artwork and collectibles, electronic equipment and data, fabric, clothing, and textiles, and documents. Prism Specialties caters to both residential and commercial clients using state-of-the-art recovery technologies.
Corporate History
Restoration Specialties Franchise Group, LLC (RSFG), operating as Prism Specialties, was formed in Michigan in March 2012. The company began granting franchises for Electronic Services in April 2012, followed by Art Services in July 2016. Textile Services were introduced under a test program in 2019, with a formal franchise offering launched in March 2021. In September 2021, RSFG rebranded to operate all its services—Electronic, Art, Textile, and Document—under the unified Prism Specialties tradename. Before this, the company offered Art Recovery Technology and Electronic Restoration Services franchises under separate Disclosure Documents.
Financial Overview
Investment Range
$149,999 - $322,297
Franchise Fee (Low)
$48,000
Franchise Fee (High)
$85,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$39,840
Equipment Costs (High)
$100,360
Working Capital
$45,704
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Prism Specialties' financial statements have received an unqualified opinion from its independent auditor, indicating that the financial position, results of operations, and cash flows are presented fairly in all material respects. The auditor's report does not include any going concern qualifications, suggesting that there are no substantial doubts about the company's ability to continue operations for a reasonable period. The financial notes indicate that the adoption of new accounting guidance for credit losses and variable interest entities had no material impact on the financial statements. The company maintains royalty rebate accruals and contributes to a 401(k) plan. A Paycheck Protection Program (PPP) loan received in 2020 was forgiven in 2021, and the company also qualified for an Employee Retention Credit. There is no expectation that pending litigation will have a material effect on the company's financial statements.
Financing Details
Prism Specialties offers direct financing for the Initial Franchise Fee and Turn-Key Business Package Fee, provided franchisees meet certain qualifications and credit standards. A down payment of $20,000 is required, with $10,000 allocated to the Initial Franchise Fee and $10,000 to the Turn-Key Business Package. The remaining balance of the Initial Franchise Fee is due within 30 days of signing the Promissory Note, with a 0% interest rate if paid within this timeframe; otherwise, a 9.9% APR applies. The remaining balance for the Turn-Key Business Package is due at the earlier of four months after signing the Promissory Note or one month before attending initial training, also with a 0% interest rate if paid by this deadline, otherwise 9.9% APR. The financing requires owners to sign a personal guarantee. In the event of default, the franchise agreement may be terminated, and the franchisee would be liable for the entire outstanding amount, plus attorney's fees and court costs.
Performance Metrics
Total US Locations
43
Franchised Units
39
Corporate Units
4
Avg Square Footage
4,000
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Prism Specialties has no litigation to report, as Item 3 of the Franchise Disclosure Document explicitly states that no litigation is required to be disclosed.
Bankruptcy History
Prism Specialties has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Prism Specialties franchisees must provide written notice 9 months before their current term expires. They must be in good standing, meaning they have timely fulfilled all financial and operational obligations, including minimum monthly royalties, sales activity scores, and customer satisfaction ratings, and have no existing defaults. Franchisees are required to make any necessary updates to their business facilities, equipment, and supplies to meet current brand standards and must comply with all training requirements. Additionally, they must sign the franchisor's then-current form of franchise agreement, which may contain materially different terms, and pay a renewal fee of $10,000 for all concurrently renewed agreements. A general release of claims must also be signed.
Training & Support Program
Franchisor Assistance
Prism Specialties provides substantial assistance to its franchisees. Before opening, the franchisor helps with site selection criteria, provides consent for the location, and supplies a Turn-Key Business Package and lists of approved vendors and supplies. Franchisees receive initial training for up to three people (without a separate fee, though franchisees cover their own travel and living expenses) and access to the confidential Operations Manual. After opening, Prism Specialties maintains and administers the National Marketing Fund, provides ongoing updates to approved service lines, vendors, and supplies, and offers refresher training courses (at the franchisee's expense). The franchisor assists in developing operational plans and goals and offers non-binding suggestions on pricing policies. Franchisees are required to use its proprietary computer system, to which Prism Specialties has full access. For marketing, Prism Specialties administers the National Marketing Fund, makes local marketing recommendations, requires the hiring of a Business Development Manager (BDM), and sets Sales Activity Score requirements. Franchisees must join and participate in designated industry associations, claim online listings, and submit local marketing materials for approval. The franchisor also requires franchisees to use and pay for a customer service rating system to meet specific Customer Satisfaction Ratings. After initial training, a representative may visit the franchisee's location for 1-3 days for initial support. Franchisees are also required to attend annual conferences and refresher training every two years, covering their own expenses and fees.
Initial Training Hours
80
Training Location
Livonia, Michigan, or various franchisee locations throughout the US
Ongoing Support
Prism Specialties provides ongoing support including maintaining and administering the National Marketing Fund, updating approved lists of services, vendors, and supplies, and furnishing updates to the Operations Manual. Franchisees are required to attend refresher training courses at least every two years and an annual Franchise System Convention, both at their own expense. The franchisor also assists in developing operational plans and goals and offers non-binding suggestions on pricing policies. After initial training, a representative may visit the franchisee's location for 1-3 days for initial support.
Franchise Requirements
Ideal Candidate Profile
Prism Specialties seeks franchisees who possess strong managerial and entrepreneurial abilities, along with a keen focus on customer service. Ideal candidates are expected to be hands-on operators, dedicating full-time and best efforts to directly supervise the business. They must be highly compliant with the Prism Specialties system standards and operational guidelines. Although not explicitly stated for initial franchisees, the criteria for awarding additional franchises suggest that Prism Specialties values operators who have demonstrated a track record of operational excellence, including financial stability, adherence to branding and insurance requirements, consistent attendance at company events, and timely submission of reports. Successful franchisees will also be adept at sales, able to meet minimum sales activity scores and revenue targets, and ensure high customer satisfaction.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Limited
Staff Count
4
Territory Size Requirements
Prism Specialties defines its territories as Primary Areas of Responsibility (PARs), each with a population between 1,500,000 and 2,000,000 people. These PARs are determined using population data from GbBis and are defined by specific zip codes.
Staffing Notes
Prism Specialties requires that the franchisee, or an approved Designated Manager, provide full-time, direct supervision and management of the business. For each assigned territory, franchisees must hire a Business Development Manager (BDM) before initial training, whose primary responsibility is sales. Franchisees are solely responsible for all hiring, training, scheduling, and management decisions for their employees, ensuring they are efficient, competent, and courteous. All employees who interact with customers must maintain branded electronic communication accounts. If a franchisee operates multiple locations, each must have an approved, properly trained Designated Manager.