Rytech Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$166,500 - $258,100
Franchise Fee
$50,000
Total US Locations
95
Business Summary
Rytech Franchising, Inc. offers franchises for a business specializing in water damage restoration, applied structural drying, mold remediation, and restorative drying services. Rytech also provides fire and smoke damage cleaning and mitigation, personal contents cleaning, packing, storing, and other related products and services. Future offerings from Rytech may include residential insurance restoration general contracting. Rytech franchisees primarily serve homeowners, businesses, insurance carriers, and third-party administrators.
Corporate History
Rytech Franchising, Inc. was incorporated in Georgia on November 25, 1996, and began offering and selling Rytech franchises in December 1996. The company's parent, RyBrands, Inc., a Florida corporation, started in January 2020. Rytech Franchising, Inc. has two affiliated business entities, Rytech Admin Services, LLC (since January 2015) and Rytech, Inc. (since January 1995), along with one affiliated company location, Rytech North Florida, Inc. (since April 1998). The brand specializes in various water damage restoration, applied structural drying, mold remediation, and restorative drying services, as well as ancillary products.
Financial Overview
Investment Range
$166,500 - $258,100
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$85,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$55,000
Equipment Costs (High)
$60,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
In 2024, Rytech Franchising, Inc. reported an accumulated deficit in retained earnings of $36,361, which is a change from positive retained earnings in previous years ($20,449 in 2023 and $305,676 in 2022). The auditor's report mentions the management's responsibility to evaluate whether there are conditions that raise substantial doubt about Rytech's ability to continue as a going concern, and the auditor's responsibility to conclude on this. However, the auditor issued an unqualified opinion, indicating the financial statements are presented fairly in all material respects.
Financing Details
Rytech Franchising, Inc. does not offer any direct or indirect financing options to its franchisees. Franchisees are responsible for securing their own funding, and Rytech does not guarantee any loans, leases, or other obligations.
Performance Metrics
Total US Locations
95
Franchised Units
92
Corporate Units
2
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Rytech Franchising, Inc. has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This indicates that Rytech Franchising, Inc. has a clean legal record with no lawsuits or legal disputes to report.
Bankruptcy History
Rytech Franchising, Inc. has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document for itself or its key management personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Rytech franchise, franchisees must have substantially complied with all material provisions of their franchise agreement throughout the term and be in full compliance at the time of renewal. They must notify Rytech in writing at least 120 days before expiration of their desire to renew. Within 60 days before renewal, franchisees need to meet Rytech's then-current training requirements for renewing franchisees. They must execute all new renewal agreements, including a then-current franchise agreement, guaranty, and confidentiality agreement. Franchisees are also required to sign a general release of claims in favor of Rytech and its affiliates (unless prohibited by state law) and pay a renewal fee equal to 15% of Rytech's then-current initial franchise fee. Additionally, franchisees must not have defaulted on their franchise agreement more than three times during the term.
Training & Support Program
Franchisor Assistance
Rytech Franchising, Inc. provides comprehensive assistance to its franchisees, starting before the business opens. This includes initial training for up to two people, providing lists of approved equipment and suppliers, lending a confidential Operations Manual, and offering advice and guidance in preparing for opening. Rytech also helps set up certain administrative services through its affiliate, Rytech Admin Services, LLC, and provides access to a Mobile Data Transfer Platform. After opening, Rytech continues its support with on-site assistance for a period, access to continuing training courses, and initial and subsequent inspections of the franchised business. Franchisees receive updated lists of approved equipment and suppliers, periodic advice, and guidance through meetings and materials. Ongoing administrative support is also provided through the affiliate, and franchisees maintain access to the Mobile Data Transfer Platform. Franchisees are required to attend monthly franchise calls and an annual conference.
Initial Training Hours
167
Training Location
Corporate headquarters in Kennesaw, GA, or other designated locations
Ongoing Support
After opening, Rytech Franchising, Inc. provides ongoing support to its franchisees including on-site assistance for a period, continuing training courses, and periodic inspections of the franchised business. Rytech provides updated lists of approved equipment, supplies, and suppliers, along with periodic advice and guidance through meetings, printed materials, and other communication. Franchisees also receive administrative support through Rytech's affiliate, Rytech Admin Services, LLC, and maintain access to the Mobile Data Transfer Platform. Furthermore, Rytech franchisees are required to attend monthly franchise calls and an annual conference, which serve as ongoing forums for guidance and training.
Franchise Requirements
Ideal Candidate Profile
Rytech seeks individuals who are dedicated to the hands-on management and operation of their service business, devoting a majority of their time and best efforts. Ideal Rytech candidates must be willing to obtain specific IICRC certifications, including Water Damage Restoration Training (WRT/ASD Combo Course) and Mold Remediation (AMRT) Certification Course, for themselves and their technicians, demonstrating a commitment to professional standards. Franchisees must ensure compliance with all state and local general contractor licensing, worker's compensation, wage and hour, and OSHA regulations. The business is expected to be owner-operated.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
3
Territory Size Requirements
Rytech Franchising, Inc. grants protected territories in blocks, with each block having a minimum population of approximately 400,000. These territories are defined by specific zip codes. Rytech does not grant territories larger than 500,000 in population. If a franchisee is not in good standing, Rytech may alter their territory. Franchisees are expected to operate only within their designated territory.
Staffing Notes
Rytech Franchising, Inc. requires its franchisees to maintain a staff of trained employees sufficient to operate their business in compliance with company standards. Franchisees are solely responsible for all employee-related decisions, including hiring, firing, wages, and benefits. Owners and all technicians must be certified by the most current IICRC training courses before attending Rytech's initial training program, covering specializations like water damage restoration, applied structural drying, and mold remediation. All franchise employees must undergo criminal background checks and drug tests as specified in the Operations Manual. After six months of operation, Rytech requires franchisees to maintain a Marketing Representative who meets the qualifications outlined in the Operations Manual.