United Water Restoration Group Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$170,575 - $627,400
Franchise Fee
$24,500
Min Cash Required
$20,000
Total US Locations
42
Business Summary
United Water Restoration Group Business operates a full-service restoration company that provides high-quality and fast services. This business specializes in construction, repair, and restoration/remediation services for damage caused by water, flood, fire, storm, and sewage, as well as mold removal. These services are offered to both commercial and residential customers.
Corporate History
United Franchise Holdings, LLC was organized on April 1, 2014, in Florida and began offering franchises on January 2, 2015. Its affiliate, United Water Restoration Group, Inc. (UWRG), was organized in Florida on December 19, 2008. UWRG owns the trademarks used by the franchise and provides management and accounting services to United Franchise Holdings, LLC, including sharing certain employees. UWRG also owns and operates businesses similar to the franchised outlets.
Financial Overview
Investment Range
$170,575 - $627,400
Franchise Fee (Low)
$24,500
Franchise Fee (High)
$210,000
Minimum Cash Required
$20,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$46,500
Equipment Costs (High)
$126,500
Working Capital
$67,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's Special Risks section highlights that United Water Restoration Group's financial condition, as shown in its financial statements, calls into question its financial ability to provide services and support to franchisees. The auditor's reports for December 31, 2023, and 2022, include standard language regarding management's responsibility to evaluate going concern, but the audit opinion itself is unqualified, indicating no substantial doubt about the company's ability to continue operations was concluded. However, both the audited and unaudited balance sheets show a significant accumulated members' deficit (negative equity).
Financing Details
Item 10 of the FDD explicitly states that United Water Restoration Group does not offer either direct or indirect financing and does not guarantee any franchisee notes, leases, or other obligations. However, Attachment G, a sample Promissory Note from United Franchise Holdings, LLC (the Note Holder) to a franchisee (the Maker), indicates a willingness to finance 75% of the initial franchise fee. This promissory note specifies an interest rate of 7% per annum for the outstanding principal, payable in 36 equal monthly installments, amortized over 10 years, with a maturity date. It also mentions a default interest rate of 9% if payments are late and requires a security interest in collateral.
Performance Metrics
Total US Locations
42
Franchised Units
30
Corporate Units
12
Avg Square Footage
1,500
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
United Water Restoration Group has no litigation history to report, as no litigation is required to be disclosed in Item 3 of its FDD.
Bankruptcy History
United Water Restoration Group has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, United Water Restoration Group franchisees and their owners must be in full compliance with all agreements. They must provide written notice at least 180 days before their existing Franchise Agreement expires, sign the franchisor's then-current Franchise Agreement and any related documents, and also sign a General Release. Franchisees and their owners are required to satisfactorily complete any new training and refresher programs. Additionally, they must pay a Renewal Franchise Fee, remodel or upgrade their business to meet current standards and specifications, and maintain possession of their business under their lease.
Training & Support Program
Franchisor Assistance
United Water Restoration Group provides extensive support to its franchisees. Before opening, the franchisor grants a protected territory, approves the office location (which can be a commercial warehouse or a home-based/garage Express Program), provides access to the operations manual, and specifies required equipment and approved suppliers. Initial training is provided for up to four persons (franchisee, designated manager, and one technician), with optional training for an office administrator and salesperson. The franchisor may also assist with initial inventory planning and sales calls. After opening, United Water Restoration Group offers ongoing guidance on system standards, marketing, employee training, local advertising, and industry trends. Franchisees receive up to five days of on-site start-up training within the first 90 days. The franchisor may also provide additional periodic or refresher training, or manager training (for a fee plus expenses). The franchisor may establish a call center for system-wide calls and may form a franchisee advisory council.
Initial Training Hours
73
Training Location
Corporate headquarters in Ormond Beach, FL
Ongoing Support
After opening, United Water Restoration Group franchisees receive ongoing access to the operations manual in an electronic format and continuous guidance on system standards, marketing, sales of restoration/remediation services, and changes in industry trends. The franchisor coordinates activities among businesses, establishes employee training programs, and helps implement local advertising and promotional efforts. Franchisees receive up to five days of on-site start-up assistance within the first 90 days. The franchisor may also offer additional periodic or refresher training programs at no extra cost (though franchisees cover their own expenses) and provides additional guidance at a per diem rate plus expenses if needed. Manager training may also be offered if deemed necessary, with a fee plus expenses. The franchisor may also utilize a system-wide call center and form a franchisee advisory council to offer further support.
Franchise Requirements
Ideal Candidate Profile
United Water Restoration Group seeks qualified and capable candidates who are active owner/operators, meaning the franchisee or a principal owner must be actively involved in managing all aspects of the business. While delegation to subordinate managers is allowed, the owner remains fully responsible for performance. The franchisor strongly recommends hiring a full-time, in-field marketer. All persons with access to confidential information must sign a confidentiality agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Staff Count
3
Territory Size Requirements
United Water Restoration Group territories are defined as a geographic area containing approximately 250,000 people, comprised of one or more complete zip codes.
Staffing Notes
United Water Restoration Group requires franchisees to ensure their business is managed by an active owner/operator or an approved manager who has successfully completed the training program. The franchisor strongly recommends hiring a full-time, in-field marketer. Initial training covers the owner/manager and one technician (up to four persons), as well as one office administrator and one salesperson. Technicians are required to obtain IICRC WRT (Water Damage Restoration Technician) certification within 90 days of employment, otherwise, they may only continue as a technician's helper. An Operating Manager needs to demonstrate aptitude for staff management and sales, and obtain IICRC WRT, AMRT (Water Damage Restoration Technician), and FSRT (Fire and Smoke Restoration Technician) certifications. All personnel with access to confidential information must sign a confidentiality agreement.