About CORE Group Restoration - Member Model Franchise
CORE Group Restoration franchises provide disaster recovery and property damage restoration and cleaning services to commercial and residential customers.
Franchisees offer services such as damage mitigation, reconstruction, restoration and repair services, cleaning, mold remediation and biological decontamination services, disinfection services, odor removal, and related services like floor, carpet, drapery and upholstery cleaning.
The target market includes home and property owners, landlords, property management companies, and businesses in the franchisee's community.
CORE Group Restoration - Member Model Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 - $80,000 | One-time payment upon signing |
| Royalty Fee | 2% - 5% of Referral Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $500 - $950/month (Brand Fund Contribution, based on territory population) | National brand fund |
| Total Investment Range | $86,250 – $378,750 | Includes build-out, inventory, working capital |
The investment range of $86K–$379K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (2% - 5% of Referral Gross Sales) and marketing fee ($500 - $950/month (Brand Fund Contribution, based on territory population)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Elite) | $60,000 | $80,000 |
| Territory Fee (Elite) | $4,050 | $11,250 |
| Brand Fund Contribution (Elite) | $1,500 | $2,850 |
| Onsite Training Expenses (Elite) | $0 | $6,250 |
| Business Licenses and Permits | $0 | $500 |
| Professional Fees | $250 | $5,000 |
| Insurance | $0 | $20,000 |
| Utility and Security Deposits | $0 | $20,000 |
| 3-Months Lease Payments | $0 | $5,000 |
| Leasehold Improvements | $0 | $100,000 |
| CORE Signage | $2,500 | $5,000 |
| Computer System | $500 | $10,000 |
| Optional Software Fee | $0 | $3,000 |
| Technology Fee | $900 | $900 |
| Vehicles | $2,000 | $9,000 |
| Additional Funds - 3 Months | $25,000 | $100,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT (Elite) | $96,700 | $378,750 |
| Initial Franchise Fee (Standard) | $50,000 | $70,000 |
| Territory Fee (Standard) | $3,600 | $8,850 |
| Brand Fund Contribution (Standard) | $1,500 | $2,850 |
| Onsite Training Expenses (Standard) | $0 | $6,250 |
| Business Licenses and Permits (Standard) | $0 | $500 |
| Professional Fees (Standard) | $250 | $5,000 |
| Insurance (Standard) | $0 | $20,000 |
| Utility and Security Deposits (Standard) | $0 | $20,000 |
| 3-Months Lease Payments (Standard) | $0 | $5,000 |
| Leasehold Improvements (Standard) | $0 | $100,000 |
| CORE Signage (Standard) | $2,500 | $5,000 |
| Computer System (Standard) | $500 | $10,000 |
| Optional Software Fee (Standard) | $0 | $3,000 |
| Technology Fee (Standard) | $900 | $900 |
| Vehicles (Standard) | $2,000 | $9,000 |
| Additional Funds - 3 Months (Standard) | $25,000 | $100,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT (Standard) | $86,250 | $366,350 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current Initial Franchise Fee, or $37,500 (Elite) / $25,000 (Standard) |
| Renewal Fee | 25% of then-current Initial Franchise Fee, or $18,750 (Elite) / $6,250 (Standard) |
| Technology Fee | $300 per month |
| Audit Fee | $1,000 - $12,000 |
| Referral Fee | 2% - 5% of Referral Gross Sales |
| Territory Fee | Monthly amount based on territory population per Item 5 ($1,200 - $3,750) |
| Social Media Advertising Program | Estimated $200/month if implemented |
| Local and Regional Advertising Cooperatives | Not to exceed Brand Fund Contribution |
| Unauthorized Advertising Fee | $500 per occurrence |
| Insurance | Reimbursement of costs plus 20% administration charge |
| Additional Training or Assistance Fees | $200 - $2,000 per person per day |
| Convention Fee | $500 - $1,500 per person |
| Payment Service Fee | Up to 4% of total charge |
| Late Fee | $100 per occurrence plus interest at 18% per year |
| Non-Sufficient Funds Fee | $100 per occurrence plus interest |
| Failure to Submit Required Report Fee | $100 per occurrence and $100 per week |
| Relocation Fee | Up to $5,000 |
| Liquidated Damages | Will vary under circumstances |
| Broker Fees | Actual cost of brokerage commissions |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 48 hours of classroom training |
| Classroom Training | 48 hours |
| On-the-Job Training | 0 hours |
| Training Location | Web-based training or onsite at your CORE Business |
| Additional Training | Additional training available for newly-hired personnel, refresher training courses, and additional training or assistance at regional and national levels. Annual convention attendance required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Typically designated by county lines, based on population (approximately 5,000,000 persons or fewer for Elite; 2,000,000 persons or fewer for Standard) |
| Description | The franchise grants a non-exclusive territory. Franchisees may conduct business within and outside their territory. The franchisor retains the right to own, franchise, or operate CORE Businesses at any location, use the Marks through alternate channels, service National Accounts within the territory, and implement multi-area marketing programs. The continuation of the territory depends on timely payment of the Territory Fee, not sales volume or market penetration. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Three successor terms of 5 years each |
| Renewal Fee | 25% of then-current Initial Franchise Fee, or $18,750 (Elite) / $6,250 (Standard) |
| Renewal Conditions | Must not be in default; give written notice; sign then-current franchise agreement (which may have materially different terms including higher fees); update Facility to current standards; sign a release; pay renewal fee |
| Transfer Fee | 50% of then-current Initial Franchise Fee, or $37,500 (Elite) / $25,000 (Standard) |
| Transfer Conditions | Payment of all amounts due; franchisor approval required (Section 12C) |
| Termination for Cause | Franchisor may terminate for cause including: failure to pay taxes, understating Referral Gross Sales by more than 2%, failure to comply with System Standards, bankruptcy, insolvency, abandonment, unauthorized disclosure, criminal conviction, repeated non-compliance, unauthorized transfer, misuse of Marks |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term: may not participate in a diverting business, have owning interest of more than 5% in a competitive business, or perform services for a competitive business. After termination: may not solicit National Account customers for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisor recommends that either the franchisee or a designated manager maintain a day-to-day role in the management of the CORE Business, but does not prescribe any staffing requirements. |
| Required Suppliers | Franchisees must use approved suppliers listed in the Brand Standards Manual. The franchisor may designate itself or affiliates as approved suppliers. Franchisees must use approved insurance brokers and the ONCORE Claims Management System software. |
| Supply Restrictions | Products and services must conform to standards and specifications in the Brand Standards Manual. Franchisees must obtain approval before using unapproved suppliers. |
| Franchisor Revenue from Suppliers | During the last fiscal year ended December 31, 2020, neither the franchisor nor its affiliates derived revenue or other material consideration as a result of franchisees' required purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may finance up to 100% of the Initial Franchise Fee over a term of 12, 24, or 60 months. The required down payment is between 0% and 50%. Interest rates range from 4.99% to 10% depending on the term of the loan. Monthly payments generally range from $1,600 (60-month term) to $6,500 (12-month term). A Promissory Note and Security Agreement is required, secured by the franchise and all assets of the CORE Business. |
CORE Group Restoration - Member Model Franchise Earnings — Item 19
CORE Group Restoration - Member Model does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
CORE Group Restoration - Member Model Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CORE Group Restoration - Member Model System Growth
CORE Group Restoration - Member Model currently operates 14 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 0 | 0 | 0 |
| 2019 | 4 | 0 | 4 |
| 2020 | 10 | 0 | 14 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 13 states: CA, CT, FL, IL, MI, NJ, NY, OH, TN, TX, VA, WV, WI
Franchisor Financials (Item 21)
Audited by Kezos & Dunlavy for year ending December 31.
CORE Group Restoration - Member Model Franchise — FAQ
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