About DRYmedic Franchise
DRYmedic is a property restoration franchise that provides water damage mitigation, fire damage cleanup, mold remediation, and reconstruction services to homes and businesses.
Backed by Authority Brands, Inc., one of the largest home services franchise groups in the country, DRYmedic began franchising in 2021.
The franchise fee starts at $48,000 for territories of up to 300,000 people, with additional per person fees for larger territories.
DRYmedic Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $48,000 | One-time payment upon signing |
| Royalty Fee | 7% of the first $1,000,000 in Gross Revenue, then 6% up to $5,000,000, then 5% above $5,000,000, with a minimum monthly fee starting at $900. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Greater of $595/month or 1.5% of first $1,000,000 Gross Revenue, then 1.25% up to $3,000,000, then 1% up to $5,000,000, then 0.5% up to $10,000,000, then 0% above $10,000,000 | National brand fund |
| Total Investment Range | $103,200 – $182,500 | Includes build-out, inventory, working capital |
The investment range of $103K–$183K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of the first $1,000,000 in Gross Revenue, then 6% up to $5,000,000, then 5% above $5,000,000, with a minimum monthly fee starting at $900.) and marketing fee (Greater of $595/month or 1.5% of first $1,000,000 Gross Revenue, then 1.25% up to $3,000,000, then 1% up to $5,000,000, then 0.5% up to $10,000,000, then 0% above $10,000,000) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $48,000 | $48,000 |
| Rent | $0 | $2,000 |
| Leasehold Improvements | $1,000 | $5,000 |
| Equipment and Supplies | $25,000 | $28,000 |
| Technology, Promotion, and Advanced Training Fee | $12,000 | $12,000 |
| Computer Systems | $800 | $3,500 |
| Travel Expenses for Initial Training | $1,700 | $6,000 |
| Signage Costs | $200 | $1,000 |
| Start-Up Supplies | $1,000 | $5,000 |
| Automotive Equipment | $0 | $30,000 |
| Insurance | $3,500 | $12,000 |
| Professional Fees | $0 | $1,500 |
| Additional Funds – 3 months | $10,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 (plus additional fees in certain circumstances) |
| Renewal Fee | $5,000 |
| Technology Fee | $0 (can be $495/month) |
| Audit Fee | Franchisor's costs and expenses (under certain conditions) |
| Brand Fund Materials | Franchisor's costs |
| National Vendor Programs | Your pro rata share based on number of participating franchisees |
| Training Fees – Remedial and Optional Training | $500 per trainee |
| Non-attendance Fee (Annual Conference) | $2,000 |
| Service Deficiency Fee | Franchisor's costs plus 15% of costs or $250, whichever is greater |
| Late Fee | $100 for second occurrence, $200 for third, $300 for subsequent |
| Insufficient Funds Fee | $50 or bank charge, whichever is greater |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6 business days (initial) + 13 days (IICRC certification) |
| Classroom Training | 56 |
| On-the-Job Training | 0 |
| Training Location | Temecula, CA (initial); Regional (IICRC certification) |
| Additional Training | Additional required and optional training programs are made available. Franchisees must attend an annual conference, if offered. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Up to 300,000 individuals, not exceeding 400 square miles or 50 miles between farthest points |
| Description | Franchise is granted for an Approved Location, which can initially be home-based but requires a commercial site once monthly Gross Revenue reaches $15,000 or after 12 months. The territory is protected from active solicitation by other STOP franchisees or the franchisor, except for certain insurance claims/adjusters’ offices, corporate headquarters, and property management companies. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Written notice of desire to renew, no default, good record of customer service and Brand Standards compliance, good terms with franchisor (no litigation), sign current franchise agreement, pay renewal fee, sign general release, meet training requirements, demonstrate right to remain in Approved Location, remodel/refurbish vehicles and premises, and update computer systems and vehicles. |
| Transfer Fee | $10,000 (plus additional fees in certain circumstances) |
| Transfer Conditions | No default, proposed transferee meets qualifications, signs current franchise agreement and personal guarantee, completes training, upgrades business to current standards, pays transfer fee and signs release, price/terms do not harm business viability, and financing is subordinated to franchisor obligations. |
| Termination for Cause | Non-curable defaults include failure to obtain/open Approved Location, failure to complete training, unauthorized closing, loss of premises/right to do business, refusal of inspection/access to records, operating competing business, unapproved transfer, disclosure of confidential information, false records/underreporting sales/fraud/embezzlement, felony conviction, insolvency, appearance on 'blocked' persons list, breach of essential provision, failure to achieve minimum assessment score, failure to maintain insurance, failure to resolve customer complaint, failure to attend annual convention for two consecutive years, failure to conduct background checks, or repeated defaults. Non-payment has a 7-day cure period; other defaults have a 30-day cure period. |
| Non-Compete Period | 2 years |
| Non-Compete Details | Prohibits involvement in a 'Competing Business' (residential/commercial/industrial sanitizing, mold removal, asbestos abatement, duct cleaning, damage restoration/construction, or similar services) within the former territory, 40 miles of the territory, any zip code where the business served customers, or within 10 miles of any other franchised or company-owned STOP business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | A 'Key Person' must be designated for day-to-day operations. For a first franchise, the Key Person must be an Owner. For subsequent franchises, the Key Person does not need to be an Owner but must complete training and work on-premises. |
| Required Suppliers | Franchisor or its affiliates for Initial Equipment Package, Technology, Promotion and Advanced Training Package, and Branded Products. Designated or approved third parties for additional equipment and supplies, job estimating software (after first year), operational software (anticipated), call center (optional, but can be required), and Industry Certification Training. |
| Supply Restrictions | All equipment, technology, inventory, supplies, vehicles, signs, furnishings, fixtures, décor items, retail merchandise, payment systems, and other products and services must meet franchisor specifications, be purchased from approved vendors, or from a single designated source (which may include franchisor or affiliates). |
| Franchisor Revenue from Suppliers | In 2021, franchisor and its predecessor had $39,639 revenue from franchisee purchases, representing 2% of predecessor's total revenue. Franchisor receives rebates, administrative fees, commissions, licensing fees, or other compensation from some vendors ranging from 2% to 5% of franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor may finance up to 75% of the Franchise Fee and Additional Population Fee, payable in up to 36 monthly installments at 12% interest. For Conversion or Pioneer Incentive Programs, 100% of the Franchise Fee can be financed, with payments deferred for 5 years and potential for up to 100% forgiveness based on performance, then 48 monthly installments at 12% interest. |
DRYmedic Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
DRYmedic 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.
DRYmedic System Growth
DRYmedic currently operates 28 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 5 | 7 | 30 |
| 2020 | 5 | 6 | 29 |
| 2021 | 1 | 2 | 28 |
Transfers: 0 | Closures: 2
DRYmedic Franchise — FAQ
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