About Rainbow International Franchise
Rainbow International is a restoration and cleaning franchise that provides water, fire, smoke, and wind damage mitigation, restoration, reconstruction, mold remediation, carpet cleaning, hard surface cleaning, upholstery cleaning, air duct cleaning, and deodorization services for residential and commercial customers.
Franchisees perform all work associated with insurance loss jobs and related restoration and cleaning services, operating under the Rainbow International and Rainbow International Restoration brand names.
Target customers include homeowners, property managers, insurance companies, and commercial building owners who need damage restoration or routine cleaning services.
Rainbow International Franchise Cost & Fees
Minimum Investment
$156K
Average Investment
$207K
Maximum Investment
$258K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 3% to 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (MAP Fee) | National brand fund |
| Total Investment Range | $156,031 – $257,756 | Includes build-out, inventory, working capital |
The investment range of $156K–$258K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% to 8% of Gross Sales) and marketing fee (2% of Gross Sales (MAP Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Vehicle | $2,000 | $40,000 |
| Equipment, Supplies & Inventory | $40,461 | $48,461 |
| Insurance (Annual General Liability/Pollution/Workers Comp/Office) | $7,500 | $15,000 |
| Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase | $15,000 | $25,000 |
| Training, Travel, Lodging & Food | $6,400 | $10,200 |
| Deposits, Permits & Licenses | $1,675 | $3,600 |
| Professional Fees | $2,500 | $5,000 |
| Recruiting and Onboarding | $495 | $495 |
| Additional Funds - 6-9 Months | $40,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $7,500 or 5% of sales price |
| Renewal Fee | $5,000 |
| Technology Fee | $24 per month (Technology Package) |
| Audit Fee | Cost of audit plus expenses, plus any amount owed shown by audit, plus interest and late fees |
| FUSION Software Monthly Fee | $315 per month |
| Xactware Software Monthly Fee | $155 per month for Pro Version plus $5.30 to $31.45 per estimate upload |
| Call Center Services | $0.84 to $0.98 per minute, $50 minimum monthly, plus $249 setup fee |
| Local Marketing Groups | Not to exceed 3% of Gross Sales |
| Annual Convention (Reunion) Fee | Currently $1,000 or less |
| IICRC Exam Fee | $65 per exam, $150 for AMRT |
| EPA Lead Safe Training Fee | $150 |
| Key Accounts/Management Fee | Up to 5% of total Gross Sales related to Key Account work |
| Additional Training Fees | Up to $3,000 |
| Late Fees (FUSION/Xactware/Technology) | $25 per month |
| Late Fees (Franchise Agreement) | $10 per day |
| Dishonored Check or ACH Draft | $25 |
| Interest | 12% on unpaid balances |
| Amendment Fee | $250 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Phase I: approximately 5 days (12.5 classroom hours); Phase II: approximately 11 days (91.15 classroom hours); Phase III: additional IICRC certifications; plus 1-5 days field training |
| Classroom Training | Phase I: 12.5 hours; Phase II: 91.15 hours; Phase III: 62 hours |
| On-the-Job Training | 8-40 hours (field training at operating franchised business, depending on experience) |
| Training Location | Phase I: Webinar/Telephone Conference; Phase II: Offices in Waco, TX or virtual training; Field training at franchised businesses |
| Additional Training | Must attend annual Reunion convention; must complete IICRC certifications in ASD, OCT, Mold Remediation, and FSRT within one year of opening; optional air duct cleaning training ($2,500); optional EPA Lead Safe training ($150) |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (limited territory protection) |
| Exclusive Territory | No |
| Territory Size | Minimum population of 100,000 up to maximum of generally 2,500,000 |
| Description | Territory is defined by population and specified in the Franchise Agreement. Franchisor will not operate or grant another Rainbow International franchise with rights to market within your Territory during the term. However, territory is not exclusive - franchisor and affiliates reserve rights to sell products/services using different trademarks, enter Key Accounts in your territory, and authorize affiliates like Aire Serv, Molly Maid, Mr. Handyman, and others to operate in your territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (one additional 10-year term) |
| Renewal Fee | $5,000 |
| Renewal Conditions | Cannot be in default; satisfied all monetary and material obligations on timely basis; in good standing with no more than 3 written notices of default during term; written notice required; general release signed; pay $5,000 renewal fee; complete then-current training requirements; sign then-current franchise agreement |
| Transfer Fee | Greater of $7,500 or 5% of total gross sales price of Business |
| Transfer Conditions | Not in default; paid all amounts owed; provided all required reports; new franchisee qualifies; training arranged; release signed; transfer fee paid; new franchise agreement signed; new franchisee bound by customer obligations |
| Termination for Cause | Curable defaults: 10 days for payment/reporting failures, 30 days for other defaults. Non-curable defaults include material misrepresentation, abandonment, insolvency, felony conviction, intentional underreporting of gross sales, unauthorized transfer, second default of any type within 12 months |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination/expiration, no Competitive Business in your Territory, within 25-mile radius of outer boundary of your Territory, or inside territory of another Rainbow International business |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If individual, must directly perform or supervise operation of the Business unless franchisor consents otherwise. If entity, a designated owner who completed training must provide direct on-site supervision. Franchisor may agree to allow a trained bona fide manager to directly supervise instead of principal owner. |
| Required Suppliers | Must use approved supplies and suppliers as listed; must purchase initial equipment from approved vendor Jon Don; must use FUSION software, Xactware, and Technology Package from designated suppliers; must use designated call center provider |
| Supply Restrictions | May purchase from other suppliers only with prior written approval following supplier approval procedures; must give 30 days notice; samples may be required for testing |
| Franchisor Revenue from Suppliers | In 2020, Predecessor had revenue of $2,020,832 (11.81% of total revenues of $17,113,139) from franchisee purchases; ProTradeNet predecessor PTNLLC had revenue of $222,160 (3% of total revenues of $8,792,535) from Rainbow franchisee purchases; ZorWare had revenue of $53,479 (0.85% of total revenues) |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | May finance up to 70% of initial franchise fee (up to 80% in sole discretion). Interest rates range from 9% to 12% based on credit score. Repayment terms range from up to 5 years to 9 years depending on loan amount. Also may offer equipment financing of approximately $30,000 to $35,000 at 9% to 12% interest with 4-year term and 10-20% down payment. |
Rainbow International Franchise Earnings — Item 19
Average Revenue
$605K
Median Revenue
$389K
Sample Size
261 units
Past financial performance does not guarantee future results. Individual results will vary.
Rainbow International Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Rainbow International System Growth
Total Units
313
Franchised
313
Company-Owned
0
Rainbow International currently operates 313 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 | 34 | 32 | 298 |
| 2019 | 42 | 34 | 294 |
| 2020 | 39 | 13 | 313 |
Transfers: 12 | Closures: 13
State Registrations
Registered in 34 states: CA, CT, FL, GA, HI, IL, IN, IA, KY, LA, MD, MA, MI, MN, MS, NE, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WI
Rainbow International Franchise — FAQ
The total investment to open a Rainbow International franchise ranges from $156,031 to $257,756, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Rainbow International charges a royalty fee of 3% to 8% of Gross Sales of gross sales, plus a 2% of Gross Sales (MAP Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Rainbow International Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Rainbow International to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Rainbow International franchise owners report average revenue of $605K and median revenue of $389K. This is based on a sample of 261 units. Past performance does not guarantee future results.
Rainbow International has been franchising since 1981. The FDD shows an investment range of $156,031-$257,756, a 3% to 8% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $156,031 to $257,756 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Rainbow International and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Rainbow International or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com