All Dry Franchise in 2024: Costs, Fee & FDD
Considering an investment in the All Dry franchise? Learn about the pros, cons, and financial outlook of this water damage restoration brand. Click to find out if this opportunity aligns with your investment goals.
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All Dry was founded by experts with deep roots in the restoration industry. With a mission to provide top-notch water damage restoration and mold remediation services, the founders recognized a gap in the market for reliable, efficient, and customer-focused service. Over the years, All Dry has built a solid reputation, becoming a trusted name in the restoration industry. Their commitment to quality and quick response times has made them a leader in the field, helping countless property owners recover from unexpected disasters.
At its core, All Dry specializes in water damage restoration and mold remediation, catering to both residential and commercial clients. Their services include water extraction, drying, dehumidification, and thorough mold removal to prevent further damage. Additionally, they offer ancillary services such as sewage cleanup, odor removal, and fire damage restoration. All Dry’s primary market includes homeowners, property managers, and businesses facing urgent restoration needs. They stand out for their ability to deliver swift and effective solutions, ensuring that properties are restored to their pre-damage state.
All Dry has expanded significantly since its inception, boasting a growing network of franchise locations across the United States. With hundreds of franchisees and operations in various states, All Dry serves a broad customer base daily. Their extensive reach allows them to respond quickly to emergencies, which is crucial in the restoration business. The franchise’s consistent growth reflects the high demand for its services and its strong brand presence in the industry.
All Dry is known for its robust franchise support system, offering comprehensive training programs that equip franchisees with the knowledge and skills needed to succeed. This includes initial training on the technical aspects of restoration work, ongoing support, and access to a network of experienced professionals. Franchisees also benefit from marketing assistance, operational support, and a dedicated team that helps them navigate the challenges of running a restoration business. All Dry’s commitment to its franchisees ensures that they are well-prepared to build and sustain a successful operation.
All Dry Franchise Insights
- All Dry has seen rapid growth with over 100 franchise locations across the U.S., reflecting the increasing demand for their specialized restoration services.
- All Dry prides itself on a 24/7 rapid response time, ensuring that franchisees can quickly address emergencies, a crucial factor in minimizing damage and maximizing customer satisfaction.
- With a high customer retention rate, All Dry serves thousands of clients annually, many of whom are repeat customers due to the brand’s reputation for reliability and excellence in service.
All Dry Franchise Key indicators
Growth YOY (%)
0%
vs industry 4%
Total U.S. Franchised Units
116
3-Year Failure Rate
21%
vs industry 13%
Sales-to-Investment ratio
1.6:1
How much does it cost to open an All Dry franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening an All Dry franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening an All Dry franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open an All Dry below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Rent and Lease Security Deposit | $0 | $3,750 |
| Utilities | $0 | $500 |
| Leasehold Improvements | $0 | $2,000 |
| Employee Uniforms and Marketing Materials | $2,000 | $3,500 |
| Furniture and Fixtures | $5,000 | $20,000 |
| Computer Systems | $299 | $2,000 |
| Insurance | $4,000 | $8,000 |
| Vehicle | $1,000 | $85,000 |
| Signage | $0 | $1,000 |
| Office Expenses | $0 | $1,000 |
| Equipment and Consumables | $30,000 | $50,000 |
| Licenses and Permits | $300 | $2,000 |
| Dues and Subscriptions | $100 | $1,000 |
| Technology Fee (First 3 Months) | $1,200 | $1,200 |
| Professional Fees (lawyer, accountant, etc.) | $1,500 | $1,500 |
| Travel, Lodging, and Meals for Initial Training | $1,000 | $5,000 |
| Additional Funds (for first 3 months) | $10,000 | $75,000 |
| Total Estimated Initial Investment | $105,899 | $311,950 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open an All Dry franchise or a similar one in the restoration industry, you typically need to meet certain financial requirements. While the exact figures for All Dry might not be publicly available, here’s a general estimate based on industry standards:
- Initial Investment The total initial investment for a restoration franchise like All Dry generally ranges between $106,000 and $312,000. This includes the franchise fee, equipment, initial marketing, and working capital. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Franchisees are usually required to have liquid assets of around $50,000 to $100,000. This ensures you have the necessary cash flow to cover initial operational expenses and any unforeseen costs.
- Net Worth The net worth requirement for restoration franchises typically ranges from $150,000 to $300,000. This demonstrates your overall financial stability and ability to support the business.
These figures are estimates based on similar franchises in the industry, and I recommend reaching out directly to All Dry for the most accurate and up-to-date financial requirements.
How much does an All Dry franchise owner make?
Calculating the salary of an All Dry franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of an All Dry franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
All Dry Revenue & Gross Sales
Based on most recent analysis, All Dry franchises achieved a median gross sales of $362,050, reflecting a continued trend in gross sales growth This strong financial performance underscores the brand’s robust consumer demand and potential for significant revenue generation.
Which key factors impact the average revenue performance of All Dry franchisees?
The performance of U.S. franchisee median gross sales for All Dry likely benefited from several key factors this past year. First, the increasing frequency of extreme weather events, such as hurricanes and floods, has driven higher demand for restoration services, directly boosting franchisee revenues. Additionally, the ongoing aging of infrastructure in many U.S. cities has led to more water damage incidents, further expanding the market. Furthermore, All Dry’s focus on rapid response and customer satisfaction has helped franchisees capture repeat business and referrals, contributing to stronger year-over-year sales growth. Lastly, enhanced marketing efforts and expanded franchisee support have likely played a role in driving higher sales performance across the network.
All Dry Franchise Operational Costs
When opening an All Dry franchise, the key primary ongoing operational costs you’ll need to consider include:
- Equipment Maintenance and Replacement Given the nature of restoration work, maintaining and periodically replacing specialized equipment like dehumidifiers, air movers, and extraction tools is essential to ensure optimal performance and compliance with industry standards.
- Employee Wages and Training Staffing is a significant cost, as you’ll need trained technicians to handle the restoration jobs. Ongoing training to keep your team updated on the latest techniques and safety protocols is also crucial.
- Vehicle Expenses Your fleet of vehicles, essential for transporting equipment and staff to job sites, will incur costs related to fuel, insurance, maintenance, and potential leasing or financing payments.
- Insurance Premiums Given the risk factors involved in restoration work, you’ll need comprehensive business insurance, including general liability, workers’ compensation, and vehicle insurance, which can be a substantial ongoing expense.
- Marketing and Lead Generation While the franchise might support national marketing efforts, local marketing and lead generation activities, such as online advertising, community outreach, and partnerships with local businesses, will be necessary to drive business in your specific market.
These costs will vary based on the scale of your operations and market conditions but are critical to consider when budgeting for your franchise.
All Dry Franchise Fees
When considering the ongoing fees associated with opening an All Dry franchise, it’s essential to understand the financial commitments beyond just the initial investment. Here’s a breakdown of the key ongoing fees you should be aware of:
- Royalty Fee You will be required to pay 7% of your Gross Sales as a royalty fee. This fee is due weekly on Tuesday and becomes applicable upon the opening of your franchise. Starting in your 13th month of operation, there’s a minimum weekly royalty fee of $125 per territory.
- Brand Fund Contribution A 1% contribution of your Gross Sales is required for the brand fund. This fee is also collected weekly on Tuesday and is essential for maintaining and enhancing the overall brand’s marketing and operational support.
- Local Advertising You must allocate 4% of your monthly Gross Sales to local marketing and advertising efforts. This ensures that your franchise remains competitive in your local market and helps attract and retain customers.
- Additional Fees There might be additional fees that arise, depending on specific circumstances, such as extra training, technology upgrades, or territory expansion. It’s crucial to budget for these potential costs to avoid surprises.
These fees are standard in the franchise industry and are designed to support both the brand and your individual franchise’s growth.
All Dry Franchise Earnings
Based on the most recent data, the median gross sales for an All Dry franchise are approximately $362,050. For owner-operators, the estimated earnings are roughly $54,000, indicating a 15% operating profit margin. Hands-on management by the franchise owner can yield substantial returns as the business grows. These figures highlight the potential for profitability in a well-managed All Dry franchise, especially for those committed to an active, day-to-day operational role.
How to Open an All Dry Franchise
Becoming an All Dry franchisee involves several key steps, each designed to ensure you’re well-prepared for success. Here’s an overview of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After the initial contact, you’ll complete a franchise application that provides details about your background, financial qualifications, and business experience. This helps the franchisor assess your suitability as a potential franchisee.
- Discovery Day If both parties are interested in moving forward, you’ll be invited to a Discovery Day. This is an in-person or virtual meeting where you’ll meet the All Dry team, learn more about the business model, and get a firsthand look at how the franchise operates.
- Franchise Agreement Signing After Discovery Day, if you decide to proceed, you’ll sign the franchise agreement and pay the initial franchise fee. This formalizes your commitment and secures your territory.
- Training Program Once the agreement is signed, you’ll participate in a comprehensive training program. This includes both classroom instruction and hands-on training, covering everything from technical restoration skills to business management and marketing.
- Site Selection and Setup During training, you’ll also work on site selection, if applicable, and begin setting up your business. This includes securing necessary equipment, vehicles, and any required licenses or permits.
- Pre-Opening Support The All Dry support team will assist you in preparing for your grand opening. This includes marketing assistance, operational guidance, and ensuring all systems are in place.
- Grand Opening Finally, you’ll launch your All Dry franchise, starting operations with the support of the franchisor. The first few months will include ongoing support and guidance to help you navigate the early stages of your business.
Pros & Cons
Pros
High Demand Industry: All Dry operates in the water damage restoration and mold remediation industry, which consistently sees high demand due to natural disasters, aging infrastructure, and emergency situations. This ensures a steady stream of potential customers.
Scalable Business Model: The All Dry franchise model is designed to scale, allowing you to expand operations by adding more territories or increasing your service offerings as your business grows.
Established Brand Recognition: All Dry is a well-known brand in the restoration industry, which can help attract customers more easily and lend credibility to your business from the start.
24/7 Service Model: The nature of emergency restoration services means that All Dry franchisees can operate 24/7, increasing potential revenue opportunities by being available when customers need them most.
Cons
Physically Demanding Work: The restoration business often involves physically demanding tasks and can require long hours, especially in emergency situations. This might be challenging if you prefer a less hands-on role.
Competition: The restoration industry can be competitive, with several established players in the market. Success may require significant effort in local marketing and differentiating your services.
Initial and Ongoing Costs: While the initial investment is moderate, ongoing costs like equipment maintenance, marketing, and insurance can add up. It’s important to have a clear financial plan to manage these expenses effectively.
Market Dependency: The demand for restoration services can be influenced by regional factors like weather patterns or the condition of local infrastructure, which may affect your business’s consistency.
Urgency of Service: The nature of the business requires quick response times, which can be stressful and require you to be on-call, impacting work-life balance.
