I’ve read a little about the 1-800-WATER DAMAGE franchise. The company has 70 locations operating in the United States. Their service offering for homes and businesses services is water damage cleanup. The types of services most often are water extraction; basement, crawl space and structural drying; dehumidifying; removing odors; sanitizing; and disinfecting. They claim technicians respond to customers within 90 minutes. The cash requirements for opening up a new franchise are $46,000 and total about $200,000 total investment. I was not able to find out what other mandatory fees (royalty, advertising, etc.) must be paid to the franchisor.
The company opened a whopping 50 new franchises in a three month period in this $5 billion water restoration industry. Some sing their praises. I cannot give a good analysis of this business beyond the opportunty and what I know about the success of the 1-800 type business.
People have been pounded with 1-800 Flowers, 1-800 Mattress, 1-800 Contacts, 1-800 PetMeds and dozens of other well known 1-800 brands. The 1-800 number identification subconsciously sticks with people. If I was in a situation and had water damage, I wouldn’t know exactly what to do. If I looked in the phone book at 100 listings claiming fast water damage solutions, 1-800-WATER-DAMAGE would catch my eye and I’d probably call it. Why? I don’t know. Perhaps because it sounds national and the company must have been around a while and smart enough to get that number. It is a very smart marketing move to name your business after you phone number for obvious reasons.