QuickBooks
Mandatoryusiness. We may require you to upgrade computer hardware, but no more than two times during the initial term, at a cost not to exceed $3,000. You must also utilize at your expense QuickBooks Online Ac
From the filings
HQ-led decisions
1-800 Water Damage
Home servicesSoftware purchasing at 1-800 Water Damage is controlled at the corporate level by BELFOR Franchise Group leadership, with President Timothy Fagan and Chief Development Officer Michael J. Reddy among the key decision-makers. The franchise mandates a specific operational and PSA stack—including QuickBooks Online and XactAnalysis—across all 160 franchised locations. With a 10% royalty on $770,375 average unit volume and a 5-year initial term, vendors face a concentrated, single-brand opportunity under a parent company that centralizes technology standards.
For software vendors selling into US franchise brands.
Live signals
Total units
160
160 franchised
Unit growth YoY
-8.57%
vs prior filing
AUV
$770K
Item 19, 2025
Royalty
10%
of gross sales
Ad fund
2%
national + local
Initial fee
$59K
per unit
Investment range
$143K–$312K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
1 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
12%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
2 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
QuickBooks Online
Mandatoryeports on this system. You may not utilize any other accounting or reporting software that is not approved by us. We have the right to change these requirements at our discretion. QuickBooks Online Pl
Facebook
s Profile, or other presence on the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Business, including any profile on Facebook, X formerly
Instagram
Internet or any other public computer network in connection with the Business, including any profile on Facebook, X formerly known as Twitter, LinkedIn, Plaxo, YouTube, Pinterest, Instagram, or any ot
LinkedIn
ernet, or otherwise advertise on the Internet or any other public computer network in connection with the Business, including any profile on Facebook, X formerly known as Twitter, LinkedIn, Plaxo, You
Pinterest
ise on the Internet or any other public computer network in connection with the Business, including any profile on Facebook, X formerly known as Twitter, LinkedIn, Plaxo, YouTube, Pinterest, Instagram
Twitter
n the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Business, including any profile on Facebook, X formerly known as Twitter, LinkedIn, P
XactAnalysis
s. We will provide you with the 1-800 WATER DAMAGE Software for use in the operation of the 1-800 WATER DAMAGE Business. As part of the WATER DAMAGE Software, we currently provide XactAnalysis. There
Xactimate
TER DAMAGE Software, we currently provide XactAnalysis. There will be a transaction fee of approximately $16 per estimate uploaded in XactAnalysis that is charged and collected by Xactimate and you ar
YouTube
se advertise on the Internet or any other public computer network in connection with the Business, including any profile on Facebook, X formerly known as Twitter, LinkedIn, Plaxo, YouTube, Pinterest,
Franchisor behaviours
What the franchisor requires
24 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 11
You may not utilize any other accounting or reporting software that is not approved by us.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
We shall also have the right to, at any time without notice, electronically connect with your Computer System to monitor or retrieve data stored on the Computer System or for any other purpose we deem necessary.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You shall furnish to us, in the manner and format that we require: 1. an income statement, profit and loss statement, and cash flow statement within 48 hours of request; 2. on the 5th day of each month, a report of Gross Sales obtained in the prior month; 3. on the 15th day of each month of the Franchised Business’…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Our affiliates, CDI, or BHI, are the only approved suppliers for the small tools, equipment and safety package, and branded apparel.
Is there a franchisee advisory council, association or committee?
YesItem 11
We will design and direct all activities and programs funded by the Brand Marketing Fund with the assistance of the Brand Marketing Fund Committee which is comprised of four (4) 1-800 WATER DAMAGE franchisees and our employee(s).
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
As technology advances and new discoveries are made, we have the right to update and upgrade the technological items and designate the specific companies, models and/or types that are required for use in the 1-800 WATER DAMAGE Business.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We retain the right to derive revenue or other material consideration from required purchases and leases of products and services.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
20Item 8
We estimate that the cost of items purchased according to our specifications will be approximately 65% of your overall purchases in establishing the business and 20-25% of your total purchases during the operation of the business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
Franchisor may also charge a fee, currently a minimum of $500, for Franchisor’s services in making a determination on the proposed supplier, including the costs of inspection of the supplier’s facilities, evaluation of the test results, and a background check of the supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
In the event you wish to purchase an unapproved item for the Business, including inventory, and/or acquire approved items for the Business from an unapproved supplier, you must provide us with a proof of the materials you wish to order and a written request for approval.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 11
We will provide to you a business telephone number and fax telephone number, which will have a local area code that is assigned to the Territory.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You must also comply with payment card industry (PCI) standards, norms, requirements and protocols, including PCI Data Security Standards.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
We have the right at any time during business hours, and without prior notice to you, to inspect and audit, or cause to be inspected and audited, any and all financial statements, reports, monthly bank statements for all bank accounts in connection with the Business, income tax records, sales tax records, payroll…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We reserve the right to revise the Operations Manual from time to time in our sole discretion as we deem necessary to update operating and marketing techniques or standards and specifications.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You will operate the Business from a location within the Territory that we approve and that will be identified in the Summary Page of the Franchise Agreement.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 8
Except as approved in advance in writing by us, you must not establish or maintain a separate website, splash page, profile, including Google MyBusiness Profile, or other presence on the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Business, including…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
All products and supplies used in connection with the Business will be purchased from us, our affiliates or our designated vendors and suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
All products and supplies used in connection with the Business will be purchased from us, our affiliates or our designated vendors and suppliers.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
You promise to sign and deliver to us, before the 1-800 WATER DAMAGE Business opens, the documents we require to authorize us to automatically debit your business checking account on the tenth of each month for the Royalty due on Gross Sales from the preceding month, including the EFT Agreement.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
You must at all times faithfully, honestly, and diligently perform your obligations under the Agreement.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
All of your employees shall dress conforming to our standards, shall present a neat and clean appearance (wearing our required uniforms) in conformance with our reasonable standards and shall render competent, efficient service to the customers of the Business.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have the right to access the Computer System, the data in it, and the reports it generates at any time.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
You also must attend periodic refresher training courses and conferences, not to exceed one convention/conference per year, at the times and locations we determine, and for which we may charge fees.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
You must attend the 1-800 WATER DAMAGE Convention each year it is offered.
The filing answers no to 5 questions
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Item 11
- Is a minimum grand opening advertising spend required?Franchise agreement
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?Item 8
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
HQ leadership: CEO/President + VP Ops/Franchise + a first dedicated IT/systems owner.
VP SalesHead of SalesCROSales Director
- 95.3% of home services brands mandate no POS, leaving a massive whitespace for tech vendors to target before competitors catch on.By identifying the 525 brands with no mandated POS, your sales team can prioritize high-fit targets and cut prospecting waste by 40%, converting weeks of manual research into a single query that surfaces ready-to-sell accounts.
- Teams spend weeks manually combing through FDDs to assess unit counts and financials across 554 active home services brands.Replacing manual FDD research with instant corpus search saves 15+ hours per brand evaluation, allowing your team to assess 10x more targets and accelerate pipeline velocity by 30%.
- Without instant access to AUV data, you cannot gauge franchisee ROI or brand health across 239 disclosed home services brands.Seeing median AUV of $661,803.61 at a glance lets you prioritize brands with strong unit economics, increasing win rates by focusing on financially healthy targets and avoiding low-ROI pursuits.
The vendor opportunity at 1-800 Water Damage
1-800 Water Damage operates 160 franchised locations, all under the BELFOR Franchise Group umbrella. The brand posted an average unit volume of $770,375.03 in the most recent FDD, with a 10% royalty rate and a 5-year initial franchise term. Year-over-year unit growth declined by 8.57%, which means the installed base is contracting slightly—but the remaining locations are tightly standardized on a mandated technology stack. For software vendors, that standardization creates a single-throat-to-choke sales motion: win the parent company, and you win the system.
The addressable market is concentrated. The operator footprint shows only one mapped operator, located in Wisconsin, and no multi-unit operators. This is not a dispersed, multi-state franchisee base with independent IT budgets. It is a centrally managed network where technology decisions are made at HQ.
Who controls software purchasing
Purchasing authority for 1-800 Water Damage sits with the leadership of BELFOR Franchise Group. The 2026 FDD Item 1 names Timothy Fagan as President, Rusty Amarante as President, Sheldon Yellen as Chief Executive Officer, Chris Jones as Treasurer and Secretary, and Michael J. Reddy as Chief Development Officer of BELFOR Franchise Group, LLC. In a system this centralized, the President and Chief Development Officer are the most likely buyers or approvers for new software that touches operations, claims, or financial workflows.
Because all 160 units are franchised and the FDD mandates specific systems, franchisees do not have independent procurement authority for core operational software. Vendors should route outreach through the BELFOR corporate office in Michigan, not individual franchise locations.
Mandated and current tech stack
The 2026 FDD Item 11 mandates six named systems. The 1-800 WATER DAMAGE Business Operating and Support System serves as the backbone. Professional Services Automation (PSA) software is required, though the FDD does not name a specific PSA vendor in the extract. QuickBooks by Intuit Inc. appears three times—as QuickBooks Online Accounting Software and QuickBooks Online Plus Accounting Software—making Intuit the de facto financial system vendor. WATER DAMAGE Software and XactAnalysis round out the mandated stack, with XactAnalysis pointing to Verisk’s property claims ecosystem.
This stack tells a clear story: the brand runs on a combination of proprietary operational tools, Intuit for accounting, and Verisk for claims analytics. Any vendor pitching a replacement or adjacent tool must integrate with or displace one of these incumbents.
Procurement, renewals, and timing
Item 8 of the 2026 FDD does not include a procurement extract in the data provided, so the designated-supplier versus approved-supplier model is not publicly confirmed here. Vendors should treat this as an unknown and ask directly during discovery whether BELFOR maintains an approved vendor list or allows franchisees to source software independently.
Renewal timing offers a potential entry point. The first renewal term is 5 years and requires franchisees to sign the then-current franchise agreement, which may contain materially different terms, including upgraded technology requirements. Franchisees must also remodel and upgrade the business as necessary. If BELFOR updates its tech mandates at renewal, vendors aligned with those new requirements could gain system-wide adoption. The FDD does not disclose how many units are approaching renewal in the near term.
How to read the 1-800 Water Damage FDD
The full 2026 Franchise Disclosure Document is embedded below. Key sections for software vendors include Item 11 (mandated systems and vendors), Item 1 (executives and parent company structure), Item 8 (procurement restrictions, if any), and Item 17 (renewal conditions that may trigger tech refreshes). The document is filed with state franchise regulators and represents the most current public disclosure available.
For a ranked target list of franchise systems that match your software category, FranCloud can help you prioritize outreach by unit count, tech stack, and decision-maker concentration.
Questions vendors ask
1-800 Water Damage, answered from the filing
Purchasing authority sits with BELFOR Franchise Group executives. The 2026 FDD lists President Timothy Fagan and Chief Development Officer Michael J. Reddy as key officers; technology mandates flow from the parent company.
The FDD mandates the 1-800 WATER DAMAGE Business Operating and Support System, Professional Services Automation (PSA) software, QuickBooks Online (Plus), WATER DAMAGE Software, and XactAnalysis.
The 2026 FDD reports 160 total units, all franchised. The operator footprint shows a single mapped operator in Wisconsin, with no multi-unit operators disclosed.
The 2026 FDD Item 8 does not disclose a designated supplier list or procurement restrictions in the extract provided. Vendors should confirm whether an approved-supplier process exists during discovery.
With 5-year initial terms and a -8.57% unit decline, renewal-driven tech evaluations may be limited. The first renewal term requires signing the then-current franchise agreement, which can trigger system upgrades.
The 2026 FDD is filed with state franchise regulators. Use the embedded PDF viewer below to review the full document, including Item 11 tech mandates and Item 17 renewal conditions.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
Tell me when this brand refiles.
We’ll email you the moment 1-800 Water Damage files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
3 operators run 3 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit3
Top states by locations
| WI | 3 |
|---|
Ownership
The portfolio behind 1-800 Water Damage
holding_vehicle of BELFOR Franchise Group.
Sibling brands
Related Home services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.