911 Vs Delta Comparison

911 Restoration website states - "911 Restoration aims to give everyone a Fresh Start after property damages from any form of disaster. We provide people and their property with the foundation to rebuild their dreams. We are committed to returning homes and businesses to their original or better condition after any incident so that they can get back to normal as fast as possible.

We have over 35 years of experience with all aspects of work in the restoration industry taking on challenges of all dimensions. Our teams of IICRC certified experts have learned to always put the customer first in every aspect of every job. We achieve this through a rapid response time of within 45 minutes of your distress call, and we can do so with technicians who are available 24/7/365 to save your home no matter when disaster strikes.

When residential or commercial properties have damages that came about as a result of a disaster through flooding, mold growth, sewage contamination, fire and smoke effects, or any kind of natural catastrophe, it will need professional restoration services to bring it back to its former state. Our professionals and the many services we provide, rejuvenate homes and businesses to give property owners a Fresh Start with a new foundation to build their dreams."

Join the profitable, recession-resistant insurance restoration industry with delta Restoration Services®

Delta customers get comprehensive reconstruction services to restore the structure to pre-loss condition from a single trusted vendor.

Delta Development Group grants franchises for the operation of commercial and residential property mitigation, reconstruction, remodeling and consulting businesses using the name “Delta Restoration Services®”. Since August 2016, we have also operated one Delta Services Business. We are not engaged in any other type of business activity.

As a Delta Restoration Services® franchisee you get access to proprietary scalable processes to meet second year gross minimum of $850,000 and third year with gross minimum objectives of $1 million, while servicing both commercial and residential customers with water, fire, and environmental losses.

Exclusive franchise territories are based on a minimum of 280,000 people up to 1 million. They're ideally located near or in a major metropolitan area servicing residential neighborhoods, commercial housing, and hospitality properties.

911 Restoration VS Delta Comparison

  Delta Restoration, Inc. 911 Restoration
Number of locations (US) 8 58
Startup Costs $162,755 - $332,220 $35,100 - $203,900
Territories open open
Initial Franchise Fee $45,000  $5,000 - $21,000
Supplies, Equipment and Inventory Purchase: $27,600 - $42,500 Lease: $17,910
911 Restoration doesn't present any reconstruction services.



For construction services, reconstruction services, and asbestos abatement-related services, the greater of 4% of Gross Revenue or the Minimum Royalty. 

For mitigation services, which includes contents-related work and structural cleaning, the greater of 8% of Gross Revenue or the Minimum Royalty.

Paid by electronic funds transfer on the sixth day of each month for the preceding month.

Technology Support Fee

$299, payable monthly by electronic funds transfer.

The purpose of the technology support fee (“Technology Support Fee”) is to defray the cost of providmg technology support to you.

Warranty Fund Contribution

1% of Gross Revenue, Payable monthly by electronic funds transfer.

Your warranty fund contnbution (“Warranty Fund Contribution”) will be contributed to the warranty fund (“Warranty Fund”) established to fund the service warranties provided to customers. The total Warranty Fund Contribution will be capped at the amount set forth in the Operations Manual. We have the right to adjust the cap upon thirty days wntten notice to you. Your obligation to pay us the Warranty Fund Contribution will commence two years after you begin operations.

Individual Advertising Expense

2% of Gross Revenue, payable monthly.

Your obligation to make the individual advertising expense (“Individual Advertising Expense”) for advertising and promotion will commence 90 days after you begin operations Prior to the time the Individual Advertising Expense obligation commences, you must spend a total of $6,000 on advertising and promotion in your Area of Primary Responsibility for the first 90 days after you commence operations (See ITEM 7) Salaries for your marketing support personnel are separate expenses that must not be included m the Individual Advertising Expense or the amount you must spend on advertising and promotion for the first 90 days after you commence operations.

National Marketing Fee

1% of Gross Revenue, Payable monthly by electronic funds transfer.

You must pay us a national marketing fee (“National Marketing Fee”) in addition to the Individual Advertismg Expense and Start-Up Advertising The National Marketing Fee will be deposited into a national marketing fund (“National Marketing Fund”) Advertising materials and services will be provided to you through the National Marketing Fund The Franchise Agreement authorizes us to increase the amount ofthe National Marketing Fee to a maximum of 3% of Gross Revenue for the previous month. If we increase the National Marketing Fee, your Individual Advertising Expense will be reduced by the same amount Your obligation to pay us the National Marketing Fee will commence two years after you begin operations.

Successor Franchise Fee

10% ofthe then-current Initial Franchise Fee, payable at the time you sign the Successor Franchise Agreement.

Estimating Software

Xactimate software SI 13 to $160 per month per license.

In order to secure favorable pricing for our franchisees, we have entered into a software license agreement with the licensor ofthe estimating software which we require you to use in connection with your Delta Services Business. This fee could decrease as your number of software licenses increases and depending on the type oflicense you obtain Because this fee is a pass-through cost, we are not deriving any revenue from this fee While we will handle the administration of licenses to our franchisees, you must work directly with the software licensor regardmg any technical issues you encounter.

Software License Fees

Quickbooks Premier Contractor $450-$1,100 for three licensed users, proprietary Delta Management software $200 per month per location or license obtained.

You must comply with all terms and pay all fees that may be due under a software license agreement for any software you are required to use in the operation of your Delta Services Business. The fees to use each software program will vary based on the number of licensed users per location.

Technology Maintenance

$500-$1,500 per computer workstation

We impose no cap or limitation on the amount of expense you may incur for hardware and software upgrades.

911 Restoration Fees


Royalty fees and system development fund fees are billed at a set percentage of gross sales each month, as defined in the franchise agreement, and are recorded as revenue when earned.

In accordance with ASC 952-605-25, the Company does not recognize income from sales of franchises until after all material services or conditions relating to the sale have been substantially performed or satisfied by the Company, substantially all of the initial services of the Company required by the franchise agreement have been performed, and no other matenal conditions or obligations relating to the determination of substantial performance exist After both parties sign the contract, the fee is non-refundable Franchise fees received that have not yet qualified to be recognized as income are classified as "deferred revenue".

Property and Equipment

Property and equipment are carried at cost Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, which are general five years. Normal repairs and maintenance are expensed as incurred, whereas significant charges which materially increase values or extend useful lives are capitalized and depreciated or amortized over the estimated useful lives of the related assets.

Accounts Receivable

Accounts receivable for royalties, fmichise fees and other fee income due are recorded at the amounts the Company expects to collect on balances outstanding at the end of the year Management closely monitors outstanding balances and provides for estimates of uncollectible balances in an allowance for doubtful accounts.

Income Taxes

Income taxes are computed using the asset and liability method Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized The estimated federal and state corporate tax liabilities have been accrued for the year ended December 31, 2014.

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reporting period Actual results could differ from those estimates.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, accrued expenses and franchise deposits The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Cash Equivalents

For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents The Company had $273,725 of cash and cash equivalents at December 31, 2014


Note payable to US Bank, secured by all Company assets, bearing interest at 5 11% per annum, monthly payments of $1,284, matures December 2017 Note payable to US Bank, secured by all Company assets, bearing interest at 5 11% per annum, monthly payments of $1,052, matures August 2018 Line of Credit payable to Chase Bank, at demand Note payable to Chase Bank, secured by all Company assets, bearing interest at 4 45% per annum, monthly payments of $1,858, matures September 2019.