How to Finance a DRYmedic Franchise: Equipment and Cash Flow
By Marc Cornella
A DRYmedic franchise loan funds a property restoration business that must be ready for emergencies from day one: the franchise and territory fee, drying and remediation equipment, a response vehicle, a shop or warehouse, technician training and the working capital needed while insurance-related invoices work their way to payment. The equipment is easy for lenders to understand. The cash flow timing is where restoration deals succeed or struggle.
This article explains what to confirm in the DRYmedic Franchise Disclosure Document (FDD), how SBA, conventional, equipment and working capital financing fit together and how lenders review a restoration franchise. US Professional Funding is not affiliated with, sponsored by or endorsed by DRYmedic; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary and every loan is subject to approval. Nothing here is legal, tax or investment advice.
DRYmedic Franchise Loan at a Glance
- Concept: residential and commercial property restoration, including water, fire, mold and storm damage recovery and related rebuilding work
- SBA Franchise Directory: listed under code S8611 with no additional directory note
- Initial fee, royalty and total investment: confirm in Items 5, 6 and 7 of the current FDD
- Net worth and liquidity: confirm the franchisor’s current requirements during discovery
- Biggest financing issues: equipment, a response vehicle and working capital to carry receivables
- Typical financing: SBA 7(a) loans, equipment and vehicle financing, conventional loans and lines of credit
What Is DRYmedic?
DRYmedic Restoration Services is a franchised restoration brand. Franchise owners respond when homes and businesses suffer water leaks, flooding, fire and smoke damage, mold growth or storm damage, then dry, clean and help restore the property. Many restoration businesses also handle contents cleaning and reconstruction, which extends each job beyond the initial emergency.
The work is driven by events rather than appointments. Calls arrive at all hours, demand can spike after storms or freezes, and a large share of jobs is paid through property insurance claims. That combination shapes almost every financing decision: you need equipment ready to deploy, crews on call and enough cash to operate while claims are processed.
How lenders view it. Lenders generally see restoration as an essential service with durable demand, backed by tangible equipment. Their concerns center on receivables timing, customer concentration among insurance-related work and property managers, and whether the owner can manage crews and documentation. A brand system with defined processes helps, but your own management plan carries a lot of weight.
DRYmedic Franchise Costs
The current FDD is the only reliable source for cost figures, so rely on it rather than secondhand summaries. Plan your budget around these categories.
Initial franchise fee and territory. Item 5 discloses the initial fee, how territory is defined and whether additional territory costs extra. Ask whether the franchisor offers reductions for veterans or other groups and confirm when payment is due.
Drying and remediation equipment. A restoration launch needs dehumidifiers, air movers, water extraction units, air scrubbers, moisture meters, thermal imaging cameras, hoses and containment supplies. Item 8 will show which items must come from approved suppliers.
Vehicles and trailers. A response truck or van, sometimes with a trailer, carries equipment to job sites and serves as rolling advertising.
Shop or warehouse space. Restoration businesses usually need space to store and clean equipment and, for contents work, to hold customers’ belongings. Expect a lease deposit, modest improvements and racking.
Training, technology and launch. Technician training and certification, job documentation software, insurance and launch marketing to property managers, agents and plumbers round out the budget.
Total investment. Item 7 combines these into a low-to-high range. Review it line by line:
- Initial franchise and territory fee
- Restoration and remediation equipment
- Response vehicle, trailer and wrap
- Lease deposit and shop improvements
- Opening supplies and chemicals
- Software, computers and phones
- Insurance, licenses and professional fees
- Training and certification costs
- Grand opening and launch marketing
- Additional funds for the initial operating period
Size your DRYmedic franchise loan to the full Item 7 range plus reserves, since receivables can absorb more cash than first-time owners expect.
Ongoing Fees and How They Affect Your Loan
Item 6 lists recurring fees such as royalties, brand fund contributions, technology and call center fees, required local marketing and training or transfer fees. In restoration, percentage royalties are paid on revenue that may not be collected for some time, so understand whether fees are calculated on billed or collected revenue.
Lenders subtract every recurring fee, along with crew wages, fuel, equipment upkeep and insurance, when measuring cash flow available for debt service. Show that you can meet these obligations while carrying a realistic receivables balance.
Franchisor Requirements for New Owners
Ask DRYmedic for its current minimum net worth and liquid capital, whether restoration or trade experience is required, whether the owner must be full-time and how quickly it expects you to hire technicians and add equipment. Many restoration franchisors accept owners from management or sales backgrounds and rely on training and experienced hires for technical work.
The approval process typically includes an application, FDD review, calls with current franchisees, discovery and franchisor approval.
Ways to Own a DRYmedic
A new territory. Most owners start new. Financing covers equipment, vehicle, shop and working capital. See our page on franchise start-up financing.
Buying an existing location. A resale brings equipment, trained staff, referral relationships and a receivables history. Lenders review the business’s financials and the age of its receivables. Our page on restoration business acquisition financing and our article on buying a franchise resale explain the process.
Conversion of an independent company. Ask the franchisor whether it accepts conversions of existing independent restoration companies. If so, financing often refinances existing debt and funds rebranding.
Financing Options for a DRYmedic Franchise
SBA 7(a) loans. The SBA 7(a) loan program can combine the franchise fee, equipment, vehicles, shop improvements and working capital in one loan with longer terms, which helps a new restoration business manage payments while receivables build.
SBA 504 loans. If you later buy a building for a warehouse and contents storage, SBA 504 loans are designed for owner-occupied real estate and long-lived fixed assets.
Conventional term loans. Experienced operators with strong liquidity may qualify for conventional business loans, particularly for expansion.
Equipment and vehicle financing. Dehumidifiers, air movers, extraction units and trucks can be financed with the equipment as collateral through franchise equipment financing and leasing, preserving cash for operations.
Working capital and lines of credit. Restoration owners pay crews and suppliers before insurance-related payments arrive, and a storm can bring a sudden surge of jobs. A line of credit absorbs those swings. See our page on restoration working capital and lines of credit and our article on managing restoration receivables.
Seller financing on resales. A selling owner may carry part of the price as a note. Seller notes are typically subordinate to the main loan, and SBA rules may limit their terms.
SBA Loans for DRYmedic Franchisees
SBA loans are made by approved lenders, with the SBA backing a portion of each loan. The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. DRYmedic appears on the SBA Franchise Directory under code S8611, and the listing carries no additional note, so no special addendum or document requirement is flagged for this brand beyond the standard review.
A listing confirms the franchise relationship is eligible, not that your loan is approved. You still need to qualify on credit, equity injection, collateral and repayment capacity. The SBA 7(a) program maximum is currently $5 million (program rules can change).
SBA application tips. Provide the FDD, equipment quotes, your lease or letter of intent for shop space, a resume, personal financial statements and a projection that models the gap between job completion and payment. Use our SBA loan calculator to test payments at different loan sizes.
How Lenders Evaluate a DRYmedic Deal
Personal credit and financial history. Clean credit and a record of meeting obligations matter, especially since early cash flow is uneven.
Net worth and liquidity. Lenders want cash for the equity injection plus reserves, because restoration revenue can arrive well after the work is done.
Experience. Restoration, construction, insurance, property management or team leadership experience all help. Lenders want to know who will run jobs and who will manage documentation and collections.
Business plan and projections. Base projections on realistic job counts, average job size by loss type, referral sources, crew capacity and collection timing. Show what happens if a storm doubles volume or a quiet season halves it.
The FDD and franchise agreement. Lenders review Item 17 term, renewal and transfer conditions, Item 8 supplier rules, Item 10 for franchisor financing and whether Item 19 includes financial performance representations. Our article on reading an FDD for financing explains what they look for.
Shop lease. Lenders review lease length, cost and whether it covers the loan term.
Historical financials on resales. Expect to provide tax returns, profit and loss statements, a receivables aging report, an equipment list and referral source details.
Equipment and Receivables: The Restoration Deep Dive
Restoration equipment is portable and widely used across the industry, which gives it collateral value. Drying equipment also wears with heavy use, so plan to replace units over time and track utilization to show when added equipment pays for itself.
Receivables are the other half of the story. Jobs paid through insurance claims require detailed documentation, and payment may follow adjuster review. Owners who keep moisture logs, photos and estimates organized tend to collect faster. Lenders often ask how you will manage collections and may size working capital lines to your receivables.
Multi-Unit Growth and Development Agreements
Restoration owners often grow by adding crews, equipment and territory around a single shop rather than opening separate locations. Lenders want to see the first territory’s collections stable before financing added territory. If you sign for multiple territories, review any development schedule and match it to realistic hiring and equipment plans.
Real-World Scenarios
The construction manager. A former construction project manager buys a new territory with an SBA 7(a) loan and finances the response truck separately. Rebuild experience strengthens the application.
The insurance professional. A former claims professional opens a territory. Lenders view the borrower’s knowledge of claims documentation as a plus for collections.
The resale buyer. A buyer acquires an established location with trained crews and a receivables history. The lender reviews the aging report and sizes a working capital line alongside the acquisition loan.
The independent converter. An independent restoration owner asks about converting to the brand and refinances equipment debt as part of the transition, if the franchisor allows conversions.
Common Mistakes to Avoid
- Underestimating how long insurance-related receivables take to collect
- Buying too little equipment to handle a storm surge, or too much before demand exists
- Skipping a working capital line until cash is already tight
- Weak job documentation that slows payment
- Signing a shop lease that is too large or too short
- Relying on secondhand cost figures instead of the current FDD
Our article on restoration company loan mistakes covers more.
Next Steps to Finance Your DRYmedic Franchise
Step 1: Request the FDD. Note the Item 5, 6, 7 and 8 details.
Step 2: Review your finances. Check credit, list liquid assets and prepare a personal financial statement.
Step 3: Talk to franchisees. Ask about collection timing, equipment needs and hiring.
Step 4: Line up space and equipment quotes. Get a lease proposal and equipment pricing.
Step 5: Build projections. Model jobs, receivables, fees and debt payments month by month.
Step 6: Choose a structure and apply. Combine SBA, equipment and working capital financing to fit your plan.
DRYmedic Franchise Loan FAQs
How much does a DRYmedic franchise cost?
The total investment range appears in Item 7 of the current FDD, including the fee, equipment, vehicle, shop and working capital.
What is the DRYmedic franchise fee?
Item 5 of the FDD discloses the initial fee and territory terms. Ask about any veteran or other discounts.
What royalty does DRYmedic charge?
Royalties and other recurring fees are disclosed in Item 6. Confirm how each is calculated.
Do I need restoration experience?
Ask the franchisor. Lenders value related experience but also look at management ability and your hiring plan.
Is DRYmedic eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8611 with no special note. Your loan still requires approval.
Can I finance restoration equipment separately?
Yes. Drying equipment, extraction units and vehicles can often be financed with the equipment as collateral.
Why do restoration franchises need so much working capital?
Crews and suppliers are paid before many insurance-related jobs are collected, so cash is tied up in receivables.
Can I buy an existing DRYmedic location?
Yes, when one is available. Lenders review its financials and receivables, and the franchisor must approve the transfer.
Does DRYmedic offer financing?
Check Item 10 of the FDD for any franchisor financing.
What documents do I need for a DRYmedic franchise loan?
Tax returns, a personal financial statement, a resume, the FDD, equipment quotes, a lease proposal and projections.
Final Thoughts
A DRYmedic territory combines collateral-friendly equipment with event-driven, insurance-influenced cash flow. A well-structured DRYmedic franchise loan finances the equipment on suitable terms, covers start-up costs and builds in enough working capital to carry receivables and absorb storm surges.
US Professional Funding helps franchise buyers structure SBA, conventional, equipment and working capital loans. Learn more about our franchise financing solutions and our restoration, remediation and cleaning business financing.
