Rainbow Restoration franchise cost: investment, fees and the SBA default rate

Items 5, 6 and 7 · Rainbow Restoration FDD 2026 · Updated 2026

A Rainbow Restoration franchise costs $185,336–$351,900 in total initial investment, according to Item 7 of the brand's FDD (2026). Rainbow Restoration's license fee is 6% of Gross Sales in the first year, then 3% to 8% set by the prior year's sales; minimum license fees also apply. On the lending side, Rainbow Restoration franchisees defaulted on 28.3% of SBA 7(a) loans approved FY2010–FY2019 (15 of 53), and the average SBA loan to a Rainbow Restoration franchisee in that cohort was $307,751.

How much does it cost to open a Rainbow Restoration franchise?

Item 7 of the FDD estimates the total initial investment at $185,336–$351,900. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Covers the minimum 200,000-population territory; fees for additional territory, charged at $400 per 1,000 population, are not included.

What does the SBA data add?

The federal loan record adds what the FDD cannot: Rainbow Restoration franchisees defaulted on 28.3% of SBA 7(a) loans approved FY2010–FY2019 (15 of 53 resolved loans), against the Residential Remodelers industry average of 12.9%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 81 new SBA loans, of which 9 have already charged off.

Set the investment range against the loans: an average SBA loan of $307,751 against the $185,336–$351,900 investment range says roughly how much of a typical Rainbow Restoration opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.

Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.