Storm Guard – Exterior Restoration

Lance Hood: Hi, this is Lance Hood with ARC Franchising.com and today I want to introduce you to storm guard storm guard as a full time executive franchise model that does exterior restoration for homes and businesses. Our guest speakers is David Hines. He's a representative for StormGuard. David, thanks for joining us.

David Hines: Thanks. I'm happy to be here.

Lance Hood: David, what brought you to working with StormGuard?

David Hines: So the company that I work for is called Rhino7 and we specialize in franchise sales and development. And when, when we were first introduced the StormGuard, we were very intrigued just because we had never really never really kind of heard about or known about a business that actually did what storm guard does. So it was a very, very niche business, but the opportunity and the industry was one that was very strong. Um, and there's definitely a need for it. So we realized the storm guard actually, um, had a superior business model and they had a lot of experience and it was a very strong business model throughought. Um, so we made the decision to partner with them and actually help them to expand their franchising.

Lance Hood: From your experience, why do most people go into franchising?

David Hines: I would say that the biggest factor is that people, there's a lot less risk with someone owning a franchise than there is with them trying to start their own business. If they tried to start their own business, they'd have to go through all the ups and downs. And the statistics show that the success rate of new startup businesses is actually actually quite low. So with the franchise, this is a business that has the, has someone, um, and it's already gone through the ups and downs and they've actually established the business model the other people can follow to be successful. Um, so I think the biggest thing is that there's much less of a risk factor with joining a franchisor and it's going to be a proven business model.

Lance Hood: Why should people consider the home improvement industry?

David Hines: So with home improvement. it's definitely one that is always going to be there and what StormGuard does. So they actually focus on exterior restoration for both, for homes and businesses and storms are always going to happen regardless of what the economy's doing. The US continues to be struck by natural disasters and um, insurance companies have actually paid out quite billions and billions of dollars, um, for thunder storm damage alone. So there's always gonna be a need for that and storms will never go away. So there's always going to be a need for a company like storm guard

Lance Hood: So what exactly does StormGuard do and what makes it unique?

David Hines: Yeah. So StormGuard, they focus on exterior insurance restoration for both homes and businesses. So they actually will work with homeowners and businesses to, um, they work with their insurance companies to help them repair any type of damage that was caused by a storm on the outside of a house. So they work with roofing, siding, windows, gutters, and painting. There's a sales team that's part of the business and they'll actually go out to homeowners and offer them a free inspection where they're going to spend about 10 to 15 minutes looking for storm damage. And when they find that damage, they'll sit down with the homeowner and call their insurance company to file a claim and then if the insurance company does approve the claim, they actually walk the home owner throughout the entire process as far as how the insurance company is going to work with them and take them through the step by step process. And then there's a production team that actually goes in and we'll um, so contractors will actually be the ones performing, performing the labor and doing the actual work. So StormGuard is basically going to be helping homeowners to repair any type of damage that was done by a storm while working with their insurance company.

Lance Hood: So the nice thing is, is you're not having to go out and do cold calls and sales not knowing because these are people who actually have storm damage. And you said you guys have a unique way of going right to the areas where there is storm damage.

David Hines: Yes, that's correct. Yeah. So strong guard actually has weather tracking software and that allows them to look at any storm that's come through an area and they can see for any particular storm where the highest winds were or if it was a hail storm where the largest hail was and that lets them focus on the specific areas within their territory that were hardest hit by that storm. So they always have a target area to focus on for each particular storm that's come through. So in addition to working those past storms, they can also work any current storms that come through and that really makes the business very consistent. There's never gonna be any waiting around time because they can always go back and work the damage that was caused by those past storms.

Lance Hood: Right. So you have an action plan to follow. I like that. And these seem to be very, um, high dollar transactions, but yet they're paid by insurance, not the actual customer. That was a customer paying their deductible, right? That's it.

David Hines: Yes, that's correct. So whenever an insurance company does approve a claim, the homeowner is going to pay their insurance deductible. And then the insurance company will cover the rest of the cost to repair or replace whatever part of the outside of a home that was damaged.

Lance Hood: So, how big is the need for this? How much is spent in the US or whatever on this type of service?

David Hines: Yeah. So we actually had, um, that the insurance companies paid out more than $14,000,000,000 recently for thunder storm damage alone. Um, and that was for a full year. So there's definitely a humongous need for this because most people don't realize that even a thunderstorm that has some high winds, is going to be able to cause a lot of damage, but they don't necessarily don't know the damage because people don't actually go and look at their roof after a storm. So storm guard, you know, kind of fills that need for them and people are very open to having them look for damage, especially if it's, um, there's a chance that it can be approved and paid for by their insurance company.

Lance Hood: You know I've had a service like this come through. And we had a freak hailstorm here. And um, we had baseball sized hail hit the roof and we ended up is like a $20,000 job and then it demolished our cars, but it was like, that was like a big deal and that wasn't even like gutter and paint. That was just the roof. So I could see that it's useful. It's needed, it's constant, you know, right. Where to go and it's a high ticket item and you're not having to do the labor, you hire it out through contractors that are experienced and capable, right?

David Hines: Yes. There's going to be a production manager is the power of the storm guard team and what they're going to do is manage all of the current jobs going on and they do manage those subcontractors. So all of the subcontractors will be doing the labor and yes, they're going to be independent contractors that are not going to be on the franchisee's payroll.

Lance Hood: 'Cause I can see some people going, well I don't know if I want to do roof work or anything, but uh, that's not really what you're looking for. You're really looking for executives, managers, people who can watch the book, maybe do a little bit of sales and marketing or... What are the roles that people are responsible for?

David Hines: Yes, that's correct. Yeah. So first and foremost, we all looking for someone that is ready to do this full time. Um, our franchisees are working everyday in the business, spending about 40 to 50 hours a week and what they're mainly doing is I'm managing the employees and the salespeople, so they're going to develop a team and then manage those managers. So they're acting more as a CEO of the business. And we like to say that our owners work on the business, not in it. So they're, so they're actually not, not going out there giving the inspection.So they're going to be more operating as a CEO role. Just managing that team of managers that are out there implementing the business. We look for someone who has good management skills and also a driver type personality. Um, most of our franchisees have actually come from corporate America where they were in management roles and a lot of them are used to managing a team and keeping that team motivated and those are skills that are going to transfer over and be very useful to them as a StormGuard Franchisee.

Lance Hood: What are some of the typical questions that people have when they're looking at franchising was StormGuard.

David Hines: Yeah. So a lot of people will say that, um, roofing, siding, windows and gutters doesn't sound too sexy. And what we say that is that what someone was looking for is that they're looking to grow and scale a business and that's exactly what StormGuard does. Um, it's a very, very profitable business and it's going to be pretty easy to learn once they get the hang of it. So basically the sexiness comes from the economics of the business and just how much someone can earn from actually being a StormGuard Franchisee.

Lance Hood: What are all the ways that the franchisees can make money?

David Hines: Yeah. So the main way they're making money is of course going out there and actually doing jobs. They can do roofing jobs, siding, windows, gutters and painting, and that's all the ways that they actually work with insurance companies to do the exterior restoration. But in addition, they can also do non-insurance restoration and general construction work. An example of that would be if they help someone to get a new roof, those damaged by a storm and they work with that person's insurance company, but down the line, that same homeowner, they might need to have their siding or windows replaced from general wear and tear. That will be a job that StormGuard can come and do and replace their siding. And that would be an example of a non-insurance job. And then, um, in addition to working with the homeowners, the franchisees are also able to work with businesses that are in their territory. So that can be any office building office park. An example of a bigger job would be working with an apartment complex. So there are a couple ways, um, a couple of different revenue streams that they have.

Lance Hood: What's the ramp up time?

David Hines: Yes, I'd say the ramp up time, it can be fairly quick. Um, a lot of our franchisees are actually making money in their very first year and what's actually shown in the item 19 of the FDB is that we have some franchisees making a net income of $700,000. So this has the potential to be a very, very high income earning business. And the average Franchisee is actually showing the average franchisee that's been open between one and two years is showing a net income of $179,000. So this is a very quick ramp up and now I would say part of that is because the average job is going to be about 10,000 to $12,000. So these are big ticket jobs and they can add up very quickly.

Lance Hood: I just want to reiterate that you said that the average person on thr item 19 makes about 100 and what thousand per year?

David Hines: Yes. Yes. So the average Franchisee that's actually been open for one to two years is going to show a net income of $179,000.

Lance Hood: But you have some people that are making $750,000 net.

David Hines: Yeah, that's right. Yeah. So we do have some franchisees, it also shows in the item 19 they're actually making a net income of $700,000.

Lance Hood: That's incredible. Do you have any stories about people who opened up a storm guard and they're kind of ramp up time and, and their experience?

David Hines: Yeah, I'd say that with a couple of the franchisees, um, they're able to ramp up much, you know, I'm pretty quicker and faster than norm, so I mean they were actually able to make a very good income in their very first year. Um, it actually, it actually reached, um, six, six digits, so they're making $100,000 in their very first year of business. Um, so that just kinda shows that if you get the right person, the right fit, as far as the Franchisee goes, they can be very successful very quickly.

Lance Hood: It looks like this could be a great opportunity for the right person. And I just want to say if you're listening right now and you're genuinely committed to getting a franchise, let's make sure that you get the right one. I'd like to talk to you possibly about StormGuard or any other franchise. There's no charge for my services. Uh, you can reach me at 888-627-2776, or schedule a time to speak at speakwithlance.com.

David Hines: Yeah. So now I'd just like to add that I do highly recommend that you contact lands with any questions that you might have about StormGuard or any other franchise. Franchising can be very profitable, but you need a guide to actually help you make the best decision. And I highly recommend Lance Hood. He's very professional, he's very knowledgeable and he will definitely steer you in the right direction and take the time to actually understand what you're looking for and he'll definitely help you make the right decision.

Lance Hood: Thank you, David. If anybody's listening, I'd love to speak with you. Thanks again and talk to you soon.

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Public Description from Franchisor

Storm Guard is the nation’s 1st exterior restoration franchise company. Storm Guard has assisted over 11,000 customers with replacement of roofing, siding, window and gutter projects resulting from hail or wind damage. Our work is done at the cost of the insurance industry, not the customers themselves. Our program only requires customers to pay their insurance deductible for our services and nothing more. We negotiate the total job costs with our customer’s insurance carrier and then complete the scope of work. Storm Guard also does non-insurance paid general construction as well.

Unlike fire and flood restoration companies specializing in interior restoration, Storm Guard focuses not just on the removal of damaged items but in the actual replacing of materials and products to the homes/businesses exterior. This is an emerging area for the hugely popular restoration category and is the first of its kind.

Storm Guard is proud to be the Nation’s First Exterior Restoration Franchise. Storm Guard offers franchisees innovative and sophisticated methods to develop a large and successful residential exterior restoration business. The Storm Guard business model combines simple business fundamentals with solid systems, the latest in weather technology and an unprecedented support infrastructure, driving towards tremendous income potential.

Things to know:

• No Construction Experience preferred or needed (Management skills and/or Sales Management wanted)
• Executive Business Model (Manage managers that implement the business)
• Small office needed (1,500 sq. feet); Flex space (office/small warehouse)
• Exterior Business & Residential Insurance and Non-Insurance Restoration and Construction Business Roofing, Siding, Windows, Gutters and Painting Insurance and Non-Insurance Restoration
• Multi-territory available (single, 2 and 3 packs)
• Insurance companies in 2017, paid out more than $14 billion for thunderstorm damage alone
• Ranked #108 in the Top 500 Franchisors by Entrepreneur Magazine

Points of Interest

The hook for our concept is the fact that we are the first in this category and in the Nation. Our direct sales strategies make Storm Guard a force to be dealt with. Our franchisee validation and Item 19 prove it!

• No National franchised competition! Storm Guard is the pioneer of this new niche in exterior insurance restoration. With this newness come great opportunity to franchisees or pioneers as well call them to grow with a proven system.15-year track record
• Sophisticated back office system that provides real time information to the franchisee. Franchisees can see their profitability and jobs in production live from any internet connection (i.e. Smart Phones, Tablets, Laptops) from anywhere.
• Highly experienced support staff
• Exceptional marketing and design team that create eye-catching “call to action” material.
• Each franchisee will have an individual micro website and local branding campaign that they can personalize, built for them by our marketing professionals.
• Rhino 7 Franchise Development Corporation’s 20 years of franchisors development experience.

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