rooted phone and factory reset/wipe

Lucas5

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i'm not having ANY trouble with my Droid but i'm asking this out of curiosity:
would the factory reset/wipe from the recovery menu wipe out everything including the fact that my phone is(was) rooted?
As a side question: would the verizon store reps really be able to tell if you rooted your phone? if/when they failed to notice that your phone is rooted and gave you a replacement phone for your defective one than who cares at that point. Right?
My Droid is fine, but I would like to be prepared if I ever need to have it serviced. I do have the extra phone insurance on it.
 
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