Paul Davis Restoration Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$298,800 - $804,900
Franchise Fee
$17,148
Min Cash Required
$500,000
Total US Locations
266
Business Summary
Paul Davis Restoration is a general contracting business that grants franchises to operate in structural reconstruction and emergency services. This includes drying, cleaning, loss mitigation, and mold remediation for both homes and businesses. The services provided under the Paul Davis Restoration brand are primarily targeted at the insurance restoration market and the general public, and can also include catastrophe response and remodeling services.
Corporate History
Paul Davis Restoration, Inc. was incorporated in Florida in 1967, originally operating as Paul W. Davis Systems, Inc. and specializing in insurance restoration structural renovation. In January 1970, Paul Davis Restoration launched its first two franchises. The company changed its corporate name to Paul Davis Restoration, Inc. and adopted the Paul Davis Restoration® trade name in 2000. In 2009, Paul Davis Restoration expanded its offerings by beginning to franchise emergency services businesses. Since 2015, an affiliate, PDO Holdings, Inc., has been acquiring majority ownership in some Paul Davis Restoration franchises, and in 2020, Paul Davis Commercial Division, Inc. was formed to develop and provide services to commercial restoration customers.
Financial Overview
Investment Range
$298,800 - $804,900
Franchise Fee (Low)
$17,148
Franchise Fee (High)
$208,000
Minimum Cash Required
$500,000
Royalty %
4%
Marketing %
0.75%
Equipment Costs (Low)
$30,000
Equipment Costs (High)
$211,000
Working Capital
$175,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
FS Brands, Inc., the parent company for Paul Davis Restoration, Inc., demonstrates a strong and improving financial position. The company has healthy and increasing cash and cash equivalents, totaling $81,752,083 in 2024. Working capital is robust and growing, from $61,208,045 in 2023 to $88,549,437 in 2024. Paul Davis Restoration, Inc. also consistently generates positive and increasing net income, reporting $60,104,259 in 2024. The independent auditors have issued an unqualified opinion on the consolidated financial statements for 2023 and 2024, indicating no significant financial concerns or impairment of goodwill.
Financing Details
Paul Davis Restoration, Inc. offers financing for a portion of the initial franchise fee. Franchisees can finance up to 50% of the initial franchise fee, or up to 67% for qualified veterans under the VetFran Program. The financed amount is repaid over a 4-year period at an annual percentage rate (APR) of 7%. The remaining portion of the initial franchise fee must be paid in cash. Paul Davis Restoration, Inc. does not arrange financing from other sources and does not guarantee franchisee obligations to third parties.
Performance Metrics
Total US Locations
266
Franchised Units
266
Corporate Units
0
Avg Square Footage
11,000
Franchising Since
1970
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Paul Davis Restoration has no pending litigation to report. The company has one concluded litigation case: Alphonso Smith, Jasper Edwards, Glenn Johnson and Russell Warmouth v. Paul Davis Restoration, Paul Davis Restoration of Bloomington/Peoria; Gorsac, LLC, P & D Construction, Inc., Chris McConnell and Paul Davis Restoration, Inc. This was a negligence claim filed in 2013, alleging that Paul Davis Restoration and one of its franchisees did not provide a safe work environment for temporary workers on a job site contaminated by a fungus. The case was settled on November 25, 2015, with Paul Davis Restoration contributing $20,000 towards full releases, without admitting any wrongdoing.
Bankruptcy History
Paul Davis Restoration has no bankruptcy history to report for the franchisor, its predecessors, or its executive officers.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their agreement, Paul Davis Restoration franchisees must provide written notice of their intent to renew or not renew at least 90 days, but not more than 180 days, before the agreement expires. They must be in substantial compliance with the agreement terms throughout the initial term and be current on all payments. Franchisees must also meet minimum sales requirements for the two years prior to renewal, achieving either the national median sales amount for Paul Davis Restoration offices or $6.00 times the net population of their territory, and have met their Minimum Royalty obligations for at least four of the preceding five years. Additionally, franchisees must upgrade their computer hardware and other equipment to meet current brand standards and sign Paul Davis Restoration, Inc.'s then-current franchise agreement, which may have materially different terms. A renewal fee of $5,000 is also required upon signing the new agreement. Failure to renew within 90 days of presentation may be considered a termination by the franchisee.
Training & Support Program
Franchisor Assistance
Paul Davis Restoration, Inc. provides extensive support to its franchisees. Before opening, the company helps designate the franchise territory, provides access to the Common Software system, and offers an initial printing and marketing supplies package. Franchisees are assigned to a District Council and receive a dedicated website. Initial training includes online modules, classroom instruction in Jacksonville, FL, and on-site field training. Post-opening, Paul Davis Restoration, Inc. provides up to 40 man-hours of field training at the franchisee's location, covering operations, marketing, and financial aspects, including job cost accounting. During the initial 8 weeks of operation, Paul Davis Restoration, Inc. may review and approve estimates or require the use of their FAST program. Franchisees also gain access to the electronic Operations Manual, ongoing advertising creative, promotional items, collateral, marketing coaching, and a CRM marketing portal. The company also facilitates a Strategic Marketing Plan.
Initial Training Hours
330
Training Location
Jacksonville, FL
Ongoing Support
Paul Davis Restoration, Inc. provides ongoing support to its franchisees through various channels. This includes field training administered at the franchisee's place of business for up to 40 man-hours, and a job cost accounting trainer who provides up to 32 hours of training via computer streaming or on-site visits. During the initial 8 weeks of operation, and at Paul Davis Restoration, Inc.'s discretion thereafter, the company may review and approve franchisee estimates. Franchisees have access to an electronic Operations Manual for operational standards and procedures. The Strategic Marketing Plan supports advertising, marketing, coaching, and a CRM marketing portal for managing contacts and campaigns. There's a monthly Joint Quality Business Review fee, and Paul Davis Restoration, Inc. may provide personal consultation, advisory, and supervisory services for a fee. The company also covers the annual costs associated with the Common Software (RMS), which includes program support.
Franchise Requirements
Ideal Candidate Profile
Paul Davis Restoration, Inc. seeks committed individuals, including qualified veterans, who are prepared for full-time, hands-on participation in their franchise operations. Franchisees need to meet financial requirements and either have, or acquire through Paul Davis Restoration, Inc.'s comprehensive training, the necessary skills for structural reconstruction, emergency services, and general contracting. While an owner can initially perform roles like General Manager or Restoration Project Supervisor, they must be ready to manage a team that includes a full-time Mitigation Technician, a trained Job Cost Accountant, and, eventually, a dedicated Business Development professional.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
4
Territory Size Requirements
Paul Davis Restoration territories are typically defined by zip code boundaries and usually encompass a population between 500,000 and 800,000. The specific size and configuration also consider population density and geographic location.
Staffing Notes
Paul Davis Restoration, Inc. requires franchisees to employ a full-time General Manager, who must have training or experience equivalent to the new owner training program. The owner can fulfill either the General Manager or Restoration Project Supervisor (RPS) role until the business grows enough to hire for these positions. A full-time Mitigation Technician and a trained Job Cost Accountant (JCA) must be onboard before the franchise opens. After one year of operation, Paul Davis Restoration, Inc. suggests employing a dedicated Business Development professional. All employees and agents of the franchisee are solely under the franchisee's control, and the franchisee is responsible for all employment decisions and compliance with labor laws.