Paul Davis Restoration
Paul Davis Restoration specializes in property restoration services including fire and water damage repair. Known for quick response times and comprehensive restoration solutions, it operates in the disaster recovery and remediation sector.
Paul Davis Restoration franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operating a PDRI franchise ranges from $298,800 to $804,900. This includes a franchise fee and other necessary expenses such as training fees and equipment costs [p.3, p.247, p.26].
What is the initial franchise fee?
The initial franchise fee is based on the population of the franchised territory at a rate of $0.26 per person, with no maximum specified for smaller territories. For a standard size franchise covering approximately 500,000 people, the greater of $50,000 or 50% of the initial franchise fee is due upon signing the Franchise Agreement, and the balance can be financed over four years at an APR of 7%. [p.15, p.26, p.33]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of monthly Gross Sales, as detailed on [p.152]. Advertising fund contributions from franchisees are reported as revenue when related franchisee revenues occur, while expenditures are recorded as expenses when incurred, potentially leading to differences in reporting periods as explained on [p.105] and [p.129].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit a transfer of ownership of a franchise except for good cause [p.222]. Good cause includes but is not limited to unspecified factors. Additionally, there are fees associated with transferring your franchise: a 2.5% sale price fee (not exceeding $40,000) and a transfer fee of $10,000 for a majority transfer or $5,000 for a minority transfer [p.24]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.227]. Additionally, the franchisor may terminate a franchise prior to expiration for good cause, such as failure to comply with lawful provisions of the franchise agreement and not curing such failure within a reasonable time frame [p.221].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, PDRI's affiliates, or other channels of distribution and competitive brands that PDRI controls [p.43]. Additionally, PDRI can assign regional or national account programs to other franchisees if you do not participate or qualify for them [p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides creative advertising, promotional items, collateral, and marketing support and coaching. You will have access to a CRM marketing portal where you can manage customer contacts, customize e-mail campaigns, print marketing materials, and more. Additionally, PDRI offers collaborative work on approved vendors for optimizing digital properties during the first two years of operating a new or resale franchise. [p.41]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor shares historical financial performance data about its existing United States outlets in Tables 1-4, which show actual gross sales from operating franchises. However, this information does not reflect costs and expenses that must be deducted to determine net income. [p.52, p.70]
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling certain items; however, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than purchasing elsewhere [p.5]. This isn't specified in the excerpts regarding where you must buy supplies for sales.