Paul Davis Restoration Franchise Costs, Fees & FDD

Year Business Began: 1966

Franchising Since: 1970

Headquarters: Jacksonville, Florida

Estimated Number of Units: 315

Franchise Description: Paul Davis Restoration, Inc. (PDRI), the franchisor, licenses franchise rights to use its trade name, logo, operations manual, business systems and computer programs for the operation of a general contracting business specializing in structural reconstruction and emergency services, including drying, cleaning, loss mitigation and mold remediation, primarily in the insurance restoration market. The basic reconstruction and emergency services provided under the name “Paul Davis Restoration” are promoted to the insurance restoration markets and the general partner.
Training Overview: The initial training program is mandatory for each new franchisee (including resales of existing franchises), regardless of the population size of the territory. Before franchisees begin operations, they must complete the classroom training to the satisfaction of the franchisor. Some of the classroom training is completed online. In addition, franchisees must satisfactorily complete the on-site field training program and the franchisee’s Job Cost Accountant (JCA) must satisfactorily complete the web streaming or on-site job cost accountant training program, which will take place prior to and after the franchisee begins operations. The training program is conducted via online courses, onsite field training and classroom training. All classroom training takes place at PDRI’s Jacksonville, Florida headquarters, at another suitable facility in Jacksonville, Florida, or at such other location selected by the franchisor. Although the franchisor does not currently require recertification training, it reserves the right to implement such a program upon 60 days’ notice.

Territory Granted: Franchisees conduct their franchise operations within a specific franchise territory described in the Franchise Agreement. While the franchisor does not establish a minimum size for any territory, most territories are between 500,000 and 800,000 in population. The size and configuration of the franchise territory is based on population density, geographic location and other factors. The territory will be identified using zip code boundaries, which are subject to change. The size of the franchise territory is determined by franchisees and PDRI before they sign the Franchise Agreement. Franchisees will not receive an exclusive territory. The franchisee’s office must be located in the franchise territory.

Obligations and Restrictions: Either the individual franchise owner or a designated representative, who must be approved by PDRI, must personally participate in franchise operations. The designated representative of each franchise must have completed the full training program and manage the franchise on a full-time basis. The designated operator cannot have an interest in or business relationship with any competitor of the franchisor or its franchisees and he or she must sign an agreement to maintain confidentiality of the trade secrets described and to abide by the covenants not to compete. The Franchise Agreement limits the goods or services which franchisees may sell to those offered in the franchise system. Franchisees must offer all services that the franchisor designates as required in the Franchise Agreement. If the General Council of the franchise establishes new services, franchisees must offer them.

Term of Agreement and Renewal: The length of the initial franchise term is five years. Renewal is for an additional five years if requirements are met.

Financial Assistance: The franchisor offers financing for up to 50% of the amount of the initial franchise fee, or up to 67% of the reduced initial franchise fee for qualified veterans, with the remainder of the fee paid in cash. Financing will be extended for a four-year period at an APR of 7%. The franchisor does not arrange financing from other sources. Commercial paper from franchisees has not been and is not sold or assigned to anyone, and the franchisor has no plans to do so. The franchisor does not receive direct or indirect payments for placing financing. The franchisor does not guarantee a franchisee’s obligations to third parties.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee*	$65,000	$208,000
Real Property and Improvements	$1,800	$6,000
Marketing and Advertising	$12,000	$72,000
Equipment, Computer, Fax Copier	$13,000	$30,000
Computer Software Licensing	$7,000	$12,000
Office Furniture	$2,000	$6,000
Branded or Complaint Vehicle	$10,000	$121,000
Equipment & Chemical Package (Start-Up Kit)	$5,000	$54,000
Travel and Living Expenses While Training	$5,000	$7,500
Insurance	$20,500	$63,500
Licensing	Varies
Phone Installation and Utility Deposits	$1,000	$2,900
Rent Deposit	$5,000	$18,000
CPA Fees – Initial Work	$1,000	$2,200
Legal Fees – Incorporation	$500	$1,800
Additional Funds – First 3 Months	$150,000	$200,000
ESTIMATED TOTAL	$298,800	$804,900

*$0.26 per person up. The maximum population of a single franchise unit is 800,000.

Other Fees

Type of Fee	Amount
Royalty Fee	4% of gross sales.
Minimum Royalty	Annual minimum sales rate (varies per year of agreement) multiplied by the population in the territory multiplied by the 4% royalty rate.
Guarantee Fund Contribution	0.5% (1% in the case of a resale of an existing franchise) of gross sales until the fund balance equals $25,000 for the first 500,000 of population within the territory and an additional $2,000 for each additional 100,000 or portion thereof above 500,000, or such greater amount as may be established by Completion Services, Inc. (a corporation owned by all franchisees).
Indemnity Fund Fee	Varies from 0.04% to 0.10%, depending on gross sales.
Computer Software Support Fee	$75 per month.
Additional Training Fee	$8,000 per additional person for PDRI Full Owner School.
Call Center Fee (Lead Dispatch Fees)	$38 - $70 monthly.
Call Center Fee (AnswerNet Monthly Fee)	Actual cost per call plus a 20% administrative charge.
Call Center Fee (AnswerNet Usage Fees)	$1.10 per call plus $.02 per minute transfer rate.
QA Assist/Validate	$15.75 per claim/loss.
ProAssist/Engage	$50 per month.
Joint Quality Business Review	$50 per month.
Renewal Fee	$5,000
Transfer Fee	$10,000 (for majority transfer) or $5,000 (for minority transfer), plus a re-sale fee equal to 2.5% of the sale price to cover PDRI’s due diligence expenses and vetting fees, as applicable.
Strategic Marketing Plan Fee	$500 per month plus 0.75% of invoiced sales subject to an annually CPI adjusted SMP sales cap as described in the operations manual. Such calculation may be subject to change.
Bankruptcy Costs and Attorneys’ Fees	As incurred.
Promissory Note Collection Costs and Attorneys’ Fees	As incurred.
Re-certification Training	The then-current re-certification training fee.
Program Account Review Fee	Actual cost per call plus a 20% administrative charge.
Optional Program Fees	Per the program. Commercial program is currently 5% of the job. FAST Central Estimating for mitigation is currently 1% of the job.
Xactimate Software License Fee	Basic/Standard: Up to $105 per license; Pro: $149.10/license. All license fees include tax and 2% administrative fee. A Xactanalysis per claim fee may be charged up to $9.00 per assignment.
Symbility Software Fee	Per claim fee of $15.75.
Microsoft 365 Software License Fee	Varies. Franchisees are charged for each individual Microsoft license.
Quickbooks Software License Fee	QB On Line with 5 available users – monthly fee per current pricing.
New Franchisee Training at Resale	Varies.
Dishonored Check and EFT Denial Fee	$100 per dishonored check or electronic funds transfer denial.
Mitigate Software	Up to $100 per month. A per-claim charge may apply for some carriers.
Common Software Fee - RMS	For a primary office: $525/month. For a secondary office there will be a monthly fee of $300.
Convention Registration Fee	Up to $1,000.

The above information has been compiled from the FDD of Paul Davis Restoration. Year of FDD: 2025.
Franchise Direct's Disclaimer