Paul Davis Restoration Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Paul Davis Restoration is a property-restoration franchise handling water, fire, mold, and storm damage cleanup and repair. Franchisees run field crews on insurance-driven mitigation and reconstruction jobs in a territory.
FranchiseVerdict summary · 2026
A Paul Davis Restoration franchise requires a total initial investment of $299K – $805K, including a $65K – $208K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $4.8M[2]. SBA 7(a) loans show a 8.9% charge-off rate across 178 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $299K – $805K
- 79th pct Cleaning & Ma…
- Avg gross sales
- $4.8M
- 39th pct Cleaning & Ma…
- Royalty
- 4.0%
- 1st pct Cleaning & Ma…
- Units
- 277
- 77th pct Cleaning & Ma…
- SBA charge-off
- 8.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $299K – $805K including a $65K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $4.8M/year (median $3.0M).
- RISKVerdict A (Strongest tier), verdict score 98/100 (higher is better). SBA loan charge-off rate of 8.9% across 178 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Paul Davis Restoration, Inc.
- Parent company
- FSB Holdings, Inc.
- Ultimate parent
- FirstService Corporation
- Predecessor
- Paul W. Davis Systems, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer, President, Secretary, Treasurer and Director
- Brian M. McDonough
- Incorporated in
- Florida
- HQ
- 7251 Salisbury Road, Suite 6, Jacksonville, FL 32256
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $888.6M
- vs $850.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- of PDRI
- Paul Davis Commercial Division
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Brian M. McDonough
- Headquarters
- FL
- Founded
- 1967
- FDD year
- 2026
- States available
- 43
Can you afford it, and what does the money buy?
Entry cost runs 76% above the typical cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $65K | $208K | |
| Real Property and Improvements | $2K | $6K | |
| Marketing and Advertising | $12K | $72K | |
| Equipment, Computer, Copier | $13K | $30K | |
| Computer Software Licensing | $7K | $12K | |
| Office Furniture | $2K | $6K | |
| Branded or Compliant Vehicle | $10K | $121K | |
| Equipment & Chemical Package (Start-Up Kit) | $5K | $54K | |
| Travel and Living Expenses While Training | $5K | $8K | |
| Insurance | $21K | $64K | |
| Licensing | — | — | |
| Phone Installation and Utility Deposits | $1K | $3K | |
| Rent Deposit | $5K | $18K | |
| CPA Fees - Initial Work | $1K | $2K | |
| Legal Fees - Incorporation | $500 | $2K | |
| Additional Funds, working capital - First 3 Months | $150K | $200K | |
| Total initial investment | $299K | $805K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $299K – $805K
- Bottom third — review vs category
- Liquid capital req'd
- $150K – $200K
- Bottom third — review vs category
- Franchise fee
- $65K – $208K
- Bottom third — review vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- 0.8%
- typical 3–5%
- Total fee load
- 4.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.8% of gross sales |
| Technology fee | $495 |
| Training fee | $8K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $5K – $54K |
| Total fee load | 4.8% of rev |
A 4.8% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 438% above the cleaning & maintenance norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$689K
14.2% margin
Unlevered ROIC
95%
EBITDA / total invested capital
Payback
13 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Paul Davis Restoration unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
95%
Above the 30–60% band. Verify revenue is per-unit average
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Paul Davis Restoration units return on equity?
Equity IRR · 5-yr
24.9%
3.04× MOIC
Year-1 DSCR
3.40×
EBITDA ÷ debt service
Equity required
$19.5M
on $35.1M purchase
Total debt
$15.5M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $4.8M
- Per unit, per year
- Median gross sales
- $3.0M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 231 outlets
- vs category median 32 · large
- Range (low → high)
- $3K→$64.4M
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 192 Cleaning & Maintenance brands
Revenue is 8.8x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $4.8M/year in gross sales. Median is $3.0M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 8.8x.
Fee burden
Total ongoing fee load of 4.8% — below the Cleaning & Maintenance average of 9.7%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 13.1% CAGR over 3 years across 277 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Cleaning & Maintenance averages
How Paul Davis Restoration Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 277
- Opened
- 19
- Last reporting year
- Closed
- 8
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +13.1%
- Net unit change over 3 years
- 3-yr CAGR
- +13.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 19
- Closed (3yr)
- 0
- Terminated (3yr)
- 8
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 16
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 5.8%
- Owners selling to other franchisees
- Continuity rate
- 97.2%
- Units that stayed open
- Termination rate
- 2.9%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 178
- Loan volume
- $90.4M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 8.9%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 92.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 57
- Defaults
- 8
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 17.1%
- brand beats franchise avg ↓
- Jobs supported
- 1,868
- 2.5 per loan
- Lender concentration
- 17%
- top lender's share
Borrower mix: 63% went to startups / new businesses, 37% to established operators
Franchise vs independent — in residential remodelers, franchised businesses charge off at 17.1% vs 22.4% for independents — franchising is associated with 24% lower SBA default risk in this category.
Vintage analysis
Paul Davis Restoration charge-off rate by loan vintage
Top lenders financing Paul Davis Restoration franchisees
Showing 3 of 57 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Paul Davis Restoration's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 24-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 8.9% — 44% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Paul Davis presents moderate-to-caution risk: substantial revenue scale but absent profitability data, unprotected territories, sluggish unit growth, and unusual zero franchise fee structure obscure true franchisee economics.
Litigation (Item 3)
No litigation is required to be disclosed in Item 3.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
Score breakdown · what drove the 98 / 100 verdict
- 01MEDNo average net income disclosed in FDD Item 19 — impossible to assess actual profitability despite $4.8M avg revenue claim
- 02MINORUnprotected territory creates direct competition risk; other franchisees can operate in your service area
- 03MINORSlow unit growth of 4.1% YoY suggests market saturation or franchisee satisfaction issues in a mature 277-unit system
- 04MINORWide investment range ($298K–$804K) indicates high variance in startup costs and unclear ROI predictability
- 05MINOR$0 franchise fee is unusual and may signal low brand demand or financial pressure to recruit franchisees
- 06MINOR5-year term is relatively short; rebuilding customer base after term end is high-risk in service business
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 4.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 500,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 248 hrs
- On-the-job training
- 106 hrs
- Training location
- Jacksonville, FL or designated location
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- Restoration Management Software (RMS) by CoreLogic
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Restoration Management Software (RMS) by CoreLogic
Item 20 · call current owners
Franchisee Contacts
241 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Paul Davis Restoration · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Paul Davis Restoration franchise?
The total investment to open a Paul Davis Restoration franchise ranges from $299K – $805K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Paul Davis Restoration franchise owners earn?
According to Item 19 of the Paul Davis Restoration FDD, the average gross sales per unit is $4.8M. The median is $3.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Paul Davis Restoration FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Paul Davis Restoration FDD and qualifies whose outlets they describe.
What is Paul Davis Restoration's franchise failure rate?
Based on SBA 7(a) loan data, Paul Davis Restoration has a charge-off rate of 8.9% across 178 loans, meaning 8.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Paul Davis Restoration franchise locations are there?
As of their most recent FDD filing, Paul Davis Restoration has 277 total units in the United States, including 277 franchised units and 0 company-owned units. 19 new units were opened in the latest reporting year.
Is Paul Davis Restoration a good franchise to buy?
FranchiseVerdict rates Paul Davis Restoration as a A-grade franchise with a verdict score of 98 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.