Paul Davis Restoration Franchise Analysis 2026

What is Paul Davis Restoration?

Founded in 1966, Paul Davis Restoration operates 245 US locations specializing in disaster restoration and property damage recovery services. The franchise benefits from disaster demand and builds recurring customer relationships through quality restoration work.

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Investment & Fee Data

Investment Overview

Franchise Fee$90K

Total Investment$286K – $737K

Royalty Rate4.0%

Ad/Marketing Fund0.5%

Total Fee Burden4.5%

System Size & Growth

US Locations245

Unit Growth Rate+5.0%

Founded1966

Franchising Since1974

FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$6.0M

Owner Earnings$400K

SBA Default RateN/A

5-Year Survival93%

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💡 What This Means For You

A combined fee burden of 4.5% is well below the industry average, leaving you more room for profitability. Beyond the listed investment, expect approximately $62K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $574K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$6.0M

Net Profit Margin10%

Est. Owner Earnings$400K

Breakeven6-12 months

Payback Period1-3 years

Capital Requirements & Operations

Liquid Capital Required$250K

Net Worth Required$500K

Staff Required15-40

Training8 weeks

TerritoryDesignated area

Multi-Unit RequiredNo

Term Length10 years

Risk & SBA Safety Data

SBA Default RateNo Data

5-Year Survival93%

Renewal FeeVaries

Transfer FeeVaries

💡 Financial Analysis

The revenue-to-investment ratio of 11.7x is excellent — every dollar invested generates $11.7 in annual revenue, well above the 2x industry benchmark. At estimated owner earnings of $400K/year, the simple payback period is approximately 1.3 years.

Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$30K

Legal & Accounting$12K

Insurance (Annual)$8K

Tech/Software (Monthly)$400/mo

Lease Deposit Est.$0

Grand Opening$10K

Total Hidden Costs$62K

👤 Owner Reality Check

Hours Per Week45-55

Absentee Owner Friendly?Yes ✓

Manager-Run Possible?Yes ✓

Seasonal VariationModerate

Labor Cost (% of Revenue)40%

Owner-managed operations. Expect to invest 45-55 hours per week managing day-to-day activities, staff oversight, customer acquisition, and brand compliance. Focus on operational efficiency and franchisee standards adherence.

📊 Franchisee Health

Satisfaction Score75/100 (Good)

Annual Turnover Rate5.0%

Litigation Count (Item 3)8 cases

5-Year Closure Rate3%

Avg Franchisee Tenure8 years

Franchisee AssociationYes ✓

🚪 Exit Strategy & Resale

Resale Value Multiple2.0-3.0xx earnings

Transfer RestrictionsFranchisor approval required; right of first refusal

Non-Compete Period2 years

Non-Compete Radius15 miles

Avg Time to Sell6-12 months

Exit DifficultyModerate

📋 FDD Transparency Report

Item 19 QualityModerate

Item 19 Includes:

✓ Average unit volume

✓ Operating costs

Territory ProtectionModerate

Territory scope varies by location; moderate exclusivity provided

Required Suppliers?No

Supplier Markup RiskLow

Renewal Terms10-year term; renewal terms subject to brand standards compliance

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:

Moderate fee structure (4.5% total)Low litigation history

✅ Positive Signals:

Item 19 comprehensive financial disclosureEstablished system with strong unit baseTrack record data available

AI Disruption Risk Assessment

🛡️ AI Disruption Risk: Very Low

11/100

AI-Proof Disruption Timeline: 10+ years High Risk

Very low risk. Paul Davis specializes in property damage restoration (fire, water, mold). These services require skilled, rapid response that AI cannot provide. The franchise model is protected.

AI Threats:

Property restoration and emergency services require skilled technicians on-site

Defensive Moat:

Franchisee network, emergency response infrastructure, technical expertise, brand trust, local presence.

🤖

AI Risk Analysis

See how AI will impact Paul Davis Restoration over the next 5-10 years — threats, moats, and disruption timeline.

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Territory Saturation Analysis

0.07

Units per 100K pop.

0.02x

Saturation Index

vs. Home Services avg (3.09/100K)

States with Presence

Low Saturation

Paul Davis Restoration has significant whitespace opportunity relative to its category.

Geographic Distribution

No units

High density

Most Saturated States

State	Units	Population	Per 100K
Alaska	6	733,000	0.82
Washington DC	5	671,000	0.75
North Dakota	5	781,000	0.64
Delaware	6	1,031,000	0.58
New Hampshire	8	1,451,000	0.55

Least Saturated States

State	Units	Population	Per 100K
California	6	39,029,000	0.02
Florida	8	23,555,000	0.03
Texas	9	30,503,000	0.03
Georgia	5	11,370,000	0.04
Ohio	8	11,785,000	0.07

Growth Opportunity States

High-population states where Paul Davis Restoration has minimal or no presence — potential expansion territories.

New York North Carolina Washington Indiana South Carolina

Investment Thesis

Paul Davis Restoration carries a BUY signal with a FutureScore of 75/100. The highest-revenue restoration franchise at $6M AUV. The 4.5% total fee burden is among the lowest for any major franchise. With 50% franchisor financing available, this is accessible despite the higher franchise fee. The $400K+ owner earnings potential is exceptional.

Ideal Investor Profile: Experienced operator seeking highest-revenue home services franchise

Strengths

$6M AUV — highest in restoration by farOnly 4.5% total feesFranchisor financing up to 50% of fee$400K+ owner earningsNew locations ramp to $1.77M in under 2 years

Risk Factors

Disaster-dependent spikesInsurance claim complexityScaling to $6M revenue requires strong management

Paul Davis Restoration