FRANCHISE·WATCH·DESK

Verified — real FDD extraction

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PAUL DAVIS RESTORATION

Cleaning & Restoration · independent · est. —

Paul Davis Restoration provides emergency mitigation and reconstruction services for properties damaged by water, fire, storms, and mold, working largely through insurance claims. A franchisee operates a territory-based restoration business with crews, vehicles, and equipment, serving homeowners, businesses, and insurance carriers.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Not enough disclosure

Distress

0
STABLE

No verified FDD extraction to judge from. Any figures shown are labelled sample data or independent federal records.

Exit rate · latest year

3.1%

vs 3.1% across 25 cleaning & restoration systems

Cost to open

$299K–$805K

Item 7 total investment range

SBA loan defaults

No loan record

no SBA 7(a)/504 loans found for this brand

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Strong
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2019–2021

+11.6%
190201919620202122021

Survival record

FDD Item 20 · outlet status by year

In fiscal 2021, 6 of 196 franchised outlets left the system — a 3.1% annualized exit rate, vs 3.1% across 25 cleaning & restoration systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)201920202021
Outlets at start193190196
Opened8922
Transfers529
Terminations1146
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons000
Outlets at end190196212
Net change-3+6+16

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $130K franchise fee (Item 5) and a total investment of $299K–$805K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$299K–$805K

all-in investment range

Franchise fee (Item 5)

$130K

upfront, one-time

Royalty (Item 6)

4%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$40K

4% of sales, before profit

Over a 10-yr term

$400K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for PAUL DAVIS RESTORATION with an independent CPA

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for PAUL DAVIS RESTORATION. That's a good sign — but it reflects news coverage, not a guarantee.

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PAUL DAVIS RESTORATION franchise questions, answered from the filings

What percentage of PAUL DAVIS RESTORATION franchises closed last year?

In PAUL DAVIS RESTORATION's latest FDD Item 20 (fiscal 2021), 6 of 196 franchised outlets left the system — an annualized exit rate of 3.1% — compared with 3.1% across 25 cleaning & restoration systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a PAUL DAVIS RESTORATION franchise cost?

Per PAUL DAVIS RESTORATION's 2026 FDD, buying in requires an initial franchise fee of $130K (Item 5) and a total initial investment of $299K–$805K (Item 7).

What royalty does PAUL DAVIS RESTORATION charge?

PAUL DAVIS RESTORATION charges an ongoing royalty of 4.0% of gross sales, per Item 6 of its 2026 FDD.

Does PAUL DAVIS RESTORATION disclose earnings (Item 19)?

Yes — PAUL DAVIS RESTORATION makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $2.8M. Read it closely: franchisors choose which units and which metrics to include.

Is PAUL DAVIS RESTORATION a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk