Verified — real FDD extraction
SBA-eligible · directory code S1285 since 2017
PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT
Home Services · independent · est. —
Paul Davis Restoration is a property damage restoration company. Crews respond to water, fire, mold, and storm damage in homes and businesses, performing cleanup, drying, and reconstruction, often working with insurance claims. A franchisee runs a restoration company managing emergency-response crews and project work.
PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT net unit count grew +14.9% from 2020–2022 per its FDD Item 20.
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
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: the system is growing.
Exit rate · latest year
3.3%
vs 9.2% across 42 home services systems
Cost to open
$238K–$617K
Item 7 total investment range
SBA loan defaults
8.3%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2020–2022
Survival record
FDD Item 20 · outlet status by year
In fiscal 2022, 7 of 211 franchised outlets left the system — a 3.3% annualized exit rate, vs 9.2% across 42 home services systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2020 | 2021 | 2022 |
|---|---|---|---|
| Outlets at start | 190 | 195 | 211 |
| Opened | 9 | 22 | 20 |
| Transfers | 2 | 9 | 20 |
| Terminations | 4 | 6 | 7 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 1 | 0 | 0 |
| Outlets at end | 195 | 211 | 224 |
| Net change | +5 | +16 | +13 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 199 SBA-backed loans to PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT franchisees since 2002. Of the 96 that have resolved, 8.3% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
8.3%
8 of 96 resolved defaulted
52.2%
avg. charged-off $ ÷ approved $
4.4%
default rate × loss severity
$775,543
what recent franchisees borrowed
61 mo
approval → charge-off, defaulted loans
19 vs 17
distinct banks still lending
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
Live Oak Banking Company
24.3% of this brand's loans
That lender charges off 3.6% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
30.9%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
−3.7pp
multi-unit vs single-unit owners
Owners of multiple units default at 6.3%; single-unit owners at 10.0%.
Computed from 199 SBA 7(a)/504 loans to PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a total investment of $238K–$617K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$238K–$617K
all-in investment range
Franchise fee (Item 5)
—
upfront, one-time
Royalty (Item 6)
4%
of sales, ongoing
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 INC FRANCHISE AGREEMENT with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks safer than 74% of systems we score.
Risk percentile
26 / 100
Loan-corroborated
Modeled SBA charge-off
9.4%
Observed SBA charge-off
8.3%
Top drivers: Share financed by high-loss lenders (lowers) · Item 20 exit rate (lowers) · System size (log units) (lowers) · Share of buyers who are first-time operators (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT franchise questions, answered from the filings
What percentage of PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT franchises closed last year?
In PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT's latest FDD Item 20 (fiscal 2022), 7 of 211 franchised outlets left the system — an annualized exit rate of 3.3% — compared with 9.2% across 42 home services 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 INC FRANCHISE AGREEMENT franchise cost?
Per PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT's 2023 FDD, buying in requires a total initial investment of $238K–$617K (Item 7).
What royalty does PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT charge?
PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT charges an ongoing royalty of 4.0% of gross sales, per Item 6 of its 2023 FDD.
Does PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT disclose earnings (Item 19)?
Yes — PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT makes a financial performance representation in Item 19 of its 2023 FDD. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT franchises default?
Across 199 SBA-backed loans to PAUL DAVIS RESTORATION INC FRANCHISE AGREEMENT franchisees since 2002, 8 of the 96 that have resolved were charged off — a 8.3% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.