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What is the Cost of the Paul Davis Restoration Franchise?
Homeowners and business owners would need regular maintenance of their residential and commercial properties. And when it comes to a company that offers cleanup and repair services, Paul Davis Restoration is a top choice. Learn the actual Paul Davis Restoration franchise cost and its other training requirements and obligations.
Company Overview
Paul Davis Restoration boasts of a 50-year of experience in residential and commercial cleanup and repair services. The company was founded in 1966 and rapidly grew and expanded all over Canada and the United States.
To date, the business has over 300 franchises in both Canada and the United States. The company headquarters is situated in Jacksonville, Florida. Paul Davis Restoration takes pride in their company culture, prioritizing their customers and beloved properties first from start to finish.
The company is known for its innovative processes for the maintenance of residential and commercial buildings. Whether the damage is from fire, water, storms, mold, or other factors, Paul Davis Restoration ensures that they offer a stellar job.
The franchisor is Paul Davis Restoration, Inc., its parent company FirstService Corporation is also one of the leading companies in the property services sector.
The franchising began in 1970. Since then, Paul Davis Restoration is deemed the name to call by general partners and insurance restoration companies.
Franchise Training Details
Here are some of the training requirements from the franchisor:
- All new and existing franchises must attend the mandatory initial training program, regardless of the territory’s population size
- The franchisor requires the franchisee to complete the classroom training before operating the franchise. This must be according to the franchisor’s satisfaction.
- Franchisees must also achieve an on-site field training completion
- Meanwhile, franchisees must attend some classroom training programs, which the franchisor conducts online
- A designated accountant must also undergo on-site or virtual job cost accountant training, which the franchisor facilitates and conducts before and after franchise operations
- The franchisor conducts classroom training at the headquarters in Jacksonville, Florida. However, the franchisor may select another training facility if necessary
- The franchisees don’t have to go through recertification training. However, the franchisor may require franchisees a recertification training program with a 60-day notice.
Franchise Territory
Here are the franchise territory details and requirements:
- The Franchise Agreement stipulates the required franchise territory
- The franchisor doesn’t grant exclusive territory to franchisees. However, the main office must be within the franchise territory mandated in the Franchise Agreement
- The Franchise Agreement doesn’t require a minimum territory size. However, the territory must comply with the required population density, geographical location, and other details.
- Franchisees and the PDRI must determine the franchise territory size before they sign the contract.
Franchise Obligations and Conditions
Franchisees must comply with these franchise obligations and conditions:
- The franchise owner or representative approved by the PDRI must conduct the franchise operations
- The delegated representative must complete the training program, and manage the store full-time
- Franchisees must not establish another franchise from a competitor. Plus, they must maintain confidentiality of the franchise’s trade secrets.
- The franchisees must only offer and sell products or services stipulated in the Franchise Agreement
- The franchisees must provide all the services mentioned in the Franchise Agreement. In terms of new services, the franchisees must also offer them.
Franchise Term and Renewal
The franchisor may offer franchisees a five-year franchise term. They can renew for another five years if they meet the requirements.
Financial Aid
Franchisees will get 50-percent financing of the initial franchise fee. The other half must be paid in cash. The funding offered is a four-year period with an APR of 6 percent. The franchisor will not receive indirect or direct fees for placing financing.
Did You Know?
Before we get to the Paul Davis Restoration franchise cost, read these interesting facts about the company:
- Paul Davis introduced a computerized system when estimating jobs
- The company offers a performance warranty to insurance partners
- Paul Davis established an automated system to monitor, verify, and measure water loss
Your Investment:
Here’s the Paul Davis Restoration franchise cost:
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee* | $50,000 | $130,000 |
| Real Property and Improvements | $1,800 | $4,600 |
| Marketing and Advertising | $12,000 | $60,000 |
| Equipment, Computer, Fax Copier | $8,000 | $20,000 |
| Computer Software Licensing | $7,000 | $12,000 |
| Office Furniture | $2,000 | $5,000 |
| Branded or Complaint Vehicle | $5,000 | $93,000 |
| Equipment & Chemical Package (Start-Up Kit) | $5,000 | $40,000 |
| Travel and Living Expenses While Training | $3,500 | $6,500 |
| Insurance | $7,500 | $14,000 |
| Licensing | Varies | |
| Phone Installation and Utility Deposits | $1,000 | $2,000 |
| Rent Deposit | $1,000 | $2,000 |
| CPA Fees – Initial Work | $400 | $1,200 |
| Legal Fees – Incorporation | $500 | $1,500 |
| Additional Funds – First 3 Months | $81,690 | $118,900 |
| ESTIMATED TOTAL | $186,390 | $510,700 |
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% or 1% in the case of a resale of an existing franchise of Gross Sales until the fund balance equals $20,000 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 | $5,000 per additional person for PDRI Full Owner School. |
| Call Center Fee | Actual cost per call plus a 20% administrative charge. |
| Joint Quality Business Review | $50 per month. |
| Renewal Fee | $5,000 |
| Transfer Fee | $10,000 for majority transfer or $5,000 for minority transfer. There’s also 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 | 0.50% of gross sales for the first $5,000,000 of gross sales invoiced in each calendar year, and 0.33% of gross sales for all gross sales invoiced between $5,000,000 and the annual cap. |
| 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 | Up to 1% of the amount of the job. |
| 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. |
| Core Logic per Claim Fee | $15 per claim. |
| Xactimate Software License Fee | Basic/Standard: Up to $90.24 per license; Pro: $130.50/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. |
| Microsoft 365 Software License Fee | $8.00/user/month for email and cloud based applications or $20.00/user/month for the full suite downloadable to the franchisee’s workstation. Spanning backup: $2.50/user/month; amounts may change as set by Microsoft. |
| Quickbooks Software License Fee | QB On Line with 5 available users – monthly fee per current pricing. |
| New Franchisee Training at Resale | $18,000 per person for majority transfer or $5,000 per person for minority transfer. |
| Dishonored Check and EFT Denial Fee | $100 per dishonored check or electronic funds transfer denial. |
| MICA Software | Up to $70 per month. A per-claim charge may apply for some carriers. |
| Common Software Fee | For a primary office: $495/month, plus a $3,000 initial implementation fee will also be charged. For a secondary office there will be a one-time set up charge of $350 and a monthly fee of $250. |
| Convention Registration Fee | Up to $500. |
If you’re ready to start your Paul Davis Restoration franchise, visit their website for more details.
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