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Paul Davis Restoration Franchise ProfileHome Based Franchises > Home Repair Services |
Initial Investment Overview for Paul Davis Restoration Franchise
To become a Paul Davis Restoration franchisee, you should anticipate an initial investment ranging from $285,800 to $737,400. This includes a franchise fee of $57,500. Additionally, you will need to ensure you have a cash requirement of $500,000 and a net worth of at least $500,000. Understanding these financial commitments is crucial for your planning and readiness to enter the franchise.
Revenue Potential and Performance Metrics
Paul Davis Restoration franchises have demonstrated impressive financial performance, with average annual revenue per unit reaching $5,836,208 and a median of $4,019,796. The lowest recorded annual revenue stands at $80, while the highest peaks at $54,301,621. This wide range highlights the potential for profitability but also emphasizes the importance of location and management strategies for achieving success.
Ongoing Fees and Operational Costs
Franchisees of Paul Davis Restoration are subject to ongoing fees, including a 4% royalty fee and a 1% marketing fee. Understanding these costs is vital for maintaining profitability. Additionally, you should budget for operational expenses, which can vary greatly, with total annual running expenses estimated between $180,800 and $302,000. Proper financial planning will help you manage these expenses effectively.
Growth and Expansion of Paul Davis Restoration
The Paul Davis Restoration franchise network has shown consistent growth, increasing from 195 franchised units in 2021 to 224 in 2023. This expansion indicates a strong brand presence and market demand. As a franchisee, you will benefit from being part of a growing network, which can provide additional support and resources as you navigate your business journey.
Paul Davis Restoration Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Paul Davis Restoration Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 195 | 211 | 224 |
| Net Change YoY | 16 | 13 | |
| Franchised Units | 195 | 211 | 224 |
| Net Change YoY | 16 | 13 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The initial investment for a Paul Davis Restoration franchise ranges from $285,800 to $737,400. This includes a franchise fee of $57,500. Potential franchisees should also be prepared for ongoing royalty fees of 4% of gross sales and a marketing fee of 1%. A liquid cash requirement of $500,000 and a net worth of at least $500,000 are necessary to qualify for ownership.
Revenue Potential
Paul Davis Restoration franchises have demonstrated robust revenue potential, with average annual revenue per unit reported at $5,836,208. The median revenue stands at $4,019,796, while the range of annual revenue varies significantly, from as low as $80 to as high as $54,301,621. This wide range highlights the potential for high earnings in this restoration service sector.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation, making it an attractive option for those looking for a quicker return on investment. The average investment payback period is around 24 months, allowing franchisees to recoup their initial investment relatively quickly compared to other business models.
Franchise Growth
Paul Davis Restoration has shown consistent growth in its franchise network, increasing from 195 units in 2021 to 224 units in 2023. This growth trend indicates a strong demand for restoration services and the effectiveness of the franchise model in expanding its footprint across various markets.
Operational Expenses
The average running expenses for a Paul Davis franchise include costs such as rent and utilities (ranging from $1,800 to $6,000), marketing and advertising ($12,000 to $72,000), and management salaries (between $150,000 and $200,000). Total annual operating expenses can range from $180,800 to $302,000, which franchisees should factor into their financial planning.
Financial Performance
The financial performance of Paul Davis Restoration franchises is supported by a solid gross profit margin of 43%. With operating expenses accounting for 27% of revenue, the EBITDA stands at 9%. This financial structure indicates a healthy profitability potential, making it an appealing investment for aspiring franchise owners looking for stability and growth in the restoration industry.
Frequently Asked Questions
The initial investment for a Paul Davis Restoration franchise ranges from $285,800 to $737,400, which includes the franchise fee, equipment, and other startup costs.