How to Finance a Paul Davis Restoration Franchise: Costs and SBA
By Marc Cornella
A Paul Davis Restoration franchise loan has to fund more than a truck and a set of drying equipment. Paul Davis franchisees handle emergency mitigation after fire, water, mold and storm losses and then often rebuild the damaged property, so the business carries crews, vehicles, equipment, construction obligations and receivables that may wait on insurance claims before they are paid.
US Professional Funding is not affiliated with, sponsored by or endorsed by Paul Davis Restoration; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchise website can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice; candidates should review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant.
Paul Davis Restoration Franchise Loan at a Glance
- Estimated initial investment: $298,800 to $804,900, according to the franchisor’s investment requirements page.
- Royalty: 4% of gross monthly sales, per the same page.
- Marketing fund: $500 per month plus 0.75% of sales.
- Initial franchise fee: not stated on the franchisor’s public investment page; confirm the amount and any discounts in Item 5 of the current FDD.
- Veterans: the franchisor advertises veteran franchising discounts; the terms are in the FDD.
- System size: the franchisor reports more than 350 franchise locations across North America.
- History: founded in 1966, franchising since 1969, headquartered in Jacksonville, Florida.
- SBA Franchise Directory: listed as Paul Davis Restoration (code S1285), with no additional note attached to the listing.
What Is Paul Davis Restoration?
Paul Woodall Davis founded Paul W. Davis Contracting in 1966, and the company began franchising in 1969. Today Paul Davis Restoration is based in Jacksonville, Florida, where the company also runs its national training center, and its network of independently owned franchises serves residential and commercial properties in the United States and Canada.
Paul Davis franchises respond to property damage from fire and smoke, water and flooding, mold, and severe storms and wind, and the brand advertises emergency service 24/7. A defining feature of the model is that franchise staff are trained in emergency restoration as well as reconstruction and remodeling, which lets a single owner take a loss from the first call through the finished rebuild.
A business with two halves. Mitigation work (water extraction, drying, board-up, smoke and soot cleaning, mold remediation) is fast, equipment-heavy and usually wrapped up in days or weeks. Reconstruction is slower and looks more like general contracting: estimating, permits, subcontractors, materials and draw-style billing. Financing a Paul Davis franchise means planning for both cycles at once.
How lenders view the brand. A lender sees a long operating history, a large network and demand driven by events that happen in any economy. It also sees uneven monthly revenue, heavy labor costs, receivables that depend on claim reviews and the risks of rebuilding, so underwriting centers on the owner’s capital, management depth and working capital plan.
Paul Davis Restoration Franchise Costs
The franchisor’s investment requirements page lists an estimated initial investment of $298,800 to $804,900. The width of that range reflects differences in market size, facility needs, vehicle and equipment packages and how much working capital a new owner plans to carry. The page does not publish Item 7 line items, so the figures below are categories to confirm in the current FDD rather than verified amounts.
Initial franchise fee. The franchisor’s public pages do not state the fee, and it may vary with the territory awarded. Read Item 5 for the amount, what it covers, whether any portion is refundable and how veteran discounts are applied.
Facility and real estate. Restoration franchises typically operate from a combination office and warehouse space rather than a retail storefront. The space has to hold drying equipment, contents being cleaned or stored, materials for reconstruction jobs and vehicles. Most owners lease, and the lease cost and any improvements (racking, shelving, office build-out) are part of Item 7.
Vehicles and equipment. Response vehicles, extraction units, dehumidifiers, air movers, air scrubbers, moisture meters, thermal imaging tools, cleaning equipment and job-site safety gear make up a large share of start-up spending.
Opening costs and working capital. Expect Item 7 to include training costs, software and technology, insurance, licenses and bonding, initial marketing and an amount for additional funds during the start-up period.
Categories to look for in Item 7:
- Initial franchise fee
- Office and warehouse lease deposits and improvements
- Response vehicles and vehicle graphics
- Mitigation, drying and cleaning equipment
- Reconstruction tools and job-site equipment
- Computer hardware, software and estimating systems
- Training travel and living expenses
- Insurance, licenses, permits and bonding
- Grand opening and initial marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor lists a royalty of 4% of gross monthly sales. Because it is tied to gross sales, it rises in busy storm months and falls in quieter periods, which helps cash flow in a slow stretch but still reduces the dollars available for debt service.
Marketing fund. The marketing fund contribution is listed as $500 per month plus 0.75% of sales. The fixed monthly portion applies even before revenue ramps up, so it belongs in the start-up cash flow budget.
How lenders treat these fees. Lenders build projected cash flow after royalty and marketing payments, then compare what remains to the proposed loan payments. With a percentage royalty and a fixed marketing component, a borrower should show how the business covers its fixed costs in a slow month and how it absorbs the gap between finishing work and collecting payment.
Franchisor Requirements for New Owners
The franchisor’s public investment page does not publish a specific minimum net worth or liquid capital requirement, so confirm those requirements with the franchise development team and in the FDD. Paul Davis positions the opportunity for owners who want to build and lead a business: the role involves hiring and managing project managers, estimators and technicians, building relationships with property managers and insurance professionals, and overseeing both mitigation and reconstruction.
The approval process generally includes an application, review of the FDD, calls with existing franchise owners, a discovery visit and final approval. Lenders like to see that a borrower has completed this process seriously before asking for financing.
Ways to Own a Paul Davis Restoration Franchise
A new territory. The franchisor maintains a list of available opportunities. A new territory is financed as a start-up: the loan funds equipment, vehicles, facility costs and working capital, and approval rests heavily on the borrower’s capital, experience and business plan. Our franchise start-up financing page describes how lenders evaluate new units.
Buying an existing franchise. A resale comes with crews, equipment, referral relationships and a record of jobs and collections. Lenders can underwrite the historical cash flow, which often makes approval more straightforward, but the purchase price must be supported by earnings that are not inflated by a single unusual storm season. Our article on buying a restoration company covers deal steps and diligence, and the franchisor must approve any transfer.
Financing Options for a Paul Davis Restoration Franchise
SBA 7(a) loans. The 7(a) program is the most flexible SBA option for a new franchise or a resale. It can finance equipment, vehicles, leasehold improvements, the franchise fee, goodwill in an acquisition and working capital in one loan. See our SBA 7(a) loan program page for structure details.
SBA 504 loans. Most new owners lease their space, but an established owner buying a warehouse and office building for the operation may consider the SBA 504 real estate loan, which is designed for owner-occupied property and long-lived fixed assets.
Conventional term loans. Owners with strong financial statements and an operating history may qualify for conventional business loans, which can be faster to document and may work well for adding territory or refinancing.
Equipment financing. Extraction units, dehumidifiers, air movers, air scrubbers, thermal cameras, contents-cleaning systems and response vehicles can be financed separately, with the equipment serving as collateral. Our franchise equipment financing and leasing page explains how that works.
Working capital and lines of credit. A revolving line helps cover payroll, materials and subcontractors while claims are reviewed and invoices are paid. It is especially relevant for the reconstruction side, where materials are bought up front. Our page on restoration working capital describes the options, and our article on insurance payment timing and receivables explains how lenders look at aging reports.
Seller financing on resales. When buying an existing Paul Davis franchise, a seller may agree to carry part of the price in a promissory note. Seller notes are typically subordinate to the senior loan, and SBA programs may limit how they are structured and when they can be paid. Our article on seller financing in restoration acquisitions covers the details.
SBA Loans for Paul Davis Restoration Franchisees
Paul Davis Restoration appears on the SBA Franchise Directory under code S1285, and the listing carries no additional note. A directory listing means the SBA has reviewed the brand’s franchise agreement and related documents and found them eligible for SBA lending without the case-by-case affiliation review that unlisted brands would need. It is not an endorsement or a loan approval.
The SBA 7(a) program maximum is currently $5 million (program rules can change). A borrower still needs to meet the lender’s credit, equity, collateral and cash flow requirements, and the loan must be used for eligible purposes.
SBA application tips.
- Give the lender the current FDD and the franchise agreement early, and confirm that the documents you sign match the version reviewed for the directory listing.
- Build projections that separate mitigation and reconstruction revenue, since they have different margins and collection cycles.
- Show a working capital reserve sized for the time between starting a job and receiving payment.
- Document your management experience, including any construction, insurance, field service or operations leadership background.
- Run payment scenarios with our SBA loan calculator before you settle on a loan size.
How Lenders Evaluate a Paul Davis Restoration Deal
Personal credit and financial history. Lenders review personal credit, tax returns and past business debts, since owners typically sign personally on franchise loans.
Net worth and liquidity. Lenders want to see cash for the equity injection and enough left over to support the business during the start-up period. Because restoration receivables can be slow, a borrower with deeper reserves is usually viewed more favorably.
Industry and management experience. A Paul Davis owner leads technicians, estimators and project managers and manages construction work. Lenders weigh leadership experience in construction, insurance, field service or the military, and the strength of the planned operations lead.
Business plan and projections. A credible plan explains how the business will build referral relationships with property managers, plumbers, agents and commercial owners; how quickly crews will be hired; how mitigation and reconstruction revenue will ramp; and how seasonality and storm events affect volume. Projections should reflect the 4% royalty and the marketing fund contribution.
The FDD and franchise agreement. Lenders read Item 7 for the investment estimate, Item 6 for ongoing fees, Item 12 for territory rights and Item 17 for term, renewal and transfer conditions. The franchisor’s investment page references average reported gross sales, which indicates the FDD includes financial performance information in Item 19; review that item with your advisor rather than relying on summaries.
Site and lease. Lenders review the warehouse and office lease for term, renewal options and assignment rights, since the lease should run long enough to support the loan.
Historical financials for resales. For an existing franchise, lenders analyze several years of tax returns and financial statements, accounts receivable aging, work-in-progress schedules, revenue concentration among referral sources and the condition of equipment and vehicles.
Equipment, Vehicles and Reconstruction Capacity
Equipment intensity is one of the clearest differences between a restoration franchise and many service concepts. Drying equipment is deployed on job sites for days at a time, so an owner who wins several losses at once needs enough units to staff them all. Vehicles are both transportation and mobile storage. Reconstruction adds tools, ladders, materials handling and sometimes a trailer.
Multi-Unit Growth and Development Agreements
Growth for a Paul Davis owner can mean adding an adjacent territory, opening a satellite location or acquiring another franchise. Lenders look at the performance of the existing business first: consistent profitability, a manageable receivable balance, a capable management team that can run daily operations without the owner on every job, and a clear plan for staffing the new market.
A Paul Davis Restoration franchise loan for expansion can combine a term loan for the new territory, equipment financing for vehicles and drying units and a larger line of credit sized to the bigger receivable base. Compare any development schedule against realistic hiring timelines.
Real-World Scenarios
The insurance professional. A former claims manager wants to open a Paul Davis franchise in a growing suburban market. She understands claim documentation but has never run crews. Her lender asks for a business plan that names an experienced operations manager and a working capital reserve sized for slow early collections.
The general contractor. A builder with a successful remodeling company wants to add mitigation capabilities through a Paul Davis territory. His construction history supports the reconstruction side, and he uses equipment financing for drying equipment and vehicles while an SBA 7(a) loan covers the remaining start-up costs.
The resale buyer. A buyer wants an established Paul Davis franchise whose owner is retiring. The lender reviews three years of financial statements, receivables aging and referral source concentration, and a portion of the price is structured as a subordinate seller note.
Common Mistakes to Avoid
- Underestimating working capital when reconstruction jobs require materials and subcontractor payments before insurance proceeds arrive.
- Building projections on a storm-heavy year rather than average conditions.
- Ignoring the fixed monthly portion of the marketing fund in the start-up budget.
- Financing all equipment and working capital in one loan without a revolving line for receivables.
- Relying on a single referral source or insurance program for most of the revenue.
- Signing a warehouse lease that is shorter than the loan term or cannot be assigned.
Our article on restoration company loan mistakes covers these issues in more depth.
Next Steps to Finance Your Paul Davis Restoration Franchise
Step 1: Request and study the FDD. Focus on Items 5, 6, 7, 12, 17 and 19, and have a franchise attorney review the agreement.
Step 2: Confirm the franchisor’s financial requirements. Ask the franchise development team for minimum net worth and liquidity expectations and for available territories.
Step 3: Build a two-part business plan. Separate mitigation and reconstruction projections, staffing plans and collection timelines.
Step 4: Gather your documents and a facility. Prepare tax returns, a personal financial statement, a résumé and proof of your cash injection, and identify office and warehouse space.
Step 5: Compare financing structures. Weigh an SBA 7(a) loan, conventional financing, equipment financing and a working capital line against your cash flow.
Step 6: Plan for the first year. Keep a reserve for slow collections and track receivables weekly.
Paul Davis Restoration Franchise Loan FAQs
How much does a Paul Davis Restoration franchise cost?
The franchisor’s investment page lists an estimated initial investment of $298,800 to $804,900. The final amount depends on the territory, facility, equipment package and working capital, and the current FDD controls.
What is the Paul Davis franchise fee?
The franchisor’s public investment page does not list the initial franchise fee. Item 5 of the current FDD states the amount and any discounts, including veteran discounts the franchisor advertises.
What is the Paul Davis royalty?
The franchisor lists a royalty of 4% of gross monthly sales.
How much liquid capital or net worth do I need?
The franchisor does not publish a specific minimum on its investment page. Confirm its requirements directly and expect lenders to look for cash for the down payment plus reserves for slow collections.
Is Paul Davis Restoration eligible for an SBA loan?
Yes. The brand is listed on the SBA Franchise Directory under code S1285, which means its franchise documents have been reviewed for SBA eligibility. Each borrower must still qualify on credit, equity and cash flow.
Can I get a Paul Davis Restoration franchise loan with no restoration experience?
Many franchise systems accept owners from outside the industry. Lenders will want to see strong management experience and a plan to hire experienced field and project leadership.
Can I finance equipment and vehicles separately?
Yes. Drying equipment, cleaning systems and vehicles can be financed with equipment loans or leases, which can reduce the amount borrowed under a larger term loan.
Can I buy an existing Paul Davis franchise?
Resales do occur and require franchisor approval. Lenders underwrite the historical cash flow, receivables and equipment, and part of the price may be financed by the seller.
Does Paul Davis offer financing?
Check Item 10 of the FDD, which discloses whether the franchisor or its affiliates offer any direct or indirect financing.
How long is the Paul Davis franchise term?
The term, renewal rights and transfer conditions are set out in Item 17 of the FDD. Lenders generally want the remaining term to support the loan’s repayment period.
Final Thoughts
A Paul Davis Restoration franchise combines emergency mitigation with reconstruction, which gives owners a broader service line and gives lenders more to analyze. The strongest loan requests show realistic projections, enough working capital for slow collections, a clear staffing plan and a financing structure that separates long-term assets from day-to-day cash needs.
US Professional Funding helps franchise buyers and owners compare SBA, conventional and equipment financing for new territories, resales and expansion. Learn more about our franchise financing programs and our work with restoration, remediation and cleaning companies, and talk with a specialist about structuring a Paul Davis Restoration franchise loan that fits your plans.
