Paul Davis Restoration, Inc. specializes in emergency services, including drying, cleaning, decontamination, repair, board-up, demolition, loss mitigation, mold remediation and other emergency services for residential and commercial buildings, structures and contents.

According to Paul Davis Restoration, Inc. Franchise Disclosure Document, Paul Davis Restoration, Inc. ("PDRI") licenses franchise rights to use PDRI's Paul Davis Emergency Services® service mark for the operation of a business specializing in emergency services, including drying, cleaning, decontamination, repair, board-up, demolition, loss mitigation, mold remediation and other emergency services for residential and commercial buildings, structures and contents (the "Paul Davis Emergency Services Business").

The total investment necessary to begin operating of a Paul Davis Emergency Services Business franchise is $40,784 to $147,824. This includes $36,000 that must be paid to the franchisor or affiliate. 

JOIN THE PROFITABLE, RECESSION-RESISTANT INSURANCE RESTORATION INDUSTRY WITH DELTA DISASTER SERVICES


Delta customers get comprehensive reconstruction services to restore the structure to pre-loss condition from a single trusted vendor.

Delta Development Group grants franchises for the operation of commercial and residential property mitigation, reconstruction, remodeling and consulting businesses using the name “Delta Disaster Services ”. Since August 2016, we have also operated one Delta Services Business. We are not engaged in any other type of business activity.

As a Delta Disaster Services franchisee you get access to proprietary scalable processes to meet second year gross minimums of $1million, while servicing both commercial and residential customers with water, fire, and environmental losses.

Exclusive franchise territories are based on a minimum of 280,000 people up to 1 million. They're ideally located near or in a major metropolitan area servicing residential neighborhoods, commercial housing, and hospitality properties.

Paul Davis VS Delta Comparison

  Delta Disaster, Inc. Paul Davis
Number of locations (US) 8 184
Startup Costs $162,755 - $332,220 $188,240 - $391,077
Territories open limited
Initial Franchise Fee $45,000 $20,000 - $36,000
Supplies, Equipment and Inventory Purchase: $27,600 - $42,500 $33,000 - 35,000
Vehicle Lease: $400 - $700 / month Purcase: $5,000 - $33,000
Additional Funds (Working Capital) $52,755 - $65,000 $5,300- $19,300
Paul Davis restoration services show a steady decrease in units over the last 5 years. There's a limited number of teritories available.

DELTA DISASTER FEES

Royalty

For construction services, reconstruction services, and asbestos abatement-related services, the greater of 4% of Gross Revenue or the Minimum Royalty. 

For mitigation services, which includes contents-related work and structural cleaning, the greater of 8% of Gross Revenue or the Minimum Royalty.

Paid by electronic funds transfer on the sixth day of each month for the preceding month.

Technology Support Fee

$299, Payable monthly by electronic funds transfer.

The purpose ofthe technology support fee (“Technology Support Fee”) is to defray the cost of providmg technology support to you.

Warranty Fund Contribution

1% ofGross Revenue, Payable monthly by electronic funds transfer.

Your warranty fund contnbution (“Warranty Fund Contribution”) will be contributed to the warranty fund (“Warranty Fund”) established to fund the service warranties provided to customers The total Warranty Fund Contribution will be capped at the amount set forth in the Operations Manual We have the right to adjust the cap upon thirty days wntten notice to you. Your obligation to pay us the Warranty Fund Contribution will commence two years after you begin operations.

Individual Advertising Expense

2% ofGross Revenue, Payable monthly

Your obligation to make the individual advertising expense (“Individual Advertising Expense”) for advertising and promotion will commence 90 days after you begin operations Prior to the time the Individual Advertising Expense obligation commences, you must spend a total of $6,000 on advertising and promotion in your Area of Primary Responsibility for the first 90 days after you commence operations (See ITEM 7) Salaries for your marketing support personnel are separate expenses that must not be included m the Individual Advertising Expense or the amount you must spend on advertising and promotion for the first 90 days after you commence operations.

National Marketing Fee

1% ofGross Revenue, Payable monthly by electronic funds transfer

You must pay us a national marketing fee (“National Marketing Fee”) in addition to the Individual Advertismg Expense and Start-Up Advertising The National Marketing Fee will be deposited into a national marketing fund (“National Marketing Fund”) Advertising materials and services will be provided to you through the National Marketing Fund The Franchise Agreement authorizes us to increase the amount ofthe National Marketing Fee to a maximum of 3% ofGross Revenue for the previous month If we increase the National Marketing Fee, your Individual Advertising Expense will be reduced by the same amount Your obligation to pay us the National Marketing Fee will commence two years after you begin operations.

Successor Franchise Fee

10% ofthe then-current Initial Franchise Fee, Payable at the time you sign the Successor Franchise Agreement

Estimating Software

Xactimate software SI 13 to $160 per month per license.

In order to secure favorable pricing for our franchisees, we have entered into a software license agreement with the licensor ofthe estimating software which we require you to use in connection with your Delta Services Business This fee could decrease as your number ofsoftware licenses increases and depending on the type oflicense you obtain Because this fee is a pass-through cost, we are not deriving any revenue from this fee While we will handle the administration of licenses to our franchisees, you must work directly with the software licensor regardmg any technical issues you encounter.

Software License Fees

Quickbooks Premier Contractor $450-$1,100 for three licensed users, proprietary Delta Management software $200 per month per location or license obtained.

You must comply with all terms and pay all fees that may be due under a software license agreement for any software you are required to use in the operation ofyour Delta Services Business. The fees to use each software program will vary based on the number of licensed users per location.

Technology Maintenance

$500-$1,500 per computer workstation

We impose no cap or limitation on the amount of expense you may incur for hardware and software upgrades.

PAUL DAVIS FEES

Royalty

4% to 8% of Gross Receipts.

"Gross Receipts" includes the on the income derived from sales of for Gross Receipts during performed or rendered labor, material, and services franchised business or by third party vendors and subcontractors.

Insurance

Insurance costs due at start-up will range from approximately $2,000 to $10,600 for the first quarter based on the current insurance market, which fluctuates considerably. Some · · insurance providers may permit you to finance a portion of your insurance premium. The terms and rates of such financing will vary from provider to provider and may include the requirement of paying up to 20% to 30% of your total premium in advance.

Computer Software

$494, to be paid before training. PDRI will loan you with a laptop computer and provide you with PDRI's proprietary software with which to operate your franchise business. You are required to use proprietary software provided to you by PDRI in conjunction with the Xactimate estimating system. . You are responsible for costs of obtaining, installing and maintaining the Xactimate estimating system, including all license fees associated with its possession, use or operation. The current cost for the Xactimate software is a $200 set-up fee and a $98 per month license fee.

Real Property and Improvements 

You may operate your franchise business from your home. If you are unable to use your home then you will need to establish an office. Suitable office locations include strip centers, light industrial parks, or suburban office parks. Typical rent for a start-up office is $500 - $1,000 per month. You will need up to 100 square feet of storage space to store your additional equipment supplies, in addition to the equipment and ·supplies being stored in your van. You may use any type of storage space, including your home garage, ·to store your additional equipment and supplies.

Vehicle

You must lease or purchase a full-sized extended van which must be delivered to you before you begin training. The estimates provided are for the cost of three monthly lease payments and down payment for a new vehicle, with a four year lease term. The cost of the vehicle will vary depending upon the make, model and age of the vehicle; and, as of the date of this disclosure document, the purchase price of a three quarter ton van should range from $32,000 to $33,000, including the purchase and installation of the decals and storage racks for holding your equipment in accordance with PDRl's specifications. As you will transport drying equipment in the van, thé van must be large enough to the drying equipment and other supplies and equipment and the storage racks installed to hold the drying equipment. 

 

Drying Equipment

You must purchase a drying equipment package to operate your business before you begin training. PDRI has arranged with a supplier to have PDRI's standard drying equipment package available to franchises, but this equipment is available from any supplier. Some suppliers may permit you to finance the cost of the equipment depending on your credit· rating. While the exact terms and rates of such financing. will depend on your supplier and your credit rating, you will generally be required to make a down payment of at least 10% of the purchase price of the drying equipment.

Licensing

The requirements for individual or company licensing and/or certification vary substantially from state to state and may further vary from city to city, or county to county, within a state. You should determine what licensing or certification requirements are imposed by the various governmental bodies in the locations where you expect to establish a Paul Davis Emergency Services Business. These licenses may require examinations and/or significant fees. It is your responsibility to determine what licensing requirements are applicable.

Telecommunications Equipment

You must obtain, at your expense, certain telecommunication equipment and services, including a high speed USB aircard, an aircard data communication plan, a smart phone and voice and data plan for the phone, to support the computer system and a dedicated telephone landline for business use.

Travel and Living Expenses While Training

You will incur significant travel and lodging expenses during the training program period, including round trip airfare to Jacksonville, car rental, hotel, and meals. PORI estimates your travel and living expenses during the three-week training period will be $3,200 - $5,000.