Paul Davis Restoration

The franchise fee of $130,000 is significantly higher than typical for this category. What specific services, training, or equipment are included in this fee that justify the premium pricing?

Your royalty rate of 4.0% and ad fund of 0.75% are both below industry standards. Is there flexibility to negotiate these rates, and what services are covered under the technology fee of $75 monthly?

Financial performance data shows average gross sales of $6.0 million, substantially higher than typical. How many units reported this data, and what is the range of performance across franchisees (top 25%, bottom 25%)?

The transfer rate of 6.4% is notably high compared to typical ranges. Why are franchisees transferring units at this elevated rate, and what are the franchisor's policies regarding who can acquire transferred units?

Why does the franchise agreement provide only a 5-year initial term with a 5-year total potential term, compared to the typical 10-20 year terms in this category? How does this short renewal window affect long-term business planning?

The non-compete restriction extends 100 miles from the territory, nearly double the typical range. What is the business justification for this extensive geographic restriction, and how is it enforced?

Your territory is marked as non-exclusive with no encroachment protection. What prevents the franchisor from placing competing Paul Davis locations nearby, and how would you be protected from encroachment?

One litigation case was filed against the franchisor. What was the nature of this case, what was the outcome, and are there any unresolved disputes with franchisees?

The unit transfer rate of 6.4% is the highest outlier in the data. Can you provide details on recent transfers—specifically, how many were voluntary sales by franchisees versus franchisor-initiated transfers or buybacks?

Item 19 financial performance data is available. Can you provide detailed performance metrics broken down by territory type, franchise age, and regional market conditions to help forecast potential returns?

Termination rates average 2.3% annually. What are the primary reasons franchisees have been terminated, and are there specific performance metrics or compliance issues driving these terminations?

The non-compete clause requires spouse acknowledgment and extends 2 years post-termination. How strictly is this enforced, and what are the consequences for violation?

Given the 5-year contract term, what renewal terms and conditions apply after the initial term expires? What are the odds of renewal, and would the fee structure change upon renewal?

The $10,000 transfer fee and $5,000 renewal fee represent significant costs. Are these fees negotiable, and are there any additional hidden costs or percentage-based fees not listed in the main fee schedule?

Your system grew from 224 units 3 years ago to 266 units currently. Was this growth organic through new franchises, or driven by transfers and acquisitions? What is the franchisor's target for total unit growth?

The personal guarantee requirement binds spouses to non-compete obligations. Under what circumstances could a spouse be held liable for franchise breaches, and what protection exists for the spouse's personal assets?

Technology fees are $75 monthly, below typical. What systems and support are included (accounting, job management, CRM, marketing), and what additional technology costs should be budgeted?

Closure data shows 7 units closed in 2022 and 2024, but only 4 in 2023. Are there seasonal patterns or market factors driving these closures, and how has the franchisor responded to support struggling locations?

The median gross sales of $4.0 million far exceeds typical category ranges. What percentage of franchisees actually achieve sales near this median, and what is the distribution of high performers versus underperformers?

Territory disputes could arise given non-exclusive status. Has the franchisor had disputes with franchisees over encroachment, and what is the process for resolving territory conflicts?