Paul Davis Restoration vs Rainbow International Restoration
Both in Home Services
| Metric | Paul Davis Restoration | Rainbow International Restoration |
|---|---|---|
| Investment (Low) Minimum estimated initial investment from the FDD, including franchise fee and build-out. Lower is better. | $299K | $159K |
| Investment (High) Maximum estimated initial investment. Lower is better for the buyer. | $805K | $331K |
| Franchise Fee One-time upfront fee paid to the franchisor. Lower is better. | $65K | $40K |
| Royalty Ongoing percentage of gross revenue paid to the franchisor, typically weekly or monthly. | 4% | — |
| Total Units Total franchised and company-owned locations. More units generally means a more proven system. | 266 | 330 |
| Growth Rate Net change in total units over the last year. Negative growth may signal franchisee closures. | 8.57% | 5.43% |
| Health Score Composite score (1-100) based on growth, fees, scale, and data quality. Higher is better. | 89 | 89 |
Green = better on that metric. Based on official FDD data.
The $6M vs $1M average revenue gap — and why restoration franchises operate in completely different weight classes
Paul Davis's average revenue of $6M with a median of $3.98M represents one of the highest revenue-per-unit figures in the franchise industry — not just restoration, but any category. Rainbow International's average of $1.05M with a median of $613K is a fraction of that. The difference isn't brand quality; it's scope. Paul Davis handles the full reconstruction cycle after a disaster — mitigation, drywall, electrical, plumbing, cabinetry, painting — while Rainbow International typically handles mitigation only (water extraction, drying, mold treatment) and hands off the rebuild. Paul Davis's full-cycle model captures the entire insurance claim value; Rainbow gets a slice.
The investment gap reinforces this: Rainbow's $159K-$331K vs Paul Davis's $299K-$805K reflects the difference between buying a truck and equipment vs building a full general contracting operation with a skilled trades workforce. Rainbow operators can be operational in 60-90 days. Paul Davis requires licensing, construction management infrastructure, and often months to build the project management team needed to run simultaneous reconstruction jobs. The complexity ceiling is dramatically higher.
Rainbow International's 5.43% unit growth vs Paul Davis's 8.57% both suggest healthy expansion, but Paul Davis's growth is more significant at its scale. Growing from 266 to 289 locations at $3.98M median revenue adds far more system revenue than Rainbow growing from 330 to 348 at $613K median. Paul Davis is building something with compounding value — each new operator adds more franchise-system economic weight than a new Rainbow location.
The restoration category is insurance-dependent, which creates a specific risk: insurance adjusters set the scope of work and the reimbursement rate. Paul Davis's general contracting capability gives operators more leverage in scope negotiations — a full-reconstruction provider can argue for broader scope on an insurance claim than a mitigation-only operator. Rainbow's pure-mitigation positioning caps its negotiating position at the emergency-services phase of every claim.
Paul Davis is the dramatically superior investment for operators with construction industry experience who can manage the complexity; Rainbow International is the better entry point for operators building toward general contracting capability over time, or those who prefer a lower-capital, higher-volume transaction model.
Not sure which to choose?
A franchise consultant can introduce you to franchisees from both brands, verify the Item 19 numbers on the ground, and help you avoid a territory that's already saturated. Their fee comes from the franchisor — your consultation costs nothing.