Bottom line
- Total investment $132K – $196K including a $65K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $476K/year (median $382K).
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 183 loans (below the industry average).
- 15 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one 360 Painting unit return on the cash you put in?
Unlevered ROIC · per unit
27%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 360 Painting units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$381K
on $1.9M purchase
Total debt
$1.5M
SBA $1.0M + senior + seller note
Overview
About
360 Painting franchisees operate residential and commercial interior/exterior painting services, managing crews, scheduling jobs, and handling client relations in protected territories. Day-to-day operations include job estimation, crew management, customer acquisition, and invoicing while paying 6% royalties plus a $150 weekly minimum to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
360 Painting presents high risk due to shrinking franchisee base, extensive litigation history, multi-state regulatory violations, undisclosed profitability metrics, and uncertain franchisor viability.
Score breakdown · what drove the 59 / 100 rating
- 01MINORDeclining unit count (-4.4% YoY) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHMultiple litigation cases with former franchisees (Misiph, Belegu, DeGregorio, Carreno) suggest contract/relationship breakdown patterns
- 03MINORRegulatory consent orders in 5 states (Maryland, Illinois, Virginia, California, Washington) for disclosure and registration violations indicate compliance failures and franchisor credibility issues
- 04MINORNo Item 19 (average net income) disclosure prevents validation of $132,350-$196,000 investment ROI claims
- 05MINORVendor disputes (Dispatch Technologies, yellowpages.com, MMG-360) suggest operational/payment reliability concerns
- 06MINORHigh royalty floor ($150/week minimum = $7,800/year) creates fixed cost pressure regardless of revenue performance
- 07HIGHGoing Concern status = False raises questions about franchisor financial stability and long-term support
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
85 numbers
One-time purchase · CSV download · Validation questions included
FDD download
360 Painting · FDD (2025) PDF