Bottom line
- Total investment $77K – $185K including a $45K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 103 loans (below the industry average).
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 Five Star Painting unit return on the cash you put in?
Unlevered ROIC · per unit
59%
In Yale's "attractive" band (30–60%)
Overview
About
Five Star Painting franchisees operate residential and commercial interior/exterior painting services, managing crews, scheduling jobs, handling customer relationships, and executing quality control. Daily operations involve estimating projects, managing labor logistics, sourcing materials, and maintaining brand standards across their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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
Five Star Painting presents elevated risk due to regulatory history, anemic unit growth, and complete absence of financial performance data needed to assess the 6% royalty burden on typical franchisee returns.
Score breakdown · what drove the 53 / 100 rating
- 01MINORStagnant unit growth: Only 1.7% YoY expansion with 234 units suggests market saturation or franchisee struggles
- 02MINORNo financial disclosure: Item 19 (average revenues/net income) absent—impossible to validate ROI on $77k-$184k investment
- 03MINORPattern of regulatory violations: Three separate consent judgments (2010 Illinois, 2017 California, 2010 Kansas) across corporate and affiliates indicate systemic compliance issues
- 04HIGHGoing Concern flag is False but financial opacity combined with slow growth raises sustainability questions
- 05MEDHigh 6% royalty rate on undisclosed revenue base creates uncertainty about actual franchisee profitability
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
73 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Five Star Painting · FDD (2024) PDF