Five Star Painting Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Five Star Painting is a home-services franchise providing residential and commercial interior and exterior painting. Franchisees run a sales-and-crew operation handling estimates, scheduling, and projects in a protected territory.
FranchiseVerdict summary · 2026
A Five Star Painting franchise requires a total initial investment of $82K – $195K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 15.3% charge-off rate across 72 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $82K – $195K
- 22nd pct Home Services
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 15th pct Home Services
- Units
- 245
- 79th pct Home Services
- SBA charge-off
- 15.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $82K – $195K including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 discloses Gross Sales Per Capita (population-adjusted) and Gross Sales Per Job metrics for 2025, not whole-unit average annual revenue; see item19_cohorts. 2025 systemwide: 245 franchised outlets, 208 reporting businesses included in Tables A/B.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 15.3% across 72 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports per capita and per job rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Five Star Painting SPV LLC
- Parent company
- Neighborly Assetco LLC
- Ultimate parent
- Nest Holdings LP (controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. / KKR)
- Predecessor
- Five Star Painting LLC (f/k/a Five Star Franchising, Inc., f/k/a Five Star Painting, Inc.); ProTect Painters International, LLC merged into Predecessor in 2016
- Prior franchisor entity
- CEO title
- President
- David Sutter
- Incorporated in
- Delaware
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $480.8M
- vs $461.7M prior year
Overview
About
- CEO
- David Sutter
- Headquarters
- Texas
- Founded
- 2007
- FDD year
- 2026
- States available
- 38
Can you afford it, and what does the money buy?
Entry cost runs 39% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $6K | $11K |
| Equipment, build-out, other | $31K | $139K |
| Total initial investment | $82K | $195K |
Source: Five Star Painting 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $82K – $195K
- Top 40% of category vs category
- Liquid capital req'd
- $6K – $11K
- Top 40% of category vs category
- Franchise fee
- $45K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Inventory (initial) | $2K – $12K |
| Total fee load | 0.1% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Five Star Painting did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Five Star Painting unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
56%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 19 discloses Gross Sales Per Capita (population-adjusted) and Gross Sales Per Job metrics for 2025, not whole-unit average annual revenue; see item19_cohorts. 2025 systemwide: 245 franchised outlets, 208 reporting businesses included in Tables A/B.
- Item 19 type
- per capita and per job
- Sample size
- 208
- vs category median 32 · large
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 0.1% — below the Home Services average of 8.9%.
Disclosure
Item 19 reports per capita and per job rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 6.5% CAGR over 3 years across 245 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How Five Star Painting Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 245
- Opened
- 11
- Last reporting year
- Closed
- 0
- Terminated
- 10
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +6.5%
- Net unit change over 3 years
- 3-yr CAGR
- +6.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 0
- Terminated (3yr)
- 10
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 13
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 39 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 72
- Loan volume
- $11.4M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 15.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 84.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 11
- Typical loan rate
- 7.8%
- avg rate to borrowers
- Franchised industry avg
- 26.5%
- brand beats franchise avg ↓
- Jobs supported
- 355
- 3.1 per loan
- Lender concentration
- 65%
- top lender's share
Borrower mix: 80% went to startups / new businesses, 20% to established operators
Franchise vs independent — in painting and wall covering contractors, franchised businesses charge off at 26.5% vs 21.7% for independents — franchising is associated with 22% higher SBA default risk in this category.
Vintage analysis
Five Star Painting charge-off rate by loan vintage
Top lenders financing Five Star Painting franchisees
Showing 3 of 16 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Five Star Painting's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
1) FSP SPV v. TDS Home LLC et al. (2024) - suit for past due fees with counterclaim for fraud/FIPA violations; 2) TDS Home Services v. Pulido-Barajas and FSP SPV (2025) - third-party complaint re discrimination/non-competition enforcement; 3) FSP SPV v. Robert Zalkin (2025) - suit to collect monies owed. Also disclosed: administrative order involving affiliate FOR Franchising LLC (Window Genie) for CA franchise law violation in 2017.
Largest disclosed settlement: $7,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINORStagnant unit growth: Only 1.7% YoY expansion with 234 units suggests market saturation or franchisee struggles
- 02MINORPattern of regulatory violations: Three separate consent judgments (2010 Illinois, 2017 California, 2010 Kansas) across corporate and affiliates indicate systemic compliance issues
- 03HIGHGoing Concern flag is False but financial opacity combined with slow growth raises sustainability questions
- 04MEDHigh 6% royalty rate on undisclosed revenue base creates uncertainty about actual franchisee profitability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 175,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 12 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | McLennan County, Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 3 |
View Item 3 litigation summary
1) FSP SPV v. TDS Home LLC et al. (2024) - suit for past due fees with counterclaim for fraud/FIPA violations; 2) TDS Home Services v. Pulido-Barajas and FSP SPV (2025) - third-party complaint re discrimination/non-competition enforcement; 3) FSP SPV v. Robert Zalkin (2025) - suit to collect monies owed. Also disclosed: administrative order involving affiliate FOR Franchising LLC (Window Genie) for CA franchise law violation in 2017.
Items 10, 11
Training & Operations
- Classroom training
- 79 hrs
- On-the-job training
- 24 hrs
- Training location
- Video conference/webinar (Phase I); Waco, Texas or virtual (Phase II); Field Training at a designated existing franchised business location (or virtual) for 1-5 days
- Ongoing training
- Required
- Field support
- 24 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee (with franchisor-provided site selection guidelines)
- Franchisor financing
- Offered
- Item 10
- POS system
- CORE (business management software), part of the required Software System bundle also including Qvinci, FranConnect, Customer Engagement Platform, Neighborly Franchise Portal
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CORE (business management software), part of the required Software System bundle also including Qvinci, FranConnect, Customer Engagement Platform, Neighborly Franchise Portal
Item 20 · call current owners
Franchisee Contacts
180 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Five Star Painting · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Five Star Painting franchise?
The total investment to open a Five Star Painting franchise ranges from $82K – $195K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Five Star Painting franchise owners earn?
Five Star Painting does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Five Star Painting FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Five Star Painting FDD and qualifies whose outlets they describe.
What is Five Star Painting's franchise failure rate?
Based on SBA 7(a) loan data, Five Star Painting has a charge-off rate of 15.3% across 72 loans, meaning 15.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Five Star Painting franchise locations are there?
As of their most recent FDD filing, Five Star Painting has 245 total units in the United States, including 245 franchised units and 0 company-owned units. 11 new units were opened in the latest reporting year.
Is Five Star Painting a good franchise to buy?
FranchiseVerdict rates Five Star Painting as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.