Five Star PaintingFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Five Star Painting franchise requires a total initial investment of $77K – $185K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. The 2024 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]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $77K – $185K
- 18th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 234
- 71st pct Home Services
- SBA default
- 15.3%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $77K – $185K including a $45K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "gross_sales" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 15.3% across 72 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Item 19 reports "gross_sales" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Five Star Painting SPV LLC
- Parent company
- Neighborly Assetco LLC
- Incorporated in
- DE
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $384K
- vs $452K prior year
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.
- CEO
- Michael Anthony Davis
- Headquarters
- TX
- Founded
- 2007
- FDD year
- 2024
- States available
- 38
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $6K | $11K |
| Equipment, build-out, other | $26K | $129K |
| Total initial investment | $77K | $185K |
Source: Five Star Painting 2024 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
- $77K – $185K
- Better than avg vs category
- Liquid capital req'd
- $6K – $11K
- Better than avg vs category
- Franchise fee
- $38K – $91K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- 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 | $292 |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "gross_sales" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Home Services averages
How Five Star Painting Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 234
- Opened
- 14
- Last reporting year
- Closed
- 10
- Turnover rate
- 4.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.7%
- Net unit change last year
- 3-yr CAGR
- +4.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 14
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)
- 65.6%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 11
Vintage analysis
Five Star Painting charge-off rate by loan vintage
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.
Risk analysis
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.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 55 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 79 hrs
- On-the-job training
- 40 hrs
- POS system
- Onverity
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Onverity
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 (2024) 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 $77K – $185K, 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 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 234 total units in the United States, including 215 franchised units and 0 company-owned units. 14 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 risk score of 55 out of 100, 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
Are you the franchisor?
If you represent Five Star Painting, you can request corrections or provide updated information.
Claim this brandOther Home Services franchises
Compare similar franchise opportunities in the Home Services category
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.