Fresh CoatFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Fresh Coat franchise requires a total initial investment of $81K – $120K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $659K[2]. SBA 7(a) loans show a 9.1% charge-off rate across 22 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $81K – $120K
- 21st pct Home Services
- Avg gross sales
- $659K
- 23rd pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 187
- 66th pct Home Services
- SBA default
- 9.1%
- 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
Each dollar invested generates 6.5x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $81K – $120K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $659K/year (median $595K).
- Verdict D (Below Average) with a risk score of 70/100. SBA loan charge-off rate of 9.1% across 22 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- F.C. FRANCHISING SYSTEMS, INC.
- CEO title
- President
- Lisa Hudson
- Incorporated in
- OH
- HQ
- 4755 Lake Forest Drive, Suite 100, Cincinnati, Ohio 45242
- Auditor
- Clark, Schaefer, Hackett & Co.
- Audited financials
- Franchisor revenue
- $6.0M
- vs $6.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Fresh Coat franchisees operate residential and commercial interior/exterior painting services, managing crews, scheduling jobs, and handling customer acquisition within protected territories. Day-to-day operations involve job estimating, crew supervision, quality control, and local marketing to build recurring revenue from repeat customers and referrals.
- CEO
- Lisa Hudson
- Headquarters
- OH
- Founded
- 2005
- FDD year
- 2025
- States available
- 32
FDD Item 7 · 2025 filing · 11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $50K | |
| Furniture and Equipment | $0 | $1K | |
| Computer System | $1K | $3K | |
| Travel & living expenses while training | $3K | $5K | |
| Initial Rent, Telephone, Bank, Licensing Fees, and Other Deposits | $0 | $2K | |
| Insurance | $3K | $8K | |
| Grand Opening Promotionnot refundable | $3K | $4K | |
| Compliance with regulations | $450 | $1K | |
| Additional Funds - 3 Months | $21K | $43K | |
| Monthly Office Rental Payment | $0 | $1K | |
| Vehicle | $0 | $3K | |
| Total initial investment | $81K | $120K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$73K
11.0% margin
Unlevered ROIC
55%
EBITDA / total invested capital
Payback
22 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $81K – $120K
- Better than avg vs category
- Liquid capital req'd
- $21K – $43K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Revenues · 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 | $499 |
| Transfer fee | $13K |
| Renewal fee | $0 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $659K
- Per unit, per year
- Median gross sales
- $595K
- Item 19 type
- gross_sales
- Sample size
- 62 units
- vs category median 25 · large
- Range (low → high)
- $6K→$2.8M
- Cohort dispersion (min → max)
- Quartile band
- $147K→$1.4M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 349 Home Services brands
Revenue is 6.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How Fresh Coat Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 187
- Opened
- 36
- Last reporting year
- Closed
- 24
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 5
- Term expired, not renewed (per Item 20)
- Turnover rate
- 13.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.6%
- Net growth (yr3)
- +7.5%
- Net unit change last year
- 3-yr CAGR
- +12.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 37
- Closed (3yr)
- 24
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 5
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 4
- Franchisor bought back
- Projected new
- 28
- Franchisor's next-year forecast
- Transfer rate
- 3.2%
- Owners selling to other franchisees
- Termination rate
- 4.3%
- Franchisor-initiated terminations
- Ceased ops
- 12.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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
- 22
- Loan volume
- $4.2M
- Median loan
- $102K
- 50th percentile
- Charge-off rate
- 9.1%
- 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)
- 75.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Fresh Coat'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 14 states
- Startup risk premium and job creation velocity
- 11-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Fresh Coat presents elevated risk due to recurring regulatory non-disclosure violations, opaque profitability data, aggressive franchisor enforcement history, and modest growth trajectory—proceed only after intensive franchisee validation.
Litigation (Item 3)
Six litigation matters: (1) F.C. Franchising Systems, Inc. v. Blue Barn Painting Company, LLC - noncompetition agreement enforcement, settled May 23, 2024 for $165,216.22; (2) Commonwealth of Virginia v. F.C. Franchising Systems, Inc. - undisclosed officer bankruptcy in 2012-2013 disclosures, settled March 3, 2021 with refunds and $8,000 penalty; (3) California Commissioner v. multiple affiliates - officer's 2012 undisclosed bankruptcy in disclosures 2012-2016, Consent Order July 20, 2021; (4) California Commissioner v. multiple affiliates - unregistered CPA audit firm, Consent Order December 13, 2021 with $5,000 penalty; (5) Commonwealth of Virginia v. G.C. Franchising Systems, Inc. - board member's undisclosed bankruptcy, settled August 11, 2022 with $3,500 penalty; (6) F.C. Franchising Systems Inc. v. 3CJR Painting, LLC - breach of contract arbitration, dismissed March 8, 2025.
Largest disclosed settlement: $165,216
Bankruptcy (Item 4)
Disclosed in last 7 years
Multiple officer and board member personal bankruptcies were not disclosed in franchise disclosure documents: (1) One officer filed personal bankruptcy during employment, not disclosed in 2012-2013 Virginia disclosure documents; (2) Officer/director's 2012 personal bankruptcy filing not disclosed in California disclosure documents from 2012-October 2016; (3) Board member of G.C. Franchising Systems, Inc. filed personal bankruptcy during tenure, not disclosed in 2015 Virginia disclosure document.
Audited financials (Item 21)
Yes · Clark, Schaefer, Hackett & Co.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 rating
- 01MINORMultiple regulatory settlements involving non-disclosure of officer bankruptcies (Virginia, California, Virginia affiliate) suggesting potential governance/transparency issues
- 02MEDNo Item 19 (Average Unit Volume) disclosed despite $659K average revenue claim, making ROI validation impossible
- 03HIGHAggressive litigation posture: two franchisor-initiated enforcement actions against franchisees signal potential relationship friction
- 04MINORCPA registration compliance violation in California indicates internal controls/compliance gaps
- 05MINORModest unit growth (7.5% YoY) in a 187-unit system suggests market saturation or plateauing demand
- 06MEDHigh initial investment ($81K-$120K) relative to disclosed royalty recovery timeline with no net income transparency
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 | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 2 |
| Territory type | Delineated by postal codes |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 175,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 6 |
View Item 3 litigation summary
Six litigation matters: (1) F.C. Franchising Systems, Inc. v. Blue Barn Painting Company, LLC - noncompetition agreement enforcement, settled May 23, 2024 for $165,216.22; (2) Commonwealth of Virginia v. F.C. Franchising Systems, Inc. - undisclosed officer bankruptcy in 2012-2013 disclosures, settled March 3, 2021 with refunds and $8,000 penalty; (3) California Commissioner v. multiple affiliates - officer's 2012 undisclosed bankruptcy in disclosures 2012-2016, Consent Order July 20, 2021; (4) California Commissioner v. multiple affiliates - unregistered CPA audit firm, Consent Order December 13, 2021 with $5,000 penalty; (5) Commonwealth of Virginia v. G.C. Franchising Systems, Inc. - board member's undisclosed bankruptcy, settled August 11, 2022 with $3,500 penalty; (6) F.C. Franchising Systems Inc. v. 3CJR Painting, LLC - breach of contract arbitration, dismissed March 8, 2025.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
79 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Fresh Coat · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Fresh Coat franchise?
The total investment to open a Fresh Coat franchise ranges from $81K – $120K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Fresh Coat franchise owners earn?
According to Item 19 of the Fresh Coat FDD, the average gross sales per unit is $659K. The median is $595K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Fresh Coat's franchise failure rate?
Based on SBA 7(a) loan data, Fresh Coat has a charge-off rate of 9.1% across 22 loans, meaning 9.1% 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 Fresh Coat franchise locations are there?
As of their most recent FDD filing, Fresh Coat has 187 total units in the United States, including 166 franchised units and 0 company-owned units. 36 new units were opened in the latest reporting year.
Is Fresh Coat a good franchise to buy?
FranchiseVerdict rates Fresh Coat as a D-grade franchise with a risk score of 70 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.
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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.