Bottom line
- Total investment $81K – $120K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $659K/year (median $595K).
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 41 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 Fresh Coat unit return on the cash you put in?
Unlevered ROIC · per unit
55%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Fresh Coat units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$527K
on $2.6M purchase
Total debt
$2.1M
SBA $1.3M + senior + seller note
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.
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 · 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 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
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.
Score breakdown · what drove the 46 / 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
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
79 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Fresh Coat · FDD (2025) PDF