Fresh Coat Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Fresh Coat 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 Fresh Coat franchise requires a total initial investment of $81K – $120K, including a $55K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $752K[2]. SBA 7(a) loans show a 9.1% charge-off rate across 22 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $81K – $120K
- 21st pct Home Services
- Avg gross sales
- $752K
- 18th pct Home Services
- Royalty
- 6.0%
- 15th pct Home Services
- Units
- 182
- 73rd pct Home Services
- SBA charge-off
- 9.1%
- % 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 $81K – $120K including a $55K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $752K/year (median $653K).
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better). 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, 2010–2025).
- FLAG13 units terminated last reporting year (7.1% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- 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
- $6.5M
- vs $6.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Lisa Hudson
- Headquarters
- OH
- Founded
- 2005
- FDD year
- 2026
- States available
- 32
Can you afford it, and what does the money buy?
Entry cost runs 55% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown11 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $81K – $120K
- Top 40% of category vs category
- Liquid capital req'd
- $21K – $43K
- Middle of category vs category
- Franchise fee
- $55K – $55K
- Middle of category vs category
- Royalty
- 6.0%
- tiered · 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 |
What do units actually make?
Average unit sales run 39% below the home services norm.
Source: FDD 2026 · Item 19
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
$83K
11.0% margin
Unlevered ROIC
62%
EBITDA / total invested capital
Payback
19 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Fresh Coat unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
62%
Above the 30–60% band. Verify revenue is per-unit average
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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
$602K
on $3.0M purchase
Total debt
$2.4M
SBA $1.5M + senior + seller note
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
- Avg gross sales
- $752K
- Per unit, per year
- Median gross sales
- $653K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- quartile and cumulative gross revenue
- Sample size
- 62 territories
- vs category median 32
- Range (low → high)
- $107K→$3.0M
- Cohort dispersion (min → max)
- Quartile band
- $291K→$1.5M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 321 Home Services brands
Revenue is 7.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $752K/year in gross sales. Revenue-to-investment ratio: 7.5x.
Fee burden
Total ongoing fee load of 8.0% (near the Home Services average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+4.6% 3-year CAGR) with 182 units.
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 Fresh Coat Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 182
- Opened
- 23
- Last reporting year
- Closed
- 7
- Terminated
- 13
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- Outlier
- Reported value implausible. See FDD Item 20
- Net growth (3-yr)
- +4.6%
- Net unit change over 3 years
- 3-yr CAGR
- +4.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 23
- Closed (3yr)
- 7
- Terminated (3yr)
- 13
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 8
- Reacquired (3yr)
- 7
- 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 · 25 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)
- 90.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 2
- Typical loan rate
- 7.7%
- avg rate to borrowers
- Franchised industry avg
- 26.5%
- brand beats franchise avg ↓
- Jobs supported
- 117
- 2.8 per loan
- Lender concentration
- 9%
- top lender's share
Borrower mix: 50% went to startups / new businesses, 50% 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.
Top lenders financing Fresh Coat franchisees
Showing 3 of 17 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 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.
What could kill this investment?
SBA loans charge off at 9.1% — 43% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Two enforcement actions by franchisor against former franchisees (one settled for $165,216; one arbitration dismissed upon transfer); two consent orders with California DFPI (officer bankruptcy non-disclosure and CPA registration issue); Virginia settlement order regarding officer bankruptcy non-disclosure; and affiliate Virginia settlement order (Growth Coach officer bankruptcy)
Largest disclosed settlement: $165,216
Bankruptcy (Item 4)
None disclosed
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: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 78 / 100 verdict
- 01MINORMultiple regulatory settlements involving non-disclosure of officer bankruptcies (Virginia, California, Virginia affiliate) suggesting potential governance/transparency issues
- 02HIGHAggressive litigation posture: two franchisor-initiated enforcement actions against franchisees signal potential relationship friction
- 03MINORCPA registration compliance violation in California indicates internal controls/compliance gaps
- 04MINORModest unit growth (7.5% YoY) in a 187-unit system suggests market saturation or plateauing demand
- 05MEDHigh 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
What are you signing up for?
Ongoing fees run about 8.0% 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 | 2 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 175,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 22 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Cincinnati, Ohio |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 6 |
View Item 3 litigation summary
Two enforcement actions by franchisor against former franchisees (one settled for $165,216; one arbitration dismissed upon transfer); two consent orders with California DFPI (officer bankruptcy non-disclosure and CPA registration issue); Virginia settlement order regarding officer bankruptcy non-disclosure; and affiliate Virginia settlement order (Growth Coach officer bankruptcy)
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 0 hrs
- Training location
- Cincinnati, Ohio (corporate headquarters)
- Ongoing training
- Optional
- Time to open
- 1 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
75 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Fresh Coat · FDD (2026) 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 $55K. 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 $752K. The median is $653K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Fresh Coat 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 Fresh Coat FDD and qualifies whose outlets they describe.
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 182 total units in the United States, including 182 franchised units and 0 company-owned units. 23 new units were opened in the latest reporting year.
Is Fresh Coat a good franchise to buy?
FranchiseVerdict rates Fresh Coat as a A-grade franchise with a verdict score of 78 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.