Johnstone Supply Franchise Cost, Revenue & Review 2026
- Investment
- $808K – $3.4M
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 13 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Johnstone Supply is a wholesale-distribution franchise, a member cooperative, supplying HVAC, refrigeration, and plumbing parts to contractors. Franchisees run a distribution branch managing inventory, order fulfillment, and contractor accounts.
FranchiseVerdict summary · 2026
A JOHNSTONE SUPPLY franchise requires a total initial investment of $808K – $3.4M, including a $60K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored2 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $808K – $3.4M
- 87th pct Home Services
- Avg gross sales
- N/A
- Royalty
- Not extracted
- Units
- 443
- 86th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · 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 $808K – $3.4M including a $60K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better).
- GROWTHNegative: net -12 franchised outlets in the latest year (1 opened, 19 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Johnstone Supply, LLC
- Parent company
- Redwood Holdings, LLC
- FDD Item 1, page 8 of the 2022 FDD
- Predecessor
- Johnstone Supply, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Lance Devin
- Incorporated in
- DE
- HQ
- 11632 NE Ainsworth Circle, Portland, OR 97220
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $528.5M
- vs $853.4M prior year
Overview
About
- CEO
- Lance Devin
- Headquarters
- OR
- Founded
- 1981
- FDD year
- 2022
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 1152% above the typical home services franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $200K | $400K |
| Equipment, build-out, other | $548K | $2.9M |
| Total initial investment | $808K | $3.4M |
Source: JOHNSTONE SUPPLY 2022 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
- $808K – $3.4M
- Bottom third — review vs category
- Liquid capital req'd
- $200K – $400K
- Bottom third — review vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- No royalty fee disclosed; franchisees purchase inventory …
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% |
| Transfer fee | $1K |
| Inventory (initial) | $200K – $2.0M |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
JOHNSTONE SUPPLY makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one JOHNSTONE SUPPLY unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2022 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
Net unit growth of +98.6% over 3 years (1 opened, 19 closed).
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 medians
How Johnstone Supply Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 443
- Opened
- 1
- Last reporting year
- Closed
- 19
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.4%
- Company-owned
- 17
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (3-yr)
- +98.6%
- Net unit change over 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 26
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 9
- Franchisor's next-year forecast
- Transfer rate
- 5.9%
- Owners selling to other franchisees
- Continuity rate
- 97.3%
- Units that stayed open
- Termination rate
- 0.7%
- Franchisor-initiated terminations
- Ceased ops
- 2.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 49 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.
Where the owners are · Item 20 owner list
423 current owners across 49 states.
- CA 41
- FL 31
- TX 27
- MI 22
- NC 18
- IL 16
- NY 16
- PA 15
- MO 13
- NJ 12
- OK 12
- SC 12
- +37 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 13
- Loan volume
- $17.0M
- Median loan
- $400K
- 50th percentile
- Charge-off rate
- Limited · 13 loans
- Limited SBA coverage: 13 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 13 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
- Typical loan rate
- N/A
- vs industry
- N/A
- Jobs supported
- 16
- 4.0 per loan
- Lender concentration
- 100%
- top lender's share
Top lenders financing Johnstone Supply franchisees
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Johnstone Supply from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Lender concentration
- 100.0%
- Job velocity
- 4.0 per $100K
- Jobs supported
- 16
Top SBA lendersTop lender holds 100% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | PNC Bank, National Association | 1 | $400K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Johnstone Supply presents moderate-to-high risk due to declining unit count, missing financial disclosure, opaque fee structure, and high capital requirements in a thin-margin industry.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Most recent audited financials are for the six-month period ended October 31, 2021 (pre-Conversion, Johnstone Supply, Inc., an Oregon cooperative). Revenues, net of $528,529,207 covers only that six-month stub period. Prior-year figure ($853,372,572) is the full fiscal year ended April 30, 2021. After the October 29, 2021 conversion to Johnstone Supply, LLC, the franchisor adopted a December 31 fiscal year; an unaudited June 30, 2022 balance sheet was also provided.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 73 / 100 verdict
- 01MINORUnit count declining 2.7% YoY suggests system contraction and potential market saturation or franchisee struggles
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and raises transparency concerns
- 03MINORWide investment range ($808K–$3.4M, 321% spread) indicates highly variable unit economics and unclear cost structure
- 04MINORRoyalty rate unknown despite significant franchise fee ($60K) suggests opaque fee structure
- 05MEDIndustrial/HVAC supply distribution is capital-intensive with thin margins; high investment coupled with undisclosed profitability is concerning
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 6 years |
|---|---|
| Renewal term | 3 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | Yes |
| Arbitration location | Wilmington, Delaware |
| Jury trial waiver | No |
| Governing law | DE |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- DDI Inform, Epicor Eclipse, or Infor SXe
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: DDI Inform, Epicor Eclipse, or Infor SXe
Item 20 · call current owners
Franchisee Contacts
423 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a JOHNSTONE SUPPLY franchise?
The total investment to open a JOHNSTONE SUPPLY franchise ranges from $808K – $3.4M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do JOHNSTONE SUPPLY franchise owners earn?
JOHNSTONE SUPPLY makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns JOHNSTONE SUPPLY?
JOHNSTONE SUPPLY is franchised by Johnstone Supply, LLC. Its parent company is Redwood Holdings, LLC. Source: FDD Item 1, 2022 filing.
What is Item 19 in the JOHNSTONE SUPPLY 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 JOHNSTONE SUPPLY FDD and qualifies whose outlets they describe.
What is JOHNSTONE SUPPLY's franchise failure rate?
SBA 7(a) loan charge-off data is not available for JOHNSTONE SUPPLY (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many JOHNSTONE SUPPLY franchise locations are there?
As of their most recent FDD filing, JOHNSTONE SUPPLY has 443 total units in the United States, including 426 franchised units and 17 company-owned units. 1 new units were opened in the latest reporting year.
Is JOHNSTONE SUPPLY a good franchise to buy?
FranchiseVerdict rates JOHNSTONE SUPPLY as a A-grade franchise with a verdict score of 73 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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 JOHNSTONE SUPPLY, you can request corrections or provide updated information.
Other 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.