Johnstone SupplyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A JOHNSTONE SUPPLY franchise requires a total initial investment of $808K – $3.4M, including a $60K franchise fee. The 2022 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 13 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $808K – $3.4M
- 78th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- N/A
- Units
- 426
- 77th pct Home Services
- SBA default
- 0.0%
- 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
Only 0.0% of 13 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $808K – $3.4M including a $60K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 46/100. SBA loan charge-off rate of 0.0% across 13 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Johnstone Supply, LLC
- Parent company
- Redwood Holdings, LLC
- Incorporated in
- DE
- HQ
- 11632 NE Ainsworth Circle, Portland, OR 97220
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $681.3M
- vs $853.4M prior year
Overview
About
Johnstone Supply franchisees operate as wholesale distributors of HVAC, plumbing, and mechanical systems to contractors and service professionals. Day-to-day operations involve managing inventory, fulfilling orders, handling customer service, and managing relationships with regional contractors who depend on rapid parts availability and technical expertise.
- CEO
- Lance Devin
- Headquarters
- OR
- Founded
- 1981
- FDD year
- 2022
- States available
- 47
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
- Below avg, review vs category
- Liquid capital req'd
- $200K – $400K
- Below avg, review vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- -n/d
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $1K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Home Services averages
How Johnstone Supply Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 426
- Opened
- 6
- Last reporting year
- Closed
- 19
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 4.5%
- Company-owned
- 17
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- -2.7%
- Net unit change last year
3-year detail · Item 20
- Closed (3yr)
- 12
- Transfers (3yr)
- 26
- 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.
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
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Johnstone Supply's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 13 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $60,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 46 / 100 rating
- 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
- 05MINOR7-year term is relatively short, creating renewal uncertainty and limiting franchisee asset amortization period
- 06MEDIndustrial/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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 3 years |
| Territory type | Zip Code |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 90 days |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| 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
- 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
FDD download
JOHNSTONE SUPPLY · FDD (2022) PDF
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 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 JOHNSTONE SUPPLY's franchise failure rate?
Based on SBA 7(a) loan data, JOHNSTONE SUPPLY has a charge-off rate of 0.0% across 13 loans, meaning 0.0% 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 JOHNSTONE SUPPLY franchise locations are there?
As of their most recent FDD filing, JOHNSTONE SUPPLY has 426 total units in the United States, including 0 franchised units and 17 company-owned units. 6 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 risk score of 46 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.