Johnstone Supply
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.
- Rated CAUTION with a risk score of 69/100. SBA loan default rate of 0.0% across 3 loans (below the industry average).
- 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
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 JOHNSTONE SUPPLY unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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
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.
Score breakdown · what drove the 69 / 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
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
95 numbers
One-time purchase · CSV download · Validation questions included
FDD download
JOHNSTONE SUPPLY · FDD (2022) PDF