Johnstone Supply Franchise Cost, Revenue & Review 2026
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. 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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $808K – $3.4M
- 88th pct Home Services
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 443
- 87th pct Home Services
- SBA charge-off
- 0.0%
- % 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 $808K – $3.4M including a $60K franchise fee.
- RETURNSMost 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.
- RISKVerdict A (Strongest tier), verdict score 80/100 (higher is better). SBA loan charge-off rate of 0.0% across 13 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Johnstone Supply, LLC
- Parent company
- Redwood Holdings, LLC
- 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 835% 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% of gross sales |
| Transfer fee | $1K |
| Inventory (initial) | $200K – $2.0M |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
JOHNSTONE SUPPLY did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one JOHNSTONE SUPPLY unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
4%
Below the 30–60% attractive-franchise band
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
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.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Johnstone Supply Compares
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
3-year detail · Item 20
- Opened (3yr)
- 438
- Closed (3yr)
- 3
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 27
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
- 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.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% 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
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: 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 80 / 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 |
| 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
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 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?
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 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 80 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
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.