Bottom line
- Total investment $235K – $1.2M including a $75K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $462K/year (median $398K).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 46 loans (below the industry average).
- System growing at 1000.0% CAGR over 3 years with 30 total units — strong expansion trajectory.
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 Painter Bros unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Painter Bros units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$462K
on $2.3M purchase
Total debt
$1.8M
SBA $1.2M + senior + seller note
Overview
About
Franchisees operate painting service businesses offering residential and/or commercial interior/exterior painting, managing crews, coordinating customer jobs, handling estimates, and managing day-to-day operations. Daily activities include project management, crew supervision, customer relations, invoicing, and marketing within their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 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
High-growth but opaque painting franchise with undisclosed profitability, questionable unit economics, and franchisor financial concerns that warrant intensive franchisee validation before investment.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNo average net income disclosed in FDD Item 19 — impossible to assess actual profitability despite $461k average revenue
- 02MINORExtreme unit growth of 190% YoY suggests either aggressive recruitment or high churn; unsustainable growth rates often precede contraction
- 03MINORWide investment range ($234k–$1.24M) indicates inconsistent startup costs and undefined territory economics
- 04HIGHGoing Concern status is FALSE — suggests franchisor or parent company financial instability or restructuring risk
- 05MEDHigh franchise fee ($75k) relative to disclosed financials creates significant sunk cost before revenue generation begins
- 06MINOROnly 30 units total — small system size limits brand recognition, supply chain leverage, and support infrastructure
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
60 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Painter Bros · FDD (2025) PDF