B59/100FDD 2025
Painter Bros — Litigation & Risk
Home Services - Painting · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
22
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$5.0M
Avg loan size
$225K
Participating lenders
5
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 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 FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.