Bottom line
- Total investment $80K – $168K including a $55K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $422K/year (median $334K).
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 27 loans (below the industry average).
- System growing at 16.7% CAGR over 3 years with 42 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 PAINTER1 unit return on the cash you put in?
Unlevered ROIC · per unit
30%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PAINTER1 units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$253K
on $1.3M purchase
Total debt
$1.0M
SBA $0.6M + senior + seller note
Overview
About
PAINTER1 franchisees operate residential and/or commercial painting service businesses, managing crews, scheduling jobs, and handling customer relationships. Day-to-day activities include job estimation, quality oversight, crew management, and client communication. The model appears to be a service-based painting contractor operation with franchisor support for training, marketing, and operational systems.
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 · 21 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
PAINTER1 presents meaningful risk due to undisclosed net income, going concern accounting warning, and modest growth trajectory—proceed only after thorough franchisee validation.
Score breakdown · what drove the 39 / 100 rating
- 01MEDNet income not disclosed in Item 19 — impossible to validate actual profitability against $80K-$168K investment
- 02HIGHGoing Concern status is FALSE — suggests auditor raised substantial doubt about franchisor's ability to continue operations
- 03MEDModest unit growth of 10.5% YoY with only 42 total units indicates slow system expansion and limited brand momentum
- 04MINORHigh franchise fee ($54,500) represents 68% of minimum investment — aggressive upfront cost structure
- 05HIGHNo litigation disclosed may be incomplete; inability to verify franchisee satisfaction or dispute history
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PAINTER1 · FDD (2025) PDF