Painter1 Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Painter1 is a home services franchise offering residential and commercial interior and exterior painting. Franchisees run local operations, managing sales estimates, painting crews, and customer accounts within a territory.
FranchiseVerdict summary · 2026
A PAINTER1 franchise requires a total initial investment of $80K – $168K, including a $55K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $422K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $80K – $168K
- 21st pct Home Services
- Avg gross sales
- $422K
- 8th pct Home Services
- Royalty
- 7.0%
- 34th pct Home Services
- Units
- 42
- 40th pct Home Services
- SBA charge-off
- N/A
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 $80K – $168K including a $55K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $422K/year (median $334K).
- RISKVerdict A (Strongest tier), verdict score 68/100 (higher is better).
- FLAG4 units terminated last reporting year (9.5% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Stratify, LLC
- Parent company
- None
- CEO title
- Managing Partner and Franchise Development
- Jason Leber
- Incorporated in
- UT
- HQ
- 105 N Main St., Spanish Fork, UT 84660
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.7M prior year
Overview
About
- CEO
- Jason Leber
- Headquarters
- UT
- Founded
- 2015
- FDD year
- 2025
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 45% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $10K | $20K |
| Equipment, build-out, other | $16K | $94K |
| Total initial investment | $80K | $168K |
Source: PAINTER1 2025 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
- $80K – $168K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $20K
- Top 40% of category vs category
- Franchise fee
- $55K – $55K
- Middle of category vs category
- Royalty
- 7.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $5K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $0 – $8K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 66% below the home services norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$42K
10.0% margin
Unlevered ROIC
30%
EBITDA / total invested capital
Payback
3.3 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one PAINTER1 unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
30%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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
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: 2025 FDD
Financial Performance
- Avg gross sales
- $422K
- Per unit, per year
- Median gross sales
- $334K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 38 outlets
- vs category median 32
- Range (low → high)
- $33K→$1.5M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $422K/year in gross sales. Median is $334K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 3.4x.
Fee burden
Total ongoing fee load of 9.0% (near the Home Services average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 16.7% CAGR over 3 years across 42 units — operators are staying and new ones are joining.
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 Painter1 Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 42
- Opened
- 24
- Last reporting year
- Closed
- 8
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +16.7%
- Net unit change over 3 years
- 3-yr CAGR
- +16.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 18 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
18
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $2.5M
- Median loan
- $120K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 1
- Typical loan rate
- 9.1%
- avg rate to borrowers
- Franchised industry avg
- 26.5%
- n=629 loans
- Jobs supported
- 65
- 2.8 per loan
- Lender concentration
- 46%
- top lender's share
Borrower mix: 77% went to startups / new businesses, 23% to established operators
Franchise vs independent — in painting and wall covering contractors, franchised businesses charge off at 26.5% vs 21.7% for independents — franchising is associated with 22% higher SBA default risk in this category.
Top lenders financing Painter1 franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Painter1's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
0 case reference(s): 1 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 68 / 100 verdict
- 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
- 05MEDNo litigation disclosed may be incomplete; inability to verify franchisee satisfaction or dispute history
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 100,000 to 225,000 households |
| 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 |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Utah County, Utah |
| Jury trial waiver | Yes |
| Governing law | UT |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 30 hrs
- Training location
- Franchisee mentor's territory (currently Knoxville, TN) and franchisee's territory
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Site selection
- Franchisor designates territory; franchisee selects home office or optional small leased space independently
- Franchisor financing
- Not offered
- Item 10
- POS system
- Client Tether
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Client Tether
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
PAINTER1 · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a PAINTER1 franchise?
The total investment to open a PAINTER1 franchise ranges from $80K – $168K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PAINTER1 franchise owners earn?
According to Item 19 of the PAINTER1 FDD, the average gross sales per unit is $422K. The median is $334K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the PAINTER1 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 PAINTER1 FDD and qualifies whose outlets they describe.
What is PAINTER1's franchise failure rate?
SBA 7(a) loan charge-off data is not available for PAINTER1 (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many PAINTER1 franchise locations are there?
As of their most recent FDD filing, PAINTER1 has 42 total units in the United States, including 42 franchised units and 0 company-owned units. 24 new units were opened in the latest reporting year.
Is PAINTER1 a good franchise to buy?
FranchiseVerdict rates PAINTER1 as a A-grade franchise with a verdict score of 68 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 PAINTER1, you can request corrections or provide updated information.
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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.