About Five Star Painting Franchise
Five Star Painting is a professional residential and commercial painting franchise operating under the Neighborly family of home service brands.
The company has been offering franchise opportunities since 2007, providing owners with a proven business model in the consistently in demand home improvement painting sector.
The initial franchise fee is $45,000.
Five Star Painting Franchise Cost & Fees
Minimum Investment
$75K
Average Investment
$130K
Maximum Investment
$184K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales except for “roll-in” sales. | National brand fund |
| Total Investment Range | $74,730 – $184,280 | Includes build-out, inventory, working capital |
The investment range of $75K–$184K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales except for “roll-in” sales.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Software System Fee | $1,250 | $1,250 |
| Call Center Fee | $630 | $630 |
| Vehicle | $2,000 | $39,500 |
| Equipment, Supplies & Inventory | $2,400 | $11,550 |
| Insurance | $1,000 | $9,000 |
| Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase. | $15,000 | $50,000 |
| Training, Travel, Lodging & Food | $1,000 | $4,000 |
| Deposits, Permits & Licenses | $0 | $1,750 |
| Professional Fees | $250 | $5,000 |
| Additional Funds - 6 Mo. | $6,200 | $10,600 |
| Real Estate | $0 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of (i) $7,500 or (ii) 5% of the transfer sales price |
| Renewal Fee | $5,000 |
| Technology Fee | $162 per month, $90 per month for each additional franchise purchased. |
| Audit Fee | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees |
| Local Marketing Groups | Not to exceed 3% of Gross Sales |
| Late Fees (on Software System Monthly Fees) | $25 per month or the maximum amount allowed under the law, whichever is less. |
| Call Center Services Monthly Fees | $630 |
| Annual Convention (“Reunion”) Fees | Currently $1,000 |
| Late Fees (Franchise Agreement) | $10 per day |
| Dishonored Check or ACH Draft | $25 |
| Interest | 12% on unpaid balances |
| Failure to Maintain Insurance | Our actual cost for insurance premiums and a reasonable fee for expenses we incur |
| Amendment Fee | $250 |
| Unapproved Suppliers | Our actual out-of-pocket costs of inspection or testing |
| Indemnification and attorneys’ fees and costs | Varies according to loss |
| Tax Reimbursement | Varies according to tax |
| Additional Training Fee | The then-current fee, currently $125 per hour. |
| Key Accounts/Management Fee | Up to 5% of total Gross Sales related to Key Account work |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Phase I: 28.75 classroom hours, 7.75 video/online hours. Phase II: 41.5 classroom hours. Field Training: 8-40 on-the-job hours. |
| Classroom Training | Phase I: 28.75, Phase II: 41.5 |
| On-the-Job Training | 8 - 40 |
| Training Location | Phase I: Video-Conferencing. Phase II: Offices in Waco, TX or virtual training. Field Training: Various locations (or virtual training) to include franchised businesses. |
| Additional Training | We may require you and other key employees to attend ongoing training at our training facility or other designated locations. If you request additional training or we require it, we may charge a training fee, plus you must pay your costs and expenses for travel, lodging, food, and materials. Training programs may be conducted virtually/remotely due to Covid-19, potentially reducing travel expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | minimum population of at least 150,000 and a maximum population of no more than 2,500,000 |
| Description | You will receive the right to operate either a Five Star Painting or Protect Painting business at a location within your territory that meets our site selection guidelines. Your Franchise Agreement will specify a designated territory that will provide you limited territory protection, meaning we will not operate or grant a franchise for another Five Star Painting or Protect Painters business with rights to market within your Territory during the term of your Franchise Agreement. However, we and our affiliates reserve all other rights, including selling products/services under different trademarks, or the same products/services through different channels of distribution, anywhere, including within your Territory. We may also solicit Key Accounts in your Territory and authorize others to perform services if you refuse, are not qualified, or if a customer specifically requests another party. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional 10-year term |
| Renewal Fee | $5,000 |
| Renewal Conditions | You must not be in default of the current Franchise Agreement or any related agreement, have satisfied all monetary and other material obligations on a timely basis, be in good standing, and have received no more than 3 written notices of default during the term. You must give us written notice, you and your guarantors must sign a general release, pay a $5,000 renewal fee, complete our then-current training requirements, and sign the then-current version of our franchise agreement, which may have different terms, conditions, and fees. |
| Transfer Fee | The greater of (i) $7,500 or (ii) 5% of the transfer sales price |
| Transfer Conditions | You must not be in default, have paid all amounts owed to us, our affiliates, or suppliers, or upon which we have contingent liability. You must have provided all required reports, the new franchisee must qualify and complete training, you, owners, and guarantors must sign a general release, and the transfer fee must be paid. The new franchisee must sign our current franchise agreement and agree to be bound by all customer obligations, including warranty work and service plans. |
| Termination for Cause | Material misrepresentations in the application or reports; voluntary abandonment of the Franchise Agreement (e.g., failing to operate for seven or more consecutive days); state or local authority closing the Business for public safety; registering a domain name containing our Marks; unauthorized use of Confidential Information; insolvency or assignment for the benefit of creditors; conviction of a misdemeanor bringing Marks into disrepute or impairing reputation/goodwill, or any felony; intentionally understating or underreporting Gross Sales, License Fees, or MAP Fees; any understatement or 2% variance on a subsequent audit within a 2-year period; unauthorized transfer or assignment; or a second default of any type within any 12-month consecutive period. |
| Non-Compete Period | For 2 years |
| Non-Compete Details | You (including your guarantors and owners, if an entity, or your spouse, children, parents, or siblings, if an individual) cannot be involved in a Competitive Business in your Territory, within a 25-mile radius of the outer boundary of your Territory, or inside the territory of another FIVE STAR PAINTING business for 2 years after the expiration or termination of the Franchise Agreement. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If you are an individual, you must directly perform or supervise the operation of the Business unless we consent otherwise. You must maintain an immigration status allowing you to live and work in the United States for the term of the Franchise Agreement. If we consent to non-personal supervision, a bona fide manager who has successfully completed our training program must directly supervise the Business. If you are a corporation or other legal entity, direct, on-site supervision must be done by a designated 'principal owner' who has completed training, unless we consent otherwise. Principal owners and guarantors must sign a personal guarantee. |
| Required Suppliers | You must license the Software System (currently CORE, Qvinci, FranConnect, one NPS site and one email account) from us and pay our designee (currently our affiliate ZorWare) a monthly fee. Additionally, you must independently license and use QuickBooks Online. You are required to pay for, and use, the call center that we authorize to answer incoming sales calls. We reserve the right to designate a primary or single source of supply for certain products and supplies, and we or our affiliates may be that single source. |
| Supply Restrictions | You must use only approved products, inventory, supplies, uniforms, tools, equipment, signs, telephone and internet equipment and service, advertising materials, and other items (the “approved supplies”) in the Business as described in the approved supplies and approved suppliers’ lists, as we may amend from time to time. You may not contract with an alternative supplier for any products and/or services for which we have designated a supplier. |
| Franchisor Revenue from Suppliers | In 2020, ProTradeNet’s predecessor PTNLLC had revenue of $1,096,625 (approx. 12% of total revenues) from purchases by Five Star Painting franchisees. In 2020, our affiliate, ZorWare had revenue of $290,109 (approx. 4.63% of total revenues) from required purchases or payments by our Franchisees for initial training and maintenance and monthly support. In 2020, Predecessor had revenue of $1,687,922 (approx. 17.82% of total revenues) as a result of purchases by Five Star Painting franchisees from approved suppliers or under Predecessor’s specifications or directly from Predecessor. We or our affiliates may receive a commission from the brokerage of a capital lease or other equipment finance, should you require financial assistance from third parties. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | We may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions, based on credit-worthiness and available collateral. We limit financing to less than 50% of the total equity, debt, and other financial support of your Business. Our standard financing is up to 70% of your initial franchise fee, and up to 80% in our sole discretion if certain requirements are met. Interest rates vary by credit score: Under 600 (12%), 600-649 (11%), 650-699 (10%), 700 or more (9%). Repayment terms range from up to 5 years for loans less than $45,000 to 9 years for loans greater than $150,000. We require a security interest in the Business, including all assets, and may file a UCC financing statement. We have the right to require a spouse’s personal guaranty. We may sell, assign or discount any promissory note to a third party. |
Five Star Painting Franchise Earnings — Item 19
Average Revenue
$1.35
Median Revenue
$1.1
Revenue Range
$0.01 – $6.06
Sample Size
159 units
Past financial performance does not guarantee future results. Individual results will vary.
Five Star Painting Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Five Star Painting System Growth
Total Units
215
Franchised
215
Company-Owned
0
Five Star Painting currently operates 215 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 24 | 22 | 177 |
| 2019 | 38 | 17 | 198 |
| 2020 | 33 | 16 | 215 |
Transfers: 11 | Closures: 16
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$270.0M
Net Income
$-5,341,000
Total Assets
$1361.0M
Audited by BDO USA, LLP for year ending December 31.
Five Star Painting Franchise — FAQ
The total investment to open a Five Star Painting franchise ranges from $74,730 to $184,280, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Five Star Painting charges a royalty fee of 6% of Gross Sales of gross sales, plus a 2% of Gross Sales except for “roll-in” sales. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Five Star Painting Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Five Star Painting to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Five Star Painting franchise owners report average revenue of $1.35 and median revenue of $1.1. This is based on a sample of 159 units. Past performance does not guarantee future results.
Five Star Painting has been franchising since 2007. The FDD shows an investment range of $74,730-$184,280, a 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $45,000 and the total investment ranges from $74,730 to $184,280 depending on location size and market. A minimum of $6,200 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Five Star Painting and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Five Star Painting or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com