FIVE STAR PAINTING

Item 7 details the initial investment from $77,450 to $226,522, covering franchise fee of $45,000, vehicles, equipment, and initial marketing. Ongoing fees hit 6% royalty plus 2% brand/ad fund, plus $197 monthly software and $350-$450 call center charges—stacking up to notable outflows. Item 19 provides earnings data for franchisees, showing variability but potential in a brand with 245 locations since 2007. Average SBA loan of $156,203 across 74 approvals signals accessible financing, though the 14.9% default rate flags risks in cash flow for some operators, especially in converting existing painters.

System metrics paint moderate expansion: 234 units in 2023 to 245 in 2024 (+5% growth), 19 projected new units, but 6 terminations and 7 transfers suggest stability with some churn. Litigation notes highlight franchisor suits to collect owed monies, pointing to potential disputes over fees. For buyers eyeing home improvement services, this setup offers Neighborly's infrastructure for residential/commercial painting, but weigh the SBA default trend and add-ons against Item 19 insights—strong for vetted painters, riskier for novices without deep pockets.