In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Five Star Painting franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Five Star Painting franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Five Star Painting outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Five Star Painting franchise opportunity

Section V – Presentation and analysis of Five Star Painting’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross sales per capita for the top 10%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 10%, and all 152 franchised Five Star Painting businesses, which were all in operation and reporting sales for the full 12 months of 2023 (the “Reporting Period”)

• 2023 average, median, highest, and lowest jobs per capita for the top 10%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 10%, and all 152 franchised Five Star Painting businesses, which were all in operation and reporting sales for the full Reporting Period

• 2023 average, median, highest, and lowest gross sales per job for the top 10%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 10%, and all 221 franchised Five Star Painting businesses that reported sales during any part of the Reporting Period and were in operation at the end of the Reporting Period

Section VI – Key ratios, comparables, computations, and analyses for the Five Star Painting franchise opportunity (exclusive content for Platinum subscribers)

Section I – Five Star Painting Franchise Costs

• Five Star Painting franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $45,000 + $230 per 1,000 additional population over minimum
• Software System Fee:  $1,250
• Call Center Fee:  $349.99
• Vehicle:  $3,000 to $40,000
• Equipment, Supplies, and Inventory:  $2,400 to $11,550
• Insurance:  $2,500 to $9,000
• Advertising & Promotional and Local Marketing Spending:  $15,000 to $50,000
• Training, Travel, Lodging, and Food:  $1,500 to $4,000
• Deposits, Permits, and Licenses:   $0 to $1,750
• Professional Fees:   $250 to $5,000
• Real Estate:  $0 to $6,000
• Additional Funds for 6 Months:  $6,200 to $10,600
• Total Estimated Five Star Painting Franchise Costs:  $77,449.99 (does not include real estate costs) to $184,529.99 + any additional franchise fee + any real estate costs

Section II – Five Star Painting’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Five Star Painting’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $45,000 + $230 per 1,000 additional population over minimum
• License Fee (i.e., royalties):   6% of Gross Sales except for “roll-in” sales. In addition, minimum license fees apply.
• Marketing, Advertising, and Promotion (MAP) Fee:  2% of Gross Sales except for “roll-in” sales
• Local Marketing Groups:  not to exceed 3% of Gross Sales

Section III – Number of Franchised and Company-Owned Five Star Painting Outlets

Franchised

2021

• Outlets at the Start of the Year:  215
• Outlets at the End of the Year:  225
• Net Change:  +10

2022

• Outlets at the Start of the Year:  225
• Outlets at the End of the Year:  230
• Net Change:  +5

2023

• Outlets at the Start of the Year:  230
• Outlets at the End of the Year:  234
• Net Change:  +4

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Five Star Painting Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Five Star Painting Franchise (Item 19, 2024 FDD)

• The reporting franchisees in this Item 19 include franchisees who operate Five Star Painting franchised businesses and ProTect Painters franchised businesses.

• Franchisees are not required to use generally accepted accounting principles when reporting these figures.

• As of December 31, 2023, there were 234 Five Star Painting and ProTect Painters franchised businesses in operation in the United States, all of which were franchised businesses.

• Parts 1 and 2 of this Item 19 include data from 152 businesses (each a “Reporting Business”), which were all in operation and reporting sales for the full 12 months of 2023 (the “Reporting Period”).

• The information provided in Parts 1 and 2 of this Item 19 does not include data from (i) 14 franchised businesses that opened during the year 2023 and therefore were not in operation for the entire 12-month Reporting Period, (ii) 14 franchised businesses that underwent a transfer in 2023 and as a result did not report sales data for all 12 months of the Reporting Period, (iii) 10 franchised businesses that were in the process of closing down and therefore did not report data for all months of the Reporting Period (although they were not formally terminated before the end of 2022), (iv) 14 franchised businesses that did not report sales data 4 or more months during the Reporting Period due to illness or other personal reasons, and (v) 30 franchised businesses, which were owned by multi-unit franchisees who only reported Gross Sales data to Five Star Painting on an aggregated basis for all of their franchised businesses and therefore Five Star Painting was unable to use such data in this Item 19.

• Part 3 of this Item 19 includes data from 221 franchised businesses that reported sales during any part of the Reporting Period and were in operation at the end of the Reporting Period; Part 3 excludes data from 13 businesses that opened in the latter part of the Reporting Period and thus were in operation for too short of a time period during the Reporting Period.

• Ten franchised businesses closed during the 2023 fiscal year, and so they did not report data to Five Star Painting for the entire 12-month Reporting Period and therefore their data is also excluded from this Item 19. Of the 10 businesses that closed during the Reporting Period, 4 businesses closed after being open for less than 12 months.

• “Gross Sales” means the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of – or in connection with – a franchised business whether under any of the Marks or otherwise.

• Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that Five Star Painting authorizes in writing. Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum).

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

Part 1 – 2023 Average and Median Gross Sales Per Capita

• The following table provides the average and median annual Gross Sales Per Capita information for the Reporting Businesses for the Reporting Period.

Top 10%

• Average Gross Sales Per Capita:  $5.66
• Highest Gross Sales Per Capita:  $9.36
• Lowest Gross Sales Per Capita:  $3.56
• Median Gross Sales Per Capita:  $5.51
• Number of Reporting Businesses:  15
• Number and Percent in Group That Attained the Average or Greater:  5 / 33.3%

1st Quartile

• Average Gross Sales Per Capita:  $3.84
• Highest Gross Sales Per Capita:  $9.36
• Lowest Gross Sales Per Capita:  $2.35
• Median Gross Sales Per Capita:  $3.09
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  14 / 36.8%

2nd Quartile

• Average Gross Sales Per Capita:  $1.90
• Highest Gross Sales Per Capita:  $2.34
• Lowest Gross Sales Per Capita:  $1.51
• Median Gross Sales Per Capita:  $1.90
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  19 / 50.0%

3rd Quartile

• Average Gross Sales Per Capita:  $1.08
• Highest Gross Sales Per Capita:  $1.50
• Lowest Gross Sales Per Capita:  $0.75
• Median Gross Sales Per Capita:  $1.04
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  18 / 47.4%

4th Quartile

• Average Gross Sales Per Capita:  $0.42
• Highest Gross Sales Per Capita:  $0.74
• Lowest Gross Sales Per Capita:  $0.01
• Median Gross Sales Per Capita:  $0.49
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  21 / 55.3%

Bottom 10%

• Average Gross Sales Per Capita:  $0.23
• Highest Gross Sales Per Capita:  $0.40
• Lowest Gross Sales Per Capita:  $0.01
• Median Gross Sales Per Capita:  $0.23
• Number of Reporting Businesses:  15
• Number and Percent in Group That Attained the Average or Greater:  8 / 53.3%

100%

• Average Gross Sales Per Capita:  $1.68
• Highest Gross Sales Per Capita:  $9.36
• Lowest Gross Sales Per Capita:  $0.01
• Median Gross Sales Per Capita:  $1.51
• Number of Reporting Businesses:  152
• Number and Percent in Group That Attained the Average or Greater:  67 / 44.1%

• Five Star Painting calculated the average and median Annual Gross Sales Per Capita as follows: (i) first, Five Star Painting received the annual Gross Sales of each Reporting Business during the Reporting Period, as provided to Five Star Painting through its Software System, (ii) then Five Star Painting calculated the total population in the territory of each Reporting Business (using third-party mapping software), (iii) Five Star Painting then divided each Reporting Business’ total Gross Sales by the total population of the Reporting Business’ territory (the “Individual Business Gross Sales Per Capita”), and (iv) then Five Star Painting calculated the average or median, as applicable, of all Reporting Businesses’ Individual Business Gross Sales Per Capita during the Reporting Period.

• The highest and lowest Gross Sales Per Capita in this Table refer to the highest Individual Business Average Gross Sales Per Capita and the lowest Individual Business Average Gross Sales Per Capita, respectively.

Part 2 – 2023 Average and Median Jobs Per Capita

• The following table provides the average and median Jobs Per Capita information for the Reporting Businesses during the Reporting Period.

• Per capita results are 100x.

Top 10%

• Average Jobs Per Capita:  0.13
• Highest Jobs Per Capita:  0.18
• Lowest Jobs Per Capita:  0.09
• Median Jobs Per Capita:  0.12
• Number of Reporting Businesses:  15
• Number and Percent in Group That Attained the Average or Greater:  7 / 46.7%

1st Quartile

• Average Jobs Per Capita:  0.09
• Highest Jobs Per Capita:  0.18
• Lowest Jobs Per Capita:  0.05
• Median Jobs Per Capita:  0.08
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  14 / 36.8%

2nd Quartile

• Average Jobs Per Capita:  0.04
• Highest Jobs Per Capita:  0.05
• Lowest Jobs Per Capita:  0.03
• Median Jobs Per Capita:  0.04
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  18 / 47.4%

3rd Quartile

• Average Jobs Per Capita:  0.03
• Highest Jobs Per Capita:  0.03
• Lowest Jobs Per Capita:  0.02
• Median Jobs Per Capita:  0.02
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  18 / 47.4%

4th Quartile

• Average Jobs Per Capita:  0.01
• Highest Jobs Per Capita:  0.02
• Lowest Jobs Per Capita:  0.00
• Median Jobs Per Capita:  0.01
• Number of Reporting Businesses:  38
• Number and Percent in Group That Attained the Average or Greater:  24 / 63.2%

Bottom 10%

• Average Jobs Per Capita:  0.01
• Highest Jobs Per Capita:  0.01
• Lowest Jobs Per Capita:  0.00
• Median Jobs Per Capita:  0.01
• Number of Reporting Businesses:  15
• Number and Percent in Group That Attained the Average or Greater:  8 / 53.3%

100%

• Average Jobs Per Capita:  0.04
• Highest Jobs Per Capita:  0.18
• Lowest Jobs Per Capita:  0.00
• Median Jobs Per Capita:  0.03
• Number of Reporting Businesses:  152
• Number and Percent in Group That Attained the Average or Greater:  67 / 44.1%

• Five Star Painting calculated the Average Jobs Per Capita as follows: (i) first, Five Star Painting received the total number of jobs of each Reporting Business during the Reporting Period, as provided to Five Star Painting through its Software System, (ii) Five Star Painting then calculated the total population in the territory of each Reporting Business (using third-party mapping software), (iii) next Five Star Painting divided the total number of jobs by the total population of the territory for each Reporting Business (the “Individual Business Average Jobs Per Capita”), and (iv) then Five Star Painting calculated the average or median (as applicable) of all Reporting Businesses’ Individual Business Average Jobs Per Capita during the Reporting Period.

• The highest and lowest Jobs Per Capita in this Table refer to the highest Individual Business Average Jobs Per Capita and the lowest Individual Business Average Jobs Per Capita, respectively.

Part 3 – 2023 Average and Median Gross Sales Per Job

• The following table provides the average and median Gross Sales Per Job for 218 franchised businesses that reported Gross Sales during any part of the Reporting Period and were in operation at the end of the Reporting Period (for purposes of this Part 3, the “Reporting Businesses”).

Top 10%

• Average Gross Sales Per Job:  $7,943
• Highest Gross Sales Per Job:  $14,015
• Lowest Gross Sales Per Job:  $6,607
• Median Gross Sales Per Job:  $7,695
• Number of Reporting Businesses:  22
• Number and Percent in Group That Attained the Average or Greater:  9 / 40.9%

1st Quartile

• Average Gross Sales Per Job:  $6,442
• Highest Gross Sales Per Job:  $14,015
• Lowest Gross Sales Per Job:  $5,273
• Median Gross Sales Per Job:  $6,025
• Number of Reporting Businesses:  55
• Number and Percent in Group That Attained the Average or Greater:  23 / 41.8%

2nd Quartile

• Average Gross Sales Per Job:  $4,640
• Highest Gross Sales Per Job:  $5,225
• Lowest Gross Sales Per Job:  $4,334
• Median Gross Sales Per Job:  $4,634
• Number of Reporting Businesses:  55
• Number and Percent in Group That Attained the Average or Greater:  25 / 45.5%

3rd Quartile

• Average Gross Sales Per Job:  $3,967
• Highest Gross Sales Per Job:  $4,333
• Lowest Gross Sales Per Job:  $3,547
• Median Gross Sales Per Job:  $3,964
• Number of Reporting Businesses:  55
• Number and Percent in Group That Attained the Average or Greater:  27 / 49.1%

4th Quartile

• Average Gross Sales Per Job:  $3,019
• Highest Gross Sales Per Job:  $3,544
• Lowest Gross Sales Per Job:  $1,658
• Median Gross Sales Per Job:  $3,009
• Number of Reporting Businesses:  56
• Number and Percent in Group That Attained the Average or Greater:  28 / 50.0%

Bottom 10%

• Average Gross Sales Per Job:  $2,423
• Highest Gross Sales Per Job:  $2,883
• Lowest Gross Sales Per Job:  $1,658
• Median Gross Sales Per Job:  $2,799
• Number of Reporting Businesses:  22
• Number and Percent in Group That Attained the Average or Greater:  13 / 59.1%

100%

• Average Gross Sales Per Job:  $4,444
• Highest Gross Sales Per Job:  $14,015
• Lowest Gross Sales Per Job:  $1,658
• Median Gross Sales Per Job:  $4,333
• Number of Reporting Businesses:  221
• Number and Percent in Group That Attained the Average or Greater:  96 / 43.4%

• Five Star Painting calculated the average and median Gross Sales Per Job as follows: (i) first, Five Star Painting received the annual Gross Sales of each Reporting Business during the Reporting Period, as provided to Five Star Painting through its Software System, (ii) Five Star Painting then received the total number of jobs of each Reporting Business during the Reporting Period, as provided to Five Star Painting through its Software System, (iii) next Five Star Painting divided the annual Gross Sales for each Reporting Business by the total number of jobs for that Reporting Business to determine each Reporting Business’ average annual Gross Sales Per Job (the “Individual Business Per-Job Average”), and (iv) then Five Star Painting calculated the average and median of all Reporting Businesses’ Individual Business Per-Job Average for the Reporting Period.

• The highest and lowest Gross Sales Per Job in this Part 3 refer to the highest Individual Business Per-Job Average and the lowest Individual Business Per-Job Average, respectively.

Section VI – Five Star Painting Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️