Five Star Painting franchise cost: investment, fees and the SBA default rate
Items 5, 6 and 7 · Five Star Painting FDD 2026 · Updated 2026
A Five Star Painting franchise costs $82,200–$194,600 in total initial investment, according to Item 7 of the brand's FDD (2026); the ongoing royalty is 6% of sales, plus 2% of sales to the advertising fund (Item 6). On the lending side, Five Star Painting franchisees defaulted on 40.7% of SBA 7(a) loans approved FY2010–FY2019 (11 of 27), and the average SBA loan to a Five Star Painting franchisee in that cohort was $132,641.
| Total initial investment (Item 7) | $82,200–$194,600 |
|---|---|
| Royalty (Item 6) | 6% of sales |
| Advertising fund (Item 6) | 2% of sales |
| SBA 7(a) default rate, FY2010–FY2019 | 40.7% |
| Average SBA loan, 2010s cohort | $132,641 |
| Average SBA loan since 2020 | $181,994 |
| Industry | Painting and Wall Covering Contractors |
How much does it cost to open a Five Star Painting franchise?
Item 7 of the FDD estimates the total initial investment at $82,200–$194,600. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Covers one standard territory; the total excludes real estate costs, and the high end also excludes any extra franchise fee for population above the minimum territory.
What does the SBA data add?
The federal loan record adds what the FDD cannot: Five Star Painting franchisees defaulted on 40.7% of SBA 7(a) loans approved FY2010–FY2019 (11 of 27 resolved loans), against the Painting and Wall Covering Contractors industry average of 10.9%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 31 new SBA loans, of which 0 have already charged off.
Set the investment range against the loans: an average SBA loan of $132,641 against the $82,200–$194,600 investment range says roughly how much of a typical Five Star Painting opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.
What would Five Star Painting's royalty and ad fund cost at your sales level?
From Item 6: royalty 6% of sales, advertising fund 2%. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, are not included.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|---|---|---|
| $250,000 | $15,000 | $5,000 | $20,000 |
| $500,000 | $30,000 | $10,000 | $40,000 |
| $1,000,000 | $60,000 | $20,000 | $80,000 |
| $2,000,000 | $120,000 | $40,000 | $160,000 |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Frequently asked
How much does a Five Star Painting franchise cost?
A Five Star Painting franchise costs $82,200–$194,600 in total initial investment, according to Item 7 of the brand's FDD (2026); the ongoing royalty is 6% of sales, plus 2% of sales to the advertising fund (Item 6). On the lending side, Five Star Painting franchisees defaulted on 40.7% of SBA 7(a) loans approved FY2010–FY2019 (11 of 27), and the average SBA loan to a Five Star Painting franchisee in that cohort was $132,641.
What is the Five Star Painting franchise fee?
Five Star Painting's FDD Item 5 fee is not in this dataset; the total initial investment (Item 7) is $82,200–$194,600.
What royalty does Five Star Painting charge?
6% of sales, plus 2% of sales to the advertising fund, per Item 6.
What is Five Star Painting's SBA loan default rate?
40.7%: 11 of 27 SBA 7(a) loans approved FY2010–FY2019 to Five Star Painting franchisees were charged off.
Source
Sources: Five Star Painting Franchise Disclosure Document (2026, Wisconsin DFI filing 640754); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Cite this page
Franchise Failure Rates (2026). Five Star Painting franchise cost, Items 5–7, and SBA 7(a) default rate. From the Five Star Painting FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/five-star-painting/cost/ · Data & methodology