Five Star Painting Franchise Cost (2026): $108K–$199K
Five Star Painting franchise startup costs run $108K–$199K for a residential and light commercial painting service franchise with flat-rate estimating and a strong repeat/referral customer model. Part of Neighborly's home services network.
Five Star Painting franchise costs at a glance
Total investment
$108,000–$199,000
Franchise fee
$49,500
Royalty
6%
Liquid capital required
$40,000
Net worth required
$100,000
Source: Five Star Painting Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $108,000–$199,000(residential and light commercial painting franchise)
Franchise fee: $49,500
Ongoing royalty: 6% of gross sales; marketing fund contribution applies
Part of the Neighborly home services network with cross-brand referral infrastructure
Listed on the SBA Franchise Directory — eligible for expedited SBA loan processing
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Five Star Painting franchise runs $108,000–$199,000. The service-based model requires minimal real estate — most costs are in vehicles, equipment, and marketing:
Franchise fee: $49,500
Vehicle(s) and wraps: $10,000–$35,000 (branded service vehicles for crew transport and visibility)
Training (initial corporate training program): $5,000–$10,000
Grand opening marketing: $5,000–$20,000
Working capital (3 months): $15,000–$40,000
Permits, licenses, bond, and insurance: $5,000–$15,000
2 Ongoing fees
Five Star Painting charges a 6% royalty on gross sales plus marketing fund contributions within the Neighborly system. Revenue is project-based — interior and exterior painting projects for residential and light commercial customers. The Neighborly network provides digital lead generation, cross-brand referrals, and shared marketing technology. Seasonal demand in colder climates requires working capital management — exterior painting peaks in spring and summer, while interior painting distributes more evenly year-round.
3 Financing options
Five Star Painting is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. At $108K–$199K, the investment range fits well within SBA Express:
SBA 7(a) / SBA Express loan: The full range fits comfortably within SBA Express (up to $500K) per the SBA 7(a) program. 10-year terms on working capital; vehicle and equipment financing available.
SBA 504 loan: Less common at this investment level, but available for franchisees acquiring commercial property for a service center per the SBA 504 program.
Equipment and vehicle financing: Sprayers, ladders, scaffolding, and service vehicles can be financed separately over 3–5 years.
Working capital line of credit: Covers crew payroll, paint and material costs, and marketing during revenue ramp-up.
4 Realistic ROI timeline
Five Star Painting operators typically target breakeven within 12–24 months. Low fixed overhead and a scalable crew model mean revenue growth is limited primarily by marketing reach and crew capacity — both of which scale with operator effort. The Neighborly network provides marketing infrastructure and digital lead generation that reduces the time to consistent customer flow compared to independent painting businesses. Geographic territories with high homeownership rates and older housing stock (where repaint cycles are more frequent) produce the strongest unit economics.
5 Who's a good fit
Five Star Painting suits owner-operators with service business management, sales, or construction backgrounds. Painters and crew members are hired employees — the franchisee manages estimating, scheduling, customer relations, and crew management. Financial benchmarks typically require net worth of $100K+ and liquid capital of $40K+. Operators who are customer-service oriented and comfortable managing field crews and project timelines perform best. The Neighborly brand network provides marketing, technology, and operational support that reduces startup friction for first-time service franchise operators.
6 What lenders look for in a Five Star Painting franchise application
Five Star Painting is on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility review. At $108K–$199K, the investment fits within SBA Express for faster processing. Key underwriting factors:
Debt service coverage ratio (DSCR): SBA guidelines require a minimum 1.15× DSCR; lenders underwriting painting franchise concepts typically require 1.25×+. The critical underwriting nuance is seasonality — exterior painting revenue peaks in spring and summer while interior painting is more year-round. Lenders require an annualized DSCR based on 12-month projections, not peak-season revenue. Conservative winter-month assumptions matter. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
Crew payroll ramp: Painting franchise DSCR is heavily influenced by how quickly the operator recruits and deploys painting crews. Lenders evaluate the operator's plan for painter recruiting in the local labor market — markets with tight trades labor or high painter competition can extend revenue ramp and affect DSCR.
Vehicle and equipment collateral: Service vehicles ($10K–$35K) and painting equipment (sprayers, ladders, scaffolding — $5K–$20K) are the primary collateral assets. Lenders apply standard advance rates on vehicles (70–80%) and modest discounts on specialized painting equipment (50–70%). Low collateral position at the $108K–$199K level is offset by the low absolute loan size.
Neighborly infrastructure: Lenders familiar with Neighborly recognize the shared marketing platform, Neighborly cross-referral system, and digital lead generation as DSCR-supporting factors. FDD Item 19 financial performance data from existing operators provides underwriting comparables.
Equity injection: SBA requires a minimum 10% equity injection — $10,800–$19,900 at the minimum threshold. Most lenders require 20%, meaning $21,600–$39,800 in documented borrower funds from non-borrowed sources. At this investment level, the absolute injection is among the lowest in the service franchise category.
7 Apply for franchise financing
ClearValue Lending works with home service and painting franchise operators on SBA 7(a), equipment financing, vehicle financing, and working capital lines. Start at small business financing or apply for franchise financing at Find my match. Your file routes to the funding partners best matched to your file.
Sources
Five Star Painting is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility review. — SBA Franchise Directory
SBA 7(a) standard loans go up to $5M with 10-year terms for working capital and equipment — the full Five Star Painting investment range fits within SBA Express (up to $500K). — SBA 7(a) Loan Program
SBA 504 loans provide fixed-rate long-term financing for real estate and major equipment — available to Five Star Painting franchisees acquiring a service center facility. — SBA 504 Loan Program
All franchise cost and fee disclosures are governed by the FTC Franchise Rule requiring a Franchise Disclosure Document (FDD) be delivered at least 14 days before signing. — FTC Franchise Rule — 16 CFR Part 436
Qualified service vehicles, sprayers, and painting equipment placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946
Frequently asked questions
How much does a Five Star Painting franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $108,000–$199,000. Service vehicles, painting equipment, and marketing are the primary startup cost categories.
Do I need to be a painter to own a Five Star Painting franchise?
No. Five Star Painting is an owner-operator model where licensed painters are hired staff. Franchisees manage estimating, scheduling, customer relations, and crew operations.
What is the Five Star Painting royalty rate?
Five Star Painting charges a 6% royalty on gross sales plus marketing fund contributions within the Neighborly network.
Can I finance a Five Star Painting franchise with an SBA loan?
Yes. Five Star Painting is listed on the SBA Franchise Directory. The full investment range fits within SBA Express (up to $500K). Vehicles and equipment can also be financed separately.
Is Five Star Painting a seasonal business?
Exterior painting peaks in spring and summer in colder climates, but interior painting distributes more evenly year-round. Most franchisees manage seasonality with working capital lines and by focusing interior project marketing during slower exterior seasons.
What DSCR do lenders require for a Five Star Painting franchise SBA loan?
SBA guidelines set a minimum DSCR of 1.15×. Lenders underwriting painting franchise concepts typically require 1.25×+. The key nuance is that lenders require annualized DSCR projections across all 12 months — not just peak-season revenue. Conservative winter-month revenue assumptions in colder-climate markets are essential to a credible DSCR model. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
How much equity injection is required for a Five Star Painting franchise SBA loan?
SBA requires a minimum 10% equity injection of total project cost — $10,800–$19,900 at the threshold on a $108K–$199K project. Most lenders require 20%, meaning $21,600–$39,800 in documented borrower funds from non-borrowed sources. At this investment level, the absolute equity requirement is among the lowest in the home service franchise category. Borrowed funds do not count toward the injection. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
Summary:
Five Star Painting franchise startup costs run $108K–$199K for a residential and light commercial painting service franchise with flat-rate estimating and a strong repeat/referral customer model. Part of Neighborly's home services network.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
