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 is a residential and light commercial painting franchise operating under the Neighborly brand network. The model focuses on interior and exterior painting for homeowners and light commercial property owners, using structured estimating processes and branded crews to differentiate from independent painters. Revenue is project-based with strong repeat and referral rates — exterior repaints typically recur every 5–8 years per property, and satisfied customers refer neighbors. Prospective franchisees should review the current Franchise Disclosure Document (FDD) under the FTC Franchise Rule (16 CFR Part 436).
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:
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.
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:
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.
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.
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:
SBA Express is the natural structure for Five Star Painting — the $108K–$199K range is well within the $500K cap, offering faster approval and less documentation than SBA 7(a) standard. Vehicles and equipment can be separately financed as commercial auto and equipment notes (3–5 years) to reduce the SBA loan amount and preserve working capital. Include a seasonal working capital line to bridge winter revenue troughs in colder climates.
ClearValue Lending works with home service and painting franchise operators on SBA 7(a), equipment financing, vehicle financing, and working capital lines. Apply for franchise financing at Find my match. Your file routes to one matched lender.
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.
No. Five Star Painting is an owner-operator model where licensed painters are hired staff. Franchisees manage estimating, scheduling, customer relations, and crew operations.
Five Star Painting charges a 6% royalty on gross sales plus marketing fund contributions within the Neighborly network.
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.
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.
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).
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).