How to Finance a Five Star Painting Franchise: Lean Startup Costs
By Anthony Cornella
A Five Star Painting franchise loan pays for a business that sells and manages painting projects rather than one that owns a storefront. Owners lead estimating, sales, marketing and scheduling while painting crews or subcontractors do the work, so the financing need centers on the franchise fee, a vehicle, technology, launch marketing and enough working capital to carry payroll and job costs until customer payments arrive.
This article walks through Five Star Painting’s published costs and fees, how SBA and conventional financing may fit, and what lenders review before approving a painting franchise. It is general information only. US Professional Funding is not affiliated with, sponsored by or endorsed by Five Star Painting; the name is used only to describe the business. Figures come from the franchisor’s disclosure document and can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice.
Five Star Painting Franchise Loan at a Glance
The franchisor is Five Star Painting SPV LLC. Based on its franchise pages, which cite the 2026 Five Star Painting Franchise Disclosure Document:
- Initial franchise fee: $45,000
- Veteran discount: 20% off the initial franchise fee for qualifying veterans
- Estimated initial investment: $81,450 to $185,830, including the initial franchise fee but excluding any additional franchise fees and real estate costs
- Royalty (licensing fee): 6% of gross sales
- Liquid capital: at least $50,000 in readily available funds
- System size: the company reports more than 255 franchise locations in North America
- Financial performance representation: the disclosure document includes an Item 19
- SBA Franchise Directory: listed as Five Star Painting under code S0654, with no additional note
The franchise pages do not state a minimum net worth or a marketing fund rate, so check Items 5 through 7 of the disclosure document you receive for the complete fee picture.
What Is Five Star Painting?
Five Star Painting was founded in 2004 by two college friends who started painting to pay for school. The first franchise was sold in 2005, and the brand has since grown to more than 255 franchise locations across North America. It is part of a larger family of home service franchise brands owned by its parent company.
The service menu goes well beyond walls. Franchise pages list interior and exterior residential painting, cabinet painting, wallpaper installation and removal, popcorn ceiling removal, garage floors, decks and fences, pressure washing, carpentry, textured and faux finishes and commercial painting.
An executive ownership model. The franchisor describes an executive model in which owners focus on management, local marketing and building a customer base. No painting or trade experience is required, and owners do not need employees on day one. As the business grows, owners hire estimators, project managers and office staff and lead a team of paint professionals. The franchisor’s vendor partnerships help owners find subcontractors.
Why lenders view it the way they do. A painting franchise is asset-light. There is little equipment or real estate to pledge, so lenders focus on cash flow, the owner’s sales and management experience, and the working capital needed to fund labor and materials before jobs are paid. The brand’s size and SBA directory listing help, but the borrower still drives approval.
Five Star Painting Franchise Costs
Five Star Painting puts the total estimated initial investment at $81,450 to $185,830 and refers candidates to Item 7 of the 2026 disclosure document for full details. The franchise pages do not publish the line-by-line amounts, so confirm each one in the Item 7 table.
Initial franchise fee
The initial franchise fee is $45,000. Qualified veterans receive 20% off the initial franchise fee, as described in Item 5. Our article on veteran franchise financing explains how veterans can plan around discounts like this one.
Office or real estate
The published range excludes real estate costs. Many service franchise owners start from a home office or small shared space, but check whether the franchise agreement requires a particular setup and how that affects your budget.
Vehicle, equipment and technology
A branded vehicle for estimates and job visits, ladders, sprayers and basic painting equipment, computers, estimating tools and the brand’s required software all fall in this category. If your crews are subcontractors, they may supply much of their own equipment, which keeps your equipment budget lower.
Marketing, training and working capital
Launch marketing builds the first pipeline of estimates. Training travel, insurance, licensing and the additional funds for the opening period complete the budget. Working capital matters more than it appears, because painting jobs require labor and materials before the customer pays.
When you build the budget, organize it the way Item 7 does:
- Initial franchise fee
- Vehicle purchase, down payment or lease
- Painting equipment, ladders and sprayers
- Computer, software and estimating technology
- Initial marketing and launch advertising
- Training travel and expenses
- Insurance, contractor licenses and permits
- Office setup, if any
- Additional funds for the opening period
A lender will check that your line items add up to a total inside the disclosure document’s range.
Ongoing Fees and How They Affect Your Loan
Five Star Painting charges a licensing fee, or royalty, of 6% of gross sales. The franchise pages do not list a marketing fund contribution or technology fees, so read Item 6 of the disclosure document for every recurring charge, including any minimums, transfer fees and renewal fees.
Lenders size a Five Star Painting franchise loan on the cash flow left after expenses, and the royalty comes off the top of every job. Painting jobs also carry heavy direct costs for labor or subcontractors and materials. A realistic projection subtracts those job costs, the royalty, marketing, insurance and vehicle costs before calculating what you can pay a lender.
Seasonality matters too. Exterior painting slows in cold or wet months in many markets, and lenders want to see how interior and commercial work will carry the business through those stretches.
Franchisor Requirements for New Owners
Five Star Painting asks for at least $50,000 in liquid capital. The franchise pages do not publish a net worth minimum, so expect your lender and the franchisor to review your full financial picture.
The brand looks for owners with solid business acumen, relationship and team-building experience, and the ability to be the face of the business in sales and marketing. No painting experience is required, and the franchisor does not provide trade training, though it can point owners to resources. Business training covers operations and systems, and marketing support includes collateral, a localized website, a custom marketing plan, playbooks and coaching.
Prospects begin with a call to review available brands in their area and then follow an 8-step mutual evaluation process that includes reviewing the disclosure document and visiting headquarters.
Ways to Own a Five Star Painting
Opening a new territory. Most owners sign for a designated territory and build the business from launch marketing. Financing covers the fee, vehicle, equipment, technology, marketing and working capital, and lenders underwrite projections. Our page on franchise start-up financing explains how new franchise loans are structured.
Buying an existing location. An owner who wants to sell can transfer the business, subject to franchisor approval and the transfer terms in the franchise agreement. A resale brings a customer list, reviews, staff or subcontractor relationships and a revenue history. Our articles on buying a franchise resale and how franchises are valued cover what to examine.
Adding territories. The franchisor says owners can add multiple units to expand their reach, typically after the first territory is running smoothly.
Financing Options for a Five Star Painting Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the franchise fee, vehicle, equipment, launch marketing and working capital into a single loan. The 7(a) program maximum is currently $5 million, and program rules can change. A single painting territory sits far below that limit.
SBA 504 loans. The 504 program is designed for owner-occupied real estate and long-lived fixed assets. Because the published investment range excludes real estate and most owners have little need for a building, 504 usually fits only an established owner buying an office or warehouse.
Conventional term loans. Borrowers with strong credit and outside collateral may qualify for conventional business loans. Because the business has few hard assets, lenders may ask for more equity or additional collateral.
Equipment and vehicle financing. Work vehicles, sprayers, ladders and pressure washers can sometimes be financed separately. Our page on franchise equipment financing and leasing covers the options. Any separate payment counts against cash flow in your main loan request.
Working capital and lines of credit. Painting businesses pay labor and buy materials before jobs are complete, and commercial customers may pay on terms. A line of credit can smooth those gaps and carry the business through slower exterior seasons. See our page on franchise working capital.
Franchisor financing. The franchisor’s investment page lists franchisor financing among the funding options and refers candidates to Item 10 of the disclosure document for details. Read Item 10 to see what, if anything, is offered and on what terms.
Seller financing on resales. When buying an existing location, a seller may carry part of the price. A seller note is typically subordinate to the primary loan, and SBA rules may limit how it is structured.
SBA Loans for Five Star Painting Franchisees
SBA-backed loans are made by participating lenders, with the SBA guaranteeing part of the loan. For a franchise, the lender also confirms that the franchise agreement leaves the borrower in control of the business, and the SBA Franchise Directory simplifies that review.
The directory listing. Five Star Painting appears on the SBA Franchise Directory under code S0654, with no additional note. That means the lender does not have to address any brand-specific addendum or collateral condition beyond the standard review. A listing does not approve any borrower or guarantee a loan.
SBA application tips. Have the franchise agreement, your Item 7 budget, vehicle and equipment quotes, personal financial statements, tax returns and a résumé ready. Include a sales plan showing how you will generate estimates and a staffing plan for estimators, project managers and crews. Our SBA loan calculator can help with early payment estimates, which are for planning only and do not represent an offer or approval.
How Lenders Evaluate a Five Star Painting Deal
Personal credit and financial history. A new territory has no operating history, so lenders lean on the owner’s credit, tax returns and existing debts. Significant owners typically sign personal guarantees.
Net worth and liquidity. The franchisor’s $50,000 liquid capital requirement is a starting point. Lenders also look at your equity injection and the reserves left after closing, because job costs come before customer payments.
Sales and management experience. Trade experience is not required, but lenders want to see that you can sell, manage people and control costs.
Business plan and projections. Lenders look for realistic assumptions about leads, estimates, close rates, average job size, labor and material costs, the 6% royalty and seasonality. Projections that assume a full schedule from the first month will be discounted. Our article on how the FDD affects franchise financing explains how lenders use the disclosure document, including Item 19, as a reference point.
The disclosure document and franchise agreement. Lenders review the term, renewal, transfer and termination provisions, and they want the franchise term to run at least as long as the loan.
Historical financials on resales. For an existing location, lenders study tax returns, job history, gross margins, customer concentration and backlog.
Labor, Subcontractors and Job Cash Flow
The biggest financing difference between a painting franchise and a retail franchise is how cash moves through each job. The owner pays for labor and materials, and the customer pays when the work is complete or on agreed terms. Every job that starts before the last one is paid adds to the working capital need.
The franchisor’s vendor partnerships help owners find subcontractors, and owners can also hire their own crews. Subcontractors can turn labor into a variable cost, while employee crews give more control over scheduling and quality. Lenders will ask which model you plan to use, how you will manage quality and how payroll or subcontractor payments line up with customer collections.
Supplier relationships also matter. The franchisor highlights a purchasing program that offers supplier discounts and rebates, which can help margins on paint and materials. Track gross margin on every job.
Multi-Unit Growth and Development Agreements
The franchisor says owners can add multiple units to expand their reach and income. Each new territory brings another fee, more marketing and often another vehicle and estimator, so growth should follow proven results in the first territory.
Before approving a second Five Star Painting franchise loan, lenders review global cash flow across all your territories, your remaining liquidity and whether you have managers who can run estimating and production without you. Keep separate, clean financial statements for each territory. Our article on multi-unit franchise financing explains how lenders approach that growth.
Real-World Scenarios
A veteran opening a first territory. A military veteran with leadership experience qualifies for the 20% fee discount and uses an SBA 7(a) loan for the remaining fee, a vehicle, launch marketing and working capital. The lender focuses on the owner’s management background and a hiring plan for an estimator.
A sales professional starting with subcontractors. A former sales manager signs for a territory and relies on subcontractors at first. The lender reviews how subcontractor payments line up with customer collections and approves a line of credit alongside the term loan.
A buyer purchasing an established location. A buyer acquires an existing Five Star Painting business with steady residential and commercial customers. The lender underwrites the seller’s tax returns and job history, the franchisor approves the transfer, and the seller carries a small subordinate note.
Common Mistakes to Avoid
- Underestimating working capital needed to fund labor and materials before customers pay
- Leaving the 6% royalty and marketing costs out of projections
- Ignoring seasonality in exterior painting
- Pricing jobs without tracking gross margin
- Financing vehicles separately without counting the payment in the main loan
- Expanding to more territories before the first one runs without you
For more, read the service contractor loan mistakes that cost owners the most.
Next Steps to Finance Your Five Star Painting Franchise
Step 1: Request the current disclosure document. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney.
Step 2: Confirm your territory. Use the franchisor’s evaluation process to confirm availability and market potential.
Step 3: Build a detailed budget for your Five Star Painting franchise loan. Include the fee, vehicle, equipment, technology, marketing, insurance and several months of working capital.
Step 4: Talk with a financing specialist early. Confirm which loan structure fits and how much equity you will likely need.
Step 5: Assemble your documents. Gather financial statements, tax returns, a résumé, the franchise agreement, quotes and your business plan.
Step 6: Coordinate approvals. Line up franchisor approval and loan approval so training and launch fit the closing.
Step 7: Launch with a cash cushion. Keep reserves or a line of credit in place for job costs and slower seasons.
Five Star Painting Franchise Loan FAQs
How much does a Five Star Painting franchise cost?
The franchisor estimates a total initial investment of $81,450 to $185,830, including the initial franchise fee but excluding any additional franchise fees and real estate costs, according to the 2026 disclosure document.
What is the Five Star Painting franchise fee?
The initial franchise fee is $45,000. Qualifying veterans receive 20% off the initial franchise fee.
What royalty does Five Star Painting charge?
The franchisor charges a licensing fee of 6% of gross sales. Check Item 6 for all other ongoing fees.
How much liquid capital do I need?
The franchisor asks for at least $50,000 in readily available funds. It does not publish a net worth minimum on its franchise pages.
Can I use an SBA loan for a Five Star Painting franchise?
Possibly. Five Star Painting is listed on the SBA Franchise Directory under code S0654 with no additional note. Eligibility still depends on you, the deal, program rules and lender approval.
Do I need painting experience?
No. The franchisor says no painting or trade experience is required, and it looks for business acumen, team-building and sales skills.
Can I buy an existing Five Star Painting business?
Yes, subject to franchisor approval and the transfer terms in the franchise agreement. Lenders underwrite a resale from its financial and job history.
Does Five Star Painting offer financing?
The franchisor lists franchisor financing among its funding options and refers candidates to Item 10 of the disclosure document for details.
Does the disclosure document include financial performance figures?
Yes. The franchisor’s materials reference an Item 19 financial performance representation in the 2026 disclosure document. Review it with your advisors; lenders will still expect your own projections.
How long is the franchise agreement?
The term, renewal and transfer rules appear in Item 17 and the franchise agreement. Lenders generally want the franchise term to run at least as long as the loan.
Can I own more than one territory?
Yes. The franchisor says owners can add multiple units, and lenders typically look at your first territory’s results before financing another.
Final Thoughts
A Five Star Painting franchise loan is modest compared with most franchise financing, but painting businesses live and die by job cash flow. Lenders want to see a realistic sales plan, careful job costing, enough working capital for labor and materials, and an owner who can lead estimators and crews. Budgeting from the current disclosure document and planning for seasonality give you the strongest start.
US Professional Funding helps buyers and owners finance home service franchises, including new territories, resales, vehicles, equipment and working capital. Learn more about our franchise financing and service contractor financing.
