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Should I open or buy a Five Star Painting franchise in 2027?

📖 2,721 words🗓️ Published Jun 19, 2026 · Updated Jun 6, 2026

Direct Answer

Yes — open or buy a Five Star Painting franchise in 2027 if you can commit $120K-$200K in liquid capital, you treat this as a sales-and-recruiting business (not a brush-and-roller business), and you accept that Year 1 cash flow is usually $20K-$45K while you build a crew bench. The Item 7 investment range is $82,200-$194,600 with a $45,000 franchise fee, 6% royalty, and 2% national brand fund. Median 2024 gross sales hit $572,580 per the 2025 FDD Item 19, with owner earnings of $68,710-$85,887 at a ~15% operating margin. Breakeven is 14-22 months; full payback is 2.2-4.2 years. Probably not if you want a hands-off cash-flow asset in Year 1, if you dislike door-to-door estimating, or if you have less than $50K liquid.

The Real Numbers

Five Star Painting is a Neighborly-owned residential and light-commercial painting franchise that runs an executive-model with subcontractor painters rather than W-2 crews. Numbers below are the 2025 FDD (filed for the 2026 sales year, the most recent in market as of June 2026) — every operator should read the full document at the Wisconsin DFI or Minnesota CARDS portal before signing.

Line item	Real 2027-projected number	Source
Initial franchise fee	$45,000 (10% vet discount → $40,500)	2025 FDD Item 5
Total Item 7 investment	$82,200 - $194,600	2025 FDD Item 7
Liquid capital required	$50,000 minimum	Neighborly franchise.neighborly.com
Net worth required	$200,000	Neighborly
Royalty	6% of gross sales	2025 FDD Item 6
National brand fund	2% of gross sales	2025 FDD Item 6
Technology fee	~$197/month	2025 FDD Item 6
ProTradeNet / call center	$350-$450/month + per-appointment	FranchiseChatter 2025
Median gross sales (Item 19)	$572,580 (206 reporting units, full-year 2024)	2025 FDD Item 19
Average gross sales (Item 19)	~$782,000 (skewed by top quartile)	franchisepayback.com
Top-quartile gross sales	~$1.4M+	FDD Item 19 quartile breakout
Bottom-quartile gross sales	~$180K-$240K	FDD Item 19 quartile breakout
Estimated owner earnings	$68,710 - $85,887 (~15% margin)	franchisechatter.com 2025 review
Gross margin (materials + sub-labor)	~38-42%	Sharpsheets painting benchmarks
Payback period	2.2 - 4.2 years	franchisepayback.com
Term	10 years, renewable	2025 FDD Item 17
Territory	Protected, ~125K-250K households	Neighborly franchise sales

Build-out is light because there is no retail storefront — most owners run from a home office or a small flex-warehouse space (500-1,000 sq ft) for paint storage and ladders. The bulk of the $82K-$195K range is working capital ($30K-$60K) to fund payroll/subs while you wait 30-60 days for customer A/R to land.

Revenue range realism: a brand-new territory in Tier-3 metros (Wichita, Boise, Knoxville) typically books $220K-$380K in Year 1, $450K-$650K by Year 2, and crosses $800K-$1.1M by Year 3 if you ride Neighborly's Done.com / Angi / lead-gen feed and recruit 3-5 reliable sub crews. EBITDA margin scales from ~5% in Year 1 (heavy marketing front-load) to 17-22% by Year 3 when crew utilization tightens.

Industry context: per IBISWorld report 23822c (House Painting & Decorating Contractors), the U.S. residential paint market is ~$28.2B in 2025, growing ~0.4% annually, with the franchised segment (~990 units across CertaPro, Five Star, 360°, Fresh Coat, WOW 1 DAY) averaging $782K — 38% above the independent-contractor average of ~$510K. The paint contractor count is projected to grow ~4,600 firms by 2028, with wages crossing 35% of total cost, which favors franchise models that lean on subcontractors instead of W-2 crews.

Who Wins With This Business

Sales-DNA operators who can run a same-week estimate, same-day proposal cadence. The single biggest variable in Five Star unit economics is estimate-to-close conversion — top quartile owners run 45-55% close rates, bottom quartile run 18-25%.
Construction-adjacent professionals (former remodeler GCs, roofing salespeople, real-estate flippers) who already have referral pipelines into agents, property managers, and HOAs.
Operators in $400K+ median-home-value metros (Denver, Charlotte, Nashville, Raleigh, Tampa, Phoenix, Austin, Seattle suburbs) where interior repaint average ticket runs $4,800-$7,200 vs. $2,400-$3,200 in lower-cost markets.
Recruiters who can build a crew bench of 3-5 painting subs at $35-$55/hour loaded — sub access is the single hardest operational constraint in the post-2024 trade-labor squeeze.
Veterans — Neighborly's VetFran 10% off the initial fee ($4,500 savings) plus SBA 7(a) eligibility makes the deal materially better.
Existing Neighborly franchisees (Mr. Handyman, Glass Doctor, Window Genie) who can bolt Five Star onto an existing back office and share lead flow at zero incremental SG&A.

Who Loses With This Business

Hands-off investors who expect passive income in Year 1. The first 12 months require 30-50 hours/week of in-person estimating and crew recruiting. Semi-absentee works only after Year 2 when you can afford a $70K-$85K General Manager.
Operators in flat or declining housing markets (parts of the Rust Belt, deep rural counties) where the average repaint ticket falls below $2,800 and the 6% + 2% royalty + brand fund stack eats the margin alive.
Anyone without $30K-$50K of working capital beyond the franchise fee. You will front-fund payroll and paint while waiting 30-60 days for customer payment, especially on HOA and property-management contracts.
Solo painters who already own a small independent painting business doing $200K-$400K — paying 8% in royalty + brand fund on revenue you already capture rarely pencils unless Five Star's lead engine doubles your top line.
Conflict-averse operators. You will fire crews, chase A/R, and handle paint-color callbacks weekly. If that drains you, the owner earnings of $68K-$86K will not feel worth it vs. a W-2 sales job.
Anyone planning to compete on price. Five Star sells on trust, warranty, and speed, not low bid. If your local market is dominated by $1.50/sq ft cash-only crews, the $3.20-$4.50/sq ft Five Star price point struggles.

2027 Market Conditions

The 2026-2027 housing turnover environment is the most important variable for any painting franchise decision. Existing home sales are projected at 4.3M-4.6M units in 2027 per NAR — still 22% below the 2021 peak but up from the 2024 trough of 4.06M. Painting demand correlates strongly with home sales (pre-listing prep + new-owner first-90-day repaint), so the rising-tide trend favors entry now.

Three 2027 conditions that matter most:

Trade-labor scarcity persists. The BLS projects 3% painter employment growth through 2032, but demand is rising faster than supply. Sub rates climbed 22% from 2022 to 2026 and are projected to rise another 6-9% in 2027. Franchised operators with strong recruiting wins — independents lose.
Interior repaint dominates exterior. Post-COVID work-from-home spend shifted the mix to 65% interior / 35% exterior vs. the historical 55/45. Interior jobs are smaller-ticket but higher-frequency and less weather-dependent, smoothing Year 1 cash flow.
Sherwin-Williams pricing pass-through. SHW raised wholesale paint prices ~7% in Q1 2026 and is signaling another 4-6% in Q4 2026 / Q1 2027. Franchised operators with Neighborly's national paint-supply rebate (5-7% back on SHW + Benjamin Moore) preserve margin; independents eat the increase.

Competitive set: CertaPro Painters (largest franchised competitor, ~430 units, $640K median Item 19), Fresh Coat (~150 units, owned by Strategic Franchising), 360° Painting (~115 units, also Premium Service Brands), WOW 1 DAY Painting (FranWorth, ~90 units, faster but premium-priced). Five Star sits #2 by unit count and #2 by median revenue, with the strongest Neighborly cross-sell engine as its moat.

The 90-Day Decision Tree

Days 1-7: Pull the FDD. Request the 2025 FDD directly from franchise.neighborly.com/five-star-painting OR pull free copies from the Wisconsin DFI and Minnesota CARDS state portals. Read Item 7, Item 19, Item 20 (franchisee turnover), and Item 21 (audited financials) in that order.
Days 8-21: Call 15-20 existing franchisees. The FDD Item 20 exhibit lists every current and former franchisee with phone numbers. Ask each: (a) actual Year 1 and Year 2 revenue, (b) close rate on estimates, (c) sub-crew availability, (d) how many marketing dollars they spend above the 2% brand fund, (e) would they do it again at $45K fee.
Days 22-35: Validate your market. Pull Census ACS 5-year median home value, owner-occupied rate, and household income for every ZIP in the proposed territory. Cross-check Angi/Thumbtack/Yelp for the top 10 incumbent painters and their Google review counts. Target a territory where the #1 incumbent has < 400 reviews.
Days 36-50: Attend Neighborly Discovery Day in Waco, TX. Spend a full day with two existing top-quartile franchisees in-market. Walk a live estimate with them. Ask the franchisor for the FDD Item 19 quartile breakout, not just the median.
Days 51-65: Build the financial model. Project conservative Year 1 of $280K, realistic Year 2 of $560K, aggressive Year 3 of $920K. Stress-test at 35% close rate, 42% gross margin, $48K marketing spend above brand fund. Bottom line should show $22K-$38K owner earnings Year 1.
Days 66-75: Secure financing. Apply for an SBA 7(a) loan (typical Five Star deal: $120K-$150K at 10.5-11.5% over 10 years) or ROBS (rollover existing 401(k) tax-free). Five Star is on the SBA Franchise Directory, so underwriting moves in 4-6 weeks.
Days 76-85: Negotiate the territory map. Push for population density 175K-225K (not the default 125K). Ask for first-right-of-refusal on the adjacent territory at no extra cost — typically grantable.
Days 86-90: Sign or walk. If fewer than 11 of 15 franchisees said they would do it again, walk. If 3+ said sub-crew recruiting was the worst part and you have no recruiting plan, walk. Otherwise, sign, wire the $45K, and start the 2-week Neighborly training in Waco.

Alternative Plays

CertaPro Painters — larger network (~430 units), median ~$640K, lower close-rate dispersion, but 6% royalty + 2% brand fund matches Five Star. Better if you want a bigger franchisee community to learn from.
360° Painting — lower entry at $50K-$95K total investment, but median revenue ~$420K and less marketing muscle. Best for rural and Tier-4 markets.
Fresh Coat Painters — $58K-$95K investment, $22K franchise fee, 6% royalty. Lowest barrier to entry but weakest national brand.
WOW 1 DAY Painting — premium speed-painting model, median ~$720K but requires larger crew base from Day 1 (8-12 painters per project).
Buy a resale Five Star unit — check the FDD Item 20 transfer exhibit for owners exiting. A $650K-revenue resale typically lists at 1.5-2.2x EBITDA, ~$130K-$220K all-in. Cash flow from Day 1, no ramp risk, but you inherit any reputation problems.
Independent painting company — keep the 8% royalty + brand fund for yourself, build your own brand. Wins if you already have a sales pipeline; loses if you need lead gen.
Adjacent Neighborly brands — Mr. Handyman ($138K-$180K, median $480K), Glass Doctor ($172K-$310K, median $720K), or Window Genie ($118K-$180K, median $400K). All run the same executive-subcontractor model and share Neighborly back office.
Stay W-2 — a $95K-$135K outside sales role at Sherwin-Williams, PPG, or Benjamin Moore clears more risk-adjusted cash than a sub-$650K Five Star unit.

FAQ

What is the total investment needed to open a Five Star Painting franchise? The total investment ranges from $82,200 to $194,600 per the Item 7 disclosure, plus a $45,000 franchise fee. You’ll need $120,000 to $200,000 in liquid capital to comfortably cover startup costs and initial operations.

How much can I expect to earn in the first year? Year 1 cash flow is typically modest, between $20,000 and $45,000, as you build your crew and establish a client base. Owner earnings after expenses generally fall in the $68,710 to $85,887 range once the business matures.

How long does it take to break even and fully pay back the investment? Breakeven usually occurs within 14 to 22 months. Full payback of your initial investment typically takes 2.2 to 4.2 years, depending on how quickly you scale sales and recruiting.

Is Five Star Painting a hands-off business? No, especially in the first year. This is a sales-and-recruiting business, not a painting business. You’ll need to be active in door-to-door estimating, hiring crews, and managing operations. It’s not a passive cash-flow asset.

What are the ongoing fees and royalties? You’ll pay a 6% royalty on gross sales and a 2% national brand fund contribution. These fees support the brand’s marketing and operational support systems.

What if I have less than $50,000 in liquid capital? That’s likely not enough. With a minimum liquid capital requirement of $120,000 to $200,000 and a total investment range of $82,200 to $194,600, having less than $50,000 liquid makes it very difficult to cover startup costs and sustain operations through the first year.

Bottom Line

Five Star Painting in 2027 is a sound — not spectacular — franchise bet for sales-driven operators in $350K+ median-home-value metros who can self-fund 6 months of working capital and personally close 45%+ of estimates in Year 1. The $45K fee is fair, the 6% royalty + 2% brand fund is industry-standard, and the Neighborly back-office stack (call center, lead feed, paint rebate, cross-sell) is the strongest moat in the residential paint franchise category. Median franchisees earn $68K-$86K — decent but not life-changing — while top-quartile operators clear $180K-$280K by Year 3-4. Walk away if you want passive income, if you have less than $50K liquid, or if you cannot articulate a sub-crew recruiting plan in the first 90 days. Read the 2025 FDD cover to cover, call 15 existing franchisees, and demand the Item 19 quartile breakout before you wire a dollar.

Sources

<p><em>Five Star Painting franchise review / Five Star Painting reviews / Five Star Painting franchise rating / Five Star Painting review 2027 / review of Five Star Painting franchise / Five Star Painting franchise opportunity review.</em></p>

flowchart TD A[Prospect decides to open Five Star Painting 2027] --> B{Liquid capital at least 50K and net worth at least 200K?} B -- No --> Z[Stop or partner with capital partner] B -- Yes --> C{Market median home value over 350K?} C -- No --> Y[Reconsider or pick lower-cost franchise like 360 Painting] C -- Yes --> D{Can you commit 40-50 hrs per week Year 1?} D -- No --> X[Wait until you can OR plan to hire GM at 80K from Day 1] D -- Yes --> E{Sales background or strong CRM discipline?} E -- No --> W[Take 90-day Neighborly Sales Academy first] E -- Yes --> F{3-5 sub crews available within 30-min radius?} F -- No --> V[Spend Discovery Day validating sub bench BEFORE signing] F -- Yes --> G[Sign FDD - target Year 1 of 320-450K and Year 2 of 600-750K] G --> H[Year 3 target: 850K-1.1M and EBITDA 17-22%]

flowchart LR A[Days 1-30] --> B[FDD pull + 15 franchisee calls + market data] B --> C[Days 31-60] C --> D[Discovery Day + financial model + SBA pre-qual] D --> E[Days 61-90] E --> F[Territory negotiation + sign + Waco training] F --> G[Months 4-6] G --> H[First 50 estimates + recruit 3 subs + 320K booked] H --> I[Months 7-12] I --> J[Year 1 close at 280-380K + 22-38K owner earnings] J --> K[Year 2] K --> L[450-650K + hire GM + 85K owner earnings] L --> M[Year 3] M --> N[800K-1.1M + EBITDA 17-22% + payback complete]

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Download:

![Five Star Painting logo](https://www.fivestarpaintingnv.com/wp-content/uploads/2021/04/FiveStarPainting-logo-4.png)

## Direct Answer

**Yes — open or buy a Five Star Painting franchise in 2027 if** you can commit **$120K-$200K in liquid capital**, you treat this as a **sales-and-recruiting business** (not a brush-and-roller business), and you accept that **Year 1 cash flow is usually $20K-$45K** while you build a crew bench. The **Item 7 investment range is $82,200-$194,600** with a **$45,000 franchise fee**, **6% royalty**, and **2% national brand fund**. **Median 2024 gross sales hit $572,580** per the **2025 FDD Item 19**, with **owner earnings of $68,710-$85,887** at a **~15% operating margin**. **Breakeven is 14-22 months**; **full payback is 2.2-4.2 years**. **Probably not** if you want a hands-off cash-flow asset in **Year 1**, if you dislike **door-to-door estimating**, or if you have less than **$50K liquid**.

## The Real Numbers

![Should I open or buy a Five Star Painting franchise in 2027? — The Real Numbers](https://image.pollinations.ai/prompt/high%20quality%20editorial%20franchise%20storefront%20photograph%20illustrating%20The%20Real%20Numbers%20Should%20I%20open%20or%20buy%20a%20Five%20Star%20Painting%20franchise%20in%202027%3F%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=26180)


Five Star Painting is a **Neighborly-owned** residential and light-commercial painting franchise that runs an **executive-model** with **subcontractor painters** rather than W-2 crews. Numbers below are the **2025 FDD** (filed for the **2026 sales year**, the most recent in market as of June 2026) — every operator should read the **full document at the Wisconsin DFI or Minnesota CARDS portal** before signing.

| Line item | Real 2027-projected number | Source |
|---|---|---|
| **Initial franchise fee** | **$45,000** (10% vet discount → $40,500) | 2025 FDD Item 5 |
| **Total Item 7 investment** | **$82,200 - $194,600** | 2025 FDD Item 7 |
| **Liquid capital required** | **$50,000 minimum** | Neighborly franchise.neighborly.com |
| **Net worth required** | **$200,000** | Neighborly |
| **Royalty** | **6% of gross sales** | 2025 FDD Item 6 |
| **National brand fund** | **2% of gross sales** | 2025 FDD Item 6 |
| **Technology fee** | **~$197/month** | 2025 FDD Item 6 |
| **ProTradeNet / call center** | **$350-$450/month + per-appointment** | FranchiseChatter 2025 |
| **Median gross sales (Item 19)** | **$572,580** (206 reporting units, full-year 2024) | 2025 FDD Item 19 |
| **Average gross sales (Item 19)** | **~$782,000** (skewed by top quartile) | franchisepayback.com |
| **Top-quartile gross sales** | **~$1.4M+** | FDD Item 19 quartile breakout |
| **Bottom-quartile gross sales** | **~$180K-$240K** | FDD Item 19 quartile breakout |
| **Estimated owner earnings** | **$68,710 - $85,887 (~15% margin)** | franchisechatter.com 2025 review |
| **Gross margin (materials + sub-labor)** | **~38-42%** | Sharpsheets painting benchmarks |
| **Payback period** | **2.2 - 4.2 years** | franchisepayback.com |
| **Term** | **10 years**, renewable | 2025 FDD Item 17 |
| **Territory** | **Protected, ~125K-250K households** | Neighborly franchise sales |

**Build-out is light** because there is **no retail storefront** — most owners run from a **home office** or a **small flex-warehouse space (500-1,000 sq ft)** for paint storage and ladders. The bulk of the **$82K-$195K range** is **working capital ($30K-$60K)** to fund payroll/subs while you wait **30-60 days** for customer A/R to land.

**Revenue range realism**: a brand-new territory in **Tier-3 metros (Wichita, Boise, Knoxville)** typically books **$220K-$380K** in Year 1, **$450K-$650K** by Year 2, and crosses **$800K-$1.1M** by Year 3 if you ride **Neighborly's Done.com / Angi / lead-gen feed** and recruit **3-5 reliable sub crews**. **EBITDA margin scales from ~5% in Year 1** (heavy marketing front-load) to **17-22% by Year 3** when crew utilization tightens.

**Industry context**: per **IBISWorld report 23822c (House Painting & Decorating Contractors)**, the **U.S. residential paint market is ~$28.2B in 2025**, growing **~0.4% annually**, with the **franchised segment (~990 units across CertaPro, Five Star, 360°, Fresh Coat, WOW 1 DAY) averaging $782K** — **38% above the independent-contractor average of ~$510K**. The **paint contractor count is projected to grow ~4,600 firms by 2028**, with **wages crossing 35% of total cost**, which **favors franchise models that lean on subcontractors** instead of W-2 crews.

## Who Wins With This Business

![Should I open or buy a Five Star Painting franchise in 2027? — Who Wins With This Business](https://image.pollinations.ai/prompt/high%20quality%20editorial%20franchise%20storefront%20photograph%20illustrating%20Who%20Wins%20With%20This%20Business%20Should%20I%20open%20or%20buy%20a%20Five%20Star%20Painting%20franchise%20%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=19170)


- **Sales-DNA operators** who can run a **same-week estimate, same-day proposal** cadence. The **single biggest variable** in Five Star unit economics is **estimate-to-close conversion** — top quartile owners run **45-55% close rates**, bottom quartile run **18-25%**.
- **Construction-adjacent professionals** (former remodeler GCs, roofing salespeople, real-estate flippers) who already have **referral pipelines** into agents, property managers, and HOAs.
- **Operators in $400K+ median-home-value metros** (Denver, Charlotte, Nashville, Raleigh, Tampa, Phoenix, Austin, Seattle suburbs) where **interior repaint average ticket runs $4,800-$7,200** vs. **$2,400-$3,200** in lower-cost markets.
- **Recruiters who can build a crew bench** of **3-5 painting subs at $35-$55/hour loaded** — sub access is the **single hardest operational constraint** in the post-2024 trade-labor squeeze.
- **Veterans** — Neighborly's **VetFran 10% off the initial fee** ($4,500 savings) plus **SBA 7(a) eligibility** makes the deal materially better.
- **Existing Neighborly franchisees** (Mr. Handyman, Glass Doctor, Window Genie) who can **bolt Five Star onto an existing back office** and **share lead flow at zero incremental SG&A**.

## Who Loses With This Business

![Should I open or buy a Five Star Painting franchise in 2027? — Who Loses With This Business](https://image.pollinations.ai/prompt/high%20quality%20editorial%20franchise%20storefront%20photograph%20illustrating%20Who%20Loses%20With%20This%20Business%20Should%20I%20open%20or%20buy%20a%20Five%20Star%20Painting%20franchise%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=41305)


- **Hands-off investors** who expect **passive income in Year 1**. The first 12 months require **30-50 hours/week** of in-person estimating and crew recruiting. Semi-absentee works **only after Year 2** when you can afford a **$70K-$85K General Manager**.
- **Operators in flat or declining housing markets** (parts of the Rust Belt, deep rural counties) where **the average repaint ticket falls below $2,800** and the **6% + 2% royalty + brand fund stack** eats the margin alive.
- **Anyone without $30K-$50K of working capital** beyond the franchise fee. You will **front-fund payroll and paint** while waiting **30-60 days** for customer payment, especially on **HOA and property-management contracts**.
- **Solo painters** who already own a small **independent painting business** doing **$200K-$400K** — paying **8% in royalty + brand fund** on revenue you already capture rarely pencils unless Five Star's lead engine doubles your top line.
- **Conflict-averse operators**. You will **fire crews, chase A/R, and handle paint-color callbacks** weekly. If that drains you, the **owner earnings of $68K-$86K** will not feel worth it vs. a **W-2 sales job**.
- **Anyone planning to compete on price**. Five Star sells on **trust, warranty, and speed**, not low bid. If your local market is dominated by **$1.50/sq ft cash-only crews**, the **$3.20-$4.50/sq ft Five Star price point** struggles.

## 2027 Market Conditions

The **2026-2027 housing turnover environment** is the most important variable for any painting franchise decision. **Existing home sales** are projected at **4.3M-4.6M units in 2027** per **NAR** — still **22% below the 2021 peak** but **up from the 2024 trough of 4.06M**. **Painting demand correlates strongly with home sales** (pre-listing prep + new-owner first-90-day repaint), so the **rising-tide trend favors entry now**.

**Three 2027 conditions that matter most**:

1. **Trade-labor scarcity persists**. The **BLS projects 3% painter employment growth through 2032**, but **demand is rising faster than supply**. **Sub rates climbed 22% from 2022 to 2026** and are projected to rise **another 6-9% in 2027**. **Franchised operators with strong recruiting wins** — independents lose.
2. **Interior repaint dominates exterior**. Post-COVID **work-from-home spend** shifted the mix to **65% interior / 35% exterior** vs. the **historical 55/45**. Interior jobs are **smaller-ticket but higher-frequency** and **less weather-dependent**, smoothing Year 1 cash flow.
3. **Sherwin-Williams pricing pass-through**. **SHW raised wholesale paint prices ~7% in Q1 2026** and is signaling another **4-6% in Q4 2026 / Q1 2027**. **Franchised operators with Neighborly's national paint-supply rebate (5-7% back on SHW + Benjamin Moore)** preserve margin; independents eat the increase.

**Competitive set**: **CertaPro Painters** (largest franchised competitor, ~430 units, **$640K median Item 19**), **Fresh Coat** (~150 units, owned by Strategic Franchising), **360° Painting** (~115 units, also Premium Service Brands), **WOW 1 DAY Painting** (FranWorth, ~90 units, faster but premium-priced). Five Star sits **#2 by unit count** and **#2 by median revenue**, with the **strongest Neighborly cross-sell engine** as its moat.

```mermaid
flowchart TD
    A[Prospect decides to open Five Star Painting 2027] --> B{Liquid capital at least 50K and net worth at least 200K?}
    B -- No --> Z[Stop or partner with capital partner]
    B -- Yes --> C{Market median home value over 350K?}
    C -- No --> Y[Reconsider or pick lower-cost franchise like 360 Painting]
    C -- Yes --> D{Can you commit 40-50 hrs per week Year 1?}
    D -- No --> X[Wait until you can OR plan to hire GM at 80K from Day 1]
    D -- Yes --> E{Sales background or strong CRM discipline?}
    E -- No --> W[Take 90-day Neighborly Sales Academy first]
    E -- Yes --> F{3-5 sub crews available within 30-min radius?}
    F -- No --> V[Spend Discovery Day validating sub bench BEFORE signing]
    F -- Yes --> G[Sign FDD - target Year 1 of 320-450K and Year 2 of 600-750K]
    G --> H[Year 3 target: 850K-1.1M and EBITDA 17-22%]
```

## The 90-Day Decision Tree

1. **Days 1-7: Pull the FDD**. Request the **2025 FDD** directly from **franchise.neighborly.com/five-star-painting** OR pull free copies from the **Wisconsin DFI** and **Minnesota CARDS** state portals. **Read Item 7, Item 19, Item 20 (franchisee turnover), and Item 21 (audited financials)** in that order.
2. **Days 8-21: Call 15-20 existing franchisees**. The FDD **Item 20 exhibit lists every current and former franchisee with phone numbers**. Ask each: **(a) actual Year 1 and Year 2 revenue**, **(b) close rate on estimates**, **(c) sub-crew availability**, **(d) how many marketing dollars they spend above the 2% brand fund**, **(e) would they do it again at $45K fee**.
3. **Days 22-35: Validate your market**. Pull **Census ACS 5-year median home value, owner-occupied rate, and household income** for every ZIP in the proposed territory. Cross-check **Angi/Thumbtack/Yelp** for the **top 10 incumbent painters** and their **Google review counts**. Target a territory where **the #1 incumbent has < 400 reviews**.
4. **Days 36-50: Attend Neighborly Discovery Day** in **Waco, TX**. Spend a full day with **two existing top-quartile franchisees** in-market. Walk a **live estimate** with them. Ask the franchisor for **the FDD Item 19 quartile breakout**, not just the median.
5. **Days 51-65: Build the financial model**. Project **conservative Year 1 of $280K**, **realistic Year 2 of $560K**, **aggressive Year 3 of $920K**. Stress-test at **35% close rate**, **42% gross margin**, **$48K marketing spend above brand fund**. Bottom line should show **$22K-$38K owner earnings Year 1**.
6. **Days 66-75: Secure financing**. Apply for an **SBA 7(a) loan** (typical Five Star deal: **$120K-$150K at 10.5-11.5% over 10 years**) or **ROBS** (rollover existing 401(k) tax-free). Five Star is on the **SBA Franchise Directory**, so underwriting moves in **4-6 weeks**.
7. **Days 76-85: Negotiate the territory map**. **Push for population density 175K-225K** (not the default 125K). Ask for **first-right-of-refusal on the adjacent territory** at no extra cost — typically grantable.
8. **Days 86-90: Sign or walk**. If **fewer than 11 of 15 franchisees** said they would do it again, **walk**. If **3+ said sub-crew recruiting was the worst part** and you have no recruiting plan, **walk**. Otherwise, **sign, wire the $45K, and start the 2-week Neighborly training in Waco**.

## Alternative Plays

- **CertaPro Painters** — larger network (~430 units), **median ~$640K**, **lower close-rate dispersion**, but **6% royalty + 2% brand fund matches Five Star**. Better if you want a **bigger franchisee community** to learn from.
- **360° Painting** — lower entry at **$50K-$95K total investment**, but **median revenue ~$420K** and **less marketing muscle**. Best for **rural and Tier-4 markets**.
- **Fresh Coat Painters** — **$58K-$95K investment**, **$22K franchise fee**, **6% royalty**. **Lowest barrier to entry** but **weakest national brand**.
- **WOW 1 DAY Painting** — **premium speed-painting model**, **median ~$720K** but requires **larger crew base from Day 1** (8-12 painters per project).
- **Buy a resale Five Star unit** — check the **FDD Item 20 transfer exhibit** for **owners exiting**. A **$650K-revenue resale typically lists at 1.5-2.2x EBITDA, ~$130K-$220K** all-in. **Cash flow from Day 1, no ramp risk**, but **you inherit any reputation problems**.
- **Independent painting company** — keep the **8% royalty + brand fund** for yourself, build your own brand. **Wins if you already have a sales pipeline**; **loses if you need lead gen**.
- **Adjacent Neighborly brands** — **Mr. Handyman** ($138K-$180K, median $480K), **Glass Doctor** ($172K-$310K, median $720K), or **Window Genie** ($118K-$180K, median $400K). All run the same **executive-subcontractor model** and **share Neighborly back office**.
- **Stay W-2** — a **$95K-$135K outside sales role** at **Sherwin-Williams, PPG, or Benjamin Moore** clears more **risk-adjusted cash** than a sub-$650K Five Star unit.

```mermaid
flowchart LR
    A[Days 1-30] --> B[FDD pull + 15 franchisee calls + market data]
    B --> C[Days 31-60]
    C --> D[Discovery Day + financial model + SBA pre-qual]
    D --> E[Days 61-90]
    E --> F[Territory negotiation + sign + Waco training]
    F --> G[Months 4-6]
    G --> H[First 50 estimates + recruit 3 subs + 320K booked]
    H --> I[Months 7-12]
    I --> J[Year 1 close at 280-380K + 22-38K owner earnings]
    J --> K[Year 2]
    K --> L[450-650K + hire GM + 85K owner earnings]
    L --> M[Year 3]
    M --> N[800K-1.1M + EBITDA 17-22% + payback complete]
```

## FAQ

**What is the total investment needed to open a Five Star Painting franchise?**  
The total investment ranges from $82,200 to $194,600 per the Item 7 disclosure, plus a $45,000 franchise fee. You’ll need $120,000 to $200,000 in liquid capital to comfortably cover startup costs and initial operations.

**How much can I expect to earn in the first year?**  
Year 1 cash flow is typically modest, between $20,000 and $45,000, as you build your crew and establish a client base. Owner earnings after expenses generally fall in the $68,710 to $85,887 range once the business matures.

**How long does it take to break even and fully pay back the investment?**  
Breakeven usually occurs within 14 to 22 months. Full payback of your initial investment typically takes 2.2 to 4.2 years, depending on how quickly you scale sales and recruiting.

**Is Five Star Painting a hands-off business?**  
No, especially in the first year. This is a sales-and-recruiting business, not a painting business. You’ll need to be active in door-to-door estimating, hiring crews, and managing operations. It’s not a passive cash-flow asset.

**What are the ongoing fees and royalties?**  
You’ll pay a 6% royalty on gross sales and a 2% national brand fund contribution. These fees support the brand’s marketing and operational support systems.

**What if I have less than $50,000 in liquid capital?**  
That’s likely not enough. With a minimum liquid capital requirement of $120,000 to $200,000 and a total investment range of $82,200 to $194,600, having less than $50,000 liquid makes it very difficult to cover startup costs and sustain operations through the first year.

## Bottom Line

**Five Star Painting in 2027 is a sound — not spectacular — franchise bet for sales-driven operators in $350K+ median-home-value metros** who can self-fund **6 months of working capital** and personally close **45%+ of estimates in Year 1**. The **$45K fee is fair**, the **6% royalty + 2% brand fund is industry-standard**, and the **Neighborly back-office stack (call center, lead feed, paint rebate, cross-sell) is the strongest moat in the residential paint franchise category**. **Median franchisees earn $68K-$86K** — **decent but not life-changing** — while **top-quartile operators clear $180K-$280K** by **Year 3-4**. **Walk away** if you want **passive income**, if you have **less than $50K liquid**, or if you cannot articulate a **sub-crew recruiting plan in the first 90 days**. **Read the 2025 FDD cover to cover**, **call 15 existing franchisees**, and **demand the Item 19 quartile breakout** before you wire a dollar.

## Sources

- [Neighborly — Five Star Painting franchise site](https://franchise.neighborly.com/five-star-painting)
- [Neighborly — The Investment page](https://franchise.neighborly.com/five-star-painting/the-investment)
- [Franchise Chatter — Five Star Painting 2025 FDD Review (Item 19 detail)](https://www.franchisechatter.com/2025/08/27/five-star-painting-franchise-review-2025-costs-fees-news-average-revenues-and-or-profits/)
- [Franchise Payback — Five Star Painting FDD Costs & Fees 2026](https://www.franchisepayback.com/franchise/five-star-painting)
- [VettedBiz — Five Star Painting Franchise Insights](https://www.vettedbiz.com/franchises/five-star-painting)
- [Sharpsheets — Five Star Painting FDD Profits & Costs](https://sharpsheets.io/blog/five-star-painting-franchise-fdd-profits-costs/)
- [1851 Franchise — Five Star Painting Deep Dive](https://1851franchise.com/franchise-deep-dive-five-star-painting-franchise-costs-fees-profit-and-data-2724914)
- [IBISWorld — House Painting & Decorating Contractors in the US (Industry 23822c)](https://www.ibisworld.com/united-states/industry/house-painting-decorating-contractors/5738/)
- [Wisconsin DFI Franchise Search Portal (FDD primary source)](https://www.wdfi.org/apps/FranchiseSearch/MainSearch.aspx)
- [Minnesota Commerce CARDS Portal (FDD primary source)](https://www.cards.commerce.state.mn.us/CARDS/)
- [BLS Occupational Outlook — Painters, Construction and Maintenance](https://www.bls.gov/ooh/construction-and-extraction/painters-construction-and-maintenance.htm)
- [SBA Franchise Directory — Five Star Painting eligibility](https://www.sba.gov/document/support-sba-franchise-directory)

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