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Five Star Painting Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Five Star Painting Franchise?
To open a Five Star Painting franchise, you will need an initial investment ranging from $77,449.99 to $184,529.99. This includes a franchise fee of $45,000. It's important to prepare for additional costs such as equipment, supplies, and working capital, which are essential for starting your business. Having a cash reserve of at least $77,449.99 is crucial to cover these initial expenses.
What are the Ongoing Fees for a Five Star Painting Franchise?
Franchisees of Five Star Painting are required to pay a royalty fee of 6% on their gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the brand's marketing efforts and support services that help franchisees grow their business. Understanding these costs is vital for maintaining profitability and ensuring the success of your franchise.
What is the Average Revenue for a Five Star Painting Franchise Unit?
On average, a Five Star Painting franchise unit generates annual revenues of approximately $613,664. This figure indicates the potential profitability of the business. However, it's essential to consider that revenue can vary widely, with the highest reported annual revenue reaching $2,000,000 and the lowest at $2,799. Knowing these figures can help you set realistic financial goals as a franchisee.
How Quickly Can You Expect to Break Even with a Five Star Painting Franchise?
Franchisees can expect to break even within about 12 months of operation. This quick turnaround can be attractive for potential investors, as it indicates a relatively fast recovery of the initial investment. Additionally, if managed well, the investment payback period is also around 12 months, suggesting a favorable financial outlook for new franchise owners.
Five Star Painting Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Five Star Painting Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 215 | 225 | 230 |
| Net Change YoY | 10 | 5 | |
| Franchised Units | 215 | 225 | 230 |
| Net Change YoY | 10 | 5 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Franchise Overview
Five Star Painting is a national franchise specializing in residential and commercial painting services. Established with a commitment to quality and customer satisfaction, the brand has grown significantly, boasting over 230 franchised units as of 2023. This franchise provides a comprehensive business model that supports franchisees through training, marketing, and operational guidance, making it an attractive opportunity for aspiring entrepreneurs in the service industry.
Investment Requirements
The initial investment for a Five Star Painting franchise ranges from $77,449.99 to $184,529.99, with a franchise fee of $45,000. Prospective franchisees should have a net worth of $100,000 to $300,000 and must be prepared for ongoing royalty fees of 6% and a marketing fee of 2%. This investment structure allows for a manageable entry point into the franchise market while providing the potential for significant returns.
Revenue Potential
Five Star Painting franchisees can expect strong revenue potential, with average annual revenue per unit reported at $451,879. The revenue range varies widely, with the lowest annual revenue at $2,799 and the highest reaching up to $2,000,000. This variability reflects the franchise's scalability and the impact of local market conditions on profitability.
Operational Efficiency
Franchisees typically achieve breakeven within 12 months, with an investment payback period of the same duration. This efficient operational model is supported by Five Star Painting’s established systems and processes, which help franchisees minimize overhead and maximize revenue generation from the outset.
Ongoing Support
Five Star Painting provides ongoing support to its franchisees through training programs, marketing resources, and operational assistance. This support is crucial for new franchisees as they navigate the complexities of running a business in the painting industry. The franchise's commitment to franchisee success is evident in its comprehensive training and continuous improvement initiatives.
Market Growth
The franchise has shown consistent growth in its number of units, increasing from 215 in 2021 to 230 in 2023. This upward trend indicates a strong demand for painting services and the effectiveness of Five Star Painting’s business model. Franchisees benefit from being part of a growing network that enhances brand visibility and customer reach in the competitive painting market.
Frequently Asked Questions
The initial investment for a Five Star Painting franchise ranges from $77,449.99 to $184,529.99, which includes the franchise fee of $45,000.