About Stratify Franchise
Painter1 is a residential and commercial painting franchise operated under the Stratify, LLC umbrella.
Franchisees promote, advertise, and sell quality painting services to the public, including coating services such as paint, sealers, epoxy, and lacquer, as well as cleaning and prep work like power washing.
Their target customers are both residential homeowners and commercial property owners seeking professional painting services.
Stratify Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $54,500 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (currently 0% for new franchisees) | National brand fund |
| Total Investment Range | $80,270 – $168,380 | Includes build-out, inventory, working capital |
The investment range of $80K–$168K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Sales) and marketing fee (Up to 2% of Gross Sales (currently 0% for new franchisees)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $54,500 | $54,500 |
| Grand Opening Advertising | $3,000 | $3,000 |
| Advertising (first 3 months) | $9,000 | $10,000 |
| Computer Equipment | $800 | $1,800 |
| Travel and Living Expenses to Attend Training | $1,000 | $7,500 |
| Contractor License | $300 | $500 |
| Licenses and Bonds | $0 | $1,500 |
| Accounting Software | $360 | $360 |
| Cell Phone (3 months) | $600 | $720 |
| Insurance (3 months) | $360 | $1,500 |
| Clothing and Uniforms | $0 | $250 |
| Supplies and Equipment Inventory | $0 | $7,500 |
| Lease and Utilities Deposits and Payments | $0 | $1,500 |
| Franchise Premises Rent | $0 | $3,000 |
| Office Set-up | $0 | $500 |
| Car Signs/Decals | $100 | $3,500 |
| Vehicle | $0 | $50,000 |
| Miscellaneous Opening Costs | $250 | $750 |
| Additional Funds - 6 months | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Up to $5,000 plus applicable taxes |
| Renewal Fee | Up to $5,000 plus applicable taxes |
| Technology Fee | Up to $500 per calendar year for software upgrades |
| Audit Fee | Reasonable costs if revenue understated by more than 2% or failure to deliver required reports |
| Bookkeeping Services Fee | $250 per month |
| Grand Opening Advertising (Recommended) | $3,000 |
| Local Advertising (Recommended) | 8% of annual Gross Sales |
| Regional Advertising Fund Contribution | Up to 2% of Gross Sales |
| Additional Training | $500 per day plus reasonable out-of-pocket costs |
| Refresher Training Programs | $500 per day or then-current reasonable rates |
| Annual Convention Fee | Up to $500 |
| Cost to Attend Annual Convention | $1,000 to $5,000 |
| Step-In Rights Fee | 15% of Gross Sales plus reasonable administrative, personnel, and travel costs |
| Late Charge | 1.5% per month plus $50 service fee |
| Unsatisfied Payment Fee | $100 per unsatisfied attempt |
| CRM Administrative Service Fee | $1,667 to $4,500 per month |
| Software Technical Support Fee | Reasonable rates if collected |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4-7 days total (1-2 day classroom session plus 3-5 day field orientation) |
| Classroom Training | 9-18 hours |
| On-the-Job Training | 30-47 hours |
| Training Location | Corporate offices in Columbus, Ohio and designated field location |
| Additional Training | Optional additional training at $500 per day plus expenses; annual refresher programs/seminars of 12-16 hours required; annual convention attendance required |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected for Residential Services only, conditional on Performance Standards; Non-exclusive for Commercial Services |
| Exclusive Territory | No |
| Territory Size | Approximately 100,000 to 225,000 households |
| Description | Franchise Territory boundaries are typically set by natural and artificial boundaries, city, county, or state limits, principally using zip codes involving contiguous zip codes within a metropolitan area. Territorial protection for Residential Services is conditional on meeting Performance Standards requiring minimum $450,000 Gross Sales for previous 12 months by end of 36th month and continuously thereafter. No territorial protection for Commercial Services. Franchisee may not operate outside the state boundaries in which the Franchise Territory is located. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | Up to $5,000 plus applicable taxes |
| Renewal Conditions | Must give notice at least 3 months but no more than 6 months before expiration; must be in good standing; must refurbish franchise and replace obsolete equipment; must sign general release; must sign new (then-current) franchise agreement which may have materially different terms; must complete retraining program |
| Transfer Fee | Up to $5,000 plus 10% commission on gross transfer price if franchisor obtains the transferee |
| Transfer Conditions | Transferee must qualify and assume obligations; franchisee must not be in default; transferee must complete mandatory training; transferee must sign new franchise agreement on then-current terms; franchisee must execute general release; all debts must be paid |
| Termination for Cause | 30 days to cure most defaults; immediate termination without cure for bankruptcy/insolvency, abandonment (5 consecutive days), repeated defaults, misrepresentations, criminal conviction, non-payment of fees (5 days after written notice), disclosure of confidential information, imminent danger to public health/safety |
| Non-Compete Period | 720 days (approximately 2 years) |
| Non-Compete Details | No competition allowed within Franchise Territory, within any territory or market where franchisor operates or has granted franchises, and within the United States of America. Applies to painting and related coating or cleaning products or services of any kind. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor recommends but does not require owner participation in day-to-day operations. A designated manager may assume responsibility for daily operations. Managers must complete the initial training program and agree to confidentiality and non-competition provisions. |
| Required Suppliers | Painter1 branded items must be purchased from approved suppliers (currently franchisor is the only approved supplier for branded items). Proprietary CRM software from affiliate Client Tether, LLC is required. Designated bookkeeper required. Designated services vendor (Hoosier Admin, LLC) required for administrative, lead management, scheduling, booking, CRM training, and phone scheduling services. Approved supplier required for digital marketing services. Sherwin Williams is an approved supplier for paint and related products. |
| Supply Restrictions | All advertising materials, equipment, products, inventory, or items bearing Painter1 logo must be from approved suppliers. All items used in franchise must conform to franchisor specifications. Must use designated accounting software (QuickBooks Online Essentials or higher). Must use designated merchant processor if required. |
| Franchisor Revenue from Suppliers | In fiscal year 2024, franchisor received $64,203 from product sales and supplier rebates (approximately 4.3% of total revenues of $1,497,198). Affiliate Client Tether received $49,195 in fiscal year 2024. Sherwin Williams provides 5% rebate plus $3-$5 per gallon for premium products. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing and does not guarantee notes, leases, or financial obligations. |
Stratify Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Stratify Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Stratify System Growth
Stratify currently operates 42 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 7 | 2 | 36 |
| 2023 | 10 | 8 | 38 |
| 2024 | 7 | 3 | 42 |
Transfers: 4 | Closures: 3
State Registrations
Registered in 10 states: IL, IN, MD, MI, MN, ND, SD, VA, WA, WI
Franchisor Financials (Item 21)
Stratify Franchise — FAQ
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