Five Star Painting is part of the US-headquartered Neighborly family of home-service franchise brands — the same multi-brand system as Mr. Rooter, Mr. Electric, and Mr. Handyman — with a smaller, newer Canadian footprint than some competing painting franchisors, which means most opportunities today lean toward new territory development, with the first wave of resales only beginning to appear.
Five Star Painting resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
Price and terms get set for the territory and its existing customer relationships, with the offer conditioned on franchisor consent and clean diligence on the vehicle fleet and equipment — and, given the network's early stage, on confirming whether this is truly a resale or a hybrid of resale and new-territory terms.
1–3 weeks†The application goes to Five Star Painting's franchisor for review of the proposed buyer's operating background, opening a right-of-first-refusal window where the franchisor could step in on the same terms instead.
several weeks, typically†Whether an Arthur Wishart disclosure document applies to this specific resale is assessed early — Ontario's disclosure law applies to a franchise sold here regardless of where the franchisor is headquartered, and the resale exemption itself is read narrowly by Ontario courts.
assessed alongside the offer†Getting to closing
The exclusive territory rights, branded vehicle fleet, and Neighborly's shared marketing and CRM systems get reassigned to the buyer as part of the new or assigned franchise agreement — along with any small office or warehouse lease, where one exists.
2–6 weeks†The incoming owner completes Five Star's operations and sales training before the franchisor finalizes approval — training that also touches the cross-referral relationships across Neighborly's other home-service brands operating in the same market.
before or shortly after closing†Funds, territory rights, vehicle titles, and the customer database change hands, and existing crew or subcontractor relationships transition to the new owner.
1 day, once conditions are met†CFA listing shows 10 Canadian franchise units (Neighborly-family brand) via franchise.fivestarpainting.com.
Ontario locations among the 10 Canadian franchise units.
This is the first real decision in a Five Star Painting resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The territory's assets — branded vehicles and equipment, the customer list and CRM data, and the franchise agreement's benefit, subject to consent. | The shares of the operating company holding the territory. |
| Franchisor consent & ROFR | Required for the specific territory changing hands; reviewed by Five Star's Canadian franchise team. | Required for the change of control itself; the franchisor reviews the new principals. |
| Arthur Wishart disclosure | May still be required despite a resale framing — Ontario's disclosure law applies regardless of the franchisor's home jurisdiction, and the exemption is read narrowly. | The same disclosure analysis applies regardless of how the shares change hands. |
| Territory rights | Reassigned to the buyer as a condition of the new or assigned franchise agreement. | Stays with the corporation; the franchisor reviews who's actually taking over. |
| Vehicles, equipment & customer data (PIPEDA) | Vehicle titles or leases are reassigned individually, and the customer database transfers subject to privacy obligations. | Generally stay with the company as-is, since the underlying entity doesn't change. |
| Typical use | The default for a single territory changing hands — still uncommon given how new the Canadian network is. | More common only where one owner already holds several territories under one company. |
The territory's assets — branded vehicles and equipment, the customer list and CRM data, and the franchise agreement's benefit, subject to consent.
The shares of the operating company holding the territory.
Required for the specific territory changing hands; reviewed by Five Star's Canadian franchise team.
Required for the change of control itself; the franchisor reviews the new principals.
May still be required despite a resale framing — Ontario's disclosure law applies regardless of the franchisor's home jurisdiction, and the exemption is read narrowly.
The same disclosure analysis applies regardless of how the shares change hands.
Reassigned to the buyer as a condition of the new or assigned franchise agreement.
Stays with the corporation; the franchisor reviews who's actually taking over.
Vehicle titles or leases are reassigned individually, and the customer database transfers subject to privacy obligations.
Generally stay with the company as-is, since the underlying entity doesn't change.
The default for a single territory changing hands — still uncommon given how new the Canadian network is.
More common only where one owner already holds several territories under one company.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Five Star Painting territory changing hands between one buyer and one seller — a straightforward resale with a standard consent process.
Start my file →A resale that blends new-territory development terms with resale mechanics, or where the franchisor's right of first refusal needs to be worked through before terms are final.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
Legally, no — the franchise agreement and the resale process are specific to the Five Star Painting territory itself. Operationally, it does mean the business benefits from Neighborly's shared marketing systems and cross-referral relationships with its other home-service brands, which is worth understanding as part of the operator profile, not a legal complication.
Most opportunities in the system today lean toward new territory development rather than resale, since the network is still building out. Early resales do exist as those first operators mature, but there are fewer direct comps to price against than in a larger, more established painting franchise.
Generally, yes — the Arthur Wishart Act applies to any franchise sold in Ontario regardless of where the franchisor itself is based. Whether a disclosure document is actually required for a specific resale gets confirmed early rather than assumed either way.
It lets the franchisor step in and take the territory itself, on the same terms you agreed with the seller, instead of letting your purchase close. We build the response-time risk into your deposit and closing terms from the start.
The training itself is typically delivered through Five Star's Canadian franchise operations, though its content and systems originate from the broader Neighborly network — worth confirming directly as part of the transfer-approval process, since program delivery can vary between franchise systems.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Five Star Painting or its franchisor.
Tell us about your Five Star Painting resale — we'll point you the right way and confirm the cost in writing before any work begins.