JOHNSTONE SUPPLY
Holdings LLC
Company Information
11632 NE Ainsworth Circle Portland, OR 97220
Johnstone, an Oregon cooperative corporation, was established in April 1981 with a principal business address at 11632 NE Ainsworth Circle, Portland, Oregon 97220. After the Conversion, Johnstone will be Johnstone Supply’s predecessor. As of 2021, Johnstone had approximately 446 Johnstone Supply branded locations owned by members and their affiliated non members across 47 U.S. states and Ontario, Canada. Johnstone has never offered franchises in any other line of business but is acting as the intermediary “franchisor” under this disclosure document.
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Franchise Rating
Franchimp Summary Rating
1/10
Earning Transparency
1/10
Franchise System Development
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Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $72,000 Maximum: $117,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $808,200 Maximum: $3,402,000
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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