ARTeVINO Franchise review (2023)
Written by: Patrick Findaro
Last Updated by
María Fernández Amato: January 23, 2023
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Contents
ARTeVINO Franchise Background
ArteVino is a premier art and wine studio for bring-your-own-beverage (“BYOB”) art classes, private parties, corporate events and team-building activities. ArteVino artists guides clients through the creative process and help them complete artwork during the class session.
In addition to their regular everyday individual customers, they offer fun opportunities for team-building, ice breaking with corporate clients, baby shower parties and more
In addition to adult offerings, they have developed summer and after school camps for children ages 7 and up as well as themed birthday parties that are perfect for kids and adults who want to have fun while celebrating their special day
Management Team
Founded by Paolo Canale and Jakop Eskinazi in 2012 in Hoboken, New Jersey, ArteVino is an art studio dedicated to creating the best possible painting experience for its customers
Since 2012, the demand for their studio space kept growing, and they had expanded the brand into 5 more locations in New Jersey
By 2017, when the franchise opportunity was offered for the first time, studios were operating in Hoboken, Cranford, Millburn, Montclair, Freehold, and Metuchen.
Franchise Hospitality and Entertainment Industry Analysis
Education Programs Franchise Strengths
- Operationally simple, easy to learn
- Franchisor provides strong ongoing support and training
- Low fixed cost structure
- Relatively low cost investment as an expensive, high-visibility location is not necessary as it is a destination business
Education Programs Franchise Weaknesses
- A decent number of competitors in the same industry with relatively low barriers to entry
- Must be in an area with demographic characteristics that correlate with historical success
- Studio performance may be hampered by close proximity of competitors
Education Programs Franchise Opportunities
- Many areas of the U.S. can be developed out
- Potential for expansion into additional segments, clubs, corporate businesses, and groups of the population
- Obtaining permits for alcohol sales substantially increases the amount of potential revenue
Education Programs Franchise Threats
- Potential for consumers to lose interest in the concept
- Competitive entertainment industry
- Competitors with a similar offering can continue to enter the industry as there are low barriers to entry
How much is a ARTeVINO Franchise?
ARTeVINO Franchise cost ranges from $99,800 to $129,850 according to the 2020 FDD.
| Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
| Low | High | |||
| Initial Franchise Fee | $25.000 | $25.000 | Upon signing franchise agreement | Franchisor |
| Construction, Leasehold Improvements, Furniture and Fixtures | 25.700 | 37.200 | Before Opening | Contractors; Approved Suppliers |
| Equipment | 4.000 | 4.400 | As arranged | Approved suppliers |
| Signange | 2.000 | 4.000 | Before Opening | Suppliers |
| Computer; Software and Point of Sales System | 1.400 | 2.300 | Before Opening | Third-party providers |
| Initial Inventory | 1.200 | 7.500 | As incurred | Franchisor and Approved Suppliers |
| Rent Deposits | 5.400 | 6.500 | As incurred | Landlord |
| Utility Deposits | 500 | 750 | As incurred | Utility Providers |
| Insurance Deposits and Premiums | 500 | 500 | As incurred | Insurance companies |
| Pre-opening Travel Expenses | 2.400 | 2.800 | As incurred | Airlines, hotels, restaurants |
| Grand Opening Advertising | 5.000 | 5.000 | Before Opening | Suppliers, Media |
| Professional Fees | 2.000 | 4.500 | As agreed | attorneys; accountants |
| Business Permits and Licenses | 800 | 1.100 | Before Opening | Licensing authorities |
| Printing, Stationery and Office Supplies | 400 | 800 | Before Opening | Third-party providers |
| Additional Funds – 3 month | 23.500 | 27.500 | After opening | Various |
| Royalty | Ad-Fund |
| 5,75% | 1% |
How Much does a ARTeVINO Franchise make?
| Gross Margin of Affiliated Studios | Hoboken Studio | Canford Studio | Average of Two Studios | |||
| Gross Sales | $222.883 | 100% | $222.047 | 100% | $222.965 | 100% |
| Cost of Goods Sold | ||||||
| Artist Fees | $51.567 | 23,03% | $49.138 | 22,13% | $50.353 | 22,58% |
| Art Supplies | $32.438 | 14,49% | $32.168 | 14,49% | $32.303 | 14,49% |
| Total Cost of Goods Sold | $84.005 | 37,52% | $81.306 | 36,62% | $82.656 | 37,03% |
| $139.878 | 62,48% | $140.741 | 63,38% | $140.310 | 62,93% | |
| Franchise Expenses which will be incurred by a franchisee that were not incurred by our Affiliate-Owned Studios | ||||||
| Royalty | $12.761 | 5,70% | $12.657 | 5,70% | $12.709 | 5,70% |
| Brand Fund Contribution | $2.239 | 1,00% | $2.220 | 1,00% | $2.230 | 1,00% |
| $124.878 | 55,78% | $125.864 | 56,68% | $125.371 | 56,23% | |
| Franhcise Related Costs | AJMP Hoboken Studio | ArteVino Cranford Studio | Average of Two Studios |
| $13.570 | $14.232 | $13.901 | |
| Brand Fund Contribution | $2.360 | 247500,00% | $2.418 |
FDD: “The financial performance representation appearing below is derived from the actual historical performance of two ArteVino Studios currently in operation and owned by our affiliate AJMP Partners, LLC, ArteVino Cranford, LLC (the “Reporting Studios”). As of December 31, 2017, AJMP Partners has owned and operated an ArteVino Studio in Hoboken, New Jersey for sixty- three (63) months; ArteVino Cranford has owned and operated an ArteVino Studio in Cranford, New Jersey for forty (40) months and are representative of the results that a franchisee can expect”.
