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Painting Franchise: WOW 1 DAY PAINTING (2021 FDD Review)

WOW 1 DAY PAINTING

Source: 2020 WOW 1 DAY PAINTING Franchise Disclosure Document (FDD)

What is WOW 1 DAY PAINTING?

WOW 1 DAY PAINTING is a professional commercial and residential painting business founded in 2005 and is a franchise concept in the Home Services industry.

The parent company of WOW 1 DAY PAINTING inc. is “1Day Corporate” a British Columbia, Canada corporation.

Brian Scudamore co-founded the company in December 2010 and has served as its Chief Executive Officer and as director since its formation. Brian Scudamore also has served as CEO of 1-800-GOT-JUNK? since 1989 and of Shack Shine Home Services LLC since July 2015, all three of his companies are located in Vancouver, B.C. Mr. Scudamore has served as the Chief Executive Officer of O2E Brands since April 2015, the brand that encompasses all three companies.

Brian Scudamore success with 1-800-GOT-JUNK? promoted him to organize and professionalize brick and mortar home service businesses. Currently WOW 1 DAY PAINTING has 34 franchise locations across the United States and has 15 locations across Canada.

Initial Franchise Fee

$32,000 – $56,000

The initial franchise fee is a minimum of $32,000, which includes $20,000 for the first sub territory, plus $12,000 for one additional sub territory. The minimum initial investment is a territory consisting of two sub territories. Each additional sub-territory is $12,000.

If granted multiple sub territories within which to operate your Franchised Business, the franchisor may allow you to pay the initial franchise fee with respect to some of the sub territories in equal monthly installments, without interest, for a period not to exceed one year, however no other financing is offered by the franchisor.

WOW 1 DAY Painting Franchise Cost

The total investment necessary to begin operation of a WOW 1 DAY PAINTING franchised business is $67,000 to $129,500.

The territory you are granted will generally consist of two to four of these geographic areas, each of which will be considered a “sub territory.” The minimum population in a sub territory will be 50,000 households.

Additional Cost Breakdown:

Below is a list of the costs that factor in the range of startup costs from $67,000 to $129,500.

  • Initial Franchise Fee: $32,000 – $56,000
  • Initial Marketing Expense: $15,000 – $20,000
  • Computer Hardware and Software: $1,000 – $3,000
  • Vehicles & Graphics (Lease / Purchase Deposit): $0 – $5,000
  • Real Estate / Rent: $0 – $3,000
  • Training Expenses: $3,000 – $6,000
  • Insurance: $1,000 – $4,000
  • Office Equipment & Supplies: $0 – $1,000
  • Licenses and Permits: $500 – $2,000
  • Professional Fees: $2,000 – $5,000
  • Equipment: $2,500 – $4,500
  • Additional Funds (3 months): $10,000 – $20,000

Ongoing Franchise Costs and Fees:

Royalty: 6% of Gross Revenues*

Sales Center, Marketing & Technology Fee: 5% of Gross revenue

Payment: Royalties are due semi-monthly

*Minimum Royalty: Depending upon your year of operation, the Minimum Royalty will range from $2,000 to $4,200 per Sub territory per calendar year.*

Local Advertising Payment

You are required to pay $15,000 for Initial Marketing Expenses. The company will spend this amount in your area to market and promote your Franchised Business before you open and during the first 6 months after you begin business.

If you purchase additional sub territories, or are in a brand-new major market, the company may recommend that you spend an additional $5,000 for Initial Marketing Expenses. The Initial Marketing Expense is non-refundable.

On-Going Marketing

During your first four full fiscal quarters of operating the Franchised Business, you must spend an amount equal to 12% of Gross Revenue quarterly on local advertising and promotions.

During the fiscal quarters thereafter of operating the Franchised Business, you must spend an amount equal to 7% of Gross Revenue quarterly on local advertising and promotions.

WOW 1 DAY PAINTING Sales Figures:

This information excludes information from six franchisees that closed during the 2019 Reporting Year (two of which were open less than 12 months), and eight US franchises that opened during 2019 and were therefore not in operation for the entire 2019 Reporting Year.

US franchisees

franchisees

Key Highlights from Sales Figures:

Average Franchise Gross Revenue (26): $577,784

Average Gross Profit Margin: 41.9%

As seen in the chart about the businesses in operation over 24 months had both a higher gross revenue and higher gross profit margin, which is a good indication of increased profit as you become more comfortable with running your business.

Competition:

The market for this service is competitive. You will be competing with other painting business, including local painting companies, individuals performing painting services, other franchised painting operations, as well as seasonal student painting companies.

The main national competitors include: Certa Pro Painters, Five Star Painting, 360 Painting, College Pro (and other student painting companies) and Fresh Coat Painting. All of these companies are franchised operations with a range of 13-300 franchises each.

Conclusion:

WOW 1 DAY PAINTING is a well-established business and run by a very successful serial entrepreneur Brain Scudamore. This innovative business model and great leadership will position franchisees for success.

While this may be the business for you, make sure to also check out other businesses offered on Vetted Bizz and in the home services industry.

Analysis Provided by: Brooks Gammill Vetted Bizz Intern

Want to know how WOW 1 DAY PAINTING compares to other home service franchises? Download our industry guide!



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