In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a 1-800-Striper franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a 1-800-Striper franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned 1-800-Striper outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the 1-800-Striper franchise opportunity

Section V – Presentation and analysis of 1-800-Striper’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 total gross revenue, cost of goods sold, rent, estimated franchise fees, and labor for the one affiliate-owned 1-800-Striper business that operates in two contiguous territories in the Rochester, New York area and was open for the full 2023 calendar year

• 2023 average, median, highest, and lowest revenue per customer by customer type (contractors, end users, property management) for the one affiliate-owned 1-800-Striper business that operates in two contiguous territories in the Rochester, New York area and was open for the full 2023 calendar year

• 2023 average, median, highest, and lowest job ticket by job type (restripe, relayout, new layout, indoor) for the one affiliate-owned 1-800-Striper business that operates in two contiguous territories in the Rochester, New York area and was open for the full 2023 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the 1-800-Striper franchise opportunity (exclusive content for Platinum subscribers)

Section I – 1-800-Striper Franchise Costs

• 1-800-Striper franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500
• Vehicle:  $8,206 to $98,616
• Initial Training Fee:  $7,500
• Travel and Living Expenses While Training:  $2,050 to $3,300
• Equipment and Tool Package:  $89,802 to $99,150
• Office Supplies and Software:  $1,773 to $4,406
• Product Supplies/Inventory (3 months):  $7,551 to $7,981
• Signage and Vehicle Graphics Signage:  $4,000 to $5,500
• Rent and Utility Deposits:  $0 to $6,900
• Insurance (3 months):  $2,100 to $3,230
• Professional Fees:  $2,810 to $5,000
• Initial Launch Marketing:  $15,000
• Additional Funds (3 months):  $20,000 to $25,000
• Total 1-800-Striper Franchise Costs:  $210,292 to $331,083

Section II – 1-800-Striper’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• 1-800-Striper’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500

• Royalty Fee:  the greater of (i) 7.0% of your monthly Gross Revenue, or (ii) the Minimum Royalty Fee

• Minimum Royalty Fee:  calculated as follows: (i) $500 per month starting in year 1; (ii) $750 per month starting in year 2; (iii) $1,000 per month starting in year 3; and (iv) $1,250 per month starting in year 4 and each year thereafter. The Minimum Monthly Royalty Fee will start 4 months from the Effective Date of your Franchise Agreement and will increase on the 1-year anniversary of your start date each year until the Minimum Royalty Fee is $1,250 per month.

• Brand Fund Contribution:  2% of your monthly Gross Revenue, which 1-800-Striper may increase up to 3% of your monthly Gross Revenue

• Local Marketing and Advertising Requirement:  the greater of (i) $500 per month, or (ii) 3% of your Gross Revenue

• Co-op Advertising:  if established, 2% of your monthly Gross Revenue, which 1-800-Striper may increase up to 3% at its discretion. However, this amount is currently $0.

Section III – Number of Franchised and Company-Owned 1-800-Striper Outlets

Franchised

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  8
• Net Change:  +8

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2023

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

Section IV – News Updates on the 1-800-Striper Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the 1-800-Striper Franchise (Item 19, 2024 FDD)

• This Item sets forth certain historical data submitted by 1-800-Striper’s one affiliate-owned 1-800-Striper Business in the Rochester, New York area (“Disclosed Business”). The Disclosed Business operates in two contiguous Territories. 1-800-Striper has not audited this information.

• 1-800-Striper excluded data in connection with five franchisees that operate in a total of 8 Territories since all of those franchisees opened in 2023 and were not open for a full calendar year.

Part 1 – Total Gross Revenue as Well as Certain Costs, Operating Expenses, and Estimated Fees Incurred by the Disclosed Business Over the 2023 Measurement Period

Gross Revenue:  $1,189,221.29 (100.00%)

Disclosed Expenses

• Cost of Goods Sold:  $146,263.88 (12.30%)
• Rent:  $18,000.00 (1.51%)
• Estimated Royalty Fees:  $83,245.49 (7.00%)
• Estimated Local Advertising and Marketing Requirement (LAMR):  $35,676.64 (3.00%)
• Estimated Brand Fund Contribution:  $23,874.43 (2.00%)
• Estimated Software Fee:  $6,300.00 (0.53%)
• Labor:  $400,667.03 (33.69%)
• Total COGS, Rent, Royalty, LAMR, Brand Fund, and Software Expenses:  $714,027.47 (60.04%)

Gross Revenue Less Total COGS, Rent, Royalty, LAMR, Brand Fund, and Software Expenses:  $475,193.82 (39.96%)

• “Gross Revenue” includes all income of any type or nature and from any source that was derived from the operation of the Disclosed Business. Gross Revenue does not include sales tax that is collected from customers and actually transmitted to the appropriate taxing authorities.

• “Cost of Goods Sold” means the total amount that the Disclosed Business paid for paint.

• “Rent” means the total amount that the Disclosed Business incurred in connection with rent over each Measurement Period.

• “Estimated Royalty Fees” means the Royalty Fee that the Disclosed Business would have had to pay us over the Measurement Period if that Business were owned by a System franchisee and governed by 1-800-Striper’s current form of Franchise Agreement. 1-800-Striper calculated Royalty Fees by multiplying the Gross Revenues generated by the Disclosed Business by .07 to account for the Royalty Fee of 7% set forth and required under its current form of Franchise Agreement.

• “Estimated Local Marketing and Advertising Requirement” means the total Local Marketing and Advertising expenditures that the Disclosed Business would have had to expend over each Measurement Period if the Disclosed Business were owned by a System franchisee and governed by 1-800-Striper’s current form of Franchise Agreement. 1-800-Striper calculated the Estimated Local Marketing and Advertising Requirement by multiplying the Gross Revenues generated by the Disclosed Business by .03 to account for the Local Marketing and Advertising Requirement of 3% set forth and required under its current form of Franchise Agreement.

• “Estimated Brand Fund Contribution” means the Brand Fund Contribution that the Disclosed Business would have had to contribute over each Measurement Period if that Disclosed Business were owned by a System franchisee and governed by 1-800-Striper’s current form of Franchise Agreement. 1-800-Striper calculated the Estimated Brand Fund Contribution by multiplying the Gross Revenues generated by the Disclosed Business by .02 to account for the Brand Fund Contribution of 2% set forth and required under its current form of Franchise Agreement.

• “Estimated Software Fee” means the Software Fee that the Disclosed Business would have had to pay over each Measurement Period if that Disclosed Business were owned by a System franchisee and governed by 1-800-Striper’s current form of Franchise Agreement. 1-800-Striper calculated the Estimated Software Fee by multiplying the current monthly Software Fee of $525 by 12 to account for the Software Fee required under its current form of Franchise Agreement.

• “Labor” means the total cost and compensation paid in connection with the engagement of labor, payroll taxes, payroll accounting, and subcontractors.

Part 2 – Gross Revenue, Average, Median, High, and Low Revenue Per Customer Type Generated During the 2023 Measurement Period

Customer Type:  Contractors

• Gross Revenue:  $392,017.82
• Average Revenue Per Customer:  $8,522.13
• Median Revenue Per Customer:  $2,383.75
• Highest Amount Paid:  $127,973.87
• Lowest Amount Paid:  $425.00
• Number and Percent Exceeding Average:  10 (22%)
• Number of Customers:  46
• Percent of Total Revenue:  30.69%

Customer Type:  End Users

• Gross Revenue:  $711,587.58
• Average Revenue Per Customer:  $9,747.78
• Median Revenue Per Customer:  $1,531.72
• Highest Amount Paid:  $262,564.26
• Lowest Amount Paid:  $393.52
• Number and Percent Exceeding Average:  12 (16%)
• Number of Customers:  73
• Percent of Total Revenue:  55.66%

Customer Type:  Property Management

• Gross Revenue:  $174,527.06
• Average Revenue Per Customer:  $15,866.10
• Median Revenue Per Customer:  $6,289.41
• Highest Amount Paid:  $61,518.85
• Lowest Amount Paid:  $806.70
• Number and Percent Exceeding Average:  3 (27%)
• Number of Customers:  11
• Percent of Total Revenue:  13.65%

• “Customer Type” means the type of customer that the services were provided to.

• “Gross Revenue” includes all income of any type or nature and from any source that was derived from the operation of the Disclosed Business. Gross Revenue does not include sales tax that is collected from customers and actually transmitted to the appropriate taxing authorities.

• “Average Revenue Per Customer” is calculated by taking the total Gross Revenue for a Customer Type and dividing it by the Number of Customers.

• “Median Revenue Per Customer” is calculated by examining all of the data points for a customer type and taking the data point that is in the center.

Part 3 – Average, Median, High, and Low Job Ticket Based on Job Type During the 2023 Measurement Period

Job Type:  Restripe

• Average Job Ticket:  $3,066.67
• Median Job Ticket:  $1,164.03
• High Job Ticket:  $33,672.81
• Low Job Ticket:  $196.64
• Number That Met or Exceeded Average:  83 (38%)
• Number of Tickets:  219
• Total Revenue:  $671,599.76

Job Type:  Relayout

• Average Job Ticket:  $1,697.60
• Median Job Ticket:  $1,018.56
• High Job Ticket:  $20,046.20
• Low Job Ticket:  $425.00
• Number That Met or Exceeded Average:  39 (31%)
• Number of Tickets:  126
• Total Revenue:  $213,897.82

Job Type:  New Layout

• Average Job Ticket:  $1,820.18
• Median Job Ticket:  $887.50
• High Job Ticket:  $20,546.64
• Low Job Ticket:  $116.53
• Number That Met or Exceeded Average:  53 (25%)
• Number of Tickets:  209
• Total Revenue:  $380,417.17

Job Type:  Indoor

• Average Job Ticket:  $4,344.33
• Median Job Ticket:  $4,898.00
• High Job Ticket:  $6,891.75
• Low Job Ticket:  $1,200.00
• Number That Met or Exceeded Average:  5 (56%)
• Number of Tickets:  9
• Total Revenue:  $39,098.95

• “Average Job Ticket” is calculated by taking the amount of Gross Revenue that the Disclosed Location generated for each job and dividing it by the total number of jobs.

• “Median Job Ticket” is calculated by examining all of the job tickets for a job type and taking the data point that is in the center.

Part 4 – Percent of Recurring Customers During the 2021, 2022, and 2023 Measurement Periods

• 2021:  47%
• 2022:  34%
• 2023:  40%

• This analysis does not contain complete information concerning the operating costs and expenses that you will incur in operating your Business. This analysis also does not account for your Initial Franchise Fee, as well as owner compensation/salaries, late fees, training fees, and other fees and expenses that you may incur as a System franchisee. Operating costs and expenses may vary from business to business.

• Additionally, the above figures exclude finance charges, interest expense, interest income, depreciation, amortization, and other income or expenses will vary substantially from business to business, depending on the amount and kind of financing you obtain to establish your business.

• 1-800-Striper’s financial performance representations were measured from a single affiliate-owned location that operates within, but not the whole, Rochester metropolitan area. The area is approximately the size of two contiguous Territories, as described in Item 12.

• Similar to the Franchised Business that you will operate, the Disclosed Business may service a customer outside of its Territories if (i) the Disclosed Business obtains 1-800-Striper’s prior written consent, and (ii) as long as the customer is not located in the Territory of a franchisee. The Territories that the Disclosed Business operates in have a total population of approximately 721,000 (consisting of approximately 23,500 total businesses).

• The Disclosed Business has been in business at least 17 years before its sales data was collected. At this time, there is no financial data available for a franchisee operated location in its first year.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance you will sell as much.

Section VI – 1-800-Striper Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️