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

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

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

Section III – Number of franchised and company-owned Wow 1 Day Painting 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 Wow 1 Day Painting franchise opportunity

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

• 2023 average, median, highest, and lowest gross revenue; average and median job size; average and median gross profit margin; and average, median, highest, and lowest gross revenue per subterritory for the 36 Wow 1 Day Painting franchisees that were open and operating in the United States through at least the last 12 months of the year ending December 31, 2023 (franchisees operating over 24 months, franchisees operating 12-24 months, and all U.S. franchisees)

• 2023 average, median, highest, and lowest gross revenue; average and median job size; average and median gross profit margin; and average, median, highest, and lowest gross revenue per subterritory for the 15 Wow 1 Day Painting franchisees that were open and operating in Canada through at least the last 12 months of the year ending December 31, 2023 (franchisees operating over 24 months, franchisees operating 12-24 months, and all Canadian franchisees)

• total 2023 gross revenue of Wow 1 Day Painting franchisees operating in the United States and Canada that reported revenue and were open on December 31, 2023

Section VI – Key ratios, comparables, computations, and analyses for the Wow 1 Day Painting franchise opportunity (exclusive content for Platinum subscribers)

Section I – Wow 1 Day Painting Franchise Costs

• Initial Franchise Fee:  $40,000 to $60,000
• Initial Marketing Expense:  $15,000 to $20,000
• Computer Hardware and Software:  $1,000 to $3,000
• Vehicles and Graphics Lease/Purchase Deposit:  $4,800 to $5,000
• Real Estate/Rent:  $0 to $4,500
• Training Expenses:  $3,500 to $7,700
• Insurance:  $4,000 to $16,000
• Additional Insurance Premiums – Certain States:  $0 to $9,500
• Office Equipment and Supplies:  $0 to $1,000
• Licenses and Permits:  $500 to $2,000
• Professional Fees:  $2,000 to $5,000
• Equipment:  $2,500 to $4,500
• Additional Funds (3 months):  $15,000 to $25,000
• Total Estimated Wow 1 Day Painting Franchise Costs:  $88,300 to $163,200

Section II – Wow 1 Day Painting’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $40,000

• Royalty:  6% of Gross Revenue

• Minimum Royalty:  depending upon your year of operation, the Minimum Royalty will range from $5,000, pro-rated as necessary to account for operations for a partial calendar year in the first year of operation, to $8,000 for each subterritory per calendar year. The amount payable is the amount the Minimum Royalty exceeds the amount of Royalties actually paid by you in any year of operations in the specific subterritory being measured.

• Sales, Marketing & Technology Fee:  5% of Gross Revenue

• Branding Cooperative:  up to 3% of Gross Revenue in aggregate

Section III – Number of Franchised and Company-Owned Wow 1 Day Painting Outlets

Franchised

2021

• Outlets at the Start of the Year:  39
• Outlets at the End of the Year:  45
• Net Change:  +6

2022

• Outlets at the Start of the Year:  45
• Outlets at the End of the Year:  42
• Net Change:  -3

2023

• Outlets at the Start of the Year:  42
• Outlets at the End of the Year:  46
• Net Change:  +4

Company-Owned

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:  0
• Net Change:  0

Section IV – News Updates on the Wow 1 Day Painting Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Wow 1 Day Painting Franchise (Item 19, 2024 FDD)

• In this Item 19, Wow 1 Day Painting provides information regarding certain historical financial performance for all 36 franchised businesses in the United States and 15 franchised businesses in Canada that were open and operating through at least the last 12 months of the year ending December 31, 2023.

• Wow 1 Day Painting does not include information from 7 U.S. franchisees that closed during 2023 and 11 U.S. franchises and 1 Canadian franchise that opened during the 2023 calendar year, because they were not in operation for the entire year.

• The charts below reflect total, average, median, highest, and lowest Gross Revenue figures for the 2023 calendar year. Average and median Job Size and Gross Profit Margin are also included.

• For purposes of these charts, franchisees are grouped into franchised businesses open longer than 24 months and those open between 12 and 24 months.

• Because Wow 1 Day Painting’s franchisees own different numbers of subterritories, Wow 1 Day Painting also provides in the charts below the franchisee average, median, highest, and lowest Gross Revenue on a per-subterritory basis.

• Of the U.S. franchisees reported in the charts below: the smallest franchises consist of 2 subterritories, and the largest franchise consists of 14 subterritories; the average amount of subterritories owned is 4, with the median being 3 subterritories.

• Of the Canadian franchisees reported in the charts below: the smallest franchise consists of 2 subterritories, and the largest franchise consists of 15 subterritories; the average amount of subterritories owned is 6, with the median being 5 subterritories.

• Unless otherwise specified, “Gross Revenue” means the actual gross revenues billed to consumers for products and services, less taxes collected and credits or refunds given in accordance with the franchisor’s refund policy.

• “Job Size” means the Gross Revenue attributable to the Services and Products ordered by one customer for one job.

• “Gross Profit Margin” means the percentage of Gross Revenue remaining after subtracting the following from Gross Revenue: labor for painters, paint and supplies, Royalties, and Sales, Marketing & Technology Fees.

• Wow 1 Day Painting includes franchised businesses in Canada in this Item 19 because these Canadian franchisees operate businesses that are substantially similar to those in the U.S., with substantially similar performance results and no material differences between the data of the two groups other than the currency.

• The information in this Item 19 is based upon financial information franchisees reported to Wow 1 Day Painting, but the franchisor has not independently audited the information or independently reviewed its franchisees’ accounting methodologies to verify their conformance with generally accepted accounting principles.

• The average is calculated by adding all figures up and dividing by the number of figures counted. The median is calculated by placing all figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.

• The U.S. Franchisees chart is reported in USD, and the Canadian Franchisees chart is reported in CAD.

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

• The financial performance representation does not reflect all costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Part 1 – U.S. Franchisees – Calendar Year 2023

A.  Franchisees Operating Over 24 Months (U.S. Dollars)

• Number of Franchisees in Range:  31 of 36
• Total Gross Revenue:  $18,442,396

• Average Gross Revenue:  $593,232
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  11/35%
• Median Gross Revenue:  $459,873
• Highest Gross Revenue:  $2,656,103
• Lowest Gross Revenue:  $180,921
• Average Gross Revenue of Top 25%:  $1,183,139
• Average Gross Revenue of Bottom 25%:  $240,729

• Average Job Size:  $3,753
• Number and Percentage of Franchisees at or Above Average Job Size:  13/42%
• Median Job Size:  $3,655

• Average Gross Profit Margin:  36.5%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  7/23%
• Median Gross Profit Margin:  36.2%

• Average Gross Revenue Per Subterritory:  $131,287
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  14/45%
• Median Gross Revenue Per Subterritory:  $120,003
• Highest Gross Revenue Per Subterritory:  $255,518
• Lowest Gross Revenue Per Subterritory:  $45,230

B.  Franchisees Operating 12-24 Months (U.S. Dollars)

• Number of Franchisees in Range:  5 of 36
• Total Gross Revenue:  $1,766,642

• Average Gross Revenue:  $353,328
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  3/60%
• Median Gross Revenue:  $374,663
• Highest Gross Revenue:  $484,273
• Lowest Gross Revenue:  $259,097
• Average Gross Revenue of Top 25%:  $484,273
• Average Gross Revenue of Bottom 25%:  $259,097

• Average Job Size:  $3,425
• Number and Percentage of Franchisees at or Above Average Job Size:  3/60%
• Median Job Size:  $3,435

• Average Gross Profit Margin:  46.8%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  1/20%
• Median Gross Profit Margin:  46.8%

• Average Gross Revenue Per Subterritory:  $111,532
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  2/40%
• Median Gross Revenue Per Subterritory:  $93,666
• Highest Gross Revenue Per Subterritory:  $161,424
• Lowest Gross Revenue Per Subterritory:  $86,366

C.  All Franchisees (U.S. Dollars)

• Number of Franchisees in Range:  36
• Total Gross Revenue:  $20,209,038

• Average Gross Revenue:  $559,912
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  11/31%
• Median Gross Revenue:  $431,264
• Highest Gross Revenue:  $2,656,103
• Lowest Gross Revenue:  $180,921
• Average Gross Revenue of Top 25%:  $1,134,378
• Average Gross Revenue of Bottom 25%:  $244,830

• Average Job Size:  $3,707
• Number and Percentage of Franchisees at or Above Average Job Size:  16/44%
• Median Job Size:  $3,584

• Average Gross Profit Margin:  37.7%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  8/22%
• Median Gross Profit Margin:  37.2%

• Average Gross Revenue Per Subterritory:  $128,543
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  15/42%
• Median Gross Revenue Per Subterritory:  $117,941
• Highest Gross Revenue Per Subterritory:  $255,518
• Lowest Gross Revenue Per Subterritory:  $45,230

• Gross Profit information was received from 17 of the 36 franchisees at the time of this disclosure.

Part 2 – Canadian Franchisees – Calendar Year 2023

• The amounts in this chart are shown in CAD. Exchange rates from Canadian to U.S. Dollars ranged from 0.7207 to 0.7617 during calendar year 2023, with the period average exchange rate being 0.7410.

A.  Franchisees Operating Over 24 Months (Canadian Dollars)

• Number of Franchisees in Range:  14 of 15
• Total Gross Revenue:  $17,334,280

• Average Gross Revenue:  $1,238,163
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  6/43%
• Median Gross Revenue:  $935,562
• Highest Gross Revenue:  $3,422,485
• Lowest Gross Revenue:  $253,218
• Average Gross Revenue of Top 25%:  $2,329,311
• Average Gross Revenue of Bottom 25%:  $325,242

• Average Job Size:  $3,679
• Number and Percentage of Franchisees at or Above Average Job Size:  8/57%
• Median Job Size:  $3,778

• Average Gross Profit Margin:  40.3%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  6/43%
• Median Gross Profit Margin:  43.3%

• Average Gross Revenue Per Subterritory:  $189,926
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  7/50%
• Median Gross Revenue Per Subterritory:  $187,179
• Highest Gross Revenue Per Subterritory:  $373,263
• Lowest Gross Revenue Per Subterritory:  $36,174

B.  Franchisees Operating 12-24 Months (Canadian Dollars)

• Number of Franchisees in Range:  1 of 15
• Total Gross Revenue:  $551,673

• Average Gross Revenue:  $551,673
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  1/100%
• Median Gross Revenue:  $551,673
• Highest Gross Revenue:  $551,673
• Lowest Gross Revenue:  $551,673
• Average Gross Revenue of Top 25%:  n/a
• Average Gross Revenue of Bottom 25%:  n/a

• Average Job Size:  $4,654
• Number and Percentage of Franchisees at or Above Average Job Size:  1/100%
• Median Job Size:  $4,654

• Average Gross Profit Margin:  42.3%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  1/100%
• Median Gross Profit Margin:  42.3%

• Average Gross Revenue Per Subterritory:  $183,891
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  1/100%
• Median Gross Revenue Per Subterritory:  $183,891
• Highest Gross Revenue Per Subterritory:  $183,891
• Lowest Gross Revenue Per Subterritory:  $183,891

C.  All Franchisees (Canadian Dollars)

• Number of Franchisees in Range:  15
• Total Gross Revenue:  $17,885,953

• Average Gross Revenue:  $1,192,397
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  6/40%
• Median Gross Revenue:  $924,296
• Highest Gross Revenue:  $3,422,485
• Lowest Gross Revenue:  $253,218
• Average Gross Revenue of Top 25%:  $2,329,311
• Average Gross Revenue of Bottom 25%:  $360,938

• Average Job Size:  $3,644
• Number and Percentage of Franchisees at or Above Average Job Size:  8/53%
• Median Job Size:  $3,724

• Average Gross Profit Margin:  40.5%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  7/47%
• Median Gross Profit Margin:  43.3%

• Average Gross Revenue Per Subterritory:  $189,523
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  7/47%
• Median Gross Revenue Per Subterritory:  $183,891
• Highest Gross Revenue Per Subterritory:  $373,263
• Lowest Gross Revenue Per Subterritory:  $36,174

• Gross Profit information was received from 11 of the 15 franchisees at the time of this disclosure.

Part 3 – Total 2023 Gross Revenue of Wow 1 Day Painting Franchisees (Reported in US Dollars)

• The information provided below was compiled from all the Wow 1 Day Painting Franchised Businesses operating in the United States and Canada for at least 1 day in the 2023 calendar year.

• United States:  $21,920,481
• Canada*:  $13,344,515

• This chart includes all franchises operating for at least 1 day during 2023, including 7 locations that closed and 11 locations that did not operate for the full 2023 calendar year.

• *The Gross Revenue figure in Canadian Dollars ($18,008,793) was converted using the calendar year 2023 average exchange rate of 0.7410 for Canadian to U.S. Dollars, which rate ranged from 0.7207 to 0.7617 during calendar year 2023, and was 0.7561 on December 31, 2023.

Section VI – Wow 1 Day Painting Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️