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

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

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

Section III – Number of franchised and company-owned That 1 Painter 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 That 1 Painter franchise opportunity

Section V – Presentation and analysis of That 1 Painter’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, average, median, high, and low gross revenue generated by the franchised locations and affiliate-owned locations that have been operating for 24 or more months

• 2023 total, average, median, high, and low gross revenue generated by the franchised locations and affiliate-owned locations that have been operating for 12-24 months

• 2023 total, average, median, high, and low gross revenue generated by the franchised locations and affiliate-owned locations that have been operating for 12+ months

• 2023 total, average, median, high, and low gross revenue generated by the franchised location and affiliate-owned location that operate in multiple locations

• 2023 gross revenue, cost of goods sold, gross profit, estimated franchise fees, expenses, and net income generated by one affiliate-owned location

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

Section I – That 1 Painter Franchise Costs

• That 1 Painter franchise costs (employee model amount), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,000
• Your Training Expenses:  $3,000 to $5,500
• Vehicle Lease and Wrap:  $6,750 to $18,000
• Master Class:  $5,000
• Business Licenses and Permits:  $3,500 to $8,000
• Computer System and Set-up:  $500 to $1,000
• Uniforms and Branded Materials:  $2,500 to $4,000
• Office Equipment and Supplies:  $1,500 to $5,000
• Professional Fees:  $500 to $2,500
• Marketing Development Fee:  $5,000
• Grand Opening Advertising/Marketing:  $10,000 to $15,000
• Insurance:  $7,500 to $13,000
• Equipment:  $3,000 to $8,000
• Additional Funds (3 months):  $32,000 to $40,000
• Total Estimated That 1 Painter Franchise Costs:  $139,750 to $189,000

Section II – That 1 Painter’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• That 1 Painter’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $59,000
• Continuing Royalty Fee:  6% of Gross Revenue
• Local Advertising:  $3,000 per month for the first year of operation; 4% of monthly Gross Revenue or $3,000 per month, whichever is greater, beginning in year two
• Local Advertising Management Fee:  $500 per month, per unit; $300 per additional unit after the first unit, if the additional units are operated out of one central location
• Brand Fund Contribution:  2% of weekly Gross Revenue, subject to increases not to exceed 3% of weekly Gross Revenue
• Advertising Cooperative:  currently $0. If a cooperative is established, 1% of Gross Revenue or $1,000 per month (whichever is greater) unless a majority of the cooperative members agree on a higher contribution.

Section III – Number of Franchised and Company-Owned That 1 Painter 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:  28
• Net Change:  +28

2023

• Outlets at the Start of the Year:  28
• Outlets at the End of the Year:  62
• Net Change:  +34

Company-Owned

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  4
• Net Change:  +1

2022

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  4
• Net Change:  0

2023

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  12
• Net Change:  +8

Section IV – News Updates on the That 1 Painter Franchise

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

• As of December 31, 2023, That 1 Painter had (i) franchisees open and operating in 62 Territories, and (ii) affiliate-owned locations operating in 12 Territories.

Part 1 – Total, Average, Median, High, and Low Gross Revenue Generated by the Franchised Locations and Affiliate-Owned Locations That Have Been Operating for 24 or More Months

All Franchised Locations Open 24 or More Months

• Number of Franchised Locations:  3
• Total:  $3,137,861.54
• Average:  $1,045,953.85
• Median:  $726,467.46
• High:  $1,804,086.09
• Low:  $726,467.46
• Number and Percentage That Met or Exceeded Average:  1/3 (33%)

All Affiliate-Owned Locations Open 24 or More Months

• Number of Affiliate-Owned Locations:  3
• Total:  $4,626,770.06
• Average:  $1,542,256.09
• Median:  $887,472.00
• High:  $3,024,859.15
• Low:  $714,438.91
• Number and Percentage That Met or Exceeded Average:  1/3 (33.3%)

• Affiliate-Owned Locations 2 and 3 were reacquired from a franchisee during the 2023 calendar year but have been open 24 or more months total. The Gross Revenue amounts for Affiliate-Owned Locations 2 and 3 include both the Gross Revenue generated by the franchisee and the affiliate during the 2023 calendar year.

All Locations Open 24 or More Months

• Number of Locations:  6
• Total:  $7,764,631.60
• Average:  $1,294,105.27
• Median:  $806,969.73
• High:  $3,024,859.15
• Low:  $607,307.99
• Number and Percentage That Met or Exceeded Average:  2/6 (33%)

Part 2 – Total, Average, Median, High, and Low Gross Revenue Generated by the Franchised Locations and Affiliate-Owned Locations That Have Been Operating for 12-24 Months

All Franchised Locations Open 12-24 Months

• Number of Franchised Locations:  12
• Total:  $7,657,123.45
• Average:  $638,093.62
• Median:  $617,767.18
• High:  $961,047.00
• Low:  $347,845.38
• Number and Percentage That Met or Exceeded Average:  6 (50%)

All Affiliate-Owned Locations Open 12-24 Months

• Number of Affiliate-Owned Locations:  1
• Total:  $605,477.08
• Average:  $605,477.08
• Median:  $605,477.08
• High:  $605,477.08
• Low:  $605,477.08
• Number and Percentage that Met or Exceeded Average:  N/A

• Affiliate-Owned Location 4 operates in one Territory that has a population of approximately 170,598. This is about 30,000 people less than what That 1 Painter typically awards for a Territory. This Affiliate-Owned Location was closed for approximately 2.5 months in 2023.

All Locations Open 12-24 Months

• Number of Locations:  13
• Total:  $8,262,477.08
• Average:  $635,584.66
• Median:  $605,477.08
• High:  $961,047.00
• Low:  $347,845.38
• Number and Percentage That Met or Exceeded Average:  6 (46%)

Part 3 – Total, Average, Median, High, and Low Gross Revenue Generated by the Franchised Locations and Affiliate-Owned Locations That Have Been Operating for 12+ Months

All Franchised Locations Open 12+ Months

• Number of Franchised Locations:  15
• Total:  $10,794,984.99
• Average:  $719,665.67
• Median:  $680,041.00
• High:  $1,804,086.09
• Low:  $347,845.38
• Number and Percentage That Met or Exceeded Average:  6/15 (40%)

All Affiliate-Owned Locations Open 12+ Months

• Number of Affiliate-Owned Locations:  4
• Total:  $5,232,247.14
• Average:  $1,308,061.79
• Median:  $800,955.46
• High:  $3,024,859.15
• Low:  $605,477.08
• Number and Percentage That Met or Exceeded Average:  1 (25%)

All Locations Open 12+ Months

• Number of Locations:  19
• Total:  $16,027,232.13
• Average:  $843,538.53
• Median:  $691,461.72
• High:  $3,024,859.15
• Low:  $347,845.38
• Number and Percentage That Met or Exceeded Average:  5/19 (26.3%)

Part 4 – Total, Average, Median, High, and Low Gross Revenue Generated by the Franchised Location and Affiliate-Owned Location That Operate in Multiple Locations

Franchise-Owned Multi-Location

• Number of Franchised Locations:  1
• Total:  $2,972,311.13
• Average:  $2,972,311.13
• Median:  $2,972,311.13
• High:  $2,972,311.13
• Low:  $2,972,311.13
• Number and Percentage That Met or Exceeded Average:  N/A

All Affiliate-Owned Multi-Location

• Number of Affiliate-Owned Locations:  1
• Total:  $5,232,247.14
• Average:  $5,232,247.14
• Median:  $5,232,247.14
• High:  $5,232,247.14
• Low:  $5,232,247.14
• Number and Percentage That Met or Exceeded Average:  N/A

All Multi-Location Owners

• Number of Locations:  2
• Total:  $8,204,558.27
• Average:  $4,102,279.14
• Median:  $4,102,279.14
• High:  $5,232,247.14
• Low:  $2,972,311.13
• Number and Percentage That Met or Exceeded Average:  1/2 (50.0%)

Part 5 – Affiliate-Owned Location 1 Gross Revenue, Certain Cost of Goods Sold, Labor, and Other Fixed Operating Costs and Expenses

• This Affiliate-Owned Location 1 operates in three Territories.

Gross Revenue:  $3,024.238.39 (100%)

Cost of Goods Sold

• Job Supplies:  $451,161.13 (14.92%)
• Rent – Equipment:  $5,241.82 (0.17%)
• Subcontractors:  $1,119,460.26 (37.02%)
• Total Cost of Goods Sold:  $1,575,863.21 (52.11%)

Gross Profit:  $1,448,375.18 (47.89%)

Estimated Franchise Fees

• Appointment Center:  $30,242.38 (1.00%)
• Brand Fund:  $60,484.77 (2.00%)
• Royalty Fees:  $181,454.30 (6.00%)
• Total Franchise Fees:  $272,181.46 (9.00%)

Expenses

• Advertising and Promotion:  $172,674.59 (5.71%)
• Auto – Lease and Expenses:  $55,336.54 (1.83%)
• Total Misc. Expenses:  $124,376.12 (4.11%)
• Total Payroll Expenses:  $282,153.71 (9.33%)
• Total Expenses:  $906,722.42 (29.98%)

Net Income:  $541,652.76 (17.91%)

• Gross Revenue. “Gross Revenue” includes all sales of every kind and nature at or from the Affiliate-Owned Location. Gross Revenue does not include (a) receipts from any sales tax or similar taxes collected from customers and turned over to the governmental authority imposing the tax, (b) properly documented refunds to customers, or (c) properly documented promotional discounts (i.e., coupons).

• “Job Supplies” includes the cost to purchase certain supplies to perform the services such as paint, brushes, painting tape, among other items.

• “Rent-Equipment” includes the cost to rent certain equipment such as scaffolds and other miscellaneous items.

• “Subcontractors” includes the cost to engage labor to provide the residential and commercial painting and cosmetic repair services.

• “Total Cost of Goods Sold” is calculated by adding Job Supplies, Rent – Equipment, and Subcontractors together.

• “Gross Profit” is calculated by subtracting Total Cost of Goods Sold from Gross Revenue.

• While the Affiliate-Location does pay Appointment Center Fees, it does not pay the same amount as franchisees. Accordingly, this line item is estimated by multiplying Gross Revenue by 0.01 (1%), which is the cost you are obligated pay under the Franchise Agreement.

• While the Affiliate-Location does contribute to the Brand Fund, it does not contribute at the same rate as franchisees. Accordingly, this line item is estimated by multiplying Gross Revenue by 0.02 (2%), which is the amount you are obligated to contribute under the Franchise Agreement.

• While the Affiliate-Location does pay Royalty Fees, it does not pay at the same rate as franchisees. Accordingly, this line item is estimated by multiplying Gross Revenue by 0.06 (6%), which is the amount you are obligated to pay under the Franchise Agreement.

• “Total Franchise Fees” is calculated by adding Appointment Center, Brand Fund, and Royalties together.

• “Advertising and Promotion” includes the amounts that the Affiliate-Location spent on local advertising and promotion for the business.

• “Auto – Lease and Expense” includes the amount the Affiliate-Location spent on leases and other expenses in connection with vehicles used to operate the Affiliate-Location.

• “Total Miscellaneous Expenses” includes other expenses such as computer and software expenses, fees – legal & accounting and miscellaneous, HouseCall Pro Processing Fee, insurance expenses, meals expense, telephone, internet, Technology Fee, and uniforms.

• “Total Payroll Expenses” includes the cost of engaging managers in the operation of the Affiliate-Location. This amount includes payroll taxes.

• “Total Expenses” in calculated by adding Total Franchise Fees, Advertising and Promotion, Auto-Lease and Expenses, Total Misc. Expenses, and Total Payroll Expenses.

• “Net Income” is calculated by subtracting Total Expenses from Gross Profit.

• Except as set forth herein, there are no material financial or operational characteristics of the outlets that are reasonably anticipated to differ materially from future franchise outlet operations.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – That 1 Painter Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️