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

Section I – Estimated initial investment (franchise costs) for an EverLine Coatings franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an EverLine Coatings franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned EverLine Coatings 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 EverLine Coatings franchise opportunity

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

• 2023 gross sales, cost of goods sold, gross profit, disclosed expenses, and gross sales less COGS and disclosed expenses for EverLine Coatings’ affiliate business over the 2023 calendar year

• 2023 average, median, highest, and lowest gross sales for the 12 disclosed Canadian EverLine Coatings businesses and 15 disclosed US EverLine Coatings businesses (separately stated) owned and operated by franchise owners throughout the entire 2023 calendar year on a full-time basis

• 2023 average, median, highest, and lowest close rate (won vs. lost proposals) for the 12 disclosed Canadian EverLine Coatings businesses and 15 disclosed US EverLine Coatings businesses (separately stated) owned and operated by franchise owners throughout the entire 2023 calendar year on a full-time basis

• 2023 average, median, highest, and lowest client count for the 12 disclosed Canadian EverLine Coatings businesses and 15 disclosed US EverLine Coatings businesses (separately stated) owned and operated by franchise owners throughout the entire 2023 calendar year on a full-time basis

• 2023 average, median, highest, and lowest gross sales per client for the 12 disclosed Canadian EverLine Coatings businesses and 15 disclosed US EverLine Coatings businesses (separately stated) owned and operated by franchise owners throughout the entire 2023 calendar year on a full-time basis

• 2019, 2020, 2021, 2022, and 203 annual total system sales amongst all Canadian EverLine Coatings businesses and 15 US EverLine Coatings businesses combined during the applicable calendar year

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

Section I – EverLine Coatings Franchise Costs

• EverLine Coatings franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500
• Equipment Acquisition:  $17,985 to $99,914
• Initial Tools Purchased:  $9,000 to $12,000
• Office Equipment, Including Computer System Hardware:  $1,450 to $2,500
• Signage:  $500 to $700
• Telephone System:  $200 to $950
• Technology Setup Fee and First 3 Months Technology Fee:  $2,595 to $3,240
• Lease Deposits in Connection with Mobile Unit and Sales Vehicle – Pre-Opening:  $18,278 to $28,095
• Vehicle Wrap:  $3,000 to $4,000
• Third-Party Storage/Operational Space – Lease Deposit:  $0 to $2,500
• Branding Collateral Package; Initial Marketing Materials:  $1,400 to $2,800
• Training and Travel Expense; Labor:  $1,600 to $2,500
• Training Fee:  $3,970
• Business Licenses and Permits:  $750 to $2,500
• Uniforms:  $600 to $800
• Insurance – Initial Premiums (covering post-launch operations):  $1,750 to $4,500
• Marketing Set-up Fee:  $1,200
• Initial Marketing Spend:  $7,209 to $11,209
• Professional Fees:  $300 to $5,000
• Additional Funds – 3 Months:  $30,000 to $70,000
• Total Estimated EverLine Coatings Franchise Costs:  $161,287 to $317,878

Section II – EverLine Coatings’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• EverLine Coatings’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500

• Royalty Fee:  6% of Gross Sales, subject to the Minimum Royalty that is due on an annual basis ($6,000 to $22,500, depending on the number of years in operation). For work done in part or full by an approved subcontractor, and such subcontractor is necessary (as deemed by EverLine Coatings), the royalty rate for the part of the job done by an approved subcontractor shall be 2.5%.

• Fund Contribution:  2% of Gross Sales

• Local Advertising Requirement (or “LAR”):  a minimum of 1% of Gross Sales

Section III – Number of Franchised and Company-Owned EverLine Coatings 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:  20
• Net Change:  +20

2023

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  55
• Net Change:  +35

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 EverLine Coatings Franchise

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

• This Item 19 discloses the historical financial performance of certain EverLine Coatings and Services Businesses operating under the Proprietary Marks and utilizing the System within one or more Designated Territories within Canada as of December 31, 2023 (each, an “Existing CN Business”).

• As of December 31, 2022, there were a total of 22 Existing CN Businesses operating in Canada, namely: (i) the one CN Business owned and operated by an affiliate of EverLine Coatings and its Affiliate Franchisor (the “Affiliate Business”); and (ii) 21 franchised Businesses that are independently owned and operated by System franchisees that have entered into a franchise agreement with EverLine Coatings’ Affiliate Franchisor. Twelve of the CN Businesses were (i) open and operating throughout the entire 2023 Calendar Year (ii) on a full-time basis (the “2023 Disclosed CN Businesses”).

• This Item 19 also discloses the historical financial performance of certain EverLine Coatings and Services Businesses operating under the Proprietary Marks and utilizing the System within one or more Designated Territories within the United States, pursuant to a franchise agreement with Everline Coatings and similar to the franchise offered under this Disclosure Document as of December 31, 2023 (each, a “US Business”).

• As of December 31, 2023, there were 55 US Businesses operating in the United States. As of December 31, 2022, there were 20 US Businesses operating in the United States.

• During the 2023 Calendar Year: (a) one US Business closed, (b) one US Business was operated together with another US Business by the same franchisee, (c) two US Businesses were operated on a part-time basis, and (d) one US Business did not operate for the entire 2023 Calendar Year due to licensing issues. Everline Coatings excluded these five US Businesses from this Item 19 because the circumstances described are not typical of its US Businesses.

• The remaining 15 US Businesses were open as of December 31, 2022 and operated on a full-time basis for the entire 2023 Calendar Year (the “2023 Disclosed US Businesses”).

• The Gross Sales data for the 2023 Calendar Year included in this Item 19 was converted from Canadian Dollars to U.S. Dollars with the average historical exchange rate during the 2023 Calendar Year, which was $1 CAD = $0.7408 USD.

Part 1 – Gross Sales Generated, as Well as COGS, Labor, and Certain Disclosed Expenses Incurred, by EverLine Coatings’ Affiliate Business Over the 2023 Calendar Year

Gross Sales:  $2,215,766 (100.0%)

Cost of Goods Sold (Reported Purchases + Direct Labor Costs Reported):  $1,164,355 (52.5%)

Gross Profit (Gross Sales Less Cost of Goods Sold):  $1,051,412 (47.5%)

Disclosed Expenses

• Estimated Royalties:  $132,946 (6.0%)
• Estimated Brand Fund:  $44,315 (2.0%)
• Advertising and Promotion:  $26,177 (1.2%)
• Licenses and Memberships:  $475 (0.0%)
• Insurance:  $23,197 (1.0%)
• Bank Charges:  $512 (0.0%)
• Office Supplies and Computer Software:  $22,035 (1.0%)
• Storage Rent:  $33,780 (1.5%)
• Safety (PPE):  $10,364 (0.5%)
• Professional Fees:  $1,645 (0.1%)
• Utilities:  $22,432 (1.0%)
• Vehicle:  $35,409 (1.6%)
• Total of Disclosed Expenses:  $353,287 (15.9%)

Gross Sales Less COGS and Disclosed Expenses:  $698,124 (31.5%)

Part 2 – Gross Sales Generated Amongst the 2023 Disclosed CN Businesses and the 2023 Disclosed US Businesses Over the 2023 Calendar Year

• The Gross Sales for the Disclosed CN Businesses in this Part 2were reported to Everline Coatings’ Affiliate Franchisor in Canadian Dollars and have been converted from Canadian Dollars to U.S. Dollars using the average exchange rate over the 2023 Calendar Year as described above.

A.  Disclosed CN Businesses

Top Third

• Number of Locations:  4
• Highest Gross Sales:  $2,215,767 (reported by Affiliate Location)
• Average Gross Sales:  $1,371,926
• Median Gross Sales:  $1,131,263
• Lowest Gross Sales:  $1,009,415
• Number and Percent of Locations That Met or Exceeded Average:  1 (25%)

Middle Third

• Number of Locations:  4
• Highest Gross Sales:  $887,650
• Average Gross Sales:  $722,136
• Median Gross Sales:  $717,179
• Lowest Gross Sales:  $566,537
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

Bottom Third

• Number of Locations:  4
• Highest Gross Sales:  $303,334
• Average Gross Sales:  $243,471
• Median Gross Sales:  $245,598
• Lowest Gross Sales:  $179,351
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

All 12 of the 2023 Disclosed CN Businesses

• Number of Locations:  12
• Highest Gross Sales:  $2,215,767
• Average Gross Sales:  $779,177
• Median Gross Sales:  $717,178
• Lowest Gross Sales:  $179,351
• Number and Percent of Locations That Met or Exceeded Average:  6 (50%)

B.  Disclosed US Businesses

Top Third

• Number of Locations:  5
• Highest Gross Sales:  $923,719
• Average Gross Sales:  $665,135
• Median Gross Sales:  $593,375
• Lowest Gross Sales:  $542,898
• Number and Percent of Locations That Met or Exceeded Average:  2 (40%)

Middle Third

• Number of Locations:  5
• Highest Gross Sales:  $540,539
• Average Gross Sales:  $417,870
• Median Gross Sales:  $446,406
• Lowest Gross Sales:  $315,146
• Number and Percent of Locations That Met or Exceeded Average:  3 (60%)

Bottom Third

• Number of Locations:  5
• Highest Gross Sales:  $304,841
• Average Gross Sales:  $267,135
• Median Gross Sales:  $262,595
• Lowest Gross Sales:  $204,633
• Number and Percent of Locations That Met or Exceeded Average:  2 (40%)

All 15 of the 2023 Disclosed US Businesses

• Number of Locations:  15
• Highest Gross Sales:  $923,719
• Average Gross Sales:  $450,047
• Median Gross Sales:  $446,406
• Lowest Gross Sales:  $204,633
• Number and Percent of Locations That Met or Exceeded Average:  7 (47%)

Part 3 – Close Rate (Won vs. Lost Proposals) Amongst 11 of the 2023 Disclosed CN and 12 of the Disclosed US Businesses Over the 2023 Calendar Year

• The Close Rate percentages in Part 3 do not include any “open” proposals where the client has not answered or has not yet made a decision about hiring the business.

• EverLine Coatings did not have accurate close rate data from 1 of the 12 Disclosed CN Businesses and 3 of the 15 Disclosed US Businesses, so it excluded those franchises from the data in this Part 3.

A.  Disclosed CN Businesses

Top Third

• Number of Locations:  4
• Highest Close Rate:  73%
• Average Close Rate:  64%
• Median Close Rate:  65%
• Lowest Close Rate:  51%
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

Middle Third

• Number of Locations:  3
• Highest Close Rate:  50%
• Average Close Rate:  50%
• Median Close Rate:  50%
• Lowest Close Rate:  50%
• Number and Percent of Locations That Met or Exceeded Average:  3 (100%)

Bottom Third

• Number of Locations:  4
• Highest Close Rate:  44%
• Average Close Rate:  35%
• Median Close Rate:  35%
• Lowest Close Rate:  22%
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

11 of the 2023 Disclosed CN Businesses

• Number of Locations:  11
• Highest Close Rate:  73%
• Average Close Rate:  50%
• Median Close Rate:  50%
• Lowest Close Rate:  22%
• Number and Percent of Locations That Met or Exceeded Average:  7 (64%)

B.  Disclosed US Businesses

Top Third

• Number of Locations:  4
• Highest Close Rate:  78%
• Average Close Rate:  75%
• Median Close Rate:  75%
• Lowest Close Rate:  70%
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

Middle Third

• Number of Locations:  4
• Highest Close Rate:  66%
• Average Close Rate:  62%
• Median Close Rate:  63%
• Lowest Close Rate:  58%
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

Bottom Third

• Number of Locations:  4
• Highest Close Rate:  58%
• Average Close Rate:  55%
• Median Close Rate:  55%
• Lowest Close Rate:  51%
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

12 of the 2023 Disclosed US Businesses

• Number of Locations:  12
• Highest Close Rate:  78%
• Average Close Rate:  64%
• Median Close Rate:  62%
• Lowest Close Rate:  51%
• Number and Percent of Locations That Met or Exceeded Average:  5 (42%)

Part 4 – Number of Clients (“Client Count”) Amongst the 2023 Disclosed CN Businesses and the 2023 Disclosed US Businesses Over the 2023 Calendar Year

• For each 2022 Disclosed CN Business, the terms “Number of Clients” and “Client Count” both mean the number of Clients that the owner of that Business completed jobs for and received payment from between January 1, 2023, and December 31, 2023.

A.  Disclosed CN Businesses

Top Third

• Number of Locations:  4
• Highest Client Count:  243
• Average Client Count:  172
• Median Client Count:  158
• Lowest Client Count:  127
• Number and Percent of Locations That Met or Exceeded Average:  1 (25%)

Middle Third

• Number of Locations:  4
• Highest Client Count:  127
• Average Client Count:  104
• Median Client Count:  105
• Lowest Client Count:  77
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

Bottom Third

• Number of Locations:  4
• Highest Client Count:  71
• Average Client Count:  53
• Median Client Count:  54
• Lowest Client Count:  31
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

All 12 of the 2023 Disclosed CN Businesses

• Number of Locations:  12
• Highest Client Count:  243
• Average Client Count:  109
• Median Client Count:  105
• Lowest Client Count:  31
• Number and Percent of Locations That Met or Exceeded Average:  6 (50%)

B.  Disclosed US Businesses

Top Third

• Number of Locations:  5
• Highest Client Count:  75
• Average Client Count:  59
• Median Client Count:  55
• Lowest Client Count:  53
• Number and Percent of Locations That Met or Exceeded Average:  1 (20%)

Middle Third

• Number of Locations:  5
• Highest Client Count:  52
• Average Client Count:  44
• Median Client Count:  41
• Lowest Client Count:  36
• Number and Percent of Locations That Met or Exceeded Average:  2 (40%)

Bottom Third

• Number of Locations:  5
• Highest Client Count:  34
• Average Client Count:  28
• Median Client Count:  29
• Lowest Client Count:  21
• Number and Percent of Locations That Met or Exceeded Average:  3 (60%)

All 14 of the 2023 Disclosed US Businesses

• Number of Locations:  15
• Highest Client Count:  75
• Average Client Count:  43
• Median Client Count:  41
• Lowest Client Count:  21
• Number and Percent of Locations That Met or Exceeded Average:  8 (53%)

Part 5 – Average Gross Sales Generated Per Client Amongst the 2023 Disclosed CN Businesses and 2023 Disclosed US Businesses Over the 2023 Calendar Year

• For each Disclosed Business, the term “Average Gross Sales Per Client” was calculated as follows: (i) the Gross Sales generated by that Business over the 2023 calendar year; and (ii) divided by the total number of Clients reported by the Business as reflected in Part 4 above.

A.  Disclosed CN Businesses

Top Third

• Number of Locations:  4
• Highest Gross Sales Per Client:  $32,560
• Average Gross Sales Per Client:  $14,511
• Median Gross Sales Per Client:  $8,737
• Lowest Gross Sales Per Client:  $8,008
• Number and Percent of Locations That Met or Exceeded Average:  1 (25%)

Middle Third

• Number of Locations:  4
• Highest Gross Sales Per Client:  $6,720
• Average Gross Sales Per Client:  $5,754
• Median Gross Sales Per Client:  $5,549
• Lowest Gross Sales Per Client:  $5,197
• Number and Percent of Locations That Met or Exceeded Average:  2 (50%)

Bottom Third

• Number of Locations:  4
• Highest Gross Sales Per Client:  $5,032
• Average Gross Sales Per Client:  $3,887
• Median Gross Sales Per Client:  $3,834
• Lowest Gross Sales Per Client:  $2,846
• Number and Percent of Locations That Met or Exceeded Average:  1 (25%)

All 12 of the 2023 Disclosed CN Businesses

• Number of Locations:  12
• Highest Gross Sales Per Client:  $32,560
• Average Gross Sales Per Client:  $8,051
• Median Gross Sales Per Client:  $5,549
• Lowest Gross Sales Per Client:  $2,846
• Number and Percent of Locations That Met or Exceeded Average:  4 (33%)

B.  Disclosed US Businesses

Top Third

• Number of Locations:  5
• Highest Gross Sales Per Client:  $16,794
• Average Gross Sales Per Client:  $15,541
• Median Gross Sales Per Client:  $16,169
• Lowest Gross Sales Per Client:  $13,098
• Number and Percent of Locations That Met or Exceeded Average:  3 (60%)

Middle Third

• Number of Locations:  5
• Highest Gross Sales Per Client:  $10,486
• Average Gross Sales Per Client:  $9,280
• Median Gross Sales Per Client:  $9,269
• Lowest Gross Sales Per Client:  $8,422
• Number and Percent of Locations That Met or Exceeded Average:  2 (40%)

Bottom Third

• Number of Locations:  5
• Highest Gross Sales Per Client:  $8,356
• Average Gross Sales Per Client:  $7,192
• Median Gross Sales Per Client:  $7,207
• Lowest Gross Sales Per Client:  $5,977
• Number and Percent of Locations That Met or Exceeded Average:  3 (60%)

All 15 of the 2023 Disclosed US Businesses

• Number of Locations:  15
• Highest Gross Sales Per Client:  $16,794
• Average Gross Sales Per Client:  $10,671
• Median Gross Sales Per Client:  $9,269
• Lowest Gross Sales Per Client:  $5,977
• Number and Percent of Locations That Met or Exceeded Average:  5 (33%)

Part 6 – Annual Total System Sales Amongst All CN Businesses and US Businesses During the 2019, 2020, 2021, 2022, and 2023 Calendar Years

Canadian Dollars

• 2019:  $4,244,532
• 2020:  $5,478,430
• 2021:  $8,445,016
• 2022:  $13,733,930
• 2023:  $32,946,381

U.S. Dollars

• 2019:  $3,199,528
• 2020:  $4,088,004
• 2021:  $6,737,434
• 2022:  $10,557,974
• 2023:  $24,404,472

Section VI – EverLine Coatings Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️