Painting with a Twist Franchise Costs, Fees & FDD

Year Business Began: 2007

Franchising Since: 2009

Headquarters: Mandeville, Louisiana

Estimated Number of Units: 220

Franchise Description: The franchisor is Painting with a Twist, L.L.C. d/b/a Painting with a Twist. The franchisor offers and awards qualified parties a franchise for the right to independently own and operate a business specializing primarily in providing a fun and engaging social setting where guests drink wine or other beverages while creating art or crafts using “Painting with a Twist” proprietary marks, branded products and other services and products that the franchisor approves and authorizes from a particular location.

 
Training Overview: Franchisees and their designees must attend and complete the training program to the franchisor’s “exclusive satisfaction.” The training program is held in Mandeville, Louisiana or at another training location selected by the franchisor and/or franchisees will complete management training courses on-line. The training program will last four to six days. When franchisees open their franchised business, the franchisor will send one Painting with a Twist representative to the franchised business location for on-site training and assistance. The franchisor will periodically, as it considers necessary, provide franchisees with advanced training in operating their franchised business.

Territory Granted: Franchisees shall operate their franchised business only from a specified location approved by the franchisor. Upon executing a lease for the franchised business and prior to the opening of the franchised business, the franchisor will designate a geographical area defining the franchisee’s protected territory. The size of the protected territory will be determined by general demographics of the area with a minimum residential population of 100,000, the scope of the geographic boundaries, and other similar criteria in order to ensure that franchisees can realistically service the protected territory. The boundaries of the protected territory may be shaped, at the franchisor’s sole discretion, to match the population criteria and natural geographic features. As long as franchisees are not in default of the Franchise Agreement, the franchisor will not establish, nor license another party or entity to establish a franchised business under the trademark “Painting with a Twist” within the protected territory. Franchisees may face competition from other channels of distribution of competitive brands that the franchisor controls.

Obligations and Restrictions: As an owner of the franchised business, franchisees do not have to conduct on-premises supervision or to personally participate in the direct operation of the franchised business. However, the franchisor recommends that franchisees are actively involved in the operation of the franchised business. Franchisees or their designated manager must devote full-time to the development of the franchised business, unless otherwise approved in writing by the franchisor. Franchisees must offer and sell only those products and services that the franchisor has approved.

Term of Agreement and Renewal: The length of the initial franchise term is seven years from the date the franchised business opens. If franchisees wish to renew and they satisfy the required pre-conditions to renew, the franchisor will offer them an additional five-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor participates in the International Franchise Association’s VetFran program and offers a 20% discount on the initial franchise fee to eligible Painting with a Twist franchisees.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Real Estate Lease for Premises – 2 months	$4,500	$17,000
Grand Opening Advertising	$5,000	$5,000
Training Expenses (salary expenses)	$0	$1,500
Travel and Living Expenses While Training	$0	$1,500
Insurance	$1,500	$3,500
Furniture, Fixtures and Equipment	$14,000	$25,000
Other Prepaid Expenses	$1,000	$3,500
Opening Inventory	$4,000	$7,500
Signage	$4,000	$8,000
Leasehold Improvements	$30,000	$90,000
Computer Hardware & Software	$1,000	$3,000
Legal, Accounting & Organizational Costs	$1,000	$5,000
Additional Funds – 3 months	$25,000	$40,000
Architectural	$2,000	$5,000
Liquor License	$1,000	$15,000
ESTIMATED TOTAL	$119,000	$255,500

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of weekly gross sales.
System Advertising Fee	2% of weekly gross sales.
Regional Cooperative Fee	Currently none.
Interest on Late Payments	Prime plus 2% per annum or the maximum rate allowed by the applicable federal and/or state law.
Transfer Fee: Franchise Agreement	$7,500 - $15,000
Insufficient Funds	Prime plus 2.5% per annum or the maximum rate allowed by the applicable federal and/or state law, plus expenses incurred by franchisor.
Technology Fee	Currently $150 per month.
National Conference Registration Fee	$300 - $500
Taxes on Payments to the Franchisor	Amount of tax or assessment.
Management Fee	20% of the gross sales of the franchised business over the time period that the franchisor operates the franchised business on the franchisee’s behalf.

The above information has been compiled from the FDD of Painting with a Twist. Year of FDD: 2024.

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