Updated November 16, 2020.
Detailed Estimates of Wow 1 Day Painting Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wow 1 Day Painting’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $32,000 to $56,000
- The Initial Fee ranges from $32,000 for a Territory consisting of two Subterritories, to $56,000 for a Territory consisting of four Subterritories. The minimum initial investment is for two Subterritories.
2. Initial Marketing Expense: $15,000 to $20,000
- The initial marketing expense will be used by Wow 1 Day Painting to market and promote the Franchised Business prior to and/or during the first 6 months of operation.
- If you purchase additional subterritories, or are in a brand new major market, Wow 1 Day Painting may recommend that you spend an additional $5,000 for Initial Marketing Expenses.
3. Computer Hardware and Software: $1,000 to $3,000
- You must establish and maintain a high speed Internet connection for use in connection with your Franchised Business, and establish and operate such software, computer, communications, and other systems hardware
and software that Wow 1 Day Painting prescribes.
- You must purchase a cell phone for use in connection with the Franchised Business, and you will be responsible for all costs associated with the use and maintenance of the cell phone. Upon termination or expiration of the Franchise Agreement, Wow 1 Day painting may, at its option, purchase the cell phone number from you for fair market value, or require that you cancel the cell phone number, the costs or penalties of which will be paid for by you.
4. Vehicles and Graphics Lease/Purchase Deposit: $0 to $5,000
- The above figures assume you lease one vehicle and represent the initial lease deposit for that vehicle. Costs may vary substantially, especially if you elect to purchase a vehicle rather than lease one.
- Some franchisees with good credit and who meet certain other vendor requirements may be able to lease a vehicle with no payments for the first six months of the lease term, as represented by the low end estimate of $0 shown above.
- You must purchase or lease vehicles that meet Wow 1 Day Painting’s standards and specifications, and you are required to use only those vehicles in the operation of any part of the Franchised Business. You are permitted to use those vehicles only for the Franchised Business and for no other reason.
- You are required to abide strictly by Wow 1 Day Painting’s vehicle requirements and standards, including its requirements for the vehicles to be decorated with its approved graphics package. Your vehicles shall be outfitted, wrapped, and/or decaled to Wow 1 Day Painting’s specifications, the cost of which is included in the above estimated figures.
5. Real Estate/Rent: $0 to $3,000
- You may want to operate from a home-based office, in which case, there would be no cost to you for rent. However, if you choose to rent office space, then you must pay all rent and other fees payable under the lease. Wow 1 Day Painting cannot estimate the amount of rent, as it will vary depending on a number of factors, including size, condition, and location of the facility.
- If you do not have sufficient storage space at your designated office, then Wow 1 Day Painting recommends that you rent a 20′ by 10′ storage garage, which it estimates would cost $250 per month.
- Alternatively, you may rent a designated office space, which Wow 1 Day Painting estimates would cost $500 per month. Prices for storage garages and office space may vary greatly.
6. Training Expenses: $3,000 to $6,000
- Training fees for your Principal Operator and any other director, officer, or shareholder of your entity that Wow 1 Day Painting requires, is included in your Initial Fee; however, you are responsible for your travel, accommodations, and meals while training at Wow 1 Day Painting’s training facility. Costs will vary depending on your proximity to British Columbia and the number of people attending training. These expenses are typically not refundable.
- Per person expected costs are based upon a 15-day estimated stay, with shared accommodations from $100-$200 per night; one meal per day (Wow 1 Day Painting provides breakfast and lunch during training); air transportation at $500 to $1,000 per person; and shared local transportation at $10-$25 per day.
7. Insurance: $1,000 to $4,000
- You must obtain and maintain at all times during the term of your franchise the types of insurance policies or coverages and the minimum policy limits or maximum deductibles of any policy as specified in the Operations Manual (“Coverages”), which are apt to change from time-to-time.
- You must also maintain at all times all insurance policies as required by the law in which your Franchised Business is operated.
- The following are Wow 1 Day Painting’s current minimum requirements for Coverages, which may change periodically:
- Comprehensive Liability – not less than $2,000,000 per occurrence
- Business Interruption – as required by Franchisor
- Vehicle Liability – not less than $1,000,000 or as required by Franchisor
- Workers’ Compensation – as required by state law
- Employer Liability Insurance – as required by Franchisor; not less than $1,000,000
- Other – as required by Franchisor
8. Office Equipment and Supplies: $0 to $1,000
9. Licenses and Permits: $500 to $2,000
- Government agencies typically charge fees for permits and operating licenses. Your actual costs may vary from the estimates based on the requirements of federal, state, and local government agencies.
10. Professional Fees: $2,000 to $5,000
- You will need to retain a lawyer, an accountant, and other consultants to assist you in establishing your Franchised Business. These fees may vary from location to location depending upon the prevailing rates of local lawyers, accountants, and consultants. These fees are typically non-refundable.
11. Equipment: $2,500 to $4,500
- The equipment includes items such as indoor and outdoor ladders, pressure washer, sander, paint sprayer, and general sundry supplies.
12. Additional Funds (3 months): $10,000 to $20,000
- This estimates your initial operating expenses, including working capital, during the initial start-up months.
- Additional Funds relate only to costs associated with the Franchised Business and do not cover any owners’ draw or personal, “living,” unrelated business or other expenses you may have, such as royalty payments, debt service on any loans, state sales and/or use taxes on goods and service, and a variety of other amounts not expressly described and included in the notes above.
13. Total: $67,000 to $129,500
- Wow 1 Day Painting relied on the experience of its franchisees in the United States to compile these estimates.