This post was updated on July 12, 2016 to reflect information from Painting with a Twist’s 2016 FDD (Item 7).
Detailed Estimates of Painting with a Twist Franchise Costs Based on Item 7 (Estimated Initial Investment) of Painting with a Twist’s 2016 Franchise Disclosure Document
1. Initial Fee: $25,000
- Painting with a Twist does not finance any fee.
- Painting with a Twist participates in the International Franchise Association’s VetFran program and offers a $5,000 discount on the Initial Fee to eligible Painting with a Twist franchisees.
2. Real Estate Lease for Premises – 3 months: $4,500 to $17,000
- Locations for Painting with a Twist Businesses are typically within either a freestanding building or an in-line retail plaza space with ample parking, good visibility, and visible signage. Typically, you would lease an existing location in a shopping strip center or other freestanding building and remodel the location to conform to the current specifications of Painting with a Twist.
- This range reflects the amount of lease payments for the first three months that you operate your Painting with a Twist Business. Lease payments vary considerably depending upon regional and local factors and the type of lease negotiated by you.
- For a typical Painting with a Twist Unit, you must lease approximately 1,200 to 2,200 square feet of space. Lease payments for a typical Painting with a Twist Unit usually range from $1,500 to $5,666.66 per month depending upon the size, location, and market demand for the property.
- The rate may be higher for regional mall sites, locations in high demand, or metropolitan area.
3. Construction and Equipment: $10,000 to $15,000
- Painting with a Twist will provide a complete list of equipment needs and specifications. Painting with a Twist estimates that the range given will also be enough to purchase the initial decor package and other miscellaneous equipment.
- The decor package and equipment must comply exactly with the design and/or architectural plans specified by Painting with a Twist.
4. “Grand Opening” Advertising: $2,000
- You must spend a minimum of $2,000 for the “Grand Opening” promotion of your Painting with a Twist Business. You must use advertising mediums designated and/or approved by Painting with a Twist.
- The “Grand Opening” event is required for all franchisees and functions to introduce your Painting with a Twist Business to the public.
- The application and use of the “Grand Opening” advertising funds shall be controlled by you.
5. Training Expenses: No charge for initial training of three employees
- Painting with a Twist provides instructors and instructional materials for up to three employees at no cost. However, you must arrange for your own transportation, lodging, and meals for yourself and for any costs incurred by associates.
- You or your manager must attend approximately three days of training in Mandeville, Louisiana.
6. Travel and Living Expenses While Training: $1,000 to $3,000
- These costs will depend on the distance you must travel, the type of accommodations, the number of attendees, and any wages paid by you to the associates attending training.
- The costs listed include estimates for reasonably priced transportation, lodging, and meals for three people. The costs do not include wages paid for associates or employees attending training, local restaurants, or other attractions in the New Orleans area, which can significantly increase your costs and affect the quality of your training.
7. Insurance: $1,000 to $3,000
- You must procure comprehensive liability (including products liability coverage, sexual harassment coverage, host liquor liability coverage, and off-premises events coverage), property, and other types of insurance coverage as provided in your Franchise Agreement, your lease, and as may be required by law.
8. Furniture: $4,000
- Painting with a Twist will provide a complete list of furniture needed for your Unit. It is estimated that you will need nine tables six feet in length and 50 stools.
9. Other Prepaid Expenses (such as deposits, licenses, and various permits): $1,000 to $3,500
- These costs include installation charges and deposits for a business telephone line, utilities, occupational licensing, health and other permits, and, in some areas, zoning or impact fees.
- Some states and local municipalities require Painting with a Twist franchisees to obtain a liquor license or permit.
10. Opening Inventory: $3,000 to $5,000
- Painting with a Twist estimates that the range given will be sufficient to cover a supply of canvases, paints, brushes, and other supplies for the opening of your Painting with a Twist Business.
11. Signage: $4,000 to $8,000
12. Leasehold Improvements: $15,000 to $30,000
- You must obtain architectural drawings and make certain improvements and modifications to the particular building you will lease or own to conform to the decor and design of your Painting with a Twist Business. The cost of leasehold improvements typically ranges from $15,000 to $30,000 depending upon the requirements of the city and/or state in which you are building.
- Painting with a Twist will provide a complete list of improvements and design and decor criteria for your Business.
13. Computer Hardware and Software: $1,500 to $4,500
- You must use a computer system (including both hardware and software) that meets Painting with a Twist’s specifications.
14. Legal, Accounting, and Organizational Costs: $2,000 to $8,000
15. Additional Funds – 3 months: $15,000
- This amount reflects the minimum suggested amount of additional funds you will need for the first three months you operate your Painting with a Twist Business.
- This amount includes the following items: salaries and wages, payroll taxes, advertising, product purchases, payment of royalties, uniforms, utility bills, ongoing professional fees, freight, and other miscellaneous administrative and operating costs.
16. Design Fee: $300
- Before starting any renovations to your Painting with a Twist Unit or undertaking any leasehold improvements at the location accepted by Painting with a Twist, you must submit a drawing of the physical layout of your Unit to Painting with a Twist for review.
- Painting with a Twist will utilize the drawing submitted by you to generate a design plan depicting the interior design, trade dress decor, and color scheme (“Design Plan”) that Franchisees must follow to ensure that the design of their unit conforms to Painting with a Twist’s then-current standards, plans, and specifications.
17. Total: $89,300 to $143,300
- Painting with a Twist relied on its prior experience in this business to compile these estimates.