Updated February 23, 2020.
Detailed Estimates of Painting with a Twist Franchise Costs Based on Item 7 (Estimated Initial Investment) of Painting with a Twist’s 2019 Franchise Disclosure Document
- The figures below assume that the site falls into the recommended range of square footage and is delivered in the standard white box/vanilla box condition.
1. Initial Franchise Fee: $25,000
- Painting with a Twist does not finance any fee.
2. Real Estate Lease for Premises – 2 months: $4,500 to $17,000
- Locations for Franchised 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 a lease deposit and the amount of lease payments for the first two months that you operate your Franchised Business. Lease payments vary considerably depending upon regional and local factors and the type of lease negotiated by you.
- For a typical Franchised Business, you must lease approximately 1,700 to 2,300 square feet of space. Lease payments for a typical Painting with a Twist Business 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. “Grand Opening” Advertising: $2,000
4. 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 and your manager must attend approximately four days of training in Mandeville, Louisiana.
5. Travel and Living Expenses While Training: $3,000 to $6,000
- 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.
6. 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.
- This does not include health insurance on you and/or your employees.
7. Furniture, Fixtures, and Equipment: $12,000 to $20,000
- Painting with a Twist will provide a complete list of furniture needed for your Franchised Business. The amount will depend upon the size of your location.
- 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 décor package and other miscellaneous equipment.
8. Other Prepaid Expenses: $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.
9. 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 Franchised Business.
10. Signage: $4,000 to $8,000
11. Leasehold Improvements: $30,000 to $90,000
- 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 other Franchised Businesses.
- The cost of the improvements will vary depending upon the condition and type of building leased and the willingness of the lessor or owner to contribute to the construction or remodeling of your Franchised Business.
- Costs could exceed the estimates provided if remodeling is extensive and the lessor or owner does not contribute significantly to the costs of remodeling your Franchised Business.
- Painting with a Twist will provide a complete list of improvements and design and decor criteria for your Business.
12. Computer Hardware and Software: $2,000 to $4,000
- You must use a computer system (including both hardware and software) that meets Painting with a Twist’s specifications.
13. Legal, Accounting, and Organizational Costs: $2,000 to $8,000
14. Additional Funds – 3 months: $25,000 to $40,000
- This amount reflects the minimum suggested amount of additional funds you will need for the first three months you operate your Franchised 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.
15. Design Fee: $1,000
- Before starting any renovations to your Franchised Business 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 Franchised Business 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 you must follow to ensure that the design of your Franchised Business conforms to Painting with a Twist’s then-current standards, plans, and specifications.
16. Architectural: $2,000 to $5,000
17. Liquor License: $1,000 to $15,000
- Some states and local municipalities require Painting with a Twist franchisees to obtain a “liquor” license or permit.
- You are required to offer an option to your customers for the consumption of alcohol within your studio. The requirements to achieve this may differ depending on laws in your area. Depending on your area and the laws in your area, this cost could greatly exceed this estimate.
18. Total: $118,500 to $252,500
- Painting with a Twist relied on its prior experience in this business to compile these estimates.