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

• Section I – Background information on the Painting with a Twist franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Painting with a Twist franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Painting with a Twist franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned Painting with a Twist outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Painting with a Twist’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average, median, high, and low gross revenue for the top third, middle third, bottom third, and all 233 Painting with a Twist franchised studios that were continuously open for at least 24 months prior to the end of the Measurement Period (January 1, 2018 to December 31, 2018)

• 2018 average artist pay, operating supplies, annual advertising, charitable contribution, and rent for the 228 Painting with a Twist reporting franchisees

Section I – Background Information

16 Things You Need to Know About the Painting with a Twist Franchise

Appoints New Chief Development Officer to Spearhead Company Growth

1.  At the end of February 2019, Painting with a Twist appointed industry veteran Richard Leveille as chief development officer. Leveille was most recently the chief development officer of The Lost Cajun and spent four years as the vice president of development for Floor Coverings International out of Atlanta.

2.  He previously spent more than 20 years as the executive vice president of franchise development for Smoothie King, helping to grow the brand’s footprint from a single unit to more than 600 stores globally during his tenure. Leveille also held the position of retail chair for the state of Louisiana from 2012-2014 for the International Council of Shopping Centers and is a certified franchise executive graduate of the International Franchise Association.

3.  Joe Lewis, CEO of Painting with a Twist, said, “Richard will be joining the Painting with a Twist team with an in-depth knowledge of expanding national brands through strategic planning, along with over 20 years of experience in the franchise industry. Having worked with Richard at Smoothie King, I am confident he will be an asset to our success while simultaneously helping franchisees grow advantageously.”

4.  In his role as chief development officer of Painting with a Twist, Leveille is responsible for implementing new strategies and campaigns to continue driving Painting with a Twist’s national expansion. He is charged with strategically increasing the brand’s footprint to grow overall average unit volume.

5.  Leveille added, “Painting with a Twist is a brand built around fun, social engagement, charity and community service – all of which resonate with my core values. As the brand continues to evolve, I look forward to maintaining our leadership status and expanding into new markets so that more guests can enjoy the Painting with a Twist experience.”

Ranked Top Paint and Sip Franchise for Seventh Consecutive Year

6.  In mid-January 2020, Painting with a Twist announced that it had earned the top spot in its category for the seventh consecutive year in Entrepreneur magazine’s Franchise 500 list, the world’s first, best, and most comprehensive franchise ranking. The honor comes on the heels of the company’s strong performance in areas of marketing, robust national partnerships, technology, franchise development, and new product launches that closed out 2019 on a high note for the brand.

7.  The Franchise 500 ranks brands on outstanding performance in areas including unit growth, financial strength and stability, and brand power. Painting with a Twist ranked No. 213 overall on the list and No. 1 in the category of Paint and Sip/DIY Studios.

8.  Notable accomplishments for Painting with a Twist throughout 2019 include:

• Improved Marketing Technology: Painting with a Twist introduced three major platforms to assist franchisees with marketing efforts, including email, text marketing, and social media advertising support. With the implementation, the company has seen an increase of 18 percent in web visits per studio over the past four months.

• Top-Notch Partnerships: Painting with a Twist partnered with Disney’s theater release division for the first time on two of the biggest releases of the year: “Frozen 2” and “Star Wars: The Rise of Skywalker.” The partnership included a lineup of movie-themed painting experiences available exclusively at Painting with a Twist. The brand also continued the successful relationship with Disney’s DVD release division, promoting “The Little Mermaid,” “Captain Marvel,” “Aladdin,” and “The Lion King.”

• Revamped Approach to Franchise Development: The brand is laser-focused on identifying the right franchisees using a number of proprietary personality and site selection tools for smart growth. In the past two months, Painting with a Twist signed an agreement to debut the brand in Las Vegas and expand its presence in Atlanta with the addition of two new franchisees.

• Technology/POS Upgrades: One of Painting with a Twist’s competitive edges is the proprietary technology specific to managing a paint and sip enterprise. This year, the company rolled out improvements in customizing the guest experience with the launch of “Pick Your Product” and managing guest information with key integrations in newly-introduced marketing platforms.

• Successful New Product Launch: The paint and sip brand debuted a new surface for painting experiences – wood boards – now available in all locations. At a price point average of $45, Painting with a Twist is well-positioned to answer competitors in its field.

9.  Joe Lewis, CEO of Painting with a Twist, said, “Painting with a Twist continues to lead the field in delivering innovations that enhance the carefree escape our guests experience in our events. There’s a lot in store for us in the next year and we’re excited to keep up this momentum for our franchisees and guests across the country.”

Offered Limited-Time Disney-Themed Classes

10.  In early February 2019, Painting with a Twist announced that it had teamed up with Disney’s The Little Mermaid to offer three limited-time experiences to sip, paint, and reconnect with a classic. Through the partnership, Painting with a Twist created artwork inspired by The Little Mermaid.

11.  Across the country, over 300 studios offered Ariel-themed classes between February 8 and March 3, 2019 to celebrate the release of the movie on DVD. Three unique canvas options were available during the promotion.

12.  According to Katherine LeBlanc, chief marketing officer of Painting with a Twist, “We are thrilled to be partnering with Disney to offer The Little Mermaid-themed events to our guests. For years, Ariel and her adventures have captured the hearts of both children and adults. This is a wonderful opportunity for our guests to enjoy a Disney classic in a brand-new way.”

Company History

13.  Painting with a Twist was originally founded as Corks N Canvas in 2007 by Cathy Deano and Renee Maloney in New Orleans, Louisiana. Deano and Maloney wanted to start a business that would bring fun back to the local community, which was still trying to rebuild after Hurricane Katrina in 2005.

14.  Corks N Canvas was a hit and by 2009, Deano and Maloney had opened four more locations in the area. Around this time, Deano and Maloney decided to start franchising the concept and changed the company’s name to Painting with a Twist. During the first year, Deano and Maloney opened 24 Painting with a Twist franchises.

15.  Over the next decade, Painting with a Twist continued to grow around the United States. In 2018, Painting with a Twist acquired competitor Bottle & Bottega. Today, Painting with a Twist is the largest franchisor in the paint and sip category, with locations in over 41 states.

Entrepreneur’s Franchise 500

16.  Painting with a Twist ranked No. 213 on Entrepreneur’s 2020 Franchise 500 list and was also No. 1 in the Paint and Sip category.

Section II – Estimated Costs

• Please click here for detailed estimates of Painting with a Twist franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Painting with a Twist’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  203
• Outlets at the End of the Year:  258
• Net Change:  +55

2017

• Outlets at the Start of the Year:  258
• Outlets at the End of the Year:  298
• Net Change:  +40

2018

• Outlets at the Start of the Year:  298
• Outlets at the End of the Year:  316
• Net Change:  +18

Company-Owned

2016

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  6
• Net Change:  0

2017

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  5
• Net Change:  -1

2018

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  5
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• This Item sets forth certain historical data submitted by Painting with a Twist franchisees, including average and median annual gross revenue and certain average expenses, for Painting with a Twist Studios during the period from January 1, 2018 to December 31, 2018 (the “Measurement Period”), that were continuously open for at least 24 months prior to the end of the Measurement Period.

• As of the end of the Measurement Period, there were 316 Painting with a Twist franchises operating. This Item sets forth historical data for 233 Painting with a Twist franchisees (the “Reporting Franchisees”). 83 Painting with a Twist franchises were excluded from the calculations because the franchises were not open during the entire Measurement Period, and/or part of the acquired brand Bottle & Bottega.

• Painting with a Twist has not audited nor independently verified this information.

Part 1 – Average and Median Annual Gross Revenue (for the Period from January 1, 2018 to December 31, 2018)

• The chart below presents the Average Annual Gross Revenue and Median Annual Gross Revenue for all Reporting Franchisees during the Measurement Period.

• “Gross Revenue” for purposes of this Item 19 is defined as the total of all sales invoices or other items or services billed to the customer for all “completed sales” less any discounts during the Measurement Period. Sales are considered “completed sales” when the franchisee collects final payment from the customer or by the date that is one month after final receipt of all products and/or services sold to the customer, whichever is earlier.

• Importantly, Gross Sales does not include any revenue derived from alcohol or retail sales made during art classes, and Painting with a Twist does not currently charge a royalty in connection with any revenue derived from alcohol sales.

• “Median” means that 1/2 of the Reporting Franchisees achieved Annual Gross Revenue that exceeded the Median Annual Gross Revenue, and 1/2 had Annual Gross Revenue below the number presented.

All (233 Painting with a Twist Franchisees)