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FDD Talk: Wow 1 Day Painting Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on November 14, 2022 by Franchise Chatter Leave a Comment
in FDD Talk: Home-Related Franchises, FDD Talk: Service Franchises, Franchise Earnings, Painting Franchise



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

  • Section I – Background information on the Wow 1 Day Painting franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Wow 1 Day Painting franchise, based on Item 7 of the company’s 2020 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Wow 1 Day Painting franchise, based on Items 5 and 6 of the company’s 2020 FDD
  • Section IV – Number of franchised and company-owned Wow 1 Day Painting outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
  • Section V – Presentation and analysis of Wow 1 Day Painting’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
  • 2019 average, median, highest, and lowest gross revenue; average and median job size; and average and median gross profit margin for the 26 Wow 1 Day Painting franchisees that were open and operating in the United States through at least the last 12 months of the year ending December 31, 2019 (franchisees operating over 24 months, franchisees operating 12-24 months, and all U.S. franchisees)
  • 2019 average, median, highest, and lowest gross revenue; average and median job size; and average and median gross profit margin for the 14 Wow 1 Day Painting franchisees that were open and operating in Canada through at least the last 12 months of the year ending December 31, 2019 (franchisees operating over 24 months, franchisees operating 12-24 months, and all Canadian franchisees)

Section I – Background Information

11 Things You Need to Know About the Wow 1 Day Painting Franchise

Reassures Customers of a Safe Painting Experience as COVID-19 Pandemic Continues

1.  Not long after COVID-19 reached the United States, Wow 1 Day Painting made changes to how it operates to keep customers and teams safe. The update was posted to the brand’s website. Wow 1 Day Painting said that it was committed to keeping its customers and its teams safe and healthy. The brand is now taking some extra steps to make painting experiences as safe as possible for everyone.

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2.  Here is how Wow 1 Day Painting now operates:

  • Clients can choose to have their consultation done in person, or through a remote consultation.
  • Prior to the job, the team will call ahead to confirm the client’s appointment and reassure that customers are healthy and teams are healthy.
  • Wow 1 Day Painting will also confirm details and go over the plan to maintain physical distance while working inside the client’s home.
  • When the team arrives, they’ll greet clients with smiles instead of a handshake.
  • The team will do a quick walkthrough of the project, making sure to maintain 6 feet of distance at all times.
  • The team will then get to work on transforming the client’s home.
  • When the job is finished, the team will carefully clean up, making sure to disinfect all high-touch surfaces in the areas they’ve worked in.
  • When Wow 1 Day Painting  is done, payment can be processed without contact.

3.  Some of the other steps that Wow 1 Day Painting is taking to ensure everyone’s safety are:

  • Happy, Healthy Teams – Wow 1 Day Painting will check the health of its team members regularly. Teams members won’t come to work if they’re not feeling well.
  • Friendly, Uniformed (and Clean) Painters – Team members wash their hands or use hand sanitizer before and after jobs. Masks will be worn at all times by all team members. Disinfectant supplies are available and used regularly, with all high-touch surfaces sanitized at the end of the day.
  • Physical Distance – Team members will keep their distance at a minimum of 6 feet. Consultations can be done remotely with no contact. Payments can be completed with no contact.
  • Rescheduling of Service – Wow 1 Day Painting’s top priority is the health and safety of its customers and teams. If a job can’t be completed safely, then customers are free to reschedule for another time.

Franchisee Teams Up with Local Sherwin-Williams to Paint Home of Veteran

4.  In late October 2019, WOW 1 Day Painting and the Sherwin-Williams Paint Store of Rockwall, Texas painted the home of a veteran and client of Meals on Wheels Senior Services (MOWSS) of Rockwall County. The effort was part of Wow 1 Day Painting’s Day to WOW, when the company’s franchises all across the country come together to give back to the communities in which they serve.

5.  For its Day to WOW, the Rockwall franchise partnered with Sherwin-Williams to paint the outside of the home of William Woodland. MOWSS has been delivering meals for Woodland for the past five years. Woodland, who served in the Army for 22 years, has lived in his home alone since his wife’s passing years ago.


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6.  When MOWSS first met him, he had no groceries due to zero income because of issues with his social security income. MOWSS helped him to resolve the social security conflict and purchased emergency groceries for him for a few months. They also collaborated with Young Men Service League (YMSL) for coverage on extra weekend meals assistance. Woodland always looks forward to the daily visits from MOWSS volunteer drivers, and the young boys and mothers from YMSL.

7.  Woodland said he was shocked when he received the call from MOWSS and learned that he would be getting his house painted. “I was in total surprise when I got the call from Meals On Wheels that they were making arrangements to get my house painted for me. When I got off the phone, I was so happy that I cried with joy,” Woodland said.

8.  Ron Flanagan, franchise owner of WOW 1 Day Painting Rockwall, said it was an honor to give back to such an outstanding charity in MOWSS. According to Flanagan, “Meals On Wheels is such an outstanding organization in what they do for seniors of the community. The value of their services is not just in the food they deliver; it’s in that human interaction they give to those they serve every day.”

Company History

9.  Wow 1 Day Painting was founded in 2010 by Brian Scudamore, the founder and CEO of O2E brands, which began with 1-800-Got-Junk?. Scudamore was inspired to start his own residential painting company after he came across a painting company claiming its team could paint an entire house in only one day when he needed to get his own home painted. Impressed with the results, Scudamore launched Wow 1 Day Painting with a promise to deliver quality work on quick timelines.

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10.  Using his experience with his other brands, Scudamore began franchising Wow 1 Day Painting in 2011 and it quickly grew to 12 locations by the following year. Today, there are Wow 1 Day Painting locations across the U.S. and Canada.

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11.  Wow 1 Day Painting did not rank on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Wow 1 Day Painting franchise costs, based on Item 7 of the company’s 2020 FDD.

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

  • Please click here for detailed information on Wow 1 Day Painting’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

  • Outlets at the Start of the Year:  26
  • Outlets at the End of the Year:  29
  • Net Change:  +3

2018

  • Outlets at the Start of the Year:  29
  • Outlets at the End of the Year:  32
  • Net Change:  +3

2019

  • Outlets at the Start of the Year:  32
  • Outlets at the End of the Year:  36
  • Net Change:  +4

Company-Owned

2017

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

2018

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

2019

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

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

  • In this Item 19, Wow 1 Day Painting provides information regarding certain historical financial performance for all 26 franchised businesses in the United States and 14 franchised businesses in Canada that were open and operating through at least the last 12 months of the year ending December 31, 2019 (“2019 Reporting Year”).
  • The charts below reflect total, average, median, highest, and lowest Gross Revenue figures for the 2019 calendar year. Average and median Job Size and Gross Profit Margin are also included.
  • For purposes of these charts, franchisees are grouped into franchised businesses open longer than 24 months and those open between 12 and 24 months.
  • Unless otherwise specified, “Gross Revenue” means the actual gross revenues billed to consumers for products and services, less taxes collected and credits or refunds given in accordance with the franchisor’s refund policy.
  • “Job Size” means the Gross Revenue attributable to the Services and Products ordered by one customer for one job.
  • “Gross Profit Margin” means the percentage of Gross Revenue remaining after subtracting the following from Gross Revenue: labor for painters, paint and supplies, Royalties, and Sales Center, Marketing & Technology Fees.
  • This information excludes information from six franchises that closed during the 2019 Reporting Year (two of which were open less than 12 months), and eight US franchises and one Canadian franchise that opened during 2019 and were therefore not in operation for the entire 2019 Reporting Year.
  • The information in this Item 19 is based upon financial information franchisees reported to Wow 1 Day Painting, but the franchisor has not independently audited the information or independently reviewed its franchisees’ accounting methodologies to verify their conformance with generally accepted accounting principles.
  • You should note that Gross Revenue will be dependent, among other things, upon the size of the territory in which the Franchised Business operates and number of vehicles operating in that territory.
  • The average is calculated by adding all figures up and dividing by the number of figures counted. The median is calculated by placing all figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.
  • Foreign exchange rates have not been applied to the figures in the charts. USA charts are reported in USD and Canadian charts are reported in CAD.
  • The actual numbers you experience will vary depending upon several factors, including your individual abilities, competition, management, marketing demographics, and the number of trucks you operate in the territory.
  • Some franchisees have sold this amount. Your individual results may differ. There is no assurance you will sell as much.
  • The earnings claims figures do not reflect the costs of sales or operating expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Part 1 – U.S. Franchisees – Calendar Year 2019

  • These charts do not include franchises that closed during the reporting year, and franchises that were not in operation for the entire reporting year.

A.  Franchisees Operating Over 24 Months (U.S. Dollars)



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