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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Wow 1 Day Painting’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, highest, and lowest gross revenue; average and median job size; average and median gross profit margin; and average, median, highest, and lowest gross revenue per subterritory for the 29 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, 2020 (franchisees operating over 24 months, franchisees operating 12-24 months, and all U.S. franchisees)

• 2020 average, median, highest, and lowest gross revenue; average and median job size; average and median gross profit margin; and average, median, highest, and lowest gross revenue per subterritory for the 15 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, 2020 (franchisees operating over 24 months, franchisees operating 12-24 months, and all Canadian franchisees)

• total 2020 gross revenue of Wow 1 Day Painting franchisees operating in the United States and Canada that reported revenue and were open on December 31, 2020

Section I – Background Information

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

Parent Company Lands on Newsweek’s List of ‘Most Loved Workplaces’

1.  In late October 2021, O2E Brands, the parent company of Wow 1 Day Painting and 1-800-Got-Junk?, was named No. 17 on Newsweek’s Most Loved Workplaces list. It joins a list of 100 businesses from around the world such as Spotify, Twitter, and Dell, lauded for their high levels of employee happiness and satisfaction. The company is the highest-ranking Canadian company on the list.

2.  Brian Scudamore, CEO of O2E Brands, said, “Being included in Newsweek is huge, but it’s even more meaningful this year. There’s been an upheaval of what ‘going to work’ even means. As a ‘Most Loved Workplace’, we’re among companies who display a remarkable commitment to respecting and appreciating their people. And that’s what this is really about: the people who bring their whole selves to work to make O2E Brands exceptional. While everyone is talking about the great resignation, we’re thinking about it as the great progression.”

3.  As businesses grapple with the compounded effects of returning employees to the office from remote work and the so-called “great resignation” brought on by the pandemic, this win sets O2E Brands apart as a top employer in North America. Now, they’re poised to double down on that reputation with an innovative reintegration strategy.

4.  Kerrie Shakespeare, chief purpose officer of O2E Brands, added, “We talked to dozens of businesses to find out their approach about back-to-the-office. We considered every single person on every team, and used data in a new way to build a framework around reintegration called the 4Cs: Connect, Collaborate, Communicate, and Celebrate.”

Largest Crew in Company History Gathers for Community Service

5.  At the beginning of December 2021, as part of its annual Franchise Partner Conference, the Wow 1 Day Painting family gathered in the Downtown Eastside of Vancouver to paint the St. James Community Service Society. Close to 50 branded franchise partners and corporate staff painted the large cafeteria, main entrance, waiting area, and four different hallways. It was the largest painting crew in Wow 1 Day Painting’s company history.

Locally Famous Raleigh North Carolina Sportscaster Becomes Newest Franchisee

6.  At the end of June 2021, Mark Armstrong, a locally famous sportscaster from Raleigh, North Carolina, announced that he was opening a Wow 1 Day Painting franchise in the Raleigh area. Armstrong had been a sportscaster for 23 years, but felt it was time for a new business venture. Armstrong said, “It’s obviously a huge left turn from being a sportscaster my whole life. But anything would have been a big left turn from being a sportscaster.”

7.  Armstrong got the idea of owning a Wow 1 Day Painting franchise from a childhood friend in Toronto who also owned a franchise through the Vancouver-based company. By buying into a franchise, Armstrong feels like the fear of stepping off the ledge and walking away from a salary and benefits isn’t as intense because of the training and coaching that comes along with it. His skills in broadcasting will also help build customer rapport.

8.  Armstrong added, “I’m totally at peace turning the page now. I could have stayed until the end of my contract in October, but once I made up my mind what I was doing next, I was just like, let’s go! All of my brain is wired now toward this next thing, and I’m putting that broadcasting career in the rearview and have total peace of mind.”

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 decided to enter the home painting industry after he got his own house painted by another company. The company claimed that they could paint Scudamore’s home in just one day and do a quality job. Impressed by the results, Scudamore was inspired to start his own residential painting company that could complete jobs in just a day.

10.  Building on the experience of his other companies, Scudamore quickly grew Wow 1 Day Painting and franchising started right away. By the end of the first year, there were more than a dozen Wow 1 Day Painting locations in operation and many more franchise agreements signed. Today, there are Wow 1 Day Painting franchises across the United States and Canada.

Entrepreneur’s Franchise 500

11.  Wow 1 Day Painting did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Wow 1 Day Painting franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

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

2020

• Outlets at the Start of the Year:  36
• Outlets at the End of the Year:  40
• Net Change:  +4

Company-Owned

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

2020

• 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, 2021 FDD) and Analysis

• In this Item 19, Wow 1 Day Painting provides information regarding certain historical financial performance for all 29 franchised businesses in the United States and 15 franchised businesses in Canada that were open and operating through at least the last 12 months of the year ending December 31, 2020 (“2020 Reporting Year”).

• Wow 1 Day Painting does not include information from 6 U.S. franchisees that closed during 2020, and 10 U.S. franchisees and 2 Canadian franchisees that opened during 2020, because they were not in operation for the entire 2020 Reporting Year.

• The charts below reflect total, average, median, highest, and lowest Gross Revenue figures for the 2020 Reporting 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.

• Because Wow 1 Day Painting’s franchisees own different numbers of subterritories, Wow 1 Day Painting also provides in the charts below the franchisee average, median, highest, and lowest Gross Revenue on a per-subterritory basis.

• Of the U.S. franchisees reported in the charts below: the smallest franchises consist of 3 subterritories, and the largest franchise consists of 13 subterritories; the average amount of subterritories owned is 4, with the median being 3 subterritories.

• Of the Canadian franchisees reported in the charts below: the smallest franchise consists of 1 subterritory, and the largest franchise consists of 15 subterritories; the average amount of subterritories owned is 6, with the median being 5 subterritories.

• 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.

• Wow 1 Day includes franchised businesses in Canada in this Item 19 because these Canadian franchisees operate businesses that are substantially similar to those in the U.S., with substantially similar performance results and no material differences between the data of the two groups other than the currency.

• 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.

• 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.

• The U.S. Franchisees chart is reported in USD, and the Canadian Franchisees chart is reported in CAD.

• Some franchisees have sold this amount. Your individual results may differ. There is no assurance you will sell as much.

• The financial performance representation does not reflect all costs of sales, operating expenses, or other costs or 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 2020

• 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)

• Number of Franchisees in Range:  21 of 29
• Total Gross Revenue:  $13,005,521

• Average Gross Revenue:  $619,311
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  7/33%
• Median Gross Revenue:  $409,722
• Highest Gross Revenue:  $2,527,810
• Lowest Gross Revenue:  $165,219

• Average Job Size:  $3,003
• Number and Percentage of Franchisees at or Above Average Job Size:  11/52%
• Median Job Size:  $3,007

• Average Gross Profit Margin:  42.4%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  12/57%
• Median Gross Profit Margin:  43.0%

• Average Gross Revenue Per Subterritory:  $113,836
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  7/33%
• Median Gross Revenue Per Subterritory:  $99,407
• Highest Gross Revenue Per Subterritory:  $357,779
• Lowest Gross Revenue Per Subterritory:  $31,723

B.  Franchisees Operating 12-24 Months (U.S. Dollars)

• Number of Franchisees in Range:  8 of 29
• Total Gross Revenue:  $1,967,144

• Average Gross Revenue:  $245,893
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  2/25%
• Median Gross Revenue:  $230,425
• Highest Gross Revenue:  $512,959
• Lowest Gross Revenue:  $123,551

• Average Job Size:  $2,202
• Number and Percentage of Franchisees at or Above Average Job Size:  4/50%
• Median Job Size:  $2,173

• Average Gross Profit Margin:  43.6%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  4/50%
• Median Gross Profit Margin:  43.5%

• Average Gross Revenue Per Subterritory:  $70,580
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  2/25%
• Median Gross Revenue Per Subterritory:  $57,822
• Highest Gross Revenue Per Subterritory:  $170,986
• Lowest Gross Revenue Per Subterritory:  $39,413

C.  All Franchisees (U.S. Dollars)

• Number of Franchisees in Range:  29
• Total Gross Revenue:  $14,972,665

• Average Gross Revenue:  $516,299
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  9/31%
• Median Gross Revenue:  $389,028
• Highest Gross Revenue:  $2,527,810
• Lowest Gross Revenue:  $123,551

• Average Job Size:  $2,782
• Number and Percentage of Franchisees at or Above Average Job Size:  13/45%
• Median Job Size:  $2,661

• Average Gross Profit Margin:  42.7%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  17/59%
• Median Gross Profit Margin:  43.0%

• Average Gross Revenue Per Subterritory:  $101,903
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  11/38%
• Median Gross Revenue Per Subterritory:  $85,637
• Highest Gross Revenue Per Subterritory:  $357,779
• Lowest Gross Revenue Per Subterritory:  $31,723

Part 2 – Canadian Franchisees – Calendar Year 2020

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

• The amounts in this chart are shown in CAD. Exchange rates from Canadian to U.S. Dollars ranged from 0.6898 to 0.7863 during calendar year 2020, with the period average exchange rate being 0.7461.

A.  Franchisees Operating Over 24 Months (Canadian Dollars)

• Number of Franchisees in Range:  14 of 15
• Total Gross Revenue:  $13,152,536

• Average Gross Revenue:  $939,467
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  4/29%
• Median Gross Revenue:  $556,723
• Highest Gross Revenue:  $3,822,411
• Lowest Gross Revenue:  $120,452

• Average Job Size:  $2,833
• Number and Percentage of Franchisees at or Above Average Job Size:  9/64%
• Median Job Size:  $2,933

• Average Gross Profit Margin:  44.5%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  6/43%
• Median Gross Profit Margin:  44.0%

• Average Gross Revenue Per Subterritory:  $136,438
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  6/43%
• Median Gross Revenue Per Subterritory:  $105,078
• Highest Gross Revenue Per Subterritory:  $382,241
• Lowest Gross Revenue Per Subterritory:  $30,113

B.  Franchisees Operating 12-24 Months (Canadian Dollars)

• Number of Franchisees in Range:  1 of 15
• Total Gross Revenue:  $479,290

• Average Gross Revenue:  $479,290
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  1/100%
• Median Gross Revenue:  $479,290
• Highest Gross Revenue:  $479,290
• Lowest Gross Revenue:  $479,290

• Average Job Size:  $2,959
• Number and Percentage of Franchisees at or Above Average Job Size:  1/100%
• Median Job Size:  $2,959

• Average Gross Profit Margin:  52.0%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  1/100%
• Median Gross Profit Margin:  52.0%

• Average Gross Revenue Per Subterritory:  $239,645
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  1/100%
• Median Gross Revenue Per Subterritory:  $239,645
• Highest Gross Revenue Per Subterritory:  $239,645
• Lowest Gross Revenue Per Subterritory:  $239,645

C.  All Franchisees (Canadian Dollars)

• Number of Franchisees in Range:  15
• Total Gross Revenue:  $13,631,827

• Average Gross Revenue:  $908,788
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  4/27%
• Median Gross Revenue:  $527,154
• Highest Gross Revenue:  $3,822,411
• Lowest Gross Revenue:  $120,452

• Average Job Size:  $2,842
• Number and Percentage of Franchisees at or Above Average Job Size:  10/67%
• Median Job Size:  $2,957

• Average Gross Profit Margin:  45.1%
• Number and Percentage of Franchisees at or Above Average Gross Profit Margin:  5/33%
• Median Gross Profit Margin:  44.5%

• Average Gross Revenue Per Subterritory:  $143,319
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  5/33%
• Median Gross Revenue Per Subterritory:  $115,334
• Highest Gross Revenue Per Subterritory:  $382,241
• Lowest Gross Revenue Per Subterritory:  $30,113

Part 3 – Total 2020 Gross Revenue of Wow 1 Day Painting Franchisees (Reported in US Dollars)

• The information provided below was compiled from all the Wow 1 Day Painting Franchised Businesses operating in the United States and Canada for at least 1 day in the 2020 calendar year.

• United States:  $16,117,815
• Canada:  $10,170,706*

• This chart includes all franchises operating for at least 1 day during 2020, including 6 locations that closed and 10 locations that did not operate for the full 2020 calendar year.

• *The Gross Revenue figure in Canadian Dollars ($13,631,827) was converted using the calendar year 2020 average exchange rate of 0.7461 for Canadian to U.S. Dollars, which rate ranged from 0.6898 to 0.7863 during calendar year 2020, and was 0.7854 on December 31, 2020.

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