Do you want to open a painting business by buying Wow One Day at a Time franchise? If YES, here is how much it cost to open Wow One Day at a Time franchise successfully. In modern America, people are spending on home services. The painting industry is projected to earn nearly $40 billion annually, with 4% year-over-year growth for the past five years.
Wow 1 Day Painting was established in 2011 by Brian Scudamore. Scudamore is the founder and CEO of O2E Brands, which is also the parent company of 1-800-Got-Junk, You Move Me, and Shack Shine. He was inspired to start Wow 1 Day Painting in 2010 after he had his home painted in one day. He dreamt to offering painting services that would be both speedy and of high quality. Today, there are over 35 Wow 1 Day Painting locations in the United States and Canada.
Even though growth has been moderate for the company, Wow 1 Day Painting has opened several new locations over the past year. New locations include those in Colorado, Florida, Arizona, Northern Virginia, and Nevada. The company’s biggest selling point is its promise that it can paint a customer’s house quickly, with minimal mess and chaos. To do this, the company has a three step process: Estimate, Prepare, and Paint.
Wow One Day also assures that the smell of paint fumes won’t be left behind after a project is complete. Wow 1 Day Painting uses zero Volatile Organic Compounds (VOCs) paints, which are better for the environment and customers’ health.
Note that once a customer schedules a free estimate, they are given a detailed outline of what painting services are needed. Trained estimators provide customers with an accurate up-front cost for the project and the company buttresses there are never any hidden fees.
If the customer feels satisfied with the proposal, Wow 1 Day Painting sends a checklist that further expresses to the customer everything they need to do to prepare the space to be painted.
Note that an employee will also call the customer to go over all the details and answer any questions. Right before painting starts, the crew will do one final walk-through to make sure everything is ready and answer any more questions a customer may have.
Have it in mind that to get the painting job done quickly, the company always makes sure to have the right number of painters working on a project. The painters also use a painting technique that is both quick and efficient.
To effectively complete the process, the crew does one final walk-through to check for any needed touch-ups. The customer will then receive a call the next day to make sure that the work, colours, and products have met their expectations.
Financial Requirements of Opening a Wow One Day Franchise in the United States
According to the company’s FDD, here are fees expected from a franchisee of Wow One Day:
1. Initial Franchise Fee: $32,000
- Note that the initial franchise fee is a minimum of $32,000, which includes $20,000 for the first sub territory, plus $12,000 for one additional sub territory. The minimum initial investment is a territory consisting of two sub territories.
- Wow 1 Day Painting may allow you to acquire additional sub territories, in its sole discretion, for $12,000 per sub territory.
- The initial franchise fee of $20,000 for the first sub territory is payable to Wow 1 Day Painting in a lump sum when you sign the Franchise Agreement. The fee for additional territories is payable to Wow 1 Day Painting on the due date mutually agreed upon and set forth in the Franchise Agreement.
- Remember that all fees are not refundable. Except as noted herein, each portion of the initial franchise fee is fully earned upon receipt.
- If you are allowed multiple sub territories within which to operate the Franchised Business, Wow 1 Day Painting may (in its sole discretion) allow you to pay the initial franchise fee with respect to some of the sub territories in equal monthly instalments for a period not to exceed one year.
- Wow 1 Day Painting may not allow you to operate or service customers in any such sub territories until you pay the initial fees for those sub territories in full.
2. Royalty: 6% of Gross Revenue
- Due Date: Semi-monthly on the third business day after the 15th and last day of each month.
- This fee is paid by electronic fund transfer.
3. Minimum Royalty
This primary depend on your year of operation, the Minimum Royalty will range from $2,000 to $4,200 per sub territory. The amount payable by you is the amount the Minimum Royalty exceeds the amount of Royalties actually paid by you in any year of operations.
- Due Date: On or before January 15th each year.
- This is payable immediately the Royalties actually paid by you in a year of operations are less than the Minimum Royalty.
4. Sales Centre Fee: 3% of Gross Revenue
- Due Date: Same as Royalty.
- Note that this money goes into the Sales Centre Cooperative Fund which pays the expenses of the Sales Centre; web based booking system, and Intranet.
- Wow 1 Day Painting Corporate manages the Sales Centre on behalf of its franchisees.
- Only paid by electronic fund transfer
5. Customer Relationship Management (CRM) Fee
Additional Dispatch License – $65 per user, per month; Standard Licenses: $20 per user, per month; Additional Google Licenses – $5 per month for additional
- Due Date: Within 30 business days of billing by Wow 1 Day Painting.
- This fee is used to acquire licenses from third-party CRM software providers. The amounts shown here are what Wow 1 Day vendors currently charge and are subject to change at any time. Wow 1 Day Painting does not add a charge to this fee and only passes through what its vendors charge it.
6. Marketing Fund: 2% of Gross Revenue
- Due Date: Same as Royalty.
- Note that this money goes into an Advertising/Promotions (Marketing) Fund which Wow 1 Day Painting uses for regional and national advertising.
- This fee is paid by electronic fund transfer
7. Branding Cooperative: Can reach up to 3% of Gross Revenue in aggregate
- Due Date: As determined by Wow 1 Day Painting.
- Only imposed once Wow 1 Day Painting authorizes franchisees in a particular area to establish a branding cooperative and 75% of the involved franchisees (calculated on a Gross Revenue basis) subject to the branding cooperative consent to paying fees.
- This is paid as directed by Wow 1 Day Painting.
- These amounts may be credited towards Local Marketing obligations.
- Any franchisor-owned outlets in an area subject to a branding cooperative will pay into and vote in the same manner as franchised outlets.
- You will not be expected to contribute more than 3% of your Gross Revenue in the aggregate for all branding cooperatives to which you belong.
8. Advertising Materials: $800 to $3,500
- Due Date: As incurred.
- Occasionally, Wow 1 Day Painting will acquire advertising materials in bulk on behalf of the franchisees. When this happens, each franchisee will be required to acquire these advertising materials directly from Wow 1 Day Painting, usually at its cost.
- Note that you may have additional local marketing obligations over and above the acquirer of such materials.
9. Additional Training
This is payment for additional training or retraining at up to $500 per person per day for up to possibly 10 days
- Due Date: Within 30 business days of billing by franchisor.
- Have it in mind there is no separate charge for initial training or for the training of one additional employee.
- Note that costs of transportation, accommodations, meals, and living expenses associated with additional training, for which you are responsible, are not disclosed since they will vary greatly depending upon the timing of the training and your location in relation to Vancouver, BC, the site of training.
10. Transfer: $10,000, unless the transfer is to a franchisee-controlled entity
- Due Date: You are expected to pay $2,500 upon announcing your intention to sell, and the balance upon transfer.
- No charge if transferred to an entity you control.
11. Renewal Fee: $7,500
- Due Date: Within 3 months before expiration of current term.
- This fee is partly meant to defray legal and administrative costs incurred by Wow 1 Day Painting when you renew your Franchise Agreement.
12. Audit Expenses
This involves the cost of examination or audit (approximately $1,500 to $5,000, but may be more), plus any deficiency in amounts that should have been paid to Wow 1 Day Painting
- Due Date: Upon demand.
- These costs are payable only if the audit reveals a material deficiency on your part, whether monetary or otherwise.
- Interest on Late Payments: Tend to be lower than 24% per annum or the highest amount allowed under applicable law
- Due Date: Upon demand.
- This fee is payable on all overdue amounts accruing from the date payment is due until payment is received by Wow 1 Day Painting.
- Annual Conference: $1,500 to $2,000, plus costs associated with attendance
- Due Date: As incurred.
- Note that this fee is meant to reimburse Wow 1 Day Painting for the cost of holding annual conference. This will generally include hotel and some meals and will generally not include travel, entertainment, and salaries.
- You are mandated to send attendees for each Franchised Business.
- Liquidated Damages: $25 to $2,000, depending upon the breach
- Due Date: Upon demand.
- This fee is payable if Wow 1 Day Painting determines that you have contravened a standard set out in the Franchise Agreement or Operations Manual.
- Amount of damages depends upon the nature of the violation.
- Indemnity: Usually depend upon the size of the loss for which you are required to indemnify Wow 1 Day Painting
- Due Date: Upon demand.
- You are expected to indemnify Wow 1 Day Painting for losses incurred by it that arise out of your operation of the Franchised Business.
Steps on How to Open a Wow One Day at a Time Franchise
Wow One Day marketing pitch has been further refined to elaborate on spotless cleanups, professional, uniformed painters, and the company’s signature “done in a day” guarantee — without customers having to pay a premium for speedy, high quality service.
The company also offers metrical painting, power washing, a property management program, and real estate services to their list of offerings, on top of their residential painting services. If you want to join this reputable franchise, here key information to keep in mind.
a. Read the Franchise Disclosure Document
Note that every franchisor is expected to provide you with a Franchise Disclosure Document (FDD). The aim of the FDD is to provide buyers with vetted and validated information that can be used to make a decision. This document outlines essential information, such as how much the franchise costs, what support you’ll get as a franchisee, and an earnings projection.
Wow One Day most recent U.S. FDD, for instance, analyzes that in 2018, the average gross revenue of U.S. Wow One Day franchises was $652,553, while the highest gross revenue of a US franchise was $2,023,911.
b. Establish your Business Plan
Note that a good franchisor will work with you to build a business plan and financial forecast – this is when you explore the details and understand the earning potential. Remember that every territory is different and every individual has different goals, so in terms of projections, the numbers will only make sense once you build a plan that is custom-made to your unique situation. At Wow One Day, this plan tends to be validated with real owners, to ensure that it’s realistic.
c. Know that it Comes Down to You
Once you decide you want to be a business owner, and then you have to be all in. Note that you have to be committed to changing your own life by building something that is yours. You are expected to be prepared to do whatever it takes to get there.
Successful franchisors are those who dig in, roll up their sleeves, and get involved at every level of their business – especially in the early years. Have it in mind that running a franchise requires a strong drive and motivation for success, and that’s what Wow One Day seeks in prospective franchisees.
When you think of the painting industry, you probably can’t think of a household name. However, Wow One Day at a Time has revolutionized the industry by creating a new category that sets the company apart from the competition. Wow 1 Day Painting has only been in business for a few years and has not yet appeared on Entrepreneur’s annual Franchise 500 list. However, the company did earn a spot on Entrepreneur’s Top 100 New Franchises in 2015. Wow 1 Day Painting was ranked No. 47 on that list.