Board and Brush Franchise in 2024: Costs, Fee & FDD
Explore Board & Brush’s franchise opportunity: dive into its creative workshops, robust support system, and unique business model. Learn about investment costs, earnings potential, and key insights to determine if this DIY crafting brand is your next big venture!
Table of Contents:
Board & Brush, founded in 2015 by Julie Selby, has quickly established itself as a leader in the DIY crafting industry. Julie launched the franchise with a passion for creativity and a desire to create a social crafting experience. Board & Brush offers customers a unique opportunity to craft personalized wooden signs and home décor in a lively, interactive environment. This innovative blend of artistry and community engagement has made Board & Brush a standout in the crafting world.
The core of Board & Brush’s offerings lies in its hands-on workshops, where participants use stencils, paint, and various techniques to create custom wooden pieces. These workshops are popular for both personal and group events, such as birthdays, bridal showers, and corporate team-building activities. Alongside these workshops, Board & Brush sells crafting supplies and DIY kits, appealing to a broad audience that includes craft enthusiasts, families, and anyone seeking a creative outlet.
Board & Brush has experienced significant growth, with over 200 locations across the United States. Each studio serves as a local hub for creative activities, drawing in a diverse customer base interested in interactive crafting experiences. While the franchise is primarily U.S.-based, it has begun exploring international markets, reflecting its expanding popularity and the growing interest in personalized crafting.
Franchisees benefit from a comprehensive support system that includes detailed training programs at the company’s headquarters, ongoing operational support, and a wealth of marketing resources. The franchise also provides a thorough operations manual and connects new franchisees with a network of peers for additional guidance and shared best practices. This supportive framework is designed to help franchisees succeed and make the most of their Board & Brush experience.
Board & Brush Franchise Insights
- Since its founding in 2015, Board & Brush has expanded to over 200 locations across the United States, demonstrating the strong demand for its unique DIY crafting experience.
- Each Board & Brush studio operates as a local creative hub, drawing in diverse groups of people for events ranging from birthday parties to corporate team-building sessions.
- The DIY craft industry is valued at over $40 billion, and Board & Brush taps into this market by offering an engaging, hands-on experience that encourages repeat business.
- The franchise’s workshop-based model allows for flexible scheduling and diverse revenue streams, including in-person events, private parties, and take-home DIY kits.
Board & Brush Franchise Key indicators
Growth YOY (%)
-12%
vs industry 0%
Total U.S. Franchised Units
226
3-Year Failure Rate
31%
vs industry 14%
Sales-to-Investment ratio
1.5:1
How much does it cost to open a Board & Brush] franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Board & Brush franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Board & Brush franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Board & Brush below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Your Training Expenses | $1,439 | $4,586 |
| Premises Lease Deposits | $1,000 | $2,400 |
| Utilities Deposits | $0 | $250 |
| Leasehold Improvements, Construction, and/or Remodeling | $5,500 | $9,000 |
| Furniture, Fixtures, and Equipment | $8,200 | $9,800 |
| Signage | $800 | $800 |
| Business Licenses and Permits | $1,000 | $2,000 |
| Computer Systems | $1,500 | $2,000 |
| Initial Inventory to Begin Operating | $8,400 | $12,000 |
| Office Supplies | $250 | $500 |
| Professional Fees | $1,000 | $3,000 |
| Grand Opening Advertising | $2,100 | $2,100 |
| Insurance | $400 | $500 |
| Operating Expenses / Additional Funds (3 months) | $8,900 | $15,825 |
| Total Estimated Initial Investment | $65,489 | $89,761 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
When considering opening a Board & Brush franchise or a similar DIY crafting franchise, it’s essential to understand the financial requirements involved. These costs typically cover various aspects of setting up and running the business, ensuring that franchisees have the necessary resources to succeed.
- Initial Investment The total initial investment for a Board & Brush franchise generally ranges between $65,000 and $90,000, which includes expenses such as leasehold improvements, equipment, initial inventory, and working capital. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Franchisees are usually required to have liquid assets of around $50,000 to $75,000. These funds ensure that you can cover operational costs and any unexpected expenses during the early stages of the business.
- Net Worth Requirement A minimum net worth of approximately $150,000 to $250,000 is often required. This reflects your overall financial health and assures the franchisor that you have the financial stability to support the business as it grows.
How much does a Board & Brush franchise owner make?
Calculating the salary of a Board & Brush franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Board & Brush franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Board & Brush Revenue & Gross Sales
Based on most recent analysis, Board & Brush franchises achieved a median gross sales of $116,588, reflecting a 15% decrease from the previous year. Despite this downturn, the franchise continues to attract a steady customer base with its unique DIY crafting workshops. This figure provides a useful benchmark for potential franchisees evaluating the business’s financial performance and market resilience.
Which key factors impact the average revenue performance of Board & Brush franchisees?
Several factors could have contributed to the recent dip in median gross sales for Board & Brush franchises in the U.S. Economic shifts, such as inflation and changes in consumer spending habits, may have impacted discretionary spending on activities like DIY crafting workshops. Additionally, the lingering effects of the pandemic could have influenced customer behavior, with some people opting for fewer in-person activities. The rise of online alternatives for crafting projects might also play a role, as customers explore more convenient or budget-friendly options. Despite these challenges, Board & Brush remains a popular choice for creative social gatherings.
Board & Brush Franchise Operational Costs
When opening a Board & Brush franchise, it’s important to consider the key operational costs that will be essential for running your business smoothly. These expenses will be part of your regular budget and are critical to maintaining the quality of your services and customer experience.
- Rent or Lease Payments Securing a suitable location for your studio will involve ongoing rent or lease payments, which can vary depending on the size and location of the property.
- Utilities Regular utility bills for electricity, water, heating, and internet are necessary to keep your studio operational and comfortable for customers.
- Staff Payroll Paying wages for any employees, including instructors and administrative staff, will be a consistent part of your expenses.
- Materials and Supplies Regular replenishment of crafting materials, paints, stencils, and other supplies is essential to run workshops effectively.
- Marketing and Advertising While part of this is covered by the ad fund, you may also choose to invest in local marketing initiatives to drive traffic to your studio.
- Maintenance and Repairs Routine maintenance and occasional repairs for equipment and the studio space itself are necessary to ensure everything is in top shape.
Being mindful of these ongoing operational costs will help you manage your finances efficiently and keep your Board & Brush franchise thriving.
Board & Brush Franchise Fees
When considering the financial commitments of opening a Board & Brush franchise, it’s essential to understand the ongoing fees associated with the franchise agreement. These fees are designed to support the franchise system and ensure consistency and quality across all locations.
- Continuing Royalty Fee You’ll be required to pay a continuing royalty fee of 6% of your monthly gross revenue, with a minimum payment of $400 per month. This fee helps fund the support and resources provided by the franchisor, such as operational guidance, brand development, and ongoing assistance.
- Brand Fund Contribution The brand fund contribution is the greater of 1% of your monthly gross revenue, which may increase up to 3% over time, or a minimum of $70 per month. This contribution is crucial for the national marketing and advertising efforts that help maintain and grow the brand’s reputation.
- Additional Fees There are additional fees for training programs, technology, and other items provided by Board & Brush that may be applied.
Understanding these fees is vital to planning your finances effectively and ensuring that you can meet the ongoing obligations of running a Board & Brush franchise.
Board & Brush Franchise Earnings
The earnings for a Board & Brush franchise owner can vary based on factors like location, customer engagement, and operational efficiency. However, if we look at the median gross sales of $116,588, an owner-operator could expect estimated earnings of around $14,000 per year. With all things considered, this is quite low, which means that it is likely that Board & Brush franchisees have quite variable gross sales and earnings. These figures assume that the owner is directly involved in the day-to-day operations, which can help maximize profitability by reducing labor costs.
While these earnings are modest compared to larger franchises, they reflect the niche market that Board & Brush operates in. For those passionate about DIY crafts and community engagement, this franchise can offer both financial and personal fulfillment, with potential growth as the business becomes more established and customer loyalty increases.
How to Open a Board & Brush Franchise
Embarking on the journey to become a Board & Brush franchisee involves several key steps, each designed to ensure you’re well-prepared to successfully operate your own franchise. The process is thorough and helps both you and the franchisor determine if the fit is right.
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Application and Screening Submit a formal franchise application. This will be reviewed by the franchisor to assess your suitability, including financial qualifications and experience.
- Discovery Day Attend a Discovery Day, where you’ll meet with the franchisor’s team, tour existing locations, and learn more about the franchise’s operations and culture. This is an opportunity to ask questions and get a feel for the franchise.
- Finalizing the Agreement If you decide to move forward, you’ll sign the Franchise Agreement and any other necessary documents. This legally binding contract outlines your rights and responsibilities as a franchisee.
- Training and Preparation Participate in the comprehensive training program provided by Board & Brush, which covers operational procedures, marketing strategies, and customer service practices. You’ll also work on setting up your location, including securing a lease and ordering equipment.
- Grand Opening Once everything is in place and you’ve completed the training, you’ll officially launch your Board & Brush franchise. The franchisor typically provides support during the grand opening to help ensure a successful start.
Pros & Cons
Pros:
Unique Concept: Board & Brush offers a distinctive experience combining DIY crafting with social events, which can attract a diverse customer base and differentiate it from other businesses.
Community Focus: The franchise’s emphasis on community events and personalized experiences can foster strong local engagement and customer loyalty.
Flexible Business Model: The workshop-based model allows for flexibility in scheduling and various revenue streams, including private parties and take-home kits.
Cons
Lower Revenue Potential: With median gross sales and estimated earnings being relatively modest compared to larger franchises, the financial return may be lower, particularly in the initial years.
Niche Market: The focus on crafting and DIY projects may limit your customer base to those interested in these activities, potentially affecting market size and growth.
Dependence on Local Market: The success of a Board & Brush franchise can be heavily influenced by local market conditions, such as competition and economic factors, which might affect your profitability.
