That 1 Painter Franchise in 2024: Costs, Fee & FDD
Discover the growth potential of That 1 Painter franchise, from affordable startup costs to comprehensive support. Learn why this home services brand is an attractive investment opportunity for aspiring franchisees. Read on for key insights!
Table of Contents:
That 1 Painter is a franchise founded by Steven Montgomery, who launched the business with a vision of providing top-tier residential and commercial painting services with an emphasis on customer care and community impact. The franchise has gained recognition in the home and building services industry by offering a modern approach to professional painting, combining high-quality craftsmanship with a dedication to giving back through charitable programs. Its brand is well-known for its reliability, professionalism, and transparency, helping it stand out in the competitive painting industry.
At its core, That 1 Painter provides both residential and commercial painting services, specializing in interior and exterior painting. They also offer ancillary services like drywall repair, power washing, and even minor carpentry work, making them a one-stop solution for customers looking to maintain or renovate their properties. Their primary customer base includes homeowners, real estate investors, property managers, and small business owners, catering to clients who value quality and professionalism in their building maintenance or renovation projects.
As of now, That 1 Painter has grown to operate across several states within the U.S., with a steadily increasing number of franchise locations. The company boasts a robust presence in its core markets and continues to expand into new territories as demand for its services grows. With hundreds of locations nationwide and a growing customer base, the franchise serves thousands of clients annually, providing consistent and reliable services.
Franchisees of That 1 Painter benefit from a strong support system. The company provides comprehensive training programs that cover everything from painting techniques to business operations and marketing strategies. New franchise owners receive extensive support in the form of initial training, ongoing coaching, marketing assistance, and access to proprietary software that helps manage operations efficiently. The franchise also emphasizes community engagement, encouraging franchisees to participate in local initiatives, which adds value to their brand identity in their respective markets.
That 1 Painter Franchise Insights
- That 1 Painter has grown to over 60 franchise locations across the U.S., with rapid expansion expected due to its accessible investment model and strong demand in the home services market.
- One of the most impressive insights about That 1 Painter is its remarkable 122% year-over-year unit growth, significantly outpacing the industry average of just 4%, highlighting the franchise’s rapid expansion and strong market demand.
- That 1 Painter differentiates itself with a focus on customer service, aiming to deliver a seamless and stress-free experience from the initial quote to project completion.
- The franchise offers a wide range of services beyond just painting, including power washing and minor repairs, allowing franchisees to cater to various homeowner needs and increase their revenue streams.
- Franchisees benefit from an established brand and a proven business model, which reduces the risks typically associated with starting a business from scratch.
That 1 Painter Franchise Key indicators
Growth YOY (%)
122%
vs industry 4%
Total U.S. Franchised Units
62
3-Year Failure Rate
4%
vs industry 13%
Sales-to-Investment ratio
4.8:1
How much does it cost to open a That 1 Painter franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a That 1 Painter 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 That 1 Painter 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 That 1 Painter below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $59,000 | $59,000 |
| Your Training Expenses | $3,000 | $5,500 |
| Vehicle Lease and Wrap | $2,250 | $18,000 |
| Master Class | $5,000 | $5,000 |
| Business Licenses and Permits | $250 | $8,000 |
| Computer System and Setup | $500 | $1,000 |
| Uniforms and Branded Materials | $2,500 | $4,000 |
| Office Equipment and Supplies | $500 | $5,000 |
| Professional Fees | $500 | $2,500 |
| Marketing Development | $5,000 | $5,000 |
| Grand Opening Advertising/Marketing | $10,000 | $15,000 |
| Insurance | $2,500 | $13,000 |
| Equipment | $0 | $8,000 |
| Additional Funds (3 Months) | $22,000 | $40,000 |
| Total | $113,000 | $189,000 |
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
To open a That 1 Painter franchise, the required capital includes both initial investment costs and a net worth assessment similar to other franchises in the home and building services sector. Let’s take a closer look below:
- Initial Investment The total estimated initial investment for a That 1 Painter franchise typically ranges between $113,000 and $189,000. This includes startup costs like the franchise fee, equipment, marketing, and initial operating expenses. 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 While That 1 Painter does not explicitly state a liquid assets requirement, similar franchises in the home services industry typically ask for a minimum of $50,000 to $100,000 in liquid assets. This ensures the franchisee can cover ongoing operational costs and unforeseen expenses.
- Net Worth Requirement Based on industry standards, a recommended net worth of at least $150,000 to $250,000 is common for franchises of this scale. This would include assets like real estate, investments, and personal property, minus any liabilities.
How much does a That 1 Painter franchise owner make?
Calculating the salary of a That 1 Painter 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 That 1 Painter 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.
That 1 Painter Revenue & Gross Sales
Based on the most recent analysis, That 1 Painter franchises achieved a median gross sales of $726,000, showcasing the brand’s strong performance in the home services sector. This highlights the franchise’s potential for significant revenue generation, driven by consistent demand for residential and commercial painting services.
Which key factors impact the average revenue performance of That 1 Painter franchisees?
The strong performance of U.S. franchisee median gross sales for That 1 Painter can likely be attributed to several key factors. First, the ongoing demand for home improvement services, spurred by an increase in property renovations and real estate transactions, has driven more business to the franchise. Additionally, the franchise’s commitment to quality service and customer satisfaction has helped build a loyal customer base, resulting in repeat business and referrals. The brand’s strategic marketing efforts, coupled with its community-focused initiatives, may have also boosted local visibility and trust, further contributing to the sales growth compared to the previous year.
That 1 Painter Franchise Operational Costs
Operational costs for a franchise like That 1 Painter are the ongoing expenses required to maintain daily operations. These costs are vital for ensuring smooth service delivery and effective business management. For a That 1 Painter franchise, operational costs include:
- Labor Costs Wages, salaries, and benefits for painters, administrative staff, and any additional labor involved in fulfilling service orders and managing day-to-day tasks.
- Supplies and Materials The costs for paint, brushes, rollers, ladders, and other equipment required for completing jobs. This also includes the expense of replacing or upgrading tools over time.
- Vehicle and Transportation Costs Expenses related to maintaining service vehicles, including fuel, insurance, and vehicle maintenance, which are essential for traveling to job sites.
- Marketing and Advertising Costs Ongoing expenses for local promotions, digital marketing campaigns, and community engagement efforts to attract and retain customers.
- Insurance Costs for various policies like liability insurance, property insurance, and worker’s compensation to protect the business from unforeseen risks.
- Technology and Software Expenses for any specialized software for managing client relationships, scheduling jobs, and tracking financials.
Proper budgeting and attention to these costs will help ensure your That 1 Painter franchise runs smoothly and remains financially healthy.
That 1 Painter Franchise Fees
When considering the ongoing operational costs of a That 1 Painter franchise, it’s essential to be aware of various fees and expenses that come with maintaining the business. These fees are integral to ensuring that your franchise operates smoothly within the brand’s standards and guidelines. Below are the relevant ongoing fees and considerations:
- Continuing Royalty Fee 6% of gross revenue, due regularly, which covers the use of the franchise’s brand and operational support.
- Additional Fees There may be other costs, such as equipment upgrades or specialized training, that arise during the course of operating the business.
These ongoing fees ensure that your That 1 Painter franchise remains competitive and well-supported while maintaining the brand’s high standards.
That 1 Painter Franchise Earnings
For franchisees of That 1 Painter, the earnings potential can be attractive, especially for owner-operators. With a median gross sales figure of $726,000, the franchise offers strong revenue opportunities within the home services industry. As an owner-operator, much of the operational efficiency and profitability comes from hands-on management, allowing you to have more control over costs, customer service, and overall business performance.
Owner-operators can expect to earn around $130,000 annually, which reflects both the solid demand for residential and commercial painting services and the franchise’s streamlined business model. By managing day-to-day operations directly, franchisees can maximize profitability by keeping overhead costs in check and ensuring consistent quality across all jobs. This earning potential is a promising indicator of both the business’s scalability and its ability to deliver a rewarding financial return.
How to Open a That 1 Painter Franchise
The process to become a That 1 Painter franchisee involves several steps, from the initial inquiry to the start of operations. Here’s an overview:
- Initial Inquir: 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).
- Franchise Application After initial contact, you will complete a more detailed application form, which includes providing information about your financial qualifications and business experience.
- Discovery Call or Meeting A franchise representative will set up a discovery call or meeting to answer any questions, provide further details, and assess your fit as a potential franchisee.
- Meet the Team/Discovery Day In many cases, prospective franchisees are invited to meet the corporate team and visit headquarters. This “Discovery Day” helps you better understand the brand and company culture.
- Signing the Franchise Agreement Once both parties are comfortable, you’ll sign the franchise agreement, officially securing your rights to operate a That 1 Painter location.
- Training and Onboarding New franchisees undergo a comprehensive training program that includes both operational and marketing guidance. This ensures you are well-prepared to manage all aspects of the business.
- Site Selection and Setup You’ll work with the franchise team to set up your service area, acquire necessary equipment, and finalize operational logistics.
- Launch and Operations After completing training and setup, you’ll begin operations, with ongoing support from the franchisor to help ensure a smooth start.
Pros & Cons
Pros
Strong Growth Potential: The franchise has shown rapid expansion, with a 122% year-over-year growth rate, reflecting a strong demand for its services.
Affordable Investment: Compared to other home service franchises, the initial investment is relatively low, making it an accessible option for first-time franchisees.
Multiple Revenue Streams: The franchise offers ancillary services like drywall repair and power washing, allowing franchisees to diversify their income.
Community Engagement: The franchise emphasizes giving back to the community, which can enhance local reputation and foster customer loyalty.
Cons
Competitive Market: The home services industry can be highly competitive, and success may require aggressive local marketing efforts to stand out.
Hands-On Management Required: As an owner-operator, hands-on involvement is necessary for managing daily operations and maintaining high service standards.
Dependence on Local Economy: Franchise performance can be influenced by local market conditions, including fluctuations in real estate and property renovation activity.
