The art industry is quite niche, but it’s an exciting one, with several studios offering different services in the United States. Painting With a Twist is one of those franchise studios that combine wine and cocktails with live painting events and lessons for various levels of age.
If you are interested in the art industry, you might have thought about owning a Painting With a Twist franchise. Are you wondering if opening a Painting With a Twist franchise store is worth the effort and the cost? This article will discuss all the details of Painting With a Twist’s franchise system.
About Painting With A Twist and Painting With A Twist History
Painting With a Twist is an American painting and sip franchise specializing in offering live painting events with wine and cocktails in their studios.
The company was founded in 2007 to give people a place where they can enjoy painting and have a community sense. They started to franchise in 2009 and quickly grew to over 200 franchised stores.
They now have over 220 studios across the United States with a fun concept and a loyal customer base. With low starting costs, Painting With a Twist offers a strong investment opportunity for entrepreneurs looking to own their franchises.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $120,500-$260,000 |
| Franchise | YES |
| Franchising Since | 2009 |
| Franchise-Fee | $25,000 |
| Royalty-Fee | 6% |
| Liquidity | $80,000 |
| Estimated Outlets | 220 |
How Much Does It Cost To Open A Painting With a Twist Franchise?
The expected initial investment is between $120,500 and $260,000. This expected investment involves all of the necessary start-up costs like the licenses, training, insurance, equipment, inventory, and others. The franchise fee is also included in the initial investment number.
Franchise Requirements
Painting With a Twist has only a financial requirement background. They do not look for a background in art. You need a net worth of at least $200,000, liquidity of a minimum of $80,000, and a FICO credit score of 670 at the minimum.
Having a business understanding or experience is helpful and encouraged but not obligatory. You need to be able to participate in the community as a person.
Profit & Revenue Of Painting With A Twist
Painting With a Twist’s financials are not open to the public, and they don’t provide a very detailed explanation of the franchise’s numbers. The only available number is the total revenue of all franchised outlets, which is $4 million.
Considering that most of their stores are franchise-owned, we can estimate that the company’s annual revenue is between $4 to $5 million.
Overall Sales
If we divide the number of total overall sales per the number of stores, we estimate that a Painting With a Twist franchise store makes $227,000 in annual overall sales. The real number might be different than our estimation.
How Much Does A Painting With A Twist Franchise Owner Make?
We don’t know the net profit per store or the profit margin overall for Painting With a Twist. However, the market average for this industry is 20%.
Taking this into consideration, we can estimate that Painting With A Twist franchise owner make $45,400 in net profit on average.
This is how we calculated this amount:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 227000.00 |
| Rent | 10.00% | (22700.00) |
| Insurance | 5.00% | (11350.00) |
| Salaries | 20.00% | (45400.00) |
| Franchise Royalty Fees | 5.00% | (11350.00) |
| Utilities | 2.00% | (4540.00) |
| Cost of Goods Sold (COGS) | 25.00% | (56750.00) |
| Labor (Variable) | 13.00% | (29510.00) |
| Total (Expenses) | 80.00% | (181600.00) |
| Net Profit | 20.00% | 45400.00 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Payback Period Of Painting With A Twist
With a total investment of $260,000 and a yearly profit of $45,400, we can estimate the time it will take to recoup the investment amount.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Total Investment / Yearly Profit = $260,000 / $45,400 = 5.7 years
Based on these figures, it will take approximately 5-6 years to pay back the initial investment for Painting With A Twist. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Failure Rate Of Painting With A Twist
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 285 | 248 | -37 |
| 2021 | 248 | 231 | -17 |
| 2022 | 231 | 219 | -12 |
For the Franchised outlets:
- In 2020, the failure rate was (37)/285×100≈12.98%
- In 2021, the failure rate was (17)/248×100≈6.85%
- In 2022, the failure rate was (12)/231×100≈5.19%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 4 | 3 | -1 |
| 2021 | 3 | 1 | -2 |
| 2022 | 1 | 1 | 0 |
For the Company-Owned outlets:
- In 2020, the failure rate was (1)/4×100≈25.00%
- In 2021, the failure rate was (2)/3×100≈66.67%
- In 2022, the failure rate was (0)/1×100≈0.00%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 289 | 251 | -38 |
| 2021 | 251 | 232 | -19 |
| 2022 | 232 | 220 | -12 |
For Total outlets:
- In 2020, the failure rate was (38)/289×100≈13.15%
- In 2021, the failure rate was (19)/251×100≈7.57%
- In 2022, the failure rate was (12)/232×100≈5.17%
According to the above-mentioned data, we can see that the franchised outlets for Painting With A Twist declined from 2020 to 2022, showing a failure rate between 12.98% and 5.19%.
And for company-owned outlets, the failure rate of Painting With A Twist was quite high, lying in the range between 25.00% and 0.00% for the same period of time.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Painting With A Twist franchise has declined in the years 2020-2022 showing a total failure rate between 13.15% and 5.17%.
Training and Support Of Painting With A Twist
There is management training that has to be completed before the opening of the store. This training is mandatory to attend and successfully complete.
It’s held either virtually or at the Painting With a Twist headquarters and lasts between four to six days. Once the store is operating, there will be a representative who will do on-site training and provide assistance.
They also provide extensive support to the franchisees. This includes pre-opening like site selection, intranet platform, inventory management, and post-opening support like marketing, operations, and business understanding.
Terms of Agreement and Renewal
The initial term of the franchise agreement is for ten years from the day the franchised business starts operating. A renewal is possible at the end of the initial term if the franchisee satisfies all the conditions to renew and the franchisor approves it. The renewal is for an additional five-year term.
Obligations and Restrictions
The franchisees themselves are not obligated to run and supervise the franchised store on-site, full-time.
However, if the franchisee will not be present, then a designated manager must be at the store full-time to supervise the operations. This manager must complete the management training successfully.
Franchisees are obligated to sell all the products and services that the franchisor asks them to. Additionally, they are restricted from selling or offering anything that the franchisor doesn’t approve of.
Financial Assistance
Painting With a Twist doesn’t offer direct or indirect financial assistance. The franchisee must find all of the necessary funding by themselves, either by a loan or in cash.
Painting With a Twist Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
| Wine & Design | $25,000 | 6% | $69,950-$221,700 |
| Pinot’s Palette | $22,500 | 6% | $92,400-$237,300 |
| Painting With a Twist | $25,000 | 6% | $120,500-$260,000 |
Conclusion
Painting With a Twist is a popular painting studio offering painting events and lessons by combining wine and cocktails. They have over 200 franchised stores in the United States and a quite popular studio.
Although the overall net profits and sales are slightly lower than an average franchise store, the entry point is also quite low.
Because of the potential it offers and the low entry point, it could be a good consideration to start with a Painting With a Twist franchise. Thanks to their extensive training program, you can learn about business and store management and be part of the art world.
FAQs
How much is the Painting With a Twist franchise fee?
The franchise fee is $25,000. There is a 20% discount for veterans. You pay this fee when you sign the agreement in cash.
Do I need to have an art background to become a Painting With a Twist franchisee?
No, they do not look for any kind of experience in the industry, especially with art. It’s desirable to have business experience, but not a must.
Is Painting With a Twist a franchise?
Yes, Painting With a Twist is currently a franchise with over 230 franchised locations.
Who owns Painting With A Twist?
Painting With A Twist is owned by Twist Brand LLC.
Who founded Painting With A Twist?
Painting With A Twist was founded by Cathy Deano and Renee Maloney in 2007.
Where is Painting With Twist headquartered?
The headquarters of Painting With A Twist is located in Mandeville, Louisiana.
How many locations does Painting With A Twist have?
Painting With A Twist is operating in more than 320 locations.