FranchiseVerdict
Hawaii Fluid Art logo
FV-01166·STRONGExcellent81

Hawaii Fluid Art

OtherFranchising since 2021Website
Investment
$182K – $340K
61st pct Other
Avg revenue
50th pct Other
Royalty
Units
24
52nd pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $182K – $340K including a $65K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 34 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Hawaii Fluid Art Franchising, LLC
Incorporated in
Texas
HQ
610 Uptown Blvd., STE 3900, Cedar Hill, TX 75104
Auditor
DA Advisory Group PLLC
Audited financials
Franchisor revenue
$347K
vs $2.3M prior year
⚠ Going-concern note
Disclosed in FDD 2024
Status as of 2024; may have been resolved in a later filing we don't yet have.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Hawaii Fluid Art unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $182K–$340K
Working capital
$
FDD reports $19K–$35K

Unlevered ROIC · per unit

39%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$113K
EBITDA margin
15.0%
Total invested
$288K
Payback
31 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Hawaii Fluid Art franchisees operate art studios offering fluid acrylic painting classes, workshops, and art experiences to customers. Daily operations include hosting painting sessions, managing instructor scheduling, handling retail art supplies sales, and maintaining studio facilities. Revenue streams typically include class enrollment fees, private events, and product sales.

CEO
Maya Ratcliff
Founded
2021
FDD year
2024
States available
12

Item 7 · what it costs

The Vitals

Total investment
$182K – $340K
All-in to open one unit
Liquid capital
$19K – $35K
Cash you must have on hand
Franchise fee
$65K
Royalty
The greater of (i) 8% of your Gross Revenue for the prece…
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
24
Opened
21
Last reporting year
Closed
3
Turnover rate
12.5%
Company-owned
3
Corporate units in the system
% franchised
88%
vs corporate-owned
Net growth (yr3)
Outlier (see FDD)
Likely small-sample artifact
2022
21+18
Franchised units
2023
3
Franchised units
2024
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 16 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
34
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

54
Risk · 0-100
STRONG54 / 100

Early-stage, high-growth franchise lacking financial transparency and proven unit economics; explosive growth rate and absent Item 19 data create significant ROI validation risk.

Score breakdown · what drove the 54 / 100 rating

  1. 01MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims or unit economics
  2. 02MINORExplosive 600% YoY unit growth (24 units) suggests either unsustainable expansion or cherry-picked growth period; typical mature franchises grow 10-30% annually
  3. 03MINORHigh initial investment ($182k-$340k) combined with $750/month minimum royalty creates immediate cash flow pressure on new franchisees
  4. 04MINORHybrid royalty structure (8% or $750 minimum) penalizes low-revenue operators; break-even threshold unclear
  5. 05MEDOnly 24 units system-wide suggests immature franchise model with limited operational history and peer support network
  6. 06MINORProtected territory provides no competitive advantage if brand lacks consumer awareness or replicable unit economics

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
69 hrs
On-the-job training
56 hrs
POS system
Clover
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

19 numbers

Locked
(701) 328-••••
ND
(605) 773-••••
SD
(217) 782-••••
IL

One-time purchase · CSV download · Validation questions included

FDD download

Hawaii Fluid Art · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above