Bottom line
- Total investment $119K – $256K including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $252K/year (median $228K).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 82 loans (below the industry average).
- System contracting at -5.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
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 Painting with a Twist unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Painting with a Twist units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$403K
on $2.0M purchase
Total debt
$1.6M
SBA $1.0M + senior + seller note
Overview
About
Franchisees operate paint-and-sip studios where customers create artwork while consuming beverages in a social setting. Day-to-day operations include managing class scheduling, instructor staffing, inventory (paint/canvases/beverages), customer check-in, and creating a high-energy experiential environment. Revenue depends on class frequency, attendance rates, and per-person pricing.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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).
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Painting with a Twist presents elevated risk due to undisclosed profitability metrics, unclear unit growth, and corporate going concern status, making true ROI assessment impossible.
Score breakdown · what drove the 57 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $251,747 claimed average revenue — inability to verify profitability claims
- 02HIGHGoing Concern status is False, indicating potential financial instability at corporate level
- 03MINORUnit count of 220 with unknown growth trajectory — cannot assess system expansion or contraction
- 04MEDHigh investment range ($119K-$255.5K) relative to undisclosed net income creates ROI uncertainty
- 05MINOR6% royalty on gross (not net) sales means franchisees pay regardless of profitability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Painting with a Twist · FDD (2024) PDF