Franchisel.com — FDD Diligence Memo
WOW 1 DAY PAINTING
Generated 2026-04-06 · 2025 FDD · Government-filed source
WOW 1 DAY PAINTING
2025 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
6
Contract
5
Red Flags & Key Signals
Average ($536,557) is 34% above median ($400,308). Top performers may be pulling the headline number up.
Net unit loss of -1. Monitor whether this is a one-year anomaly or a trend.
You waive the right to sue in court. Arbitration typically favors the franchisor. Review the venue and arbitrator selection process.
After leaving the franchise, you cannot operate a competing business in this radius. Evaluate the real-world impact on your exit options.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2025 FDD (government-filed)Item 19 discloses avg revenue of $536,557 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure. The average ($536,557) is 34% above the median ($400,308), which suggests top performers are pulling the average up. The median is the more reliable benchmark for a typical new unit.
Item 20 — System Health
Item 20 — 2025 FDDSystem flat — net -1 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
0
Net Growth
-1
Turnover
0%
Year-over-Year Trends
2025 FDDOpened
+0
Closed
-0
Net
-1
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2025 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Gross sales
Figure represents gross sales — standard basis for cross-brand comparison.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
Subset of units reported
Item 19 samples may be limited to defined subsets (subset meeting stated criteria), which affects comparability.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Data from 2024
Revenue covers 2024 — 2 years old. Reasonably current but worth confirming recent trends with existing franchisees.
Average inflated by top performers (34% above median)
The median ($400,308) is significantly lower than the average ($536,557). Top locations pull the average up — the median is a more realistic target for a new unit.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
The agreement requires mandatory arbitration. Ask: have you ever had a dispute with the franchisor — how was it handled? Did you feel you had recourse?
Look for: Franchisees who've been through disputes. Understand if the arbitration process felt fair or heavily stacked toward the franchisor.
The agreement includes a 2-year, N/A-mile post-termination non-compete. Ask franchisees: did you fully understand this when you signed — and do you feel it's fair?
Look for: Whether franchisees feel trapped. High non-compete terms reduce exit flexibility.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Data sources: 2025 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2025 FDD filed with WI DFI (file #639572). Source: 639572-2025-WOW-1-DAY-PAINTING.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.