Wise Coatings Franchise Costs $115K - $134K (2024 Stats)

INVESTMENT

$115,000

-

$134,000

LOCATIONS

6

Adam

Updated

April 17, 2024

Is

Wise Coatings

a franchise?

Yes,
Wise Coatings
currently
accepts
franchise
applications

Wise Coatings, established in 2021, has quickly emerged as a distinguished player in the home services industry, specializing in flooring solutions. Headquartered in Lake Mary, Florida, this franchise offers a turnkey business model that caters to residential, commercial, and industrial clients, providing durable and flexible floor coatings that outperform traditional epoxy floors. These coatings are designed not to yellow, crack, or become brittle over time, setting Wise Coatings apart from its competitors.

The franchise began offering opportunities in 2021 and has since expanded demonstrating rapid growth in a short time frame. Wise Coatings stands out by requiring no brick-and-mortar facility, enabling franchisees to start with a small team and scale efficiently. The company supports its franchisees with comprehensive training, robust business systems, and high-quality products, ensuring a seamless operation from marketing and sales to scheduling and installation.

How many

Wise Coatings

franchises

are there?

In 2022, there were
6
outlets in
the United
States, of which
5
are franchises, and
1
are corporate-owned.

What are the

Wise Coatings

franchise

fees?

Advertising fee

2% + up to 5%

Initial Franchise Fee

The Initial Franchise Fee is $50,000, payable upon execution of the agreement.

Royalty Fee

The Royalty Fee is 5% of Collected Gross Revenue, due monthly.

Marketing Fee

The Marketing Fee is up to 3% of Collected Gross Revenue; currently, it's 2%, payable monthly.

Local Advertising

In the first year, the greater of $1,500 per month or 5% of Collected Gross Revenue; from the second year onwards, 5% of Collected Gross Revenue.

Transfer Fee

The Transfer Fee is $10,000, payable at the time of transfer.

Renewal Fee

The Renewal Fee is $5,000, due at the time of renewal.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Wise Coatings

franchise?

It costs between
$115,000
and
$134,000
to start a
Wise Coatings
franchise.
Type of Expenditure Amount
Franchise Fee $50,000
Real Estate/Rent $0 to $2,000
Initial Inventory and Equipment Package $42,000 to $45,000
Uniforms $150 to $500
Computer & Software $0 to $2,000
Training $2,500 to $4,000
Criminal Background Checks $150
Vehicle, and custom wrap and lettering (3 months) $2,250 to $4,500
Marketing Materials $500 to $1,000
Insurance $500 to $1,500
Business License $0 to $1,000
Legal & Accounting $1,500 to $2,000
Additional Funds (3 months) $15,000 to $20,000
Total $114,550 to $133,650

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Wise Coatings

provide

training

to its

franchisees?

Yes,
Wise Coatings
provides
training

The franchisor provides various types of training to ensure the successful operation of the franchise, including:

Initial Training Program

  • Available to the franchisee, their Designated Manager, and up to one other employee.
  • Conducted approximately three to four weeks before the opening of the franchised business.
  • Held at the franchisor's headquarters, a designated regional office, or another designated location.
  • Covers essential operational aspects, techniques, and system familiarity.
  • Includes passing tests at the end of the training to the franchisor's satisfaction.
  • All related expenses, such as travel, accommodation, and employee wages, are the franchisee's responsibility.

Ongoing Training

  • Mandatory or voluntary ongoing training for the Designated Manager may be required, with a limit of one session per calendar year and not more than three days in any calendar year.
  • The franchisor may charge a fee for ongoing training.
  • Franchisee is responsible for all related expenses.

Enrichment Training

  • Required if the franchisee fails to meet minimum performance expectations.
  • Aims to enhance operational skills and adherence to the franchisor's standards.

Additional Training

  • Offered if the franchisor deems the Designated Manager unable to complete the initial training satisfactorily.
  • If a new Designated Manager is named, they must complete the initial training within sixty days.

Does

Wise Coatings

provides

territory

protection?

The franchisor does provide territory protection to franchisees, with the defined area commonly referred to as the Protected Area. This Protected Area is mutually agreed upon and is defined by various boundaries such as ZIP codes, political boundaries, geographic boundaries, roads, or other markers.

The franchisor commits not to operate or grant another franchisee the right to operate within this Protected Area, ensuring that franchisees have their own designated territory in which to market and provide services.

However, it's important to note that while franchisees receive a Protected Area, they do not receive an exclusive territory. This means the franchisor reserves the right to use other channels of distribution, including the internet, to solicit orders from consumers inside the franchisee's Protected Area using the franchisor's principal trademarks or other competitive brands that the franchisor controls.

Can a

Wise Coatings

franchise

be run as

a passive

investment?

The franchisor explicitly states that the franchised business is not a "passive" investment. Franchisees are expected to use their best efforts to promote and increase the sales and recognition of the services offered through the franchised business. 

The franchise must always be under the direct, full-time, day-to-day supervision of the franchisee or their designated manager. If a designated manager is appointed, they must also be an owner of the franchisee entity with no less than 5% equity interest.

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