Concrete Craft Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$156,330 - $233,450
Franchise Fee
$16,958
Min Cash Required
$30,000
Total US Locations
77
Business Summary
Concrete Craft specializes in the marketing, selling, and installation of decorative concrete surfaces for both residential and commercial properties. These services include concrete resurfacing, staining, and stamping systems, which can be used for interior and exterior applications. Concrete Craft franchisees operate mobile businesses, utilizing branded vehicles to make sales calls and perform installation services, and may use subcontractors for certain concrete applications like patio extensions. Franchisees generate sales through various digital marketing channels, canvassing, home shows, print media, and referrals, serving customers within their assigned territories.
Corporate History
American Decorative Coatings, LLC, operating as Concrete Craft, was organized as a Delaware limited liability company on October 17, 2014. The company began offering Concrete Craft franchises in 2015. Before mid-2017, Concrete Craft also operated its own businesses similar to those it franchises, but since then, its primary focus has been granting franchises and providing training and support to its franchisees. The current entity, American Decorative Coatings, LLC, is a successor to AA Decorative Concrete, Inc., which was formed in February 2008 and started offering similar franchises in September 2008.
Financial Overview
Investment Range
$156,330 - $233,450
Franchise Fee (Low)
$16,958
Franchise Fee (High)
$19,950
Minimum Cash Required
$30,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$39,780
Equipment Costs (High)
$85,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The Franchise Disclosure Document highlights a special risk regarding Concrete Craft's financial condition, indicating it calls into question the franchisor's ability to provide services and support. The financial statements for 2023 show a net loss of $730,427. Notes to the financial statements acknowledge that Concrete Craft evaluated conditions that raise substantial doubt about its ability to continue as a going concern. However, management has secured a commitment from its Parent company to continue supporting its operating expenses through at least February 27, 2025, which, according to management, will allow Concrete Craft to meet its cash flow obligations.
Financing Details
Concrete Craft offers financing directly to franchisees who meet its credit standards. This financing covers the Initial Franchise Fee and a portion of the Initial Territory Fee, with a maximum financed amount of $40,000. These loans carry a 10% interest rate and are repayable over 60 months, with monthly payments of $849.88. Franchisees can prepay the note without penalty at any time. The financing is secured by a General Security Agreement, granting Concrete Craft a security interest in substantially all of the franchisee's assets.
Performance Metrics
Total US Locations
77
Franchised Units
77
Corporate Units
0
Avg Square Footage
850
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Concrete Craft has disclosed three litigation cases. One historical administrative proceeding from 2006 involved its affiliate, Aussie Pet Mobile, Inc., under previous ownership, which required a cease and desist order and rescission of certain franchise agreements due to disclosure violations. This case is not recent. More recently, in 2023, Concrete Craft filed two separate lawsuits to collect royalty payments and fees. One suit was against Jacob Norris, filed in Colorado in August 2023, and the other was against Odan, LLC, filed in Florida in July 2023. These two lawsuits are ongoing actions to collect outstanding payments from franchisees.
Bankruptcy History
Concrete Craft has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Concrete Craft franchisees must provide adequate notice, pay a $5,000 renewal fee, be in good standing without any defaults, and make any necessary upgrades to their franchised business to meet the then-current brand standards. They must also sign Concrete Craft's then-current form of franchise agreement, which may contain terms and conditions materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Concrete Craft provides comprehensive assistance to its franchisees. Pre-opening support includes designating the territory, approving any optional showrooms, granting the right to use its Marks, and delivering an Initial Start-Up Package. Franchisees receive 93.5 hours of initial training, which is a hybrid of virtual and in-person sessions at the HFC Experience Center in Coppell, Texas, covering decorative concrete design, installation, sales, marketing, and business procedures. Proprietary information is provided for staff training. For the first year of operation, Concrete Craft also provides bookkeeping services valued at approximately $3,400. Ongoing assistance includes policing the Marks, training on new products and methods, consultation and guidance from representatives during business hours, optional on-site remedial training (for a fee), and the option to attend an annual convention. Concrete Craft also maintains a website and an electronic portal for resources and communication, and operates a toll-free telephone number for franchisees.
Initial Training Hours
93.5
Training Location
Hybrid (Virtual and Coppell, TX)
Ongoing Support
After opening, Concrete Craft provides ongoing support by policing its brand Marks and training franchisees on new products, services, and methods as they are developed. Representatives are available during normal business hours for consultation and guidance on business operations and management. At a franchisee's request, additional or refresher on-site training can be provided for a daily fee plus travel expenses. Concrete Craft also has the option to hold an annual convention to discuss system-wide topics. Additionally, it maintains a website with information about the system, operates a toll-free telephone number for all franchisees, and provides an electronic portal for marketing materials, training, and other digital assets. For the first year, Concrete Craft offers complimentary bookkeeping services.
Franchise Requirements
Ideal Candidate Profile
Concrete Craft prefers franchisees who are committed to actively participating in the direct operation and daily affairs of their franchised business, rather than those seeking a passive investment. If the franchisee does not personally operate the business, they must employ a full-time manager. This manager is required to complete the initial training program, dedicate their full time during business hours to managing and developing the business, maintain confidentiality of trade secrets, and adhere to non-compete covenants. All individuals with direct or indirect control or beneficial interest in the franchisee entity, including spouses, must sign a personal covenant and guarantee.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Limited
Staff Count
1
Territory Size Requirements
Concrete Craft territories are defined by United States Postal Service ZIP Codes. Each territory is designed to consist of approximately 100,000 households.
Staffing Notes
Concrete Craft expects franchisees to hire the necessary full-time and part-time staff to properly operate the business. If the franchisee does not actively operate the business themselves, they must employ at least one full-time manager. This manager is required to complete the initial training program and devote their entire time during normal business hours to the management, operation, and development of the franchised business. Additionally, the lead installer employed by the franchisee must attend the Application Techniques portion of the initial training in Coppell, Texas. Concrete Craft states that it is not a joint employer with its franchisees and does not determine employee wages, hours, duties, supervision, or hiring/firing decisions.