Risk Score
Pending analysis
Investment Range
$361,000 - $812,000
Franchise Fee
$20,000
Min Cash Required
$30,000
Total US Locations
1
Business Summary
PAINTED DOUGH™ Stores specialize in offering a variety of donuts, including specialty, mochi, and vegan options, alongside breakfast burritos, sandwiches, cold brew coffees, crafted teas, and related merchandise. The business operates with a unique atmosphere, specific recipes, and detailed operating procedures, emphasizing a clean, brightly colored environment and well-trained staff. Stores typically range from 1,800 to 2,500 square feet and are located in busy areas like regional shopping centers, operating daily from early morning to evening.
Corporate History
Painted Dough Franchise, LLC was formed on April 7, 2023, in California, specifically to franchise and administer PAINTED DOUGH™ Stores. The company itself does not operate any stores but its affiliate, Painted Dough, Inc., a California corporation formed on March 27, 2017, operates the first PAINTED DOUGH Store, which was established by founder Danny Truong in January 2016. Painted Dough Franchise, LLC began offering franchises on February 1, 2024.
Financial Overview
Investment Range
$361,000 - $812,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$210,000
Equipment Costs (High)
$525,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Painted Dough Franchise, LLC is a newly formed franchisor, established in April 2023. As of December 31, 2023, the company had not commenced franchise operations, signed any franchise agreements, or generated any revenue. Its financial statements, which are audited, show $75,000 in cash and cash equivalents, contributed by its sole member to satisfy minimum net worth requirements. The company is in the process of filing its initial Franchise Disclosure Document.
Financing Details
Painted Dough Franchise, LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
2,150
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Painted Dough Franchise, LLC has no litigation to report, as stated in Item 3 of its FDD.
Bankruptcy History
Painted Dough Franchise, LLC has no bankruptcy history to disclose, as stated in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Painted Dough franchisees must provide written notice of renewal between 6 and 12 months before the current term ends. They must be in good standing, without any material defaults during the last 12 months, and have complied with all material terms of the Franchise Agreement throughout the current term. All monetary obligations to Painted Dough Franchise, LLC, its affiliates, and approved suppliers must be satisfied. Franchisees are also required to complete any additional training, implement requested personnel changes, modernize their store and equipment to current PAINTED DOUGH standards, and secure an extended or renewed lease covering the new term. They must sign Painted Dough Franchise, LLC's then-current form of Franchise Agreement (which may have different terms and royalty rates) and a general release of claims.
Training & Support Program
Franchisor Assistance
Before opening, Painted Dough Franchise, LLC provides franchisees with access to its confidential Operations Manual, assistance with site selection, and review of proposed leases. The franchisor also approves store design plans, conducts an initial training program for up to three people (Designated Operator, General Manager, Assistant Manager) at a company store in Chino, California, and inspects the store prior to issuing a Certificate of Opening. They also assist with developing a grand opening marketing program and advise on opening operations. After opening, Painted Dough Franchise, LLC may offer additional training programs, develop and administer advertising and promotion programs to benefit all stores, and administer the System Marketing Fund (once established). They advise on store operations through periodic calls or visits and include information about the franchisee's store on the corporate website, providing social media guidelines.
Initial Training Hours
240
Training Location
Company Store in Chino, California
Ongoing Support
Painted Dough Franchise, LLC may provide additional training programs as deemed appropriate, potentially charging a fee for these courses. They also offer advice and assistance with store operations, including periodic calls or visits from representatives. Franchisees must attend any annual meetings, conventions, or conferences of franchisees and meetings related to new products, procedures, training, management, or sales promotion. Franchisees are responsible for their own travel and living expenses for these events. If requested, Painted Dough Franchise, LLC may provide employees for on-site training and assistance at the franchisee's store, for which a per diem fee plus expenses may be charged.
Franchise Requirements
Ideal Candidate Profile
Painted Dough Franchise, LLC is looking for franchisees who are approved operationally and financially. If the franchisee is a legal entity, one of its owners must be approved to be a full-time representative and personally guarantee the Franchise Agreement. The Designated Operator, who must be an experienced food service operator with multi-unit supervisory experience, is required to devote their full-time attention to the store's operation and own at least a 10% equity interest in the entity. The General Manager and any other required managers must also complete initial training.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
Painted Dough Franchise, LLC generally offers territory protection by agreeing not to establish another store within a 3-mile radius of the franchisee's front door. However, this protection is subject to 'Reserved Rights' which allow the franchisor to operate other brands, use other distribution channels (like the internet or grocery stores), and establish non-traditional venues (such as locations within a school or airport) even within the protected area. For stores in 'high density areas,' determined by Painted Dough Franchise, LLC's discretion based on pedestrian traffic or population density, specific territorial rights will be defined in an attachment to the agreement.
Staffing Notes
Painted Dough Franchise, LLC requires each store to have an on-site manager who is approved and certified. The franchisee must employ a full-time General Manager responsible for daily operations, and this manager, along with any other managers required by the Operations Manual, must meet the franchisor's qualifications and complete the Initial Training Program. The franchisor's financial performance representations indicate that payroll typically includes the salaries of one General Manager, one Assistant Manager, plus wages for hourly employees. Franchisees are solely responsible for all hiring and employment decisions, including setting wages and managing personnel.