Shot of Art logo

Shot of Art Franchise

Audited Financials
RecreationEst. 2023Los Angeles, CA
www.shotofart.com

Risk Score

Pending analysis

Investment Range

$164,430 - $333,950

Franchise Fee

$44,100

Min Cash Required

$10,000

Total US Locations

3

Business Summary

Shot of Art franchisees operate businesses that provide one-of-a-kind art experiences for individuals, groups, corporate events, and class field trips. These businesses are typically located in approved retail studios.

Corporate History

Shot of Art Franchise LLC was formed on June 20, 2023, as a Delaware limited liability company. It began offering Shot of Art franchises in September 2024. Shot of Art Franchise LLC does not operate any other businesses and has no predecessor or parent entity. Its affiliate, Shot of Art LLC, which owns the intellectual property, opened its first location in New York in August 2022. Other affiliate-owned locations subsequently opened in Los Angeles (March 2023), Chicago (October 2023), and Houston (January 2024). Shot of Art Franchise LLC itself has never operated the type of business described in the FDD.

Financial Overview

Investment Range

$164,430 - $333,950

Franchise Fee (Low)

$44,100

Franchise Fee (High)

$49,000

Minimum Cash Required

$10,000

Royalty %

6%

Marketing %

2%

Equipment Costs (Low)

$75,880

Equipment Costs (High)

$119,150

Working Capital

$30,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Going concern qualification

Financial Health Notes

Shot of Art Franchise LLC's independent accountants have raised substantial doubt about Shot of Art Franchise LLC's ability to continue as a going concern. This is due to management's plans to fund operations and expand to generate revenue and profitability.

Financing Details

Shot of Art does not offer direct or indirect financing to its franchisees. Shot of Art also does not guarantee any notes, leases, or other obligations for its franchisees.

Performance Metrics

Total US Locations

3

Franchised Units

0

Corporate Units

3

Avg Square Footage

3,400

Franchising Since

2024

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, Shot of Art franchisees must provide written notice between 5 and 12 months before the current term expires. They must be in good standing, meaning they are not in default and have not received more than three default notices in the past year. Franchisees are required to sign the then-current successor franchise agreement and all related documents, which may have materially different terms, including potentially higher fees. They must also sign a general release of claims and pay a renewal fee of at least $3,000 or the franchisor's actual costs. Additionally, franchisees must renovate and upgrade their business to meet the franchisor's current design, equipment, and operational standards. They must also secure their right to the premises for the new term and complete any other actions reasonably required by Shot of Art.

Training & Support Program

Franchisor Assistance

Shot of Art provides extensive assistance to its franchisees. Before opening, Shot of Art offers initial training for up to three people at no cost, loans a Franchise Operations Manual, and provides advice on site selection with final approval of the location. They review lease agreements, designate the territory, and provide specifications for the studio's design and layout, approving construction drawings. Shot of Art also provides materials and consultation for grand opening marketing and two days of onsite opening assistance, for which franchisees reimburse travel expenses. On an ongoing basis, Shot of Art informs franchisees of mandatory operating standards, specifications, and procedures. Shot of Art provides advice on business operations upon request, delivered through written materials, electronic media, or phone. Additional training is offered for new personnel, as refresher courses, or as requested, though additional fees may apply. Franchisees continue to use the confidential materials and Marks. Shot of Art also provides a list of approved suppliers for all required items. Optionally, Shot of Art may modify the System, conduct periodic site visits to assist with operations (charging for expenses if requested), administer a Brand Fund, host national or regional conferences, set minimum and maximum resale prices, and offer social media and email marketing services.

Initial Training Hours

35.5

Training Location

Shot of Art Studio in Los Angeles, California and/or online

Ongoing Support

After opening, Shot of Art franchisees receive ongoing support through information on mandatory operating standards, specifications, and procedures. Shot of Art provides advice on business operations upon request, delivered through written materials, electronic media, or phone. Additional training is offered for new personnel, as refresher courses, or as requested, though additional fees may apply. Franchisees continue to use the confidential Franchise Operations Manual and Marks. Shot of Art also provides a list of approved suppliers for all required items. Optionally, Shot of Art may modify the System, conduct periodic site visits to assist with operations (charging for expenses if requested), administer a Brand Fund, host national or regional conferences, set minimum and maximum resale prices, and offer social media and email marketing services.

Franchise Requirements

Ideal Candidate Profile

Shot of Art seeks individuals who can designate a Responsible Owner for each Shot of Art business. This individual must be principally responsible for communicating with the franchisor and have authority and responsibility for the day-to-day operations. If the franchisee is an entity, the Responsible Owner must hold at least a 25% equity interest. Franchisees may also hire a Franchise Manager, and it is recommended that this manager has previous management experience in the hospitality industry. Both the Responsible Owner and any Franchise Manager must successfully complete the franchisor's training program. When considering a transferee, the franchisor looks for an individual of good moral character with sufficient business experience, aptitude, and financial resources.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Hands-On

Territory Type

Non-Exclusive

Territory Size Requirements

Shot of Art territories are typically defined by specific U.S. Postal Service zip codes or a map and generally cover a population of approximately 200,000 persons within a 5-mile radius around the Shot of Art Business. Franchisees have the option to expand their territory by an additional 100,000 persons for a $10,000 Territory Fee when signing the Franchise Agreement.

Staffing Notes

Shot of Art franchisees are responsible for determining their own appropriate staffing levels, as well as hiring, training, directing, scheduling, and supervising all employees and independent contractors. These staff members are considered the franchisee's employees, not Shot of Art's. Franchisees must use their own legal business entity name on all employment-related documents and are solely responsible for all employment decisions, wages, and compliance with labor laws. Shot of Art advises franchisees to consult local legal counsel on these matters. Generally, Shot of Art businesses will have a manager (who may be the franchisee), an administrator/receptionist, art instructors, and cleaning staff.