That 1 Painter logo

That 1 Painter Franchise

Audited Financials
Home ServicesEst. 2020Austin, TX
www.that1painterfranchise.com

Risk Score

Pending analysis

Investment Range

$113,000 - $189,000

Franchise Fee

$39,000

Min Cash Required

$22,000

Total US Locations

271

Business Summary

That 1 Painter Franchising LLC offers franchises to operate residential and commercial painting and cosmetic repair service businesses under the "That 1 Painter" trademarks. Franchisees can choose between a subcontractor model, where services are subcontracted out, or an employee model, where painters are directly employed. The business model utilizes distinctive trade dress standards, operational procedures, service methods, and approaches for management, training, and marketing.

Corporate History

That 1 Painter Franchising LLC was formed as a Texas limited liability company on November 18, 2020. The company began offering franchises on May 28, 2021, for residential and commercial painting and cosmetic repair services under the "That 1 Painter" trademarks. It is a part of ResiBrands LLC, which was formed on September 8, 2022. That 1 Painter Franchising LLC has several affiliated companies, including That 1 Painter Franchising, LLC (which had 224 franchised territories by Dec 31, 2024), Garage Up Franchising, LLC (garage renovation, began franchising April 2023), Monty's Franchising LLC (handyman, plans to franchise 2025), Action Exteriors Franchising LLC (roofing, began franchising September 2024), and ResiCreative LLC (a required advertising vendor). That 1 Painter Franchising LLC itself does not own or operate any businesses of the type its franchisees will operate.

Financial Overview

Investment Range

$113,000 - $189,000

Franchise Fee (Low)

$39,000

Franchise Fee (High)

$59,000

Minimum Cash Required

$22,000

Royalty %

6%

Marketing %

2%

Equipment Costs (High)

$8,000

Working Capital

$26,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

That 1 Painter Franchising LLC's financial condition raises concerns about its ability to provide services and support to franchisees, as noted in the special risks section of the FDD. However, the audited financial statements show a positive net income of $3,795,447 in 2023 and $278,407 in 2024, improving from a net loss in 2022. The independent auditors provided an unqualified opinion, stating that the financial statements present fairly the company's financial position and cash flows.

Financing Details

That 1 Painter Franchising LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations on behalf of the franchisee.

Performance Metrics

Total US Locations

271

Franchised Units

265

Corporate Units

6

Franchising Since

2021

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their That 1 Painter franchise, franchisees must be in full compliance with their agreement and have committed no more than five defaults during the current term. They must provide written notice to That 1 Painter Franchising LLC at least ten months before the term expires, sign a new franchise agreement, and pay a Successor Agreement Fee equal to 10% of the then-current initial franchise fee. Franchisees are also required to repair, upgrade, or replace their business assets to meet current specifications, execute a general release, and comply with all current qualifications and training requirements, including any additional training, subject to state law. The new franchise agreement may have terms and conditions that are materially different from the original agreement.

Training & Support Program

Franchisor Assistance

Before opening, That 1 Painter Franchising LLC designates the territory boundaries, provides access to the operations manual and other training aids, offers a list of required equipment and supplies, and delivers initial training at its headquarters in Austin, Texas. It also provides samples or digital artwork for initial marketing. After opening, the franchisor offers mandatory additional training programs and requires attendance at annual business meetings or conventions (up to five days per year), for which franchisees are responsible for travel and incidental expenses, plus a fee of $500 to $5,000. It provides remedial in-territory training and individualized assistance by phone, video conference, electronic mail, or postal service. The franchisor also provides advertising materials, maintains the That 1 Painter website with links to franchisee information, updates supplier lists, recommends pricing, and approves franchisee advertising materials and commercial office locations.

Initial Training Hours

110

Training Location

Austin, Texas / Online

Ongoing Support

After opening, That 1 Painter Franchising LLC provides ongoing support through various channels. Franchisees and their general managers are required to participate in refresher training for up to five days annually and attend an annual business meeting or convention, with associated fees and travel expenses paid by the franchisee. Remedial in-territory training and individualized assistance by telephone, video conference, electronic mail, or postal service are available upon request. The franchisor also provides samples of advertising and promotional materials, maintains the That 1 Painter website with franchisee contact information, and updates lists of approved suppliers. They recommend pricing for services and products and approve all advertising and promotional materials created by franchisees. Additionally, the franchisor approves any franchisee requests to relocate to commercial premises.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Home-Based

Owner Participation

Hands-On

Territory Type

Non-Exclusive

Territory Size Requirements

Each That 1 Painter franchise territory is defined by a group of contiguous zip codes within a town, city, or county. The territory size is determined individually based on demographics, minimum household numbers, geographic terrain, and market potential, with each territory expected to have a population of approximately 200,000 people, as calculated using recent census data and a third-party mapping service.