Go Painting Logo

Go Painting

Go Painting, LLC
https://www.gopainting.com
1-801-477-7190
1108 E South Union Ave, Midvale, UT 84047

Initial Investment Range

$107,500 to $150,500

Franchise Fee

$74,500

We offer franchises to qualified individuals and entities to own and operate a GO Painting™ franchise under our service marks, trade names, programs, and systems.

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Go Painting March 4, 2024 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
3
3

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, Go Painting, LLC (Go Painting LLC), is a new entity formed in late 2022. Its financial statement in Exhibit A is an unaudited inception balance sheet showing only $82 in assets. The company appears to have no significant independent financial substance and is reliant on its affiliates. This lack of capitalization and operating history for the franchisor entity itself presents a significant risk regarding its ability to support franchisees and withstand financial challenges, representing a highly concerning disclosed fact.

Potential Mitigations

  • Your accountant must carefully review the financials of Go Painting LLC and its affiliated companies to assess the overall financial stability of the enterprise.
  • Discuss the franchisor's capitalization plan and the financial relationship with its affiliates with your business advisor to understand where your support will come from.
  • An attorney should review any financial performance guarantees or support obligations from the parent company, UCI Holding Co.
Citations: Item 21, Exhibit A

High Franchisee Turnover

Low Risk

Explanation

Item 20 data shows that there have been no franchised outlets in the system for the last three years. Therefore, there is no history of franchisee turnover, terminations, or closures to analyze. The lack of an operating history for franchisees means there is no track record to evaluate potential franchisee success or satisfaction within this specific system.

Potential Mitigations

  • With your business advisor, carefully interview the management about the performance of the three affiliate-owned locations, which serve as the basis for the business model.
  • Ask your attorney about the risks of joining a new system with no franchisee track record.
  • Your accountant should help you build financial models with conservative assumptions, as there is no franchisee data to rely upon.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

The franchisor is new and has no existing franchisees, but Item 20 projects opening eight new franchised outlets in the next fiscal year. Such rapid expansion from a zero base could strain the new franchisor's resources, potentially leading to challenges in providing adequate and timely training, site selection assistance, and operational support to all new franchisees simultaneously. This represents a potential risk to the quality of support you may receive.

Potential Mitigations

  • You should question the franchisor's management about their specific plans and infrastructure to support this projected growth.
  • A discussion with your business advisor can help assess whether the management team has the capacity and experience to handle rapid expansion.
  • Your attorney could inquire about contractual service level commitments for support and training during the initial growth phase.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

Go Painting LLC is a new franchisor, formed in December 2022 and beginning to offer franchises in September 2023, with no existing franchisees. While its principals have industry experience through affiliated companies, the franchise system itself is unproven. Investing in a new system carries higher risk due to the lack of a track record for franchisee success, undeveloped support systems, and minimal brand recognition. The franchisor's own financial instability, as shown in Item 21, aggravates this risk.

Potential Mitigations

  • A thorough due diligence investigation into the principals' past business performance with their affiliated companies should be conducted with your business advisor.
  • Your attorney might be able to negotiate more favorable terms, such as lower initial fees or enhanced support, to compensate for the higher risk of a new system.
  • An accountant should help you create conservative financial projections, given the absence of any historical franchisee performance data.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Low Risk

Explanation

The business of exterior and interior painting is a well-established industry, not typically considered a fad. The long-term demand for painting services is generally stable and tied to construction and property maintenance cycles. Therefore, the risk of the business model being a short-lived trend appears to be low.

Potential Mitigations

  • A business advisor can help you analyze the local market competition and long-term demand for painting services in your specific area.
  • It is still prudent to review the franchisor's marketing plans with a marketing professional to ensure they are targeting sustainable customer segments.
  • Your accountant can help model the business's potential performance under various economic conditions to assess its resilience.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

While the management team has extensive experience in the painting industry through their work with affiliated company Unforgettable Coatings, their experience in managing a franchise system is new, as Go Painting LLC was only formed in late 2022. This lack of a track record in franchising presents a risk, as managing a network of independent franchisees requires different skills and support systems than running company-owned locations. The quality of training and support systems is yet to be proven.

Potential Mitigations

  • Engaging a business advisor to scrutinize the franchisor's disclosed support systems and training programs for completeness and quality is recommended.
  • You should directly question the management team about how their past experience prepares them for the specific challenges of supporting franchisees.
  • An attorney can help you understand the contractual commitments for support and whether they are specific enough.
Citations: Items 1, 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. Private equity ownership can sometimes lead to a focus on short-term profits over the long-term health of the franchise system. This might manifest as reduced franchisee support, increased fees, or a quick sale of the company, which could change the nature of your relationship with the franchisor.

Potential Mitigations

  • Your attorney can help you investigate the ownership structure of any franchise system to identify if a private equity firm is involved.
  • If private equity is involved, a business advisor can help research the firm's history with other franchise brands.
  • It is wise to have your attorney review the assignment clauses in the Franchise Agreement to understand your rights if the system is sold.
Citations: Not applicable

Non-Disclosure of Parent Company

High Risk

Explanation

Item 1 discloses that UCI Holding Co. is the parent company of the franchisor. However, the FDD does not include the parent company's financial statements. Since the franchisor (Go Painting LLC) is a newly formed, thinly capitalized entity with only $82 in assets, the financial strength of the parent is a material fact for assessing the system's viability. The absence of the parent's financials prevents a full assessment of the enterprise's ability to support you.

Potential Mitigations

  • Your attorney should request the financial statements of the parent company, UCI Holding Co., to allow for a complete financial due diligence process.
  • An accountant should analyze the parent company's financials, if obtained, to determine if it has sufficient resources to back the franchisor's obligations.
  • A business advisor can help you assess the overall risk given that the franchisor entity itself has virtually no capital.
Citations: Items 1, 21

Predecessor History Issues

Medium Risk

Explanation

The FDD in Item 1 identifies Unforgettable Coatings, Inc. and its related entities as affiliates, and the management team's experience comes from these companies. The franchisor, Go Painting LLC, appears to be a new entity created to franchise the business model of these affiliates. This structure is disclosed, but it's crucial to understand that you are contracting with the new, financially weak entity, not the established operating affiliates.

Potential Mitigations

  • Your attorney should clarify which legal entity is responsible for all contractual obligations to you.
  • It is important to have your accountant review any available financial data for the predecessor or affiliate companies.
  • A business advisor can help you understand the practical implications of franchising with a new entity that is leveraging the experience of an affiliate.
Citations: Item 1

Pattern of Litigation

High Risk

Explanation

Item 3 discloses significant litigation against the franchisor's affiliate, Unforgettable Coatings, Inc., and its principals (who are also the franchisor's principals). This includes a Department of Labor lawsuit for Fair Labor Standards Act violations, resulting in a $3.67 million settlement. The Illinois state addendum also mentions past registration violations and pending litigation with a shareholder. This pattern of significant legal and regulatory issues represents a highly concerning history for the management team, creating a substantial risk.

Potential Mitigations

  • You must discuss the nature and implications of this litigation history with your attorney to fully understand the potential risks.
  • A thorough review of the principals' business practices and reputation should be conducted with the help of a business advisor.
  • Your accountant should consider any potential financial instability that could arise from this litigation history.
Citations: Item 3, Exhibit D
2

Disclosure & Representation Risks

Total: 15
4
4
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
3
6
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
5
5
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
5
3
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
1
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
6
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
8
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.