Paint EZ Logo

Paint EZ

EmeraldPro Franchising, Inc. dba Paint EZ
https://www.paintezfranchise.com
1-833-724-6839
258 W. Center Street, Suite #252, Orem, UT 84057

Initial Investment Range

$87,700 to $344,200

Franchise Fee

$70,500 to $181,500

We offer franchises to qualified individuals and entities to own and operate a Paint EZ franchise under our trademarks, trade name, program, and system under the name “PaintEZ®.” Our franchisees offer quality painting services to the public under the trademarks, programs, and systems.

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Paint EZ April 29, 2025 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
2
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The 2024 audited financial statements for EmeraldPro Franchising, Inc. (PaintEZ) show a net loss of over $135,000 and a total stockholders' deficit (negative net worth) exceeding $521,000. This follows a net loss and deficit in the prior year. Such financial weakness, also flagged as a 'Special Risk' by PaintEZ, calls into question its ability to support your business, invest in the brand, or remain solvent, creating significant risk for you.

Potential Mitigations

  • Your accountant must conduct a thorough review of the financial statements, including all footnotes, to assess the franchisor's viability and cash flow.
  • It is crucial to ask the franchisor about its plans to address its net losses and negative net worth.
  • A discussion with your attorney is needed to understand the implications of state-mandated financial assurance requirements, if any, due to these financials.
Citations: Item 21, Exhibit C

High Franchisee Turnover

High Risk

Explanation

Item 20 data for 2024 reveals a high franchisee churn rate. Four outlets 'Ceased Operations' and six were transferred, representing over half of the 19 outlets that started the year. A high rate of outlets ceasing operations or transferring can be a strong indicator of systemic problems, such as franchisee unprofitability, dissatisfaction with the system, or a flawed business model. This level of turnover presents a significant risk to the stability and health of the franchise system.

Potential Mitigations

  • You should contact a significant number of former franchisees listed in Item 20 to understand why they left the system.
  • Your business advisor can help you analyze the turnover rates and compare them against industry averages for service-based franchises.
  • Discussing the specific reasons for the high number of ceased operations and transfers with the franchisor is a necessary step.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The franchise system has grown very rapidly, nearly doubling in size in both 2023 and 2024. This rapid expansion, combined with the franchisor's disclosed financial instability (net losses and a significant stockholder deficit), suggests a potential over-reliance on new franchise fees for revenue. This may strain PaintEZ's ability to provide adequate training, site support, and operational guidance to all franchisees, potentially compromising the quality and availability of support for your business.

Potential Mitigations

  • You should ask the franchisor detailed questions about how their support infrastructure has scaled to meet the demands of this rapid growth.
  • Speaking with franchisees who joined at different times can provide insight into whether support levels have changed as the system has expanded.
  • Your accountant should evaluate if the franchisor's financial resources appear adequate to sustain support for its rapidly growing number of outlets.
Citations: Items 20, 21

New/Unproven Franchise System

High Risk

Explanation

While operating since 2017, the system rebranded to PaintEZ in 2021 and has experienced very high recent growth and franchisee turnover. Combined with persistent financial losses and a significant stockholder deficit, the system's long-term stability and business model appear unproven. These factors create a higher-than-average risk profile regarding the franchisor's ability to maintain a healthy, sustainable, and supportive franchise system for the full duration of your agreement.

Potential Mitigations

  • A thorough due diligence process, including speaking with a wide range of current and former franchisees, is critical to assess the system's viability.
  • Your business advisor can help you scrutinize the business model's resilience and the management team's experience.
  • Given the higher risk, it is important to have your attorney review the franchise agreement for any potential protections or favorable terms.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business of providing residential and commercial painting services is a long-established industry, not one based on a short-term trend or fad. This reduces the risk that consumer demand for your core services will suddenly disappear due to changing tastes.

Potential Mitigations

  • A business advisor can help you research the stability and long-term outlook for the painting services market in your specific geographic area.
  • It is always prudent to evaluate a business model's resilience to economic cycles with your financial advisor.
  • Reviewing local competition with a business advisor will help you understand the sustained demand for these services.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

The business experience listed in Item 2 for key operational executives, such as the CEO and COO, appears to be limited primarily to their time with PaintEZ or in unrelated industries like technology. While an advisor has prior franchise experience, the lack of deep, long-term franchising and painting industry experience within the core day-to-day leadership team could impact the quality of strategic decisions and operational support you receive.

Potential Mitigations

  • Engaging with current franchisees to specifically ask about the quality, relevance, and expertise of the operational support and guidance provided is crucial.
  • It is important to directly question the management team about how they compensate for any gaps in their industry or franchising experience.
  • A business advisor can help you assess whether the management team's stated skills are a good fit for leading a national service franchise.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 does not indicate that PaintEZ or its parent company is owned or controlled by a private equity firm. This can be a positive, as it may suggest a focus on the long-term health of the brand rather than on short-term financial returns for external investors.

Potential Mitigations

  • As part of due diligence, it's always wise to ask the franchisor about their long-term ownership structure and plans.
  • Your attorney can help you verify the ownership structure of the franchisor entity through public records.
  • A business advisor can help you understand the potential pros and cons of different types of franchisor ownership structures.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 does not disclose any parent companies. Therefore, the financial and operational stability of the system appears to rest solely on the franchisor entity, EmeraldPro Franchising, Inc., whose financial statements are provided.

Potential Mitigations

  • Your attorney can help verify the franchisor's corporate structure to confirm the absence of any undisclosed parent or controlling entities.
  • Given there is no parent support, a thorough analysis of the franchisor's own financial health by your accountant is even more critical.
  • Understanding that the franchisor stands alone financially is a key insight to discuss with your business advisor.
Citations: Not applicable

Predecessor History Issues

Medium Risk

Explanation

Item 1 discloses that PaintEZ previously sold franchises under the 'EmeraldPro Painting' trademark and some outlets still operate under that name. However, the FDD does not provide separate historical data (like turnover rates) for the predecessor system. This commingling of data makes it difficult to assess whether the rebrand was related to past system issues and what the true historical performance and stability of the underlying business model has been.

Potential Mitigations

  • It is advisable to ask the franchisor for the specific reasons behind the rebrand from EmeraldPro Painting to PaintEZ.
  • When speaking with franchisees, it is important to ask those who operated under the predecessor brand about their experience and the transition.
  • Your attorney should review the FDD for any further details that might shed light on the predecessor's history.
Citations: Items 1, 20

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that there is no litigation that requires disclosure. This suggests the franchisor has not been recently involved in significant legal disputes with franchisees, regulators, or other parties concerning fraud, contract violations, or other material claims, which is a positive sign.

Potential Mitigations

  • While none is disclosed, your attorney can conduct an independent public records search to look for any other litigation involving the franchisor or its principals.
  • It is always a good practice to ask current and former franchisees if they are aware of any past or pending disputes.
  • Understanding the typical kinds of disputes that can arise in franchising is a topic to discuss with your franchise attorney.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
5
3
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
10
3
3

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
1
3
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.

6

Regulatory & Compliance Risks

Total: 10
4
4
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
2
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.

8

Operational Control Risks

Total: 12
3
4
5

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
9
7
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.