About GFH Pinot's Palette Franchise
Pinot's Palette is a paint and sip franchise offering guided painting classes in an upscale, social atmosphere where guests enjoy wine, beverages, and snacks while creating art.
Relaunched under GFH PP, LLC in 2023, the brand delivers an entertaining group experience that blends creativity with socializing, appealing to date night crowds, corporate groups, and friends looking for a unique outing.
The initial franchise fee is $30,000.
GFH Pinot's Palette Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | The greater of (i) 7% of Net Sales or (ii) the Minimum Royalty Fee of $500 per month. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 5% of Net Sales (currently not charged) | National brand fund |
| Total Investment Range | $101,466 – $250,599 | Includes build-out, inventory, working capital |
The investment range of $101K–$251K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of (i) 7% of Net Sales or (ii) the Minimum Royalty Fee of $500 per month.) and marketing fee (Up to 5% of Net Sales (currently not charged)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $30,000 | $30,000 |
| Business Licenses & Permits | $500 | $3,500 |
| Leasehold Improvements | $12,000 | $75,000 |
| Bar Build-Out | $0 | $9,800 |
| Fixtures, Furnishings & Equipment | $20,000 | $40,000 |
| External Signage | $5,000 | $11,000 |
| Computer System | $4,516 | $5,399 |
| Architect/Engineering Fees | $2,000 | $10,000 |
| Rent, Security Deposits and Utility Deposits | $4,500 | $10,500 |
| Other Professional Fees | $550 | $3,000 |
| Insurance Deposit | $800 | $1,900 |
| Initial Inventory of General and Art Supplies | $4,500 | $15,500 |
| Training Expenses | $100 | $2,000 |
| Grand Opening Advertising | $8,000 | $8,000 |
| Additional Funds (for the initial 3 months of operations) | $9,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $2,000 |
| Technology Fee | $250-$550 per month (currently $250 per month) |
| Audit Fee | Actual costs and expenses associated with the audit, including reasonable accounting and legal costs (if understatement of 3% or more) |
| Local Advertising and Promotion | $1,000 per month |
| Call Center Fees | $200 to $1,000 per month, plus a commission of a percentage of any customer acquisitions (currently not charged) |
| Additional on-site training and assistance | $500 per additional person; $500 per-diem charge per trainer plus out-of-pocket costs |
| Product and Services Purchases | Ongoing costs will vary upon future quantities ordered |
| Product/Supplier Testing and Evaluation Costs | Varies – the costs of testing and evaluation |
| Charges for “mystery customer” quality control evaluation | Will vary under circumstances |
| Late Fee and Interest on Overdue Payments | A late fee equal to 5% of your overdue amount, and interest equal to 1.5% per month (but not more than any maximum rate set by law) |
| Annual Convention Registration | $799 per attendee (based on early bird pricing, may increase annually) |
| Gift Card Program | An amount equal to the actual cost of the Gift Cards |
| Location Refurbishment | Will vary under circumstances |
| Prohibited Product, Service or unapproved Advertisement Fine | $250 per day of use of unauthorized products, services or unapproved advertisement |
| Insurance Procurement | An amount equal to our actual cost to obtain insurance coverage for you if you fail to obtain the required insurance coverage |
| Relocation Expenses | $2,000, provided that if our actual expenses exceed this amount, you must pay the amount which exceeds the fee |
| Securities Offering | Our actual expenses |
| Tax Assessment | Our actual expenses |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | All amounts we are held liable for claims arising from your operation of the Franchised Location, as well as your use of the Proprietary Marks |
| Standard Default Fee | Up to $500 per month per violation |
| Additional Cure Expenses, Collection Costs, and Post Termination / Expiration Expenses | Our cost and expense if we take action to cure any default by you under the Franchise Agreement, including costs of collection for unpaid amounts |
| Liquidated Damages | $500 per month for each month remaining in the Franchise Agreement had it not been terminated |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 46 to 91 hours of classroom training and 75 hours of on-the-job training |
| Classroom Training | 46 to 91 Hours |
| On-the-Job Training | 75 Hours |
| Training Location | In Pearland, Texas or virtually |
| Additional Training | Franchisor may require additional on-site supervision or supplemental training, or if franchisee requests it, for a per-diem charge of $500 per trainer plus out-of-pocket costs. Franchisees are responsible for transportation, lodging, meals, wages, and worker's compensation insurance for trainees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | A diameter of miles surrounding the Approved Location, or by postal ZIP code(s), physical boundaries such as streets and highways, or city and county limits. |
| Description | The size and scope of the Territory will vary based on factors such as whether the Approved Location is an urban or suburban area, the number of residents, and the number of competitive locations. During the term of the Franchise Agreement, the franchisor will not establish or license other Pinot's Palette Locations within the Territory, with some exceptions. For Area Development Agreements, the Development Area is protected, and its size is determined on a case-by-case basis. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two (2) additional terms of 10 years each |
| Renewal Fee | $2,000 |
| Renewal Conditions | Franchisee must provide written notice 6-12 months prior to expiration, satisfy all monetary and contractual obligations, execute a mutual general release, sign the then-current franchise agreement (which may have different terms/fees), comply with current qualification/training requirements, renovate/modernize premises to current standards, provide evidence of right to possession of premises, and satisfy financial responsibility standards. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Transfer requires franchisor's prior written consent and is subject to conditions including: all monetary and outstanding obligations satisfied, no default under any agreement, transferor executes a general release, transferee is designated as a Principal and guarantees obligations, transferee meets financial/operational qualifications, transferee executes the then-current franchise agreement (which may have higher fees), transferee upgrades the Franchised Location to current standards, transferor remains liable for prior obligations, and transferee/manager attends required training. |
| Termination for Cause | Franchisor may terminate with 7 days' notice for failure to pay monies due, refusal to permit inspections, failure to operate during specified hours, or failure to provide unimpeded access to computer systems. Termination with 30 days' notice for other curable defaults. Automatic termination for insolvency, bankruptcy, felony conviction, abandonment, misuse of proprietary marks, or breach of material provisions not susceptible to cure. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, franchisee (and immediate family members of principals) may not divert business to competitors, perform acts prejudicial to goodwill, or have more than a 1% interest in a Competitive Business (defined as any business offering group painting instruction, paint and sip center, or similar art projects/events). After termination or expiration, a 2-year non-compete applies within 20 miles of the former location or any other Pinot's Palette location, and prohibits subleasing/assigning the former location's assets for a Competitive Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an entity, a Designated Principal (owning at least 10% beneficial interest) must be involved in general oversight and management. Either the Designated Principal or an approved General Manager must assume full-time responsibility for daily supervision and operation of the Franchised Location. |
| Required Suppliers | Franchisees must purchase all products and services from approved suppliers, which may include the franchisor or its affiliates (Thrifty Gear, Fundio, FranchiCzar). The franchisor may designate a single supplier for any products, equipment, supplies, or services. Specific designated suppliers include a sign vendor, qualified licensed general contractor, and approved architect/engineer. |
| Supply Restrictions | Franchisees may not purchase, offer, or sell any unapproved products, services, or Location Items. The franchisor reserves the right to disapprove products, services, or suppliers to consolidate system purchases or for any other reason. Unapproved suppliers or products require written request and evaluation/testing at the franchisee's expense. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates reserve the right to receive rebates, payments, or other compensation from suppliers, generally ranging from 5% to 15% of purchases made by franchisees from the vendor. There may also be fixed rebates on supplies and services. There are no caps or limitations on the maximum amount of rebates received. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor does not provide direct financing but facilitates third-party financing through Guidant Financial Group, Inc. and Benetrends, Inc. These services include 401(k) business financing (Rollovers for Business Start-Ups/Rainmaker Program), SBA loans, equipment leasing, and portfolio loans. Guidant charges fees for its services ($4,995 for 401k, $2,500 for SBA, $250-$500 for equipment leasing, 2-3% for portfolio loans). Benetrends charges $4,995 for Rainmaker Program and $6,950 for SBA Elite Program ($2,500 for SBA Program, $4,950 for Fleet Program, or 2% of loan amount). The franchisor receives a $1,000 referral fee for clients engaging in Guidant's or Benetrends' retirement rollover programs. |
GFH Pinot's Palette Franchise Earnings — Item 19
GFH Pinot's Palette does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
GFH Pinot's Palette Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
GFH Pinot's Palette System Growth
GFH Pinot's Palette currently operates 72 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 2 | 36 | 93 |
| 2021 | 1 | 12 | 82 |
| 2022 | 0 | 10 | 72 |
Transfers: 8 | Closures: 56
State Registrations
Registered in 12 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, VA, WA, WI
Franchisor Financials (Item 21)
GFH Pinot's Palette Franchise — FAQ
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