Don't Buy A Painting Business Franchise in Chicago IL

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Should You Buy a Painting Business Franchise in Chicago IL ?

Don't Buy a Painting Business Franchise in Chicago IL

• An Important Note About Our Methodology
• Learn About Our Process
• Our Story
• Why Franchise
• The Process
• Your Investment
• Problem 1 The REAL Cost of a Painting Business Franchise in Chicago IL
• Problem 2 How Franchises Screw Your Ability to Grow Your Business
• Problems 3 Do They Really Care About What You Care About
• Problem 4 You re Buying a Job Not a Business
• With All These Problems Why do People do It
• So what now
• Understanding the Ranking
• Our Purpose
• Opportunity Guide
• Home Services Franchise Industry
• Top Painting News
• Franchise News Room
• News By Industry
• About
• Training Support
• Training
• Support
• Full Support Complete Control

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• Learn How a $1,000,000 Painting Business Works
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• The franchise fee for a territory with a population of between 175,000 and 200,000 is $44,900. If the population of your territory exceeds 200,000, you must pay an additional $500 for each 1,000-population unit (or any portion of a 1,000-population unit) in excess of 200,000.

• For example, for a territory with a population of 201,135, the total franchise fee would be $45,900 .

• The initial franchise fee is fully earned and non-refundable upon receipt.

• During the first 24 months after you purchase your first franchise, you may be eligible for a 10% discount on the then-current initial franchise fee for each additional franchise that you purchase. To be eligible for this discount, you must pay the entire franchise fee at the time you sign the Franchise Agreement for the initial franchise and for each additional franchise.

• Fresh Coat is a member of the International Franchise Association and participates in the IFA’s Veterans Transition Franchise Initiative (“VetFran Program”), which encourages franchise ownership by offering financial incentives to honorably discharged veterans of the U.S. Armed Forces. Fresh Coat offers a $2,000 discount on the initial franchise fee to veterans who meet Fresh Coat’s requirements and those of the VetFran program.

2.  Deposit:  $5,000

• You can reserve a specific territory for up to 30 days by paying a $5,000 deposit and sending Fresh Coat a signed Deposit Remittance Form. The deposit is fully earned and non-refundable upon Fresh Coat’s receipt, in consideration of its reservation and removal from the market of your territory for 30 days, and will be applied toward your initial franchise fee.

3.  Website Fee:  $95

• You must pay an initial Website Fee of $95 to cover the cost and maintenance of website(s) you will use in the operation of the business.

4.  Right of First Refusal:  $3,000

• Your Franchise Agreement does not give you any option, right of first refusal, or similar right to acquire additional franchises, but you may purchase a right of first refusal to purchase an additional franchise territory. The price for a right of first refusal is $3,000, which would be credited toward the initial franchise fee if you exercise the right of first refusal.

• A right of first refusal would give you the right to purchase a specific territory first if another prospective purchaser shows an interest in purchasing the territory within 1 year after you purchase the right of first refusal.

• You would have 7 calendar days after notice by Fresh Coat to exercise the right. Fresh Coat must receive the entire balance of the then-current initial franchise fee for the territory by the seventh day after you receive the notice.

• A right of first refusal lasts for 1 year.

5.  Royalty Fee:  6% of Gross Revenues; $300 monthly minimum

• Due Date:  Payable by the fifth day of each month.

• Paid on Gross Revenues for preceding month ending on Friday.

6.  National Branding Fund:  2% of Gross Revenues; $350 monthly minimum

• Due Date:  Payable by the fifth day of each month.

7.  Local Cooperative Advertising:  up to 3% of your Gross Revenues unless a majority of the cooperative members agree on a higher contribution

• Due Date:  Monthly.

• If an advertising cooperative is established or operating in your area, you must contribute.

8.  Transfer Fee:  the greater of either $10,000 or 3% of the purchase price, plus legal and administrative costs

• Due Date:  Prior to consummation of transfer.

• Payable when you sell your franchise; no Transfer Fee is payable for transfers to a company you form for the convenience of ownership.

9.  Lead Referral Fee:  $10,000

• Due Date:  Upon a transfer of your franchise to a buyer who was already listed in Fresh Coat’s sales database at the time you and the buyer began discussing a sale.

• Intended to partially reimburse Fresh Coat for its costs in developing leads who then purchase from existing owners.

10.  Formation of Business Entity:  variable

• Due Date:  Within 90 days after signing the Franchise Agreement.

• If you sign the Franchise Agreement individually, then you must form a business entity (such as a corporation) and assign your individual rights in the franchise to the business entity.

11.  Grand Opening Promotion:  $3,000 to $4,000

• Due Date:  1-2 months before opening.

• Before opening, you must spend at least $3,000, as directed by Fresh Coat, on a grand opening promotion.

12.  Electronic Copies of Marketing Materials:  variable

• Due Date:  Upon order by you.

• Should you request electronic copies of marketing materials, you will need to reimburse the national branding fund for its costs in creating the materials.

13.  Technology/Software License Fee:  $95

• Due Date:  Monthly.

• You must pay a fee for technology/proprietary software that Fresh Coat licenses or makes available to you for use in the operation of the business.

14.  Website Fee:  $95

• Due Date:  Monthly.

• You must pay a fee to cover the cost and maintenance of website(s) and web hosting services Fresh Coat makes available for your use in the business.

15.  Franchisee Meetings:  $350 per person

• Due Date:  Prior to attending meeting.

• Fresh Coat may hold regional and/or national meetings with its support personnel and franchisees.

16.  Late Fee:  greater of $100 or 10% of royalty or branding fee; $50 for ACH payments returned for insufficient funds; $100 for late sales reports or other business records

• Due Date:  On demand.

• You must pay a late fee on any payment or sales report that Fresh Coat receives more than 5 days late.

17.  Interest:  18%

• Due Date:  On demand.

• In addition to the late fee above, any payments more than 30 days late accrue interest at the rate of 18% per year.

18.  Audit Fee:  cost of audit, plus 18% interest on underpayment

• Due Date:  On demand.

• Payable only if audit is prompted by your failure to maintain or submit records or audit shows an understatement of Gross Revenues of at least 3% for any week.

19.  Territory Amendment Fee:  $1,500

• Due Date:  Prior to amending territory.

• If Fresh Coat allows you to amend your franchise territory, you must pay a fee to compensate it for its costs.

20.  Sales/Use Taxes:  variable

• Due Date:  Payable with your royalty or national branding fee payments.

• You must pay any state or local sales or use tax that may be assessed on the royalties, advertising fees, or other fees you pay to Fresh Coat.

21.  Reimbursements:  amount of expense advanced, plus 18% interest

• Due Date:  On demand.

• You must reimburse Fresh Coat if it pays your expenses if you fail to so do, such as rent, taxes, customer refunds, or other liabilities.

22.  Legal Expenses:  amount of expense advanced, plus 18% interest

• Due Date:  On demand.

• You must pay any legal expenses Fresh Coat incurs, including attorney fees, to enforce your Franchise Agreement.

23.  Mapping Software Updates:  $200

• Due Date:  On demand.

• Fresh Coat may, from time-to-time, need to update its internal map-keeping software to reflect demographic and population changes in your territory; if Fresh Coat does so, it may charge you a reasonable fee, not to exceed $200, to compensate it for its costs.

24.  Indemnification:  amount of expense advanced, plus 18% interest

• Due Date:  On demand.

• You must reimburse Fresh Coat fully if it is held liable for claims arising from your business.

WHY YOU OUGHT TO NOT BUY A Painting Business Franchise in Chicago IL

If you are considering purchasing a painting franchise, quit today.
I'm going to damage down the fundamental problems with purchasing a paint franchise, as well as the alternative options you have to start a paint business.

This is based on my experience expanding a effective painting organisation where we took into consideration coming to be a franchise but chose a partnership setup rather. I hear the battles of franchisee's constantly, and I really feel for them.



Painting Business Franchise in Chicago IL FAQs
How much does it cost to open your own franchise?

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Are painting companies profitable?

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How much is a Five Star Painting Franchise?

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Is painting a good business to start?

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How much do painters make?

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How much money can you make owning a painting business?

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How can I start a painting business with no money?

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Is painting a good trade?

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Is a Painting Business Franchise in Chicago IL a good investment?

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Is it hard to start a painting business?

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How can I promote my painting business?

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How do I market my painting business?

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What are the disadvantages of a Painting Business Franchise in Chicago IL ?

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Is it better to start a painting business or buy a Painting Business Franchise in Chicago IL ?

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BR> I do not desire you to finish up in the same position that many franchisees locate themselves in.
There is a better means! We will certainly begin with the problems of a franchise business, after that we'll get involved in solutions.

ISSUE # 1: THE REAL COST OF A PAINTING FRANCHISE
CertaPro Painters, Five Star Painting, 360 Painting, and WOW-1-Day Painting are a few of the larger franchises around.
These franchises vary from $10,000-$ 40,000 in franchise business charges simply for the right to the franchise business in a minimal number of zip codes where you can run your franchise business.
They also take 6-9% as an ongoing aristocracy ... permanently.
If you are in service for 10 years and you create $5,000,000 in earnings, this franchise winds up costing you upwards of $500,000. That's a high price to pay.
And of course you obtain some assistance and business systems, yet whatever that a franchise provides can be gotten through various other opportunities for much less than $500,000.

ISSUE # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you buy a Painting Business Franchise in Chicago IL you are acquiring the rights to that organisation in a established region. You are appointed a small number of postal code where you have the legal rights to business.
This is a HUGE problem. The most convenient method to expand as well as broaden a paint organisation is by broadening geographically. Franchise business eliminate this right.
Painter Choice is our advertising company. We work with franchisees around the nation. I always feel horrible for these business proprietors due to the fact that they have such a difficult time generating company.
A normal company in Atlanta, as an example, can utilize our lead solution in North Atlanta to generate 20-30 leads each month.
A franchisee in North Atlanta who just owns the legal rights to 7-8 zip codes can just produce 5-7 leads per month from our lead service.
Simply put, if those franchisees had their own business, they could promptly raise their business 3-5 times! In various other terms, that suggests an increase from $500,000 to $2,000,000. This is a substantial limitation on your potential company development.
As a franchisee, your only choice is to acquire more area, or such it up and also maintain your service little.
If someone else already possesses the neighboring area, you don't have that alternative.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Essentially, franchisees and also the franchisor have misaligned rewards. The franchisor wishes to generate as much revenue as possible since they obtain paid a collection percent of profits.
As the company owner, your goal is to optimize profit.
I'm a large believer in lining up motivations, and also in this case, incentives are not aligned. They are playing a various video game than you are. They desire to maximize earnings in all of their areas, and market as several franchise business as they can.

ISSUE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're getting a job. Allow me show you why.
Because of nobilities, your margins end up being around 10% -12% after all overhead.
In order to make $100k/year you 'd have to have a $1,000,000 company.
You can not have a $1,000,000 business in the tiny region. As well as also if you can, you're stuck at a optimum of $100,000 on your own. You're paying $70k-$ 100k/year in aristocracies of what?
That's a crazy amount of cash to pay your franchise ... the exact same business that has an agreement that they hold over your head not enabling you to grow your organisation geographically.
They've obtained you by the spheres.
Or, you can get an additional territory to grow. Once more ... I would certainly rather not have to pay for the right to grow my service. That's ridiculous.
A lot of franchise business end up in the $500,000-$ 600,000 variety. You can probably make $80,000-$ 110,000, sure. You also don't ever before have adequate margin to employ various other individuals to run the entire service, which is one of the biggest advantages to constructing a company.
You most likely aren't creating enough profits to even hire really solid staff members. In our business, we pay concerning 5-6% to our manufacturing supervisor who looks after $1,000,000 in production. That's $50,000-$ 60,000 annually for the manager. Yet if you are only doing $500,000 a year in income, you can pay 5% ($ 25,000) to your manufacturing manager, which is not sufficient cash for a solid staff member.
Your alternatives are to pay a greater percent ( eliminating your revenue margin), or get the job done yourself ( eliminating your way of living). Both of which are not extremely attractive choices.
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IN SUMMARY:
You pay a great deal of money to restrict your development, you do not get to construct your own thing, and if you wish to expand geographically you need to spend for the legal rights to do so ... presuming nobody else currently possesses the civil liberties to the territory you are shopping.
Due to your constraints, and the high aristocracy cost, you are dramatically restricted in your ability to grow your earnings, build a strong group, as well as build a huge business.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the strong company plan
# 2-- They do it for the support as well as training supplied by the franchise
# 3-- They do it for the community of various other franchisees so they aren't alone
# 4-- They do it out of worry of failing
Currently, allow's take a look at services. Exactly how can you obtain all the benefits without paying the steep rate of a franchise?

BENEFIT # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the expense of a franchise, you can buy my business system. This is the specific organisation system we use as well as comply with in our service, which corrected $3,000,000 in profits in 2016.

ADVANTAGE # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My course includes training and assistance. When you get started with Painting Business Academy, you get accessibility to the whole organisation system as well as all of the training that accompanies that system.

BENEFIT # 3: THEY DO IT FOR THE COMMUNITY SO THEY AREN'T ALONE
When you join Painting Business Academy, you likewise join our personal members-only Facebook team. We have loads of questions asked daily from our participants.
Our area is extremely engaged and active.
People in our neighborhood even share their successes. Simply the various other day somebody shared a Facebook advertising and marketing method, word for word, that's killing it for their organisation.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more cash does not eliminate the fear of failing. With Painting Business Academy, you can get access to a strong service strategy, organisation training, as well as all of the done-for-you forms and systems that are shown to develop a million-dollar paint business.
You also get accessibility to the incredible community of similar business owners doing the very same point as you that we spoke around earlier. While you do pay 1/10th of the expense up front (on the high-end), you have NO royalties to pay afterwards.
The probability of failure coincides whether you are in a franchise business or running your very own business. However, when you get a franchise, you are taking a larger risk, suggesting there's a larger failure if you do fall short.

WHAT NOW?
Before you purchase a franchise business and toss hundreds of dollars down the commode for a tested system, you may intend to have a look at Painting Business Academy.
Painting Business Academy is likewise a tried and tested system to construct a million-dollar painting company, with a area of hundreds of others. On top of that, there is no recurring royalty, as well as no geographical constraints to growth.
Obtain all of the advantages of a Painting Business Franchise in Chicago IL for a fraction of the cost. Examine the course out below and also call me if you have any kind of concerns.
The painting business is a wonderful service to be in! I wish you'll belong of it soon.
All the best!

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You don't necessarily need a college degree, a bunch of money in the bank or even painting business experience to start something that could become the next major success. However, you do need a strong plan and the drive to see it through.
If you're here, odds are you already have the drive, but you might not know how to start building your painting empire.
That why we are here.
1. Evaluate yourself.
Let's start with the most basic question: Why do you want to start a painting business? Use this question to guide what kind of painting business you want to start. If you want extra money, maybe you should start a side hustle. If you want more freedom, maybe it's time to leave your 9-to-5 job and start something new.
Once you have the reason, start asking yourself even more questions to help you figure out the type of painting business you should start, and if you have what it takes.
What skills do you have?
Where does your passion lie?
Where is your area of expertise?
How much can you afford to spend, knowing that many painting businesses fail?
How much capital do you need?
What sort of lifestyle do you want to live?
Are you even ready to be an entrepreneur?
Be brutally honest with your answers. This will create a foundation for everything you do moving forward, so it's better to know the truth now than later.

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