Don't Buy A Painting Business Franchise in East Los Angeles CA

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Should You Buy a Painting Business Franchise in East Los Angeles CA ?

Don't Buy a Painting Business Franchise in East Los Angeles CA

• 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 East Los Angeles CA
• 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
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• Training
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• 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 East Los Angeles CA

If you are assuming of purchasing a painting franchise, stop today.
I'm mosting likely to break down the fundamental issues with purchasing a paint franchise, and the different options you need to start a paint company.

This is based upon my experience growing a successful paint service where we considered coming to be a franchise however decided for a partnership arrangement rather. I hear the battles of franchisee's continuously, as well as I really feel for them.



Painting Business Franchise in East Los Angeles CA 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 can I start a painting business with no money?

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Is a Painting Business Franchise in East Los Angeles CA a good investment?

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Is it hard to start a painting business?

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What are the disadvantages of a Painting Business Franchise in East Los Angeles CA ?

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Is it better to start a painting business or buy a Painting Business Franchise in East Los Angeles CA ?

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BR> I don't want you to finish up in the exact same placement that numerous franchisees locate themselves in.
There is a much better way! We will certainly start with the troubles of a franchise, then we'll get involved in solutions.

TROUBLE # 1: THE REAL COST OF A PAINTING FRANCHISE
CertaPro Painters, Five Star Painting, 360 Painting, as well as WOW-1-Day Painting are a few of the bigger franchises available.
These franchise business range from $10,000-$ 40,000 in franchise business fees just for the right to the franchise in a minimal number of zip codes where you can run your franchise.
They also take 6-9% as an ongoing aristocracy ... forever.
If you are in organisation for 10 years and also you produce $5,000,000 in profits, this franchise business winds up costing you upwards of $500,000. That's a steep price to pay.
And obviously you get some assistance and business systems, however every little thing that a franchise business offers can be obtained through other avenues for much less than $500,000.

ISSUE # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you acquire a Painting Business Franchise in East Los Angeles CA you are getting the civil liberties to that company in a set territory. You are designated a handful of zip codes where you have the legal rights to business.
This is a HUGE problem. The easiest means to expand and expand a paint business is by expanding geographically. Franchises take away this.
Painter Choice is our marketing business. We collaborate with franchisees throughout the nation. I constantly really feel awful for these entrepreneur since they have such a tough time generating service.
A regular company in Atlanta, for instance, can use our lead solution in North Atlanta to produce 20-30 leads monthly.
A franchisee in North Atlanta who just possesses the legal rights to 7-8 zip codes can just create 5-7 leads per month from our lead service.
To put it simply, if those franchisees had their own business, they could instantly raise their company 3-5 times! In various other terms, that means an rise from $500,000 to $2,000,000. This is a large restriction on your prospective company development.
As a franchisee, your only choice is to buy more area, or such it up and maintain your service little.
If a person else currently possesses the nearby region, you don't have that choice.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Basically, franchisees as well as the franchisor have misaligned rewards. The franchisor wishes to generate as much revenue as feasible since they make money a set percent of income.
Yet as the service owner, your objective is to optimize revenue.
I'm a huge believer in straightening motivations, and in this case, rewards are not straightened. They are playing a various game than you are. They want to make the most of revenue in all of their territories, and sell as several franchises as they can.

TROUBLE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're acquiring a task. Let me reveal you why.
As a result of aristocracies, your margins finish up being around 10% -12% after all business costs.
In order to make $100k/year you 'd need to have a $1,000,000 business.
But you can not have a $1,000,000 organisation in the tiny region. And also also if you can, you're stuck at a maximum of $100,000 for yourself. You're paying $70k-$ 100k/year in nobilities wherefore?
That's a ridiculous quantity of money to pay your franchise business ... the very same company that has an contract that they hold over your head not enabling you to grow your service geographically.
They've got you by the balls.
Or, you can acquire another area to expand. Yet once again ... I would certainly instead not have to spend for the right to grow my company. That's ridiculous.
Most franchises wind up in the $500,000-$ 600,000 range. You can probably make $80,000-$ 110,000, sure. But you additionally don't ever have enough margin to employ other people to run the entire business, which is among the biggest advantages to developing a firm.
You possibly aren't producing sufficient revenue to also employ actually solid staff members. In our company, we pay concerning 5-6% to our manufacturing manager that manages $1,000,000 in production. That's $50,000-$ 60,000 per year for the supervisor. If you are just doing $500,000 a year in revenue, you can pay 5% ($ 25,000) to your production manager, which is not enough cash for a strong employee.
Your choices are to pay a greater portion (killing your profit margin), or do the work on your own ( eliminating your way of living). Both of which are not very eye-catching options.
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IN SUMMARY:
You pay a great deal of cash to restrict your development, you do not reach develop your own point, as well as if you wish to expand geographically you need to pay for the civil liberties to do so ... thinking no one else currently owns the legal rights to the area you are attempting to get.
Because of your limitations, as well as the high nobility fee, you are considerably limited in your capacity to grow your income, develop a solid team, and construct a large company.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid company strategy
# 2-- They do it for the assistance and training supplied by the franchise
# 3-- They do it for the neighborhood of other franchisees so they aren't alone
# 4-- They do it out of concern of failure
Currently, allow's take a look at solutions. Just how can you obtain all the benefits without paying the high cost of a franchise business?

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

BENEFIT # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My training course consists of training as well as support. When you get begun with Painting Business Academy, you obtain accessibility to the entire company system and also all of the training that goes along with 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 group. We have dozens of questions asked every day from our members.
Our neighborhood is highly engaged and also active.
People in our neighborhood even share their successes. Just the other day someone shared a Facebook marketing strategy, verbatim, that's killing it for their service.

BENEFIT # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more money does not remove the worry of failure. With Painting Business Academy, you can get access to a solid business plan, service training, and all of the done-for-you forms as well as systems that are proven to construct a million-dollar painting organisation.
You likewise get accessibility to the remarkable community of similar entrepreneurs doing the same thing as you that we talked around previously. While you do pay 1/10th of the cost up front (on the luxury), you have NO nobilities to pay afterwards.
The possibility of failure coincides whether you remain in a franchise or running your own organisation. When you purchase a franchise business, you are taking a bigger danger, implying there's a bigger failing if you do stop working.

WHAT NOW?
Before you buy a franchise as well as toss thousands of dollars down the bathroom for a tried and tested system, you might want to examine out Painting Business Academy.
Painting Business Academy is likewise a tried and tested system to build a million-dollar painting firm, with a community of thousands of others. In enhancement, there is no continuous royalty, and also no geographical restrictions to growth.
Obtain all of the benefits of a Painting Business Franchise in East Los Angeles CA for a fraction of the price. Check the course out below as well as contact me if you have any type of concerns.
The painting business is a terrific company to be in! I hope you'll belong of it quickly.
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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