Don't Buy A Painting Business Franchise in Grand Rapids MI

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Painting Franchise - PaintingBusinessAcademy.com ##generated-article-tags##

Should You Buy a Painting Business Franchise in Grand Rapids MI ?

Don't Buy a Painting Business Franchise in Grand Rapids MI

• 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 Grand Rapids MI
• 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 Grand Rapids MI

If you are assuming of acquiring a painting franchise, stop right now.
I'm going to break down the basic problems with purchasing a paint franchise business, as well as the different options you have to start a painting company.

This is based upon my experience growing a successful painting company where we took into consideration ending up being a franchise yet selected a collaboration configuration rather. I listen to the struggles of franchisee's frequently, as well as I feel for them.



Painting Business Franchise in Grand Rapids MI 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 Grand Rapids MI 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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What are the disadvantages of a Painting Business Franchise in Grand Rapids MI ?

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Is it better to start a painting business or buy a Painting Business Franchise in Grand Rapids MI ?

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BR> I do not desire you to end up in the exact same placement that numerous franchisees discover themselves in.
There is a better means! We will certainly begin with the issues of a franchise business, then we'll enter services.

PROBLEM # 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 out there.
These franchise business range from $10,000-$ 40,000 in franchise business fees simply for the right to the franchise business in a restricted variety of zip codes where you can run your franchise.
They likewise take 6-9% as an ongoing nobility ... forever.
If you stay in business for 10 years as well as you create $5,000,000 in profits, this franchise business winds up costing you upwards of $500,000. That's a steep price to pay.
And also obviously you get some support as well as company systems, yet whatever that a franchise business supplies can be obtained with other methods for a lot less than $500,000.

TROUBLE # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you acquire a Painting Business Franchise in Grand Rapids MI you are buying the civil liberties to that business in a set territory. You are assigned a handful of zip codes where you have the legal rights to business.
This is a HUGE trouble. The easiest method to expand as well as broaden a painting company is by increasing geographically. Franchises eliminate this right.
Painter Choice is our marketing company. We function with franchisees around the nation. I always feel dreadful for these local business owner because they have such a tough time creating service.
A common firm in Atlanta, for instance, can use our lead service in North Atlanta to create 20-30 leads per month.
A franchisee in North Atlanta that only has the legal rights to 7-8 zip codes can only generate 5-7 leads per month from our lead solution.
To put it simply, if those franchisees had their own organisation, they could promptly raise their organisation 3-5 times! In various other terms, that indicates an boost from $500,000 to $2,000,000. This is a enormous limitation on your prospective company development.
As a franchisee, your only choice is to acquire more region, or such it up and also keep your service little.
But if a person else currently possesses the close-by region, you do not have that option.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Basically, franchisees and also the franchisor have actually misaligned rewards. The franchisor wishes to generate as much earnings as feasible because they obtain paid a collection percent of profits.
Yet as business proprietor, your objective is to maximize earnings.
I'm a huge follower in lining up rewards, and also in this case, motivations are not lined up. They are playing a various video game than you are. They intend to maximize earnings in all of their areas, as well as sell as lots of franchise business as they can.

PROBLEM # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're purchasing a work. Allow me show you why.
Due to royalties, your margins wind up being around 10% -12% besides company costs.
In order to make $100k/year you would certainly need to have a $1,000,000 company.
You can not have a $1,000,000 company in the small territory. As well as also if you can, you're stuck at a optimum of $100,000 for on your own. You're paying $70k-$ 100k/year in royalties wherefore?
That's a ridiculous quantity of money to pay your franchise business ... the same firm that has an arrangement that they hold over your head not enabling you to expand your organisation geographically.
They've got you by the balls.
Or, you can purchase another region to grow. However once more ... I would certainly rather not need to spend for the right to expand my service. That's ridiculous.
Many franchises end up in the $500,000-$ 600,000 range. You can most likely make $80,000-$ 110,000, sure. However you also do not ever have adequate margin to work with other individuals to run the whole company, which is among the best advantages to constructing a business.
You probably aren't producing adequate income to even work with really strong staff members. In our business, we pay regarding 5-6% to our manufacturing manager that looks after $1,000,000 in manufacturing. That's $50,000-$ 60,000 per year for the manager. If you are only doing $500,000 a year in revenue, you can pay 5% ($ 25,000) to your manufacturing supervisor, which is not sufficient money for a solid employee.
Your choices are to pay a greater percent ( eliminating your revenue margin), or do the task yourself (killing your way of life). Both of which are not very appealing choices.
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IN SUMMARY:
You pay a whole lot of cash to restrict your growth, you don't reach construct your very own thing, as well as if you want to expand geographically you require to pay for the civil liberties to do so ... assuming no one else already possesses the civil liberties to the region you are shopping.
As a result of your constraints, and also the high royalty fee, you are significantly restricted in your capacity to expand your revenue, construct a solid team, and build a large organisation.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the strong organisation strategy
# 2-- They do it for the support and training given by the franchise
# 3-- They do it for the neighborhood of other franchisees so they aren't alone
# 4-- They do it out of fear of failing
Now, allow's look at remedies. Just how can you obtain all the benefits without paying the high cost of a franchise business?

ADVANTAGE # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the expense of a franchise business, you can purchase my business system. This is the exact organisation system we use and also adhere to in our service, which corrected $3,000,000 in revenue in 2016.

ADVANTAGE # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My training course consists of training and support. When you obtain begun with Painting Business Academy, you get accessibility to the entire business system and all of the training that supports 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 dozens of inquiries asked everyday from our members.
Our community is extremely involved and active.
Individuals in our community also share their successes. Simply the other day a person shared a Facebook marketing method, word for word, that's killing it for their business.

BENEFIT # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying even more cash does not remove the worry of failure. With Painting Business Academy, you can obtain accessibility to a strong organisation plan, business training, and all of the done-for-you forms and also systems that are shown to build a million-dollar painting organisation.
You likewise get accessibility to the impressive community of similar business owners doing the exact same thing as you that we spoke about earlier. While you do pay 1/10th of the price in advance (on the high end), you have NO royalties to pay afterwards.
The chance of failure is the exact same whether you remain in a franchise business or running your very own company. Nonetheless, when you get a franchise, you are taking a larger danger, meaning there's a bigger failing if you do fail.

SO WHAT NOW?
Prior to you buy a franchise business and throw countless dollars down the commode for a tested system, you could wish to look into Painting Business Academy.
Painting Business Academy is additionally a tried and tested system to build a million-dollar painting business, with a neighborhood of thousands of others. Additionally, there is no ongoing nobility, as well as no geographical restrictions to development.
Get every one of the benefits of a Painting Business Franchise in Grand Rapids MI for a fraction of the cost. Inspect the course out right here and contact me if you have any kind of questions.
The paint business is a excellent service to be in! I hope you'll be a part 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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