Don't Buy A Painting Business Franchise in Louisville KY

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

Should You Buy a Painting Business Franchise in Louisville KY ?

Don't Buy a Painting Business Franchise in Louisville KY

• 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 Louisville KY
• 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 Louisville KY

If you are thinking about getting a paint franchise business, quit right currently.
I'm going to damage down the basic problems with getting a painting franchise business, and the alternate choices you need to start a painting firm.

This is based upon my experience growing a successful painting business where we took into consideration becoming a franchise but went with a partnership configuration rather. I listen to the battles of franchisee's continuously, as well as I really feel for them.



Painting Business Franchise in Louisville KY 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 Louisville KY 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 Louisville KY ?

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Is it better to start a painting business or buy a Painting Business Franchise in Louisville KY ?

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BR> I do not desire you to end up in the very same position that lots of franchisees find themselves in.
There is a far better method! We will certainly begin with the issues of a franchise business, then we'll enter into options.

PROBLEM # 1: THE REAL COST OF A PAINTING FRANCHISE
CertaPro Painters, Five Star Painting, 360 Painting, and also WOW-1-Day Painting are a few of the larger franchises around.
These franchise business vary from $10,000-$ 40,000 in franchise business charges simply for the right to the franchise business in a minimal variety of zip codes where you can operate your franchise business.
They likewise take 6-9% as an ongoing aristocracy ... permanently.
If you stay in business for 10 years and you generate $5,000,000 in revenue, this franchise winds up costing you upwards of $500,000. That's a steep cost to pay.
And also of program you obtain some assistance and also service systems, but whatever that a franchise business gives can be obtained with other methods for much less than $500,000.

PROBLEM # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you purchase a Painting Business Franchise in Louisville KY you are buying the civil liberties to that service in a set area. You are designated a handful of zip codes where you have the civil liberties to business.
This is a HUGE issue. The simplest method to expand as well as increase a paint organisation is by expanding geographically. Franchises take away this.
Painter Choice is our marketing company. We function with franchisees throughout the country. I always feel awful for these company owner due to the fact that they have such a tough time producing organisation.
A typical firm in Atlanta, as an example, can use our lead service in North Atlanta to create 20-30 leads each month.
However a franchisee in North Atlanta that just possesses the civil liberties to 7-8 postal code can just create 5-7 leads each month from our lead service.
To put it simply, if those franchisees had their own business, they can right away raise their service 3-5 times! In other terms, that indicates an boost from $500,000 to $2,000,000. This is a massive constraint on your potential company development.
As a franchisee, your only choice is to buy more area, or such it up and also maintain your organisation little.
If a person else currently has the close-by territory, you don't have that choice.

PROBLEMS # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Fundamentally, franchisees as well as the franchisor have actually misaligned rewards. The franchisor wants to generate as much income as feasible because they obtain paid a collection percent of earnings.
As the business owner, your objective is to make the most of earnings.
I'm a big believer in aligning incentives, and also in this situation, motivations are not straightened. They are playing a various video game than you are. They intend to take full advantage of revenue in all of their regions, as well as offer as many franchises as they can.

TROUBLE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're buying a task. Let me show you why.
Because of royalties, your margins wind up being around 10% -12% besides organisation expenses.
In order to make $100k/year you 'd have to have a $1,000,000 company.
But you can not have a $1,000,000 business in the tiny region. And also if you can, you're stuck at a optimum of $100,000 on your own. You're paying $70k-$ 100k/year in nobilities of what?
That's a ridiculous amount of cash to pay your franchise ... the same firm that has an contract that they hold over your head not permitting you to expand your company geographically.
They've obtained you by the balls.
Or, you can purchase one more territory to grow. Once again ... I would certainly instead not have to pay for the right to expand my company. That's silly.
Many franchise business finish up in the $500,000-$ 600,000 range. You can probably make $80,000-$ 110,000, sure. You also do not ever before have enough margin to work with various other individuals to run the entire organisation, which is one of the biggest advantages to developing a company.
You possibly aren't producing adequate revenue to even hire really solid employees. In our company, we pay regarding 5-6% to our manufacturing manager who supervises $1,000,000 in production. That's $50,000-$ 60,000 each year for the manager. However if you are only doing $500,000 a year in earnings, you can pay 5% ($ 25,000) to your manufacturing supervisor, which is inadequate money for a solid employee.
Your alternatives are to pay a higher percentage ( eliminating your revenue margin), or get the job done yourself ( eliminating your way of living). Both of which are not extremely appealing alternatives.
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IN SUMMARY:
You pay a whole lot of money to limit your growth, you don't reach construct your very own thing, and if you intend to grow geographically you need to pay for the legal rights to do so ... presuming no one else currently has the civil liberties to the territory you are shopping.
Due to your limitations, as well as the high royalty charge, you are considerably restricted in your capacity to grow your revenue, build a strong group, and also build a huge organisation.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid company strategy
# 2-- They do it for the support and also training offered by the franchise business
# 3-- They do it for the community of various other franchisees so they aren't alone
# 4-- They do it out of fear of failure
Currently, allow's check out options. Just how can you obtain all the advantages without paying the steep price of a franchise?

ADVANTAGE # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the expense of a franchise business, you can buy my company system. This is the exact organisation system we use and adhere to in our business, which did over $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 assistance. When you begin with Painting Business Academy, you get access to the entire business system and also all of the training that supports that system.

ADVANTAGE # 3: THEY DO IT FOR THE COMMUNITY SO THEY AREN'T ALONE
When you sign up with Painting Business Academy, you additionally join our private members-only Facebook team. We have lots of inquiries asked on a daily basis from our members.
Our community is extremely involved and also active.
Individuals in our community even share their successes. Just recently a person shared a Facebook advertising and marketing method, verbatim, that's eliminating it for their service.

BENEFIT # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more money does not eliminate the worry of failure. With Painting Business Academy, you can obtain accessibility to a solid service plan, business training, as well as all of the done-for-you types and systems that are verified to develop a million-dollar paint business.
You additionally obtain accessibility to the outstanding neighborhood of similar business owners doing the same point as you that we spoke about previously. While you do pay 1/10th of the expense in advance (on the high end), you have NO royalties to pay after that.
The likelihood of failure coincides whether you remain in a franchise or running your very own organisation. However, when you purchase a franchise, you are taking a larger danger, implying there's a bigger failure if you do fail.

WHAT NOW?
Prior to you buy a franchise as well as throw countless dollars down the bathroom for a tested system, you might intend to take a look at Painting Business Academy.
Painting Business Academy is also a proven system to develop a million-dollar paint firm, with a area of thousands of others. In enhancement, there is no recurring royalty, and also no geographical restrictions to development.
Obtain all of the advantages of a Painting Business Franchise in Louisville KY for a portion of the cost. Inspect the program out below and also call me if you have any kind of concerns.
The paint business is a excellent service to be in! I hope you'll belong of it soon.
Best of luck!

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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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