Don't Buy A Painting Business Franchise in Redondo Beach CA

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Should You Buy a Painting Business Franchise in Redondo Beach CA ?

Don't Buy a Painting Business Franchise in Redondo Beach 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 Redondo Beach 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
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• News By Industry
• About
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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 Redondo Beach CA

If you are assuming of purchasing a paint franchise, quit now.
I'm going to damage down the essential troubles with buying a painting franchise, and the alternative choices you have to begin a painting company.

This is based upon my experience expanding a successful painting organisation where we thought about ending up being a franchise business but decided for a partnership arrangement instead. I listen to the struggles of franchisee's continuously, as well as I really feel for them.



Painting Business Franchise in Redondo Beach CA FAQs
How much does it cost to open your own franchise?

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How much is a Five Star Painting Franchise?

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Is a Painting Business Franchise in Redondo Beach CA a good investment?

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What are the disadvantages of a Painting Business Franchise in Redondo Beach CA ?

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Is it better to start a painting business or buy a Painting Business Franchise in Redondo Beach CA ?

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BR> I don't desire you to end up in the exact same setting that several franchisees discover themselves in.
There is a better way! We will begin with the issues of a franchise, then we'll get right into solutions.

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 bigger franchise business out there.
These franchise business vary from $10,000-$ 40,000 in franchise business fees simply for the right to the franchise business in a restricted number of zip codes where you can operate your franchise business.
They additionally take 6-9% as an ongoing aristocracy ... forever.
If you stay in business for 10 years and also you generate $5,000,000 in income, this franchise ends up costing you upwards of $500,000. That's a steep rate to pay.
And also of program you get some support as well as organisation systems, however everything that a franchise business gives can be gotten with various other opportunities for a lot less than $500,000.

PROBLEM # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you get a Painting Business Franchise in Redondo Beach CA you are getting the civil liberties to that company in a set region. You are designated a handful of zip codes where you have the rights to the company.
This is a HUGE issue. The simplest method to expand and also broaden a paint organisation is by increasing geographically. Franchise business remove this right.
Painter Choice is our marketing business. We work with franchisees throughout the nation. I constantly feel terrible for these business proprietors since they have such a difficult time producing organisation.
A common business in Atlanta, as an example, can use our lead service in North Atlanta to create 20-30 leads per month.
But a franchisee in North Atlanta who just possesses the legal rights to 7-8 zip codes can just create 5-7 leads each month from our lead service.
In other words, if those franchisees had their own service, they might instantly raise their business 3-5 times! In other terms, that implies an increase from $500,000 to $2,000,000. This is a enormous limitation on your prospective company growth.
As a franchisee, your only option is to acquire even more region, or such it up and also keep your service little.
If someone else currently owns the close-by area, you don't have that alternative.

PROBLEMS # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Basically, franchisees as well as the franchisor have actually misaligned rewards. The franchisor wants to produce as much revenue as possible due to the fact that they make money a collection percent of profits.
As the business proprietor, your goal is to make best use of earnings.
I'm a large follower in lining up rewards, as well as in this situation, rewards are not aligned. They are playing a different video game than you are. They wish to optimize revenue in all of their territories, and also market as many franchise business as they can.

ISSUE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're buying a task. Let me show you why.
Due to nobilities, your margins finish up being around 10% -12% besides business costs.
In order to make $100k/year you 'd need to have a $1,000,000 company.
However you can not have a $1,000,000 business in the small area. And even if you can, you're stuck at a maximum of $100,000 on your own. You're paying $70k-$ 100k/year in aristocracies for what?
That's a ridiculous amount of cash to pay your franchise ... the exact same company that has an arrangement that they hold over your head not enabling you to grow your company geographically.
They've obtained you by the spheres.
Or, you can get one more region to expand. However again ... I 'd rather not have to pay for the right to grow my business. That's unreasonable.
The majority of franchise business end up in the $500,000-$ 600,000 range. You can most likely make $80,000-$ 110,000, sure. You likewise don't ever have sufficient margin to employ various other people to run the whole organisation, which is one of the best benefits to constructing a business.
You probably aren't creating adequate income to even work with really strong employees. In our company, we pay concerning 5-6% to our production manager that looks after $1,000,000 in manufacturing. That's $50,000-$ 60,000 each year for the supervisor. But if you are just doing $500,000 a year in income, you can pay 5% ($ 25,000) to your production supervisor, which is inadequate cash for a strong staff member.
Your choices are to pay a higher percentage (killing your profit margin), or do the work yourself (killing your way of living). Both of which are not extremely eye-catching alternatives.
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IN SUMMARY:
You pay a great deal of cash to restrict your growth, you do not reach build your own point, and also if you want to expand geographically you require to pay for the legal rights to do so ... presuming nobody else already owns the rights to the area you are trying to buy.
As a result of your constraints, and the high nobility cost, you are substantially restricted in your ability to grow your profits, develop a strong team, and construct a large service.

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 and also training supplied by the franchise business
# 3-- They do it for the area of other franchisees so they aren't alone
# 4-- They do it out of anxiety of failure
Now, let's take a look at solutions. Just how can you obtain all the benefits without paying the high 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 service system. This is the exact organisation system we utilize as well as adhere to in our service, which corrected $3,000,000 in income in 2016.

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

ADVANTAGE # 3: THEY DO IT FOR THE COMMUNITY SO THEY AREN'T ALONE
When you join Painting Business Academy, you additionally join our exclusive members-only Facebook group. We have dozens of questions asked daily from our participants.
Our neighborhood is highly involved and also active.
People in our area even share their successes. Simply the other day someone 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 fear of failing. With Painting Business Academy, you can obtain accessibility to a solid organisation plan, organisation training, and also all of the done-for-you kinds and systems that are shown to construct a million-dollar painting company.
You likewise get accessibility to the amazing community of similar business owners doing the very same point as you that we chatted about earlier. While you do pay 1/10th of the price in advance (on the high end), you have NO nobilities to pay after that.
The possibility of failure coincides whether you remain in a franchise or running your very own company. However, when you acquire a franchise, you are taking a bigger risk, implying there's a bigger failing if you do fail.

SO WHAT NOW?
Before you buy a franchise as well as throw hundreds of bucks down the bathroom for a tested system, you could intend to look into Painting Business Academy.
Painting Business Academy is additionally a proven system to construct a million-dollar painting firm, with a community of thousands of others. On top of that, there is no continuous aristocracy, and also no geographical limitations to development.
Obtain all of the advantages of a Painting Business Franchise in Redondo Beach CA for a fraction of the rate. Check the program out below and contact me if you have any kind of inquiries.
The painting business is a wonderful business to be in! I wish you'll belong of it quickly.
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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