Don't Buy A Painting Business Franchise in Richmond CA

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

Should You Buy a Painting Business Franchise in Richmond CA ?

Don't Buy a Painting Business Franchise in Richmond 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 Richmond 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 Richmond CA

If you are considering buying a paint franchise, quit now.
I'm mosting likely to damage down the essential problems with purchasing a paint franchise business, and the alternate options you need to start a paint company.

This is based upon my experience expanding a effective painting organisation where we thought about ending up being a franchise yet selected a collaboration arrangement rather. I listen to the struggles of franchisee's continuously, as well as I really feel for them.



Painting Business Franchise in Richmond 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 Richmond CA a good investment?

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

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

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BR> I do not desire you to wind up in the same setting that several franchisees find themselves in.
There is a far better method! We will start with the problems of a franchise, then we'll get into services.

TROUBLE # 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 bigger franchise business around.
These franchises vary from $10,000-$ 40,000 in franchise business fees simply for the right to the franchise business in a limited number of postal code where you can run your franchise business.
They likewise take 6-9% as an recurring royalty ... for life.
If you stay in business for 10 years as well as you create $5,000,000 in earnings, this franchise finishes up costing you upwards of $500,000. That's a high rate to pay.
As well as obviously you get some assistance and business systems, but everything that a franchise business provides can be obtained with 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 Richmond CA you are purchasing the rights to that company in a set region. You are assigned a tiny number of zip codes where you have the legal rights to business.
This is a HUGE problem. The simplest way to grow and increase a painting business is by increasing geographically. Franchise business take away this.
Painter Choice is our advertising and marketing firm. We deal with franchisees throughout the country. I always really feel horrible for these local business owner because they have such a hard time creating service.
A common business in Atlanta, as an example, can use our lead service in North Atlanta to produce 20-30 leads each month.
Yet a franchisee in North Atlanta who just owns the civil liberties to 7-8 zip codes can just generate 5-7 leads per month from our lead solution.
Simply put, if those franchisees had their own service, they could promptly boost their business 3-5 times! In other terms, that implies an increase from $500,000 to $2,000,000. This is a huge limitation on your potential service development.
As a franchisee, your only option is to acquire more territory, or such it up and keep your organisation tiny.
If somebody else already has the close-by region, you do not have that choice.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Essentially, franchisees as well as the franchisor have actually misaligned rewards. The franchisor wants to produce as much income as feasible since they make money a collection percent of profits.
Yet as business owner, your objective is to optimize earnings.
I'm a large believer in lining up rewards, and also in this instance, rewards are not aligned. They are playing a different video game than you are. They want to optimize revenue in all of their territories, as well as offer as several franchise business as they can.

PROBLEM # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're purchasing a job. Allow me show you why.
Due to royalties, your margins end up being around 10% -12% after all service costs.
In order to make $100k/year you 'd have to have a $1,000,000 business.
Yet you can't have a $1,000,000 company in the small area. As well as even if you can, you're stuck at a optimum of $100,000 for on your own. You're paying $70k-$ 100k/year in aristocracies of what?
That's a ridiculous quantity of cash to pay your franchise business ... the exact same firm that has an contract that they hold over your head not enabling you to expand your company geographically.
They've got you by the rounds.
Or, you can purchase one more territory to expand. Once again ... I would certainly instead not have to pay for the right to expand my organisation. That's silly.
The majority of franchise business end up in the $500,000-$ 600,000 variety. You can most likely make $80,000-$ 110,000, sure. However you also don't ever have enough margin to employ other individuals to run the entire company, which is one of the best benefits to constructing a firm.
You possibly aren't creating sufficient profits to even hire truly solid workers. In our firm, we pay about 5-6% to our manufacturing supervisor that oversees $1,000,000 in manufacturing. That's $50,000-$ 60,000 each year for the manager. If you are just doing $500,000 a year in revenue, you can pay 5% ($ 25,000) to your production manager, which is not sufficient cash for a solid employee.
Your alternatives are to pay a higher portion ( eliminating your earnings margin), or do the work on your own (killing your way of life). Both of which are not really appealing choices.
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IN SUMMARY:
You pay a great deal of cash to restrict your development, you don't reach construct your own point, as well as if you intend to expand geographically you require to spend for the civil liberties to do so ... thinking nobody else already possesses the rights to the area you are shopping.
Due to your restrictions, as well as the high aristocracy cost, you are substantially restricted in your capability to expand your profits, build a strong group, and also construct a large company.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the strong service plan
# 2-- They do it for the assistance as well as training supplied by the franchise business
# 3-- They do it for the community of other franchisees so they aren't alone
# 4-- They do it out of worry of failing
Currently, let's look at remedies. How can you get all the advantages without paying the steep price of a franchise business?

BENEFIT # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the cost of a franchise, you can buy my service system. This is the precise organisation system we make use of and also adhere to in our service, which corrected $3,000,000 in earnings in 2016.

BENEFIT # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My program consists of training and support. When you start with Painting Business Academy, you get access to the whole business system as well as 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 likewise join our exclusive members-only Facebook group. We have loads of questions asked on a daily basis from our participants.
Our neighborhood is highly involved as well as active.
People in our community also share their successes. Simply recently someone shared a Facebook advertising strategy, word for word, that's killing it for their organisation.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more money does not get rid of the fear of failing. With Painting Business Academy, you can obtain access to a strong organisation plan, organisation training, and all of the done-for-you types as well as systems that are shown to develop a million-dollar painting organisation.
You also obtain access to the impressive community of similar business owners doing the same point as you that we spoke about earlier. While you do pay 1/10th of the price up front (on the luxury), you have NO nobilities to pay after that.
The likelihood of failure is the exact same whether you are in a franchise business or running your very own organisation. However, when you get a franchise business, you are taking a bigger danger, indicating there's a larger failure if you do stop working.

WHAT NOW?
Prior to you buy a franchise as well as toss countless bucks down the bathroom for a tested system, you could intend to have a look at Painting Business Academy.
Painting Business Academy is likewise a tried and tested system to build a million-dollar painting company, with a community of thousands of others. Additionally, there is no continuous royalty, and also no geographical constraints to growth.
Get every one of the benefits of a Painting Business Franchise in Richmond CA for a portion of the price. Inspect the training course out here as well as call me if you have any type of inquiries.
The painting business is a fantastic company to be in! I hope 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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