Don't Buy A Painting Business Franchise in Santa Clarita CA

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Should You Buy a Painting Business Franchise in Santa Clarita CA ?

Don't Buy a Painting Business Franchise in Santa Clarita 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 Santa Clarita 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
• Training Support
• 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 Santa Clarita CA

If you are considering acquiring a paint franchise, stop now.
I'm going to break down the essential issues with purchasing a painting franchise business, as well as the different choices you have to begin a paint firm.

This is based upon my experience expanding a effective painting company where we took into consideration ending up being a franchise business however chose a collaboration arrangement rather. I listen to the battles of franchisee's continuously, as well as I really feel for them.



Painting Business Franchise in Santa Clarita 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 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 Santa Clarita CA 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 Santa Clarita CA ?

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

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BR> I don't want you to finish up in the very same placement that numerous franchisees locate themselves in.
There is a much better way! We will certainly begin with the problems of a franchise, after that we'll get 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 franchises around.
These franchises vary from $10,000-$ 40,000 in franchise business fees just for the right to the franchise in a restricted number of postal code where you can operate your franchise business.
They additionally take 6-9% as an ongoing aristocracy ... forever.
If you are in organisation for 10 years as well as you produce $5,000,000 in earnings, this franchise business finishes up costing you upwards of $500,000. That's a high rate to pay.
As well as naturally you get some support and also company systems, yet whatever that a franchise business provides can be gotten via various other methods 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 Santa Clarita CA you are getting the rights to that organisation in a established territory. You are appointed a little number of postal code where you have the legal rights to the organisation.
This is a HUGE problem. The most convenient means to grow as well as increase a painting service is by increasing geographically. Franchise business take away this.
Painter Choice is our marketing company. We deal with franchisees throughout the country. I constantly really feel dreadful for these business owners since they have such a difficult time creating service.
A regular business in Atlanta, for example, can utilize our lead solution in North Atlanta to create 20-30 leads per month.
A franchisee in North Atlanta who just has the legal rights to 7-8 zip codes can only generate 5-7 leads per month from our lead solution.
Simply put, if those franchisees had their very own organisation, they could immediately boost their service 3-5 times! In various other terms, that indicates an rise from $500,000 to $2,000,000. This is a enormous restriction on your possible business development.
As a franchisee, your only choice is to buy even more area, or such it up as well as maintain your company tiny.
Yet if somebody else already possesses the neighboring territory, you do not have that option.

ISSUES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Fundamentally, franchisees as well as the franchisor have misaligned motivations. The franchisor desires to generate as much income as feasible since they make money a set percent of revenue.
As the company proprietor, your goal is to maximize profit.
I'm a huge follower in lining up motivations, as well as in this instance, rewards are not lined up. They are playing a various game than you are. They wish to maximize profits in all of their regions, and market as several franchise business as they can.

PROBLEM # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're acquiring a task. Allow me reveal you why.
Because of nobilities, your margins finish up being around 10% -12% after all overhead.
In order to make $100k/year you would certainly need to have a $1,000,000 company.
But you can't have a $1,000,000 service in the small territory. As well as even if you can, you're stuck at a maximum of $100,000 on your own. You're paying $70k-$ 100k/year in royalties wherefore?
That's a ludicrous quantity of money to pay your franchise ... the very same business that has an arrangement that they hold over your head not allowing you to grow your organisation geographically.
They've got you by the rounds.
Or, you can get one more territory to grow. Again ... I 'd rather not have to pay for the right to grow my business. That's silly.
Most franchise business finish up in the $500,000-$ 600,000 variety. You can most likely make $80,000-$ 110,000, sure. You also do not ever have adequate margin to hire various other people to run the entire organisation, which is one of the best benefits to constructing a business.
You probably aren't creating adequate income to also employ actually solid workers. In our company, we pay concerning 5-6% to our manufacturing supervisor who looks after $1,000,000 in manufacturing. That's $50,000-$ 60,000 per year for the manager. If you are just doing $500,000 a year in earnings, you can pay 5% ($ 25,000) to your production manager, which is not enough cash for a solid staff member.
Your alternatives are to pay a higher portion ( eliminating your revenue margin), or do the work on your own ( eliminating your lifestyle). Both of which are not really appealing alternatives.
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IN SUMMARY:
You pay a great deal of money to restrict your development, you don't obtain to build your very own thing, and if you intend to expand geographically you need to spend for the civil liberties to do so ... thinking nobody else currently owns the rights to the region you are shopping.
Because of your limitations, and the high aristocracy cost, you are substantially limited in your ability to grow your earnings, develop a solid team, and also build a big business.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid company plan
# 2-- They do it for the support and training provided by the franchise
# 3-- They do it for the area of various other franchisees so they aren't alone
# 4-- They do it out of concern of failure
Currently, let's check out services. Just how can you get all the benefits without paying the high rate of a franchise business?

ADVANTAGE # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the cost of a franchise, you can purchase my company system. This is the precise company system we make use of and also follow in our company, which did over $3,000,000 in revenue in 2016.

BENEFIT # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My program consists of training as well as support. When you obtain started with Painting Business Academy, you obtain access to the whole business system as well as all of the training that goes along with 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 private members-only Facebook group. We have lots of inquiries asked everyday from our participants.
Our area is very engaged and active.
Individuals in our neighborhood even share their successes. Simply a few days ago a person shared a Facebook advertising and marketing technique, verbatim, that's killing it for their service.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying even more money does not remove the concern of failing. With Painting Business Academy, you can get accessibility to a solid business strategy, business training, and all of the done-for-you kinds and systems that are shown to build a million-dollar painting company.
You likewise get accessibility to the remarkable community of like-minded entrepreneurs doing the same point as you that we spoke about earlier. While you do pay 1/10th of the expense up front (on the high end), you have NO aristocracies to pay after that.
The chance of failure is the very same whether you are in a franchise or running your own service. Nevertheless, when you buy a franchise business, you are taking a bigger risk, meaning there's a larger failure if you do stop working.

WHAT NOW?
Prior to you invest in a franchise business and throw hundreds of bucks down the bathroom for a proven system, you could wish to take a look at Painting Business Academy.
Painting Business Academy is likewise a tried and tested system to construct a million-dollar painting company, with a neighborhood of thousands of others. In addition, there is no recurring aristocracy, as well as no geographical limitations to development.
Obtain every one of the benefits of a Painting Business Franchise in Santa Clarita CA for a portion of the cost. Check the training course out right here and also contact me if you have any kind of concerns.
The paint business is a great company 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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