Don't Buy A Painting Business Franchise in Scottsdale AZ

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Should You Buy a Painting Business Franchise in Scottsdale AZ ?

Don't Buy a Painting Business Franchise in Scottsdale AZ

• 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 Scottsdale AZ
• 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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• 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 Scottsdale AZ

If you are assuming of acquiring a paint franchise business, quit now.
I'm mosting likely to break down the essential issues with acquiring a painting franchise business, as well as the alternative choices you have to start a paint business.

This is based upon my experience growing a effective paint organisation where we took into consideration coming to be a franchise business however opted for a collaboration arrangement rather. I listen to the battles of franchisee's constantly, and I really feel for them.



Painting Business Franchise in Scottsdale AZ 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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What are the disadvantages of a Painting Business Franchise in Scottsdale AZ ?

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Is it better to start a painting business or buy a Painting Business Franchise in Scottsdale AZ ?

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BR> I don't desire you to finish up in the same position that many franchisees find themselves in.
There is a better way! We will begin with the issues of a franchise, after that we'll get involved in services.

PROBLEM # 1: THE REAL COST OF A PAINTING FRANCHISE
CertaPro Painters, Five Star Painting, 360 Painting, as well as WOW-1-Day Painting are a few of the bigger franchises out there.
These franchise business range from $10,000-$ 40,000 in franchise business charges just for the right to the franchise in a limited number of postal code where you can run your franchise business.
They also take 6-9% as an recurring nobility ... forever.
If you are in organisation for 10 years and also you create $5,000,000 in profits, this franchise business winds up costing you upwards of $500,000. That's a steep rate to pay.
And also obviously you get some support and organisation systems, yet whatever that a franchise business provides can be obtained with various other avenues for much less than $500,000.

TROUBLE # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you acquire a Painting Business Franchise in Scottsdale AZ you are acquiring the legal rights to that service in a established region. You are appointed a handful of zip codes where you have the rights to business.
This is a HUGE issue. The most convenient way to grow and also broaden a painting service is by broadening geographically. Franchises take away this.
Painter Choice is our advertising and marketing company. We function with franchisees all over the country. I constantly really feel horrible for these entrepreneur due to the fact that they have such a tough time creating business.
A typical firm in Atlanta, for instance, can utilize our lead service in North Atlanta to generate 20-30 leads monthly.
However a franchisee in North Atlanta who just has the rights 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 very own service, they can right away increase their service 3-5 times! In other terms, that means an increase from $500,000 to $2,000,000. This is a substantial constraint on your potential service development.
As a franchisee, your only option is to buy even more territory, or such it up as well as keep your business small.
However if another person already has the nearby territory, you do not have that option.

ISSUES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Essentially, franchisees and the franchisor have misaligned motivations. The franchisor wants to produce as much income as feasible since they make money a collection percent of profits.
As the business owner, your objective is to maximize profit.
I'm a large believer in lining up incentives, as well as in this instance, incentives are not aligned. They are playing a different game than you are. They want to make best use of earnings in all of their territories, and market as numerous franchise business as they can.

ISSUE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're buying a job. Allow me show you why.
Due to the fact that of aristocracies, your margins finish up being around 10% -12% besides overhead.
In order to make $100k/year you 'd have 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 maximum of $100,000 for on your own. You're paying $70k-$ 100k/year in aristocracies wherefore?
That's a ludicrous quantity of cash to pay your franchise ... the very same firm that has an contract that they hold over your head not enabling you to expand your organisation geographically.
They've got you by the rounds.
Or, you can buy an additional territory to grow. But once again ... I would certainly rather not need to spend for the right to expand my organisation. That's unreasonable.
The majority of franchises finish up in the $500,000-$ 600,000 range. You can probably make $80,000-$ 110,000, sure. You additionally do not ever before have adequate margin to hire other individuals to run the whole business, which is one of the best advantages to constructing a business.
You possibly aren't creating sufficient earnings to also hire actually strong employees. In our business, we pay concerning 5-6% to our production manager who manages $1,000,000 in manufacturing. That's $50,000-$ 60,000 each year for the manager. Yet if you are only doing $500,000 a year in income, you can pay 5% ($ 25,000) to your production supervisor, which is not enough money for a solid employee.
Your alternatives are to pay a greater portion ( eliminating your profit margin), or do the task yourself ( eliminating your way of living). Both of which are not extremely attractive alternatives.
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IN SUMMARY:
You pay a great deal of cash to limit your growth, you don't reach construct your own thing, and if you intend to grow geographically you need to pay for the civil liberties to do so ... thinking no one else already owns the legal rights to the area you are attempting to buy.
Due to your restrictions, and also the high nobility fee, you are considerably limited in your capacity to grow your revenue, construct a strong group, and construct a huge organisation.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid service strategy
# 2-- They do it for the assistance and training given by the franchise
# 3-- They do it for the community of other franchisees so they aren't alone
# 4-- They do it out of fear of failing
Currently, allow's check out options. Exactly how can you get all the benefits without paying the steep rate of a franchise?

ADVANTAGE # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the cost of a franchise, you can acquire my company system. This is the precise company system we use and also comply with in our business, which corrected $3,000,000 in income in 2016.

ADVANTAGE # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My program includes training and assistance. When you start with Painting Business Academy, you obtain access to the entire organisation system and also all of the training that goes along with that system.

BENEFIT # 3: THEY DO IT FOR THE COMMUNITY SO THEY AREN'T ALONE
When you sign up with Painting Business Academy, you also join our private members-only Facebook team. We have dozens of concerns asked each day from our members.
Our community is extremely engaged and also energetic.
People in our neighborhood also share their successes. Just the other day somebody shared a Facebook advertising strategy, word for word, that's eliminating it for their service.

BENEFIT # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying even more money does not eliminate the concern of failing. With Painting Business Academy, you can obtain accessibility to a solid service strategy, business training, and also all of the done-for-you forms and also systems that are proven to build a million-dollar painting company.
You also get access to the fantastic community of similar entrepreneurs doing the exact same thing as you that we spoke about previously. While you do pay 1/10th of the expense up front (on the high end), you have NO royalties to pay afterwards.
The likelihood of failure coincides whether you are in a franchise business or running your own service. When you buy a franchise, you are taking a bigger danger, implying there's a larger failure if you do fail.

SO WHAT NOW?
Before you buy a franchise business and also toss thousands of bucks down the commode for a tested system, you might want to take a look at Painting Business Academy.
Painting Business Academy is additionally a proven system to build a million-dollar paint company, with a neighborhood of hundreds of others. Additionally, there is no recurring nobility, and no geographical restrictions to growth.
Get all of the advantages of a Painting Business Franchise in Scottsdale AZ for a fraction of the price. Check the training course out below as well as call me if you have any type of inquiries.
The paint business is a great company to be in! I hope you'll be a component 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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