Don't Buy A Painting Business Franchise in Sterling Heights MI

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

Should You Buy a Painting Business Franchise in Sterling Heights MI ?

Don't Buy a Painting Business Franchise in Sterling Heights MI

• 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 Sterling Heights MI
• 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 Sterling Heights MI

If you are assuming of buying a painting franchise business, stop today.
I'm going to damage down the fundamental issues with purchasing a painting franchise business, and also the alternate options you need to start a paint firm.

This is based upon my experience growing a effective painting organisation where we considered becoming a franchise business however chose a collaboration arrangement instead. I listen to the battles of franchisee's regularly, and I feel for them.



Painting Business Franchise in Sterling Heights MI 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 Sterling Heights MI 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 Sterling Heights MI ?

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Is it better to start a painting business or buy a Painting Business Franchise in Sterling Heights MI ?

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BR> I do not want you to finish up in the very same position that lots of franchisees find themselves in.
There is a far better way! We will begin with the troubles of a franchise, then we'll enter into 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 larger franchises around.
These franchises range from $10,000-$ 40,000 in franchise business charges just for the right to the franchise business in a minimal variety of postal code where you can operate your franchise.
They likewise take 6-9% as an recurring nobility ... permanently.
If you are in business for 10 years and also you create $5,000,000 in revenue, this franchise business winds up costing you upwards of $500,000. That's a steep rate to pay.
And also obviously you obtain some support and also company systems, yet whatever that a franchise supplies can be gotten through various other opportunities for a lot less than $500,000.

TROUBLE # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you acquire a Painting Business Franchise in Sterling Heights MI you are getting the rights to that company in a established area. You are appointed a little number of zip codes where you have the legal rights to business.
This is a HUGE issue. The easiest way to expand and also increase a painting company is by broadening geographically. Franchise business take away this.
Painter Choice is our advertising business. We deal with franchisees throughout the nation. I constantly feel terrible for these entrepreneur since they have such a tough time creating business.
A common firm in Atlanta, for instance, can use our lead service in North Atlanta to generate 20-30 leads each month.
But a franchisee in North Atlanta that only has the rights to 7-8 postal code can just create 5-7 leads per month from our lead service.
In various other words, if those franchisees had their own company, they could right away boost their organisation 3-5 times! In various other terms, that implies an increase from $500,000 to $2,000,000. This is a large constraint on your potential organisation development.
As a franchisee, your only option is to purchase more area, or such it up as well as keep your business small.
If a person else already possesses the neighboring region, you do not have that choice.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Basically, franchisees and also the franchisor have actually misaligned rewards. The franchisor wants to generate as much revenue as possible since they obtain paid a collection percent of earnings.
As the service owner, your objective is to make best use of revenue.
I'm a big believer in straightening incentives, and in this instance, motivations are not straightened. They are playing a different game than you are. They intend to optimize income in all of their territories, and also sell as several franchises as they can.

ISSUE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're buying a job. Allow me show you why.
Because of royalties, your margins wind up being around 10% -12% after all overhead.
In order to make $100k/year you would certainly need to have a $1,000,000 service.
But you can't have a $1,000,000 business in the small region. And also also 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 ludicrous quantity of cash to pay your franchise ... the same business that has an arrangement that they hold over your head not permitting you to grow your business geographically.
They've got you by the balls.
Or, you can buy one more region to expand. Yet once more ... I would certainly instead not need to pay for the right to grow my business. That's unreasonable.
The majority of franchise business wind up in the $500,000-$ 600,000 variety. You can most likely make $80,000-$ 110,000, sure. You likewise don't ever have sufficient margin to work with other people to run the entire organisation, which is one of the greatest benefits to constructing a firm.
You possibly aren't creating sufficient earnings to even work with truly solid workers. In our business, we pay concerning 5-6% to our production manager who supervises $1,000,000 in manufacturing. That's $50,000-$ 60,000 each year for the supervisor. If you are just doing $500,000 a year in revenue, you can pay 5% ($ 25,000) to your manufacturing manager, which is not sufficient cash for a strong employee.
Your choices are to pay a higher percentage ( eliminating your revenue margin), or do the work on your own ( eliminating your way of living). Both of which are not very eye-catching choices.
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IN SUMMARY:
You pay a great deal of cash to restrict your growth, you don't get to construct your own point, as well as if you wish to grow geographically you require to spend for the rights to do so ... thinking no one else currently possesses the legal rights to the region you are trying to buy.
As a result of your restrictions, and also the high nobility cost, you are dramatically limited in your capability to expand your revenue, construct a solid team, and develop a big service.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid organisation strategy
# 2-- They do it for the support and training offered 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 consider options. Exactly how can you obtain all the benefits without paying the high rate 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 company system. This is the precise business system we use and follow in our organisation, which did over $3,000,000 in income in 2016.

BENEFIT # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My training course consists of training and also assistance. When you start with Painting Business Academy, you get accessibility to the entire organisation system and all of the training that accompanies 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 private members-only Facebook team. We have loads of concerns asked on a daily basis from our participants.
Our community is very involved and energetic.
People in our area also share their successes. Just recently someone shared a Facebook advertising method, word for word, that's killing it for their organisation.

BENEFIT # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more cash does not get rid of the concern of failure. With Painting Business Academy, you can obtain accessibility to a solid company plan, company training, and all of the done-for-you forms as well as systems that are proven to construct a million-dollar painting company.
You additionally get accessibility to the outstanding neighborhood of similar entrepreneurs doing the very same point as you that we spoke about earlier. While you do pay 1/10th of the price up front (on the high-end), you have NO aristocracies to pay after that.
The chance of failing coincides whether you remain in a franchise or running your very own business. Nonetheless, when you purchase a franchise, you are taking a larger risk, meaning there's a larger failure if you do stop working.

WHAT NOW?
Before you spend in a franchise business as well as throw countless bucks down the bathroom 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 business, with a area of thousands of others. In enhancement, there is no recurring nobility, and also no geographical limitations to growth.
Get all of the advantages of a Painting Business Franchise in Sterling Heights MI for a fraction of the price. Check the program out right here and also call me if you have any concerns.
The paint business is a excellent company to be in! I wish you'll be a part of it quickly.
Great good 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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