Don't Buy A Painting Business Franchise in Warren MI

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

Should You Buy a Painting Business Franchise in Warren MI ?

Don't Buy a Painting Business Franchise in Warren 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 Warren 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 Warren MI

If you are believing of purchasing a painting franchise business, quit now.
I'm going to break down the fundamental issues with buying a painting franchise, and the alternate choices you need to start a paint company.

This is based on my experience expanding a effective paint company where we considered ending up being a franchise however chose a partnership setup rather. I hear the battles of franchisee's continuously, as well as I feel for them.



Painting Business Franchise in Warren 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 Warren 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 Warren MI ?

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

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BR> I do not desire you to end up in the same placement that lots of franchisees locate themselves in.
There is a better method! We will certainly start with the issues of a franchise business, after that we'll get involved in remedies.

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 larger franchise business available.
These franchises vary from $10,000-$ 40,000 in franchise fees just 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 recurring aristocracy ... forever.
If you stay in business for 10 years and you create $5,000,000 in revenue, this franchise ends up costing you upwards of $500,000. That's a high price to pay.
As well as naturally you get some support and also organisation systems, however everything that a franchise business offers can be gotten with various other avenues for a lot less than $500,000.

PROBLEM # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you acquire a Painting Business Franchise in Warren MI you are purchasing the civil liberties to that business in a established territory. You are designated a little number of zip codes where you have the civil liberties to business.
This is a HUGE problem. The most convenient way to expand as well as expand a paint organisation is by expanding geographically. Franchises take away this.
Painter Choice is our advertising firm. We collaborate with franchisees around the country. I always feel awful for these company owner since they have such a difficult time producing service.
A common business in Atlanta, for example, can utilize our lead solution in North Atlanta to generate 20-30 leads per month.
Yet a franchisee in North Atlanta who only possesses the legal rights to 7-8 zip codes can only create 5-7 leads monthly from our lead service.
In other words, if those franchisees had their very own service, they might instantly enhance their service 3-5 times! In various other terms, that suggests an rise from $500,000 to $2,000,000. This is a substantial limitation on your potential business growth.
As a franchisee, your only alternative is to acquire more area, or such it up and keep your service small.
However if someone else already owns the neighboring territory, you don't have that alternative.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Fundamentally, franchisees and also the franchisor have actually misaligned incentives. The franchisor intends to generate as much profits as possible since they earn money a set percent of earnings.
But as the organisation owner, your objective is to optimize revenue.
I'm a huge believer in straightening incentives, and also in this instance, incentives are not lined up. They are playing a various video game than you are. They desire to make best use of profits in all of their regions, and also market as numerous franchise business as they can.

PROBLEM # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're purchasing a work. 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 'd have to have a $1,000,000 service.
You can't have a $1,000,000 organisation in the little region. As well as even if you can, you're stuck at a maximum of $100,000 for yourself. You're paying $70k-$ 100k/year in nobilities wherefore?
That's a crazy quantity of cash to pay your franchise business ... the exact same business that has an arrangement that they hold over your head not permitting you to grow your organisation geographically.
They've obtained you by the spheres.
Or, you can buy one more region to expand. But once more ... I 'd rather not need to pay for the right to expand my service. That's silly.
Most franchises finish up in the $500,000-$ 600,000 variety. You can most likely make $80,000-$ 110,000, sure. You additionally do not ever before have sufficient margin to work with other people to run the entire business, which is one of the biggest advantages to constructing a firm.
You most likely aren't generating enough revenue to also work with really strong employees. In our firm, we pay about 5-6% to our manufacturing manager that manages $1,000,000 in production. That's $50,000-$ 60,000 annually for the supervisor. If you are only doing $500,000 a year in income, you can pay 5% ($ 25,000) to your manufacturing supervisor, which is not adequate money for a solid worker.
Your choices are to pay a greater percent ( eliminating your earnings margin), or do the job yourself ( eliminating your way of life). Both of which are not extremely eye-catching choices.
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IN SUMMARY:
You pay a great deal of cash to limit your growth, you do not reach build your very own thing, and if you wish to expand geographically you need to spend for the rights to do so ... thinking nobody else already has the civil liberties to the area you are trying to purchase.
Because of your limitations, as well as the high aristocracy charge, you are considerably restricted in your capability to expand your income, develop a solid team, and build a huge organisation.

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 and training provided by the franchise
# 3-- They do it for the community of various other franchisees so they aren't alone
# 4-- They do it out of fear of failing
Currently, allow's take a look at services. Just how can you obtain all the benefits without paying the high price of a franchise business?

BENEFIT # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the cost of a franchise business, you can buy my service system. This is the specific service system we use and also comply with in our business, which did over $3,000,000 in earnings in 2016.

BENEFIT # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My program includes training and also assistance. When you obtain started with Painting Business Academy, you get accessibility to the entire service 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 additionally join our personal members-only Facebook team. We have loads of questions asked everyday from our participants.
Our community is highly involved and also active.
People in our community also share their successes. Just recently somebody shared a Facebook marketing approach, verbatim, that's eliminating it for their organisation.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more money does not eliminate the fear of failure. With Painting Business Academy, you can get access to a strong organisation plan, service training, and also all of the done-for-you forms and also systems that are proven to develop a million-dollar painting organisation.
You additionally obtain accessibility to the fantastic neighborhood of similar business owners doing the same point as you that we spoke about previously. While you do pay 1/10th of the expense in advance (on the high end), you have NO nobilities to pay after that.
The possibility of failing coincides whether you are in a franchise or running your very own organisation. When you buy a franchise business, you are taking a larger risk, suggesting there's a bigger failure if you do stop working.

SO WHAT NOW?
Before you purchase a franchise business as well as toss thousands of bucks down the toilet for a tested system, you could intend to have a look at Painting Business Academy.
Painting Business Academy is also a tested system to build a million-dollar painting company, with a community of hundreds of others. On top of that, there is no continuous aristocracy, and no geographical constraints to development.
Obtain every one of the advantages of a Painting Business Franchise in Warren MI for a portion of the price. Examine the training course out below and also call me if you have any kind of questions.
The paint business is a terrific company to be in! I hope you'll be a component of it soon.
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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