Why Not To Buy A Painting Business Franchise in Arlington Heights IL

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Should You Buy a Painting Business Franchise in Arlington Heights IL ?

Don't Buy a Painting Business Franchise in Arlington Heights IL

• 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 Arlington Heights IL
• 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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• News By Industry
• 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 Arlington Heights IL

If you are considering getting a paint franchise business, stop today.
I'm mosting likely to damage down the basic issues with getting a paint franchise business, and also the alternative options you need to begin a painting firm.

This is based upon my experience growing a effective paint service where we took into consideration ending up being a franchise business but went with a collaboration arrangement instead. I hear the struggles of franchisee's constantly, and also I feel for them.



Painting Business Franchise in Arlington Heights IL 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 Arlington Heights IL 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 Arlington Heights IL ?

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

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BR> I do not desire you to end up in the very same placement that several franchisees locate themselves in.
There is a much better means! We will start with the issues of a franchise, after that we'll enter into solutions.

ISSUE # 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 franchises available.
These franchise business vary from $10,000-$ 40,000 in franchise charges simply for the right to the franchise business in a limited number of postal code where you can operate your franchise business.
They also take 6-9% as an recurring aristocracy ... for life.
If you are in company for 10 years and you create $5,000,000 in revenue, this franchise business winds up costing you upwards of $500,000. That's a high rate to pay.
And also obviously you obtain some support and organisation systems, however everything that a franchise business gives can be acquired through various other methods for a lot less than $500,000.

PROBLEM # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you buy a Painting Business Franchise in Arlington Heights IL you are purchasing the civil liberties to that service in a set region. You are assigned a handful of zip codes where you have the civil liberties to business.
This is a HUGE issue. The easiest method to expand and expand a painting company is by increasing geographically. Franchises take away this.
Painter Choice is our marketing business. We collaborate with franchisees all over the nation. I always feel horrible for these company owner since they have such a tough time generating organisation.
A common company in Atlanta, for instance, can use our lead service in North Atlanta to create 20-30 leads monthly.
But a franchisee in North Atlanta that only possesses the rights to 7-8 zip codes can just create 5-7 leads monthly from our lead solution.
Simply put, if those franchisees had their very own company, they could immediately increase their business 3-5 times! In other terms, that suggests an rise from $500,000 to $2,000,000. This is a massive constraint on your potential company development.
As a franchisee, your only choice is to buy more region, or such it up as well as keep your organisation tiny.
Yet if somebody else currently possesses the close-by area, you do not have that option.

PROBLEMS # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Essentially, franchisees and also the franchisor have misaligned rewards. The franchisor wishes to generate as much profits as feasible since they obtain paid a collection percent of earnings.
As the business proprietor, your objective is to take full advantage of earnings.
I'm a big believer in lining up incentives, and also in this situation, motivations are not aligned. They are playing a various video game than you are. They wish to make the most of profits in all of their regions, as well as market as lots of franchises as they can.

ISSUE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're purchasing a job. Allow me reveal you why.
Because of aristocracies, your margins finish up being around 10% -12% after all company costs.
In order to make $100k/year you would certainly have to have a $1,000,000 service.
Yet you can not have a $1,000,000 organisation in the small area. As well as even if you can, you're stuck at a optimum of $100,000 on your own. You're paying $70k-$ 100k/year in nobilities wherefore?
That's a ridiculous amount of cash to pay your franchise business ... the same business that has an arrangement that they hold over your head not permitting you to expand your business geographically.
They've obtained you by the balls.
Or, you can acquire one more region to expand. But once more ... I would certainly rather not need to pay for the right to expand my company. That's silly.
Many franchise business end up in the $500,000-$ 600,000 range. You can possibly make $80,000-$ 110,000, sure. You likewise do not ever before have enough margin to work with various other individuals to run the entire business, which is one of the biggest advantages to building a company.
You possibly aren't producing enough earnings to even employ really solid workers. In our company, we pay regarding 5-6% to our manufacturing manager who oversees $1,000,000 in manufacturing. That's $50,000-$ 60,000 each year for the manager. However if you are just doing $500,000 a year in income, you can pay 5% ($ 25,000) to your production manager, which is not nearly enough cash for a solid employee.
Your options are to pay a greater percentage ( eliminating your revenue margin), or get the job done on your own ( eliminating your lifestyle). Both of which are not very eye-catching alternatives.
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IN SUMMARY:
You pay a great deal of money to limit your development, you don't reach build your own point, and if you wish to grow geographically you need to pay for the rights to do so ... presuming nobody else already has the civil liberties to the territory you are trying to acquire.
Because of your constraints, and also the high nobility charge, you are dramatically restricted in your ability to grow your earnings, construct a strong team, as well as construct a big business.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid company strategy
# 2-- They do it for the assistance and training supplied 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 fear of failure
Now, let's look at solutions. Just how can you get all the advantages 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 organisation system. This is the precise company system we make use of as well as adhere to in our company, which corrected $3,000,000 in revenue in 2016.

BENEFIT # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My program includes training as well as assistance. When you start with Painting Business Academy, you obtain accessibility to the entire organisation 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 sign up with Painting Business Academy, you likewise join our personal members-only Facebook team. We have lots of concerns asked everyday from our participants.
Our neighborhood is very engaged as well as energetic.
People in our area even share their successes. Just a few days ago somebody shared a Facebook marketing strategy, verbatim, that's eliminating it for their company.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying even more cash does not eliminate the anxiety of failing. With Painting Business Academy, you can get access to a solid company strategy, organisation training, as well as all of the done-for-you types and also systems that are shown to develop a million-dollar painting company.
You additionally get accessibility to the impressive community of like-minded entrepreneurs doing the very same thing as you that we discussed previously. While you do pay 1/10th of the expense in advance (on the luxury), you have NO nobilities to pay after that.
The likelihood of failing is the very same whether you remain in a franchise business or running your own service. However, when you purchase a franchise business, you are taking a larger risk, implying there's a larger failing if you do fall short.

SO WHAT NOW?
Prior to you invest in a franchise and also toss thousands of dollars down the bathroom for a proven system, you might want to have a look at Painting Business Academy.
Painting Business Academy is also a tried and tested system to build a million-dollar paint firm, with a community of thousands of others. In addition, there is no continuous nobility, and no geographical limitations to development.
Get every one of the benefits of a Painting Business Franchise in Arlington Heights IL for a portion of the rate. Examine the course out below as well as contact me if you have any inquiries.
The paint business is a terrific company to be in! I wish you'll be a part of it quickly.
Excellent 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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