Why Not To Buy A Painting Business Franchise in Hammond LA

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

Should You Buy a Painting Business Franchise in Hammond LA ?

Don't Buy a Painting Business Franchise in Hammond LA

• 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 Hammond LA
• 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
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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 Hammond LA

If you are thinking about getting a paint franchise business, quit right currently.
I'm mosting likely to break down the basic issues with buying a painting franchise, and also the different choices you have to begin a painting company.

This is based on my experience growing a successful painting organisation where we thought about coming to be a franchise yet opted for a partnership configuration rather. I listen to the battles of franchisee's regularly, and also I really feel for them.



Painting Business Franchise in Hammond LA 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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Is a Painting Business Franchise in Hammond LA a good investment?

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What are the disadvantages of a Painting Business Franchise in Hammond LA ?

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Is it better to start a painting business or buy a Painting Business Franchise in Hammond LA ?

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BR> I do not want you to end up in the same setting that several franchisees locate themselves in.
There is a much better way! We will certainly begin with the issues of a franchise business, after that we'll get right 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 bigger franchises around.
These franchise business range from $10,000-$ 40,000 in franchise charges simply for the right to the franchise in a limited number of postal code where you can run your franchise.
They also take 6-9% as an continuous aristocracy ... for life.
If you are in business for 10 years as well as you create $5,000,000 in income, this franchise winds up costing you upwards of $500,000. That's a steep price to pay.
As well as obviously you get some support and organisation systems, but whatever that a franchise supplies can be obtained through other methods for much less than $500,000.

PROBLEM # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you acquire a Painting Business Franchise in Hammond LA you are acquiring the civil liberties to that service in a set territory. You are assigned a small number of postal code where you have the civil liberties to business.
This is a HUGE issue. The easiest means to expand and increase a paint service is by increasing geographically. Franchises eliminate this right.
Painter Choice is our marketing business. We work with franchisees throughout the country. I constantly really feel terrible for these entrepreneur due to the fact that they have such a tough time creating service.
A common firm in Atlanta, for example, can utilize our lead solution in North Atlanta to produce 20-30 leads each month.
A franchisee in North Atlanta that only has the rights to 7-8 zip codes can just generate 5-7 leads per month from our lead solution.
In various other words, if those franchisees had their very own service, they could instantly raise their business 3-5 times! In various other terms, that indicates an rise from $500,000 to $2,000,000. This is a massive constraint on your prospective service development.
As a franchisee, your only alternative is to acquire more territory, or such it up and also maintain your company tiny.
However if somebody else already owns the nearby territory, you don't have that option.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Basically, franchisees as well as the franchisor have misaligned rewards. The franchisor wishes to produce as much profits as possible due to the fact that they earn money a set percent of income.
However as the company proprietor, your goal is to optimize profit.
I'm a large believer in lining up incentives, and in this instance, motivations are not aligned. They are playing a different game than you are. They desire to make best use of revenue in all of their territories, and sell as many franchise business as they can.

PROBLEM # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're buying a task. Let me reveal you why.
Due to nobilities, your margins end up being around 10% -12% besides business costs.
In order to make $100k/year you would certainly have to have a $1,000,000 organisation.
Yet you can't have a $1,000,000 service in the little area. As well as also if you can, you're stuck at a maximum of $100,000 on your own. You're paying $70k-$ 100k/year in aristocracies for what?
That's a ludicrous quantity of cash to pay your franchise business ... the very same company that has an arrangement that they hold over your head not allowing you to grow your business geographically.
They've obtained you by the rounds.
Or, you can acquire an additional territory to expand. However once more ... I 'd rather not need to pay for the right to expand my organisation. That's absurd.
A lot of franchise business wind up in the $500,000-$ 600,000 array. You can probably make $80,000-$ 110,000, sure. You additionally do not ever before have sufficient margin to work with other people to run the whole service, which is one of the best benefits to building a firm.
You most likely aren't creating adequate profits to also employ really solid employees. In our company, we pay about 5-6% to our production manager who oversees $1,000,000 in production. That's $50,000-$ 60,000 annually for the supervisor. But if you are just doing $500,000 a year in income, you can pay 5% ($ 25,000) to your production supervisor, which is insufficient cash for a solid worker.
Your options are to pay a higher percent (killing your earnings margin), or get the job done on your own ( eliminating your lifestyle). Both of which are not extremely eye-catching choices.
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IN SUMMARY:
You pay a whole lot of money to restrict your growth, you don't obtain to build your own point, and also if you desire to grow geographically you require to pay for the civil liberties to do so ... assuming no one else already owns the rights to the territory you are attempting to purchase.
Because of your constraints, as well as the high nobility cost, you are dramatically limited in your capacity to expand your earnings, develop a solid group, as well as build a large organisation.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid business strategy
# 2-- They do it for the assistance as well as 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, allow's consider services. Exactly how can you get all the benefits without paying the high rate of a franchise?

ADVANTAGE # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the cost of a franchise business, you can buy my organisation system. This is the exact service system we use as well as follow in our service, which did over $3,000,000 in profits in 2016.

BENEFIT # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My course consists of training and also assistance. When you get going with Painting Business Academy, you obtain access to the entire organisation system and all of the training that accompanies that system.

BENEFIT # 3: THEY DO IT FOR THE COMMUNITY SO THEY AREN'T ALONE
When you join Painting Business Academy, you likewise join our exclusive members-only Facebook group. We have dozens of inquiries asked each day from our participants.
Our area is very involved and active.
People in our community even share their successes. Just the other day somebody shared a Facebook advertising approach, verbatim, that's killing it for their business.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more cash does not get rid of the worry of failure. With Painting Business Academy, you can obtain accessibility to a solid company plan, service training, as well as all of the done-for-you kinds and systems that are confirmed to develop a million-dollar painting business.
You additionally obtain accessibility to the amazing community of similar 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 nobilities to pay afterwards.
The possibility of failing coincides whether you are in a franchise or running your own business. However, when you buy a franchise, you are taking a larger threat, meaning there's a bigger failing if you do stop working.

SO WHAT NOW?
Before you purchase a franchise and also toss thousands of dollars down the commode for a tested system, you might wish to inspect out Painting Business Academy.
Painting Business Academy is also a tried and tested system to build a million-dollar painting firm, with a area of numerous others. On top of that, there is no ongoing royalty, and no geographical limitations to development.
Get all of the benefits of a Painting Business Franchise in Hammond LA for a fraction of the price. Examine the course out below as well as contact me if you have any concerns.
The paint business is a great service to be in! I wish 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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