Why Not To Buy A Painting Business Franchise in Lake Forest IL

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Should You Buy a Painting Business Franchise in Lake Forest IL ?

Don't Buy a Painting Business Franchise in Lake Forest 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 Lake Forest 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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• 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 Lake Forest IL

If you are thinking about purchasing a painting franchise business, quit today.
I'm going to break down the basic problems with acquiring a paint franchise business, and also the alternative options you have to start a paint business.

This is based on my experience growing a effective painting service where we took into consideration becoming a franchise however selected a collaboration configuration instead. I listen to the battles of franchisee's continuously, as well as I really feel for them.



Painting Business Franchise in Lake Forest 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 Lake Forest 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 Lake Forest IL ?

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

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BR> I don't desire you to finish up in the exact same position that lots of franchisees discover themselves in.
There is a much better means! We will certainly start with the problems of a franchise business, then we'll get 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 franchise business out there.
These franchise business range from $10,000-$ 40,000 in franchise business fees just for the right to the franchise business in a restricted number of zip codes where you can operate your franchise business.
They likewise take 6-9% as an recurring nobility ... forever.
If you are in organisation for 10 years and you generate $5,000,000 in earnings, this franchise business finishes up costing you upwards of $500,000. That's a steep cost to pay.
And also naturally you obtain some assistance as well as organisation systems, however everything that a franchise business gives can be acquired through other opportunities for a lot less than $500,000.

TROUBLE # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you buy a Painting Business Franchise in Lake Forest IL you are acquiring the civil liberties to that business in a set region. You are appointed a handful of postal code where you have the legal rights to the company.
This is a HUGE problem. The most convenient means to grow and broaden a paint service is by expanding geographically. Franchises remove this right.
Painter Choice is our advertising company. We collaborate with franchisees throughout the nation. I constantly feel dreadful for these local business owner since they have such a tough time producing business.
A common firm in Atlanta, as an example, can utilize our lead service in North Atlanta to produce 20-30 leads each month.
A franchisee in North Atlanta who just possesses the rights to 7-8 zip codes can only create 5-7 leads per month from our lead solution.
Simply put, if those franchisees had their own business, they can promptly increase their company 3-5 times! In various other terms, that suggests an boost from $500,000 to $2,000,000. This is a massive restriction on your prospective company development.
As a franchisee, your only choice is to buy more area, or such it up and keep your service little.
If someone else already owns the close-by territory, you don't have that option.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Fundamentally, franchisees and also the franchisor have actually misaligned rewards. The franchisor desires to create as much revenue as possible since they make money a set percent of earnings.
As the organisation proprietor, your goal is to make best use of revenue.
I'm a huge believer in straightening incentives, as well as in this case, motivations are not straightened. They are playing a different video game than you are. They intend to make the most of profits in all of their regions, and offer as numerous franchises as they can.

PROBLEM # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're purchasing a task. Let me show you why.
Due to nobilities, your margins end up being around 10% -12% nevertheless service costs.
In order to make $100k/year you would certainly have to have a $1,000,000 organisation.
However you can't have a $1,000,000 business in the small area. And even if you can, you're stuck at a optimum of $100,000 for on your own. You're paying $70k-$ 100k/year in royalties of what?
That's a crazy amount of cash to pay your franchise ... the very same business that has an agreement that they hold over your head not enabling you to expand your organisation geographically.
They've got you by the rounds.
Or, you can purchase another region to expand. However once again ... I 'd instead not have to spend for the right to grow my organisation. That's unreasonable.
A lot of franchise business wind up in the $500,000-$ 600,000 range. You can probably make $80,000-$ 110,000, sure. You likewise do not ever have enough margin to hire other people to run the entire organisation, which is one of the best advantages to constructing a business.
You possibly aren't generating enough earnings to also work with really solid employees. In our business, we pay concerning 5-6% to our manufacturing supervisor that looks after $1,000,000 in manufacturing. That's $50,000-$ 60,000 per year for the manager. However if you are only doing $500,000 a year in profits, you can pay 5% ($ 25,000) to your production supervisor, which is insufficient cash for a solid employee.
Your alternatives are to pay a higher portion (killing your earnings margin), or get the job done yourself ( eliminating your way of living). Both of which are not extremely attractive choices.
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IN SUMMARY:
You pay a great deal of cash to limit your development, you do not reach construct your own thing, and if you want to expand geographically you need to spend for the civil liberties to do so ... assuming nobody else currently possesses the civil liberties to the area you are attempting to purchase.
As a result of your limitations, as well as the high nobility cost, you are considerably limited in your capability to grow your revenue, develop a solid group, as well as construct a large organisation.

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 supplied 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 concern of failure
Now, let's take a look at options. Exactly how can you obtain all the benefits without paying the steep rate of a franchise business?

BENEFIT # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the expense of a franchise, you can acquire my company system. This is the exact business system we use as well as adhere to in our service, which did over $3,000,000 in income in 2016.

ADVANTAGE # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My program consists of training and assistance. When you start with Painting Business Academy, you get access to the entire service system as well as 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 additionally join our private members-only Facebook team. We have loads of inquiries asked each day from our members.
Our neighborhood is highly engaged as well as active.
Individuals in our area even share their successes. Simply a few days ago somebody shared a Facebook advertising and marketing approach, word for word, that's eliminating it for their business.

ADVANTAGE # 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 get accessibility to a solid service strategy, business training, and all of the done-for-you kinds and also systems that are proven to build a million-dollar paint organisation.
You additionally obtain access to the incredible neighborhood of similar business owners doing the exact same thing as you that we spoke about earlier. While you do pay 1/10th of the cost up front (on the high-end), you have NO nobilities to pay afterwards.
The possibility of failure is the same whether you remain in a franchise or running your very own organisation. When you buy a franchise, you are taking a bigger risk, implying there's a larger failing if you do fail.

SO WHAT NOW?
Prior to you buy a franchise and also toss thousands of bucks down the bathroom for a tried and tested system, you might wish to look into Painting Business Academy.
Painting Business Academy is additionally a tried and tested system to develop a million-dollar painting firm, with a area of thousands of others. Additionally, there is no ongoing royalty, and no geographical limitations to development.
Get all of the benefits of a Painting Business Franchise in Lake Forest IL for a fraction of the cost. Check the program out right here and call me if you have any inquiries.
The painting business is a excellent business to be in! I wish you'll be a part of it soon.
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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