Why Not To Buy A Painting Business Franchise in Stratmoor CO

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

Should You Buy a Painting Business Franchise in Stratmoor CO ?

Don't Buy a Painting Business Franchise in Stratmoor CO

• 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 Stratmoor CO
• 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
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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 Stratmoor CO

If you are thinking about getting a painting franchise business, quit right now.
I'm going to break down the fundamental issues with getting a painting franchise business, and the alternate options you need to start a painting firm.

This is based upon my experience expanding a successful painting business where we thought about coming to be a franchise business but selected a partnership arrangement rather. I listen to the battles of franchisee's constantly, and I feel for them.



Painting Business Franchise in Stratmoor CO 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 Stratmoor CO 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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What are the disadvantages of a Painting Business Franchise in Stratmoor CO ?

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Is it better to start a painting business or buy a Painting Business Franchise in Stratmoor CO ?

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BR> I don't want you to wind up in the same placement that numerous franchisees locate themselves in.
There is a better method! We will begin with the problems of a franchise business, then we'll get involved in 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 franchise business around.
These franchise business range from $10,000-$ 40,000 in franchise costs just for the right to the franchise business in a restricted number of postal code where you can operate your franchise.
They additionally take 6-9% as an continuous aristocracy ... for life.
If you are in company for 10 years and you generate $5,000,000 in earnings, this franchise ends up costing you upwards of $500,000. That's a steep rate to pay.
As well as certainly you obtain some support as well as business systems, however everything that a franchise provides can be obtained with other opportunities 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 Stratmoor CO you are purchasing the rights to that organisation in a established region. You are designated a tiny number of postal code where you have the civil liberties to business.
This is a HUGE trouble. The easiest method to expand as well as broaden a paint business is by increasing geographically. Franchise business eliminate this right.
Painter Choice is our advertising business. We function with franchisees throughout the nation. I constantly really feel dreadful for these company owner since they have such a tough time producing service.
A typical firm in Atlanta, for instance, can utilize our lead solution in North Atlanta to create 20-30 leads each month.
A franchisee in North Atlanta that just possesses the rights to 7-8 zip codes can just create 5-7 leads per month from our lead service.
In other words, if those franchisees had their very own organisation, they might instantly raise their organisation 3-5 times! In other terms, that means an boost from $500,000 to $2,000,000. This is a large constraint on your possible organisation development.
As a franchisee, your only alternative is to buy more territory, or such it up and also keep your service small.
If somebody else already has the close-by area, you do not have that choice.

ISSUES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Essentially, franchisees and the franchisor have misaligned motivations. The franchisor intends to generate as much earnings as possible due to the fact that they get paid a set percent of earnings.
As the organisation owner, your objective is to optimize revenue.
I'm a large follower in aligning incentives, and in this instance, incentives are not aligned. They are playing a various game than you are. They wish to maximize income in all of their areas, as well as offer as many franchise business as they can.

ISSUE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're getting a job. Let me reveal you why.
Because of nobilities, your margins finish up being around 10% -12% nevertheless service costs.
In order to make $100k/year you 'd need to have a $1,000,000 service.
You can not have a $1,000,000 company in the small area. And also also if you can, you're stuck at a maximum of $100,000 for yourself. You're paying $70k-$ 100k/year in nobilities for what?
That's a ludicrous amount of cash to pay your franchise ... the very same business that has an agreement that they hold over your head not permitting you to expand your business geographically.
They've got you by the spheres.
Or, you can get another area to expand. However once more ... I would certainly rather not need to pay for the right to grow my service. That's absurd.
A lot of franchises finish up in the $500,000-$ 600,000 range. You can most likely make $80,000-$ 110,000, sure. You also don't ever have sufficient margin to employ various other people to run the whole company, which is one of the greatest advantages to constructing a firm.
You probably aren't generating enough earnings to also work with truly solid workers. In our firm, we pay about 5-6% to our production manager who supervises $1,000,000 in production. That's $50,000-$ 60,000 annually for the supervisor. But if you are only doing $500,000 a year in earnings, you can pay 5% ($ 25,000) to your production manager, which is not adequate cash for a strong employee.
Your options are to pay a higher percent (killing your profit margin), or get the job done on your own (killing your way of life). Both of which are not very attractive choices.
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IN SUMMARY:
You pay a great deal of money to limit your development, you don't reach develop your own point, and also if you intend to grow geographically you require to pay for the civil liberties to do so ... presuming nobody else already owns the civil liberties to the territory you are trying to buy.
Because of your restrictions, as well as the high nobility fee, you are significantly restricted in your ability to grow your earnings, develop a strong group, as well as construct a large business.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid organisation plan
# 2-- They do it for the support as well as training offered by the franchise business
# 3-- They do it for the community of other franchisees so they aren't alone
# 4-- They do it out of anxiety of failure
Now, allow's consider solutions. How can you get 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 business, you can buy my service system. This is the exact business system we utilize and also adhere to in our business, which corrected $3,000,000 in revenue in 2016.

ADVANTAGE # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My program consists of training as well as support. When you get begun with Painting Business Academy, you get access to the entire service system and all of the training that supports 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 loads of inquiries asked everyday from our members.
Our area is very involved and also active.
People in our area even share their successes. Just the other day 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 strong service strategy, service training, as well as all of the done-for-you types and systems that are verified to develop a million-dollar painting business.
You also get access to the remarkable area of similar entrepreneurs doing the exact same thing as you that we spoke about previously. While you do pay 1/10th of the cost in advance (on the high-end), you have NO nobilities to pay afterwards.
The probability of failing is the very same whether you are in a franchise business or running your very own business. Nonetheless, when you get a franchise, you are taking a larger danger, meaning there's a bigger failure if you do stop working.

WHAT NOW?
Prior to you purchase a franchise and throw hundreds of bucks down the bathroom for a tried and tested system, you might want to look into Painting Business Academy.
Painting Business Academy is also a tested system to build a million-dollar painting firm, with a area of thousands of others. Additionally, there is no recurring aristocracy, and also no geographical constraints to growth.
Get every one of the benefits of a Painting Business Franchise in Stratmoor CO for a fraction of the price. Check the course out right here as well as call me if you have any type of inquiries.
The paint business is a excellent business to be in! I wish you'll belong of it quickly.
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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