Why Not To Buy A Painting Business Franchise in Three Points AZ

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Should You Buy a Painting Business Franchise in Three Points AZ ?

Don't Buy a Painting Business Franchise in Three Points AZ

• 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 Three Points AZ
• 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 Three Points AZ

If you are considering getting a painting franchise, stop right now.
I'm mosting likely to break down the basic problems with acquiring a paint franchise business, as well as the alternate choices you have to begin a paint firm.

This is based upon my experience expanding a effective painting business where we thought about becoming a franchise business however chose a collaboration arrangement instead. I listen to the battles of franchisee's continuously, and also I feel for them.



Painting Business Franchise in Three Points AZ 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 Three Points AZ 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 Three Points AZ ?

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Is it better to start a painting business or buy a Painting Business Franchise in Three Points AZ ?

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BR> I do not want you to end up in the exact same setting that numerous franchisees locate themselves in.
There is a better means! We will begin with the problems of a franchise business, after that we'll enter solutions.

PROBLEM # 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 business charges just for the right to the franchise business in a restricted number of postal code where you can run your franchise.
They additionally take 6-9% as an continuous nobility ... for life.
If you are in organisation for 10 years and also you produce $5,000,000 in revenue, this franchise finishes up costing you upwards of $500,000. That's a high rate to pay.
And also certainly you obtain some support and company systems, yet every little thing that a franchise supplies can be gotten with other methods for a lot less than $500,000.

TROUBLE # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you get a Painting Business Franchise in Three Points AZ you are purchasing the rights to that organisation in a set territory. You are assigned a handful of zip codes where you have the rights to business.
This is a HUGE problem. The simplest method to grow as well as broaden a painting business is by broadening geographically. Franchises take away this.
Painter Choice is our advertising business. We collaborate with franchisees all over the nation. I constantly feel terrible for these entrepreneur since they have such a difficult time producing business.
A regular firm in Atlanta, for instance, can utilize our lead service in North Atlanta to generate 20-30 leads per month.
A franchisee in North Atlanta that only possesses the rights to 7-8 zip codes can only produce 5-7 leads per month from our lead service.
In various other words, if those franchisees had their own service, they could instantly raise their company 3-5 times! In other terms, that means an increase from $500,000 to $2,000,000. This is a huge constraint on your possible service development.
As a franchisee, your only choice is to purchase more territory, or such it up and also keep your company little.
But if somebody else currently possesses the nearby area, you do not have that option.

ISSUES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Basically, franchisees and the franchisor have misaligned incentives. The franchisor intends to create as much earnings as feasible since they make money a collection percent of earnings.
As the business proprietor, your goal is to maximize profit.
I'm a large follower in aligning motivations, and also in this situation, incentives are not lined up. They are playing a various video game than you are. They intend to maximize income in all of their territories, and also sell as numerous franchises as they can.

ISSUE # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're getting a work. Allow me show you why.
Since of aristocracies, your margins wind up being around 10% -12% besides overhead.
In order to make $100k/year you 'd have to have a $1,000,000 business.
But you can not have a $1,000,000 company in the small area. As well as also if you can, you're stuck at a optimum of $100,000 for on your own. You're paying $70k-$ 100k/year in nobilities of what?
That's a crazy amount of money to pay your franchise business ... the exact same firm that has an arrangement that they hold over your head not allowing you to grow your service geographically.
They've got you by the balls.
Or, you can acquire another region to grow. However once again ... I would certainly instead not need to pay for the right to expand my company. That's silly.
A lot of franchises end up in the $500,000-$ 600,000 range. You can probably make $80,000-$ 110,000, sure. Yet you also do not ever before have enough margin to work with other individuals to run the whole organisation, which is among the biggest advantages to developing a firm.
You probably aren't generating sufficient profits to also employ truly solid staff members. In our firm, we pay about 5-6% to our manufacturing supervisor who looks after $1,000,000 in manufacturing. That's $50,000-$ 60,000 annually for the manager. If you are only doing $500,000 a year in income, you can pay 5% ($ 25,000) to your production manager, which is not enough cash for a strong worker.
Your choices are to pay a greater portion ( eliminating your revenue margin), or get the job done yourself ( eliminating your way of living). Both of which are not really attractive options.
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IN SUMMARY:
You pay a great deal of money to limit your growth, you don't obtain to build your own point, and also if you intend to expand geographically you require to spend for the legal rights to do so ... assuming nobody else currently possesses the civil liberties to the region you are trying to acquire.
Due to your constraints, and also the high nobility cost, you are considerably restricted in your capability to expand your profits, develop a strong team, and build a large service.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid company strategy
# 2-- They do it for the support and training offered by the franchise
# 3-- They do it for the area of other franchisees so they aren't alone
# 4-- They do it out of worry of failing
Now, allow's look at options. How can you get all the benefits without paying the steep cost of a franchise business?

ADVANTAGE # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the expense of a franchise, you can buy my organisation system. This is the exact service system we utilize and comply with in our organisation, which corrected $3,000,000 in income in 2016.

ADVANTAGE # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My course includes training and also assistance. When you get begun with Painting Business Academy, you obtain 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 join Painting Business Academy, you also join our personal members-only Facebook team. We have loads of concerns asked on a daily basis from our participants.
Our community is very involved and also active.
Individuals in our area even share their successes. Just a few days ago somebody shared a Facebook advertising technique, word for word, that's killing it for their business.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying even more cash does not get rid of the fear of failure. With Painting Business Academy, you can obtain access to a solid business plan, organisation training, as well as all of the done-for-you forms as well as systems that are proven to build a million-dollar paint business.
You likewise obtain accessibility to the amazing area of like-minded business owners doing the same thing as you that we spoke about previously. While you do pay 1/10th of the expense up front (on the high-end), you have NO royalties to pay after that.
The possibility of failing is the exact same whether you remain in a franchise business or running your own business. When you buy a franchise, you are taking a bigger risk, suggesting there's a larger failure if you do stop working.

WHAT NOW?
Prior to you purchase a franchise as well as toss countless bucks down the commode for a tried and tested system, you could intend to have a look at Painting Business Academy.
Painting Business Academy is likewise a proven system to develop a million-dollar painting company, with a area of thousands of others. Furthermore, there is no ongoing royalty, and also no geographical constraints to growth.
Obtain every one of the advantages of a Painting Business Franchise in Three Points AZ for a fraction of the price. Examine the training course out right here and also call me if you have any concerns.
The paint business is a excellent service to be in! I hope you'll belong of it soon.
Excellent 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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