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Fresh Coat Franchise Costs & Fees

Date of Incorporation: 2005
Franchising Since: 2005
Headquarters: Cincinnati, Ohio

Business Description: The franchisor is F.C. Franchising Systems, Inc. A Fresh Coat franchise sells painting services.

Franchise Offer: TFranchisees will offer both interior and exterior painting and wallpapering services to the general public, including both residential and commercial clients, through, among other things, direct mail advertising and through referral sources such as real estate agents.

Financial Assistance: Stock Yards Bank & Trust Company (SYBTC) will finance up to $18,000 of the initial franchise fee for a Fresh Coat franchise if the franchisor secures it with an equivalent amount on deposit in an account with SYBTC (the Collateral Account). The franchisor will secure franchisees loan with SYBTC only if they meet our credit standards and they satisfy the franchisor that after diligent efforts franchisees have been unable to obtain financing from other sources. In rare circumstances, the franchisor may directly finance up to $18,000 of the initial franchise fee for one franchise, if it determines that the franchisee’s previous employment and business experience and other factors will make him/her an extraordinary Caring Transitions franchisee, the franchisee meets credit standards, and the franchisee satisfies the franchisor that after diligent efforts the franchisee has been unable to obtain financing from other sources, including SYBTC. Except as disclosed, the franchisor does not offer financing that requires franchisees to confess judgment or waive a defense against the franchisor, does not arrange financing from other sources, and does not receive direct or indirect payments to place financing.

Training and Assistance: The Jump Start Program is a preliminary training phase that franchisees will engage in at home. The franchisor will train up to 2 people to operate the franchise. All of the training is conducted at the franchisor’s corporate headquarters in Cincinnati, Ohio. The Environmental Protection Agency requires certain training and certification for home improvement contractors that may encounter lead based coating in buildings. Before franchisees open their Fresh Coat franchise, they and their employees will need to be trained to comply with this regulation by a certified trainer. The training will be at or near franchisees’ location and will require 8 hours of training for them and 4 to 8 hours for each of their employees. The franchisor may hold regional and/or national meeting with its support personnel and franchisees to discuss sales techniques, service procedures, personnel issues, marketing methods, and to introduce new management tools, marketing programs, and promotional items.

Territory: The franchisor will grant franchisees an exclusive protected territory delineated by Postal ZIP Codes. The territory will have a population of up to 175,000 for the minimum franchise fee. If the population of the territory exceeds 175,000, franchisees must pay an additional franchise fee of $500 for each unit of 1,000 population in excess of 175,000. There is no maximum limit on the population of the territory. The population of the territory will be determined using extrapolated census figures, demographic data, and the franchisor’s designated mapping system. The exclusivity of the territory does not extend to clients that the franchisor identifies as National Accounts.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees wish to do so, and they satisfy the required pre-conditions to renewal, the franchisor will offer them the right to obtain 2 additional 10-year terms.

Obligations and Restrictions: The franchisor does not require that franchisees personally supervise the franchised business, although it recommends that franchisees do so. The franchised business must be directly supervised “on-premises” by a manager who has been approved by the franchisor and has successfully completed the training program. The manager need not have an ownership interest in a franchisee that is a corporation, partnership, limited liability company, or other entity. The manager must sign a written agreement to maintain the confidentiality of any confidential information about Fresh Coat or franchisees’ business that may be disclosed to him or her and a covenant not to compete with the franchisees’ business that is enforceable within their jurisdiction. Franchisees must offer and sell all the products and services, and only the products and services, that the franchisor authorizes. The franchisor has the right to designate some services as optional for franchisees.

Estimated Number of Units: 135

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $44,900 $44,900
Furniture and Equipment $0 $1,000
Computer System $1,000 $3,000
Travel & Living Expenses While Training $500 $1,500
Initial Rent, Telephone, Bank, Licensing Fees, and Other Deposits $0 $2,000
Insurance $2,000 $6,000
Pre-Opening Promotion $3,000 $4,000
Compliance with Regulations $450 $1,350
Monthly Office Rental Payment $0 $1,000
Vehicle $0 $2,000
Additional Funds - 3 months $2,000 $10,000
ESTIMATED TOTAL $53,850 $81,750
Other Fees
Type of Fee Amount
Royalty Fees 6% of Gross Revenues; $300 monthly minimum.
National Branding Fund 2% of Gross Revenues; $350 monthly minimum.
Local Advertising Cooperative Up to 3% of the Gross Revenues unless a majority of the cooperative members agree on a higher contribution.
Transfer Fee The greater of either $10,000 or 3% of the purchase price, plus legal and administrative costs.
Right of First Refusal Fee $3,000
Formation of Business Entity Variable.
Electronic Copies of Marketing Materials Variable.
Technology/Software License Fee $500 to $1,200 per year.
Late Fee Greater of $50.00 or 10% of royalty or branding fee; $50.00 for late installment note payments.
Interest 18%
Audit Fee Cost of audit plus 18% interest on under-payment
Sales/Use Taxes Variable.
Reimbursements Amount of expense advanced plus 18% interest.
Legal Expenses Amount of expense advanced plus 18% interest.
Indemnification Amount of expense advanced plus 18% interest.

The above information has been taken from the FDD of Fresh Coat. Year of FDD: 2016

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