Fresh Coat Franchise Costs, Fees & FDD

Year Business Began: 2005

Franchising Since: 2005

Headquarters: Cincinnati, Ohio

Estimated Number of Units: 190

Franchise Description: The franchisor is F.C. Franchising Systems, Inc. The franchisor offers franchises to operate painting businesses under the trade name “Fresh Coat.” Franchisees 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.
Training Overview: The Base Coat Program is a preliminary training phase that franchisees will engage in at home. If this is the franchisee’s first Fresh Coat franchise then, before the franchisee opens the franchise, the franchisor will train up to two people to operate the franchise. All of the training is conducted at the franchisor’s corporate headquarters in Cincinnati, Ohio. The initial training program is mandatory—the franchisee, or the person designated as responsible for the general oversight and management of the franchised business, must begin the training program within 90 days after they sign the Franchise Agreement and complete it to the franchisor’s satisfaction, or it has the right to terminate the franchise. At the present time, the franchisor does not require franchisees to attend other training programs after their successful completion of the initial training program, although it has the right to require additional training. The franchisor also provides training for additional or replacement managers, for which it may also charge a reasonable fee. 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 franchisor may hold regional and/or national meetings with its support personnel and franchisees to discuss sales techniques, service procedures, personnel issues, and marketing methods, and to introduce new management tools, marketing programs, and promotional items. The franchisor may, in its discretion, visit the franchisee’s office from time to time in order to provide additional operational support.

Territory Granted: The franchisor will grant franchisees an exclusive protected territory delineated by postal codes. The territory will have a population of between 175,000 and 200,000 for the minimum franchise fee. If the population of the territory exceeds 200,000, franchisees must pay an additional franchise fee of $500 for each unit of 1,000 population in excess of 200,000. 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.

Obligations and Restrictions: The franchisor does not require that franchisees personally supervise the franchised business, although it recommends that franchisees do so. Each 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 the franchisee’s business that may be disclosed to him or her and a covenant not to compete with the franchisee’s business that is enforceable within the franchisee’s jurisdiction. Franchisees are required to offer and sell only those products and services that the franchisor has authorized. Franchisees are prohibited from offering any other products and services without the franchisor’s approval. Franchisees must offer all products and services that the franchisor designates as required for all franchise owners. The franchisor has the right to designate some services as optional for franchise owners in certain markets.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If franchisees wish to do so, and they satisfy the required pre-conditions to renewal, the franchisor will offer them the right to acquire a successor franchise term of 15 years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,900	$49,900
Furniture and Equipment	$0	$1,000
Computer System	$1,000	$3,000
Travel & Living Expenses While Training	$3,000	$4,500
Initial Rent, Telephone, Bank, Licensing Fees, and Other Deposits	$0	$2,000
Insurance	$2,800	$8,000
Grand Opening Promotion	$3,000	$4,000
Compliance with Regulations	$450	$1,350
Additional Funds – 3 months	$21,000	$43,000
Monthly Office Rental Payment	$0	$1,000
Vehicle	$0	$2,500
ESTIMATED TOTAL	$81,150	$120,250

Other Fees

Type of Fee	Amount
Royalty Fees	6% down to 4% of gross revenues; $500 monthly minimum for 1st year; $1,000 monthly minimum thereafter.
National Branding Fund	2% of gross revenues; $350 monthly minimum.
Local Cooperative Advertising	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 $12,500 or 5% of the purchase price, plus legal and administrative costs.
Lead Referral Fee	$10,000
Formation of Business Entity	Variable.
Grand Opening Promotion	$3,000 to $4,000
Electronic Copies of Marketing Materials	Variable.
Technology/Software License Fee	$499
Local Advertising	The greater of 10% of gross revenues or $3,000 for first three years of operation; the greater of 8% of gross revenues or $3,000 thereafter.
Franchisee Owner Meetings	$599 per person.
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; $250 for late annual income statement.
Interest	18%
Audit Fee	Cost of audit plus 18% interest on under-payment.
Territory Amendment Fee	$1,500
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 compiled from the FDD of Fresh Coat. Year of FDD: 2025.

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