In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Fresh Coat Painters franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Fresh Coat Painters franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Fresh Coat Painters outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Fresh Coat Painters franchise opportunity

Section V – Presentation and analysis of Fresh Coat Painters’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross revenue and gross profit percentage for the 73 single-unit and multi-unit Fresh Coat Painters franchisees (combined) that were open for at least one year before December 31, 2023, operated on a full-time basis in the U.S., reported gross revenue for all 12 months between January 1, 2023 and December 31, 2023, and submitted income statements by March 30, 2024

• 2023 average, median, highest, and lowest gross revenue and gross profit percentage for the 59 single-unit Fresh Coat Painters franchisees that were open for at least one year before December 31, 2023, operated on a full-time basis in the U.S., reported gross revenue for all 12 months between January 1, 2023 and December 31, 2023, and submitted income statements by March 30, 2024

Section VI – Key ratios, comparables, computations, and analyses for the Fresh Coat Painters franchise opportunity (exclusive content for Platinum subscribers)

Section I – Fresh Coat Painters Franchise Costs

• Initial Franchise Fee:  $49,900
• Furniture and Equipment:  $0 to $1,000
• Computer System:  $1,000 to $3,000
• Travel and Living Expenses While Training:  $3,000 to $4,500
• Initial Rent, Telephone, Bank, Licensing Fees, and Other Deposits:  $0 to $2,000
• Insurance:  $2,800 to $8,000
• Grand Opening Promotion:  $3,000 to $4,000
• Compliance with Regulations:  $450 to $1,350
• Additional Funds for 3 Months:  $21,000 to $43,000
• Monthly Office Rental Payment:  $0 to $1,000
• Vehicle:  $0 to $2,500
• Total Estimated Fresh Coat Painters Franchise Costs:  $81,150 to $120,250

Section II – Fresh Coat Painters’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,900
• Royalty Fee:  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 Gross Revenues unless a majority of the cooperative members agree on a higher contribution
• 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

Section III – Number of Franchised and Company-Owned Fresh Coat Painters Outlets

Franchised

2021

• Outlets at the Start of the Year:  165
• Outlets at the End of the Year:  174
• Net Change:  +9

2022

• Outlets at the Start of the Year:  174
• Outlets at the End of the Year:  166
• Net Change:  -8

2023

• Outlets at the Start of the Year:  166
• Outlets at the End of the Year:  174
• Net Change:  +8

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Fresh Coat Painters Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Fresh Coat Painters Franchise (Item 19, 2024 FDD)

• Presented below are historic Gross Revenue and Gross Profit figures for franchised Fresh Coat business owners for the one-year period ending December 31, 2023.

• Only data from franchisees who were open for at least one year, who operated their business on a full-time basis in the United States during the entire period, who reported Gross Revenue for all 12 months of the period, and who submitted income statements by March 30, 2024 were included in the table.

Part 1 – Average Revenue and Gross Profit for Single-Unit and Multi-Unit Franchisees

• There were 174 Fresh Coat franchises (each franchise consists of a single franchise territory) in operation as of December 31, 2023, which were owned by 135 franchisees. Of those, 73 franchisees were open for at least one year before that date, operated their business on a full-time basis in the U.S., reported Gross Revenue for all 12 months between January 1, 2023, and December 31, 2023, and submitted income statements by March 30, 2024.

• This table represents data from 59 Fresh Coat franchisees that owned single units and 14 Fresh Coat franchisees that owned multiple units.

• Number of Franchisees:  73

• Highest Gross Revenue:  $2,502,197
• Average Gross Revenue:  $614,294
• Median Gross Revenue:  $484,642
• Lowest Gross Revenue:  $65,542
• Number of Franchisees Who Attained or Surpassed the Average Gross Revenue:  29
• Percentage of Franchisees Who Attained or Surpassed the Average Gross Revenue:  39.73%

• Highest Gross Profit Percentage:  82.94%
• Average Gross Profit Percentage:  41.99%
• Median Gross Profit Percentage:  42.52%
• Lowest Gross Profit Percentage:  -5.16%
• Number of Franchisees Who Attained or Surpassed the Average Gross Profit Percentage:  37
• Percentage of Franchisees Who Attained or Surpassed the Average Gross Profit Percentage:  50.68%

• Average Time in Operation:  5 years, 5 months

Part 2 – Average Revenue and Gross Profit for Single-Unit Franchisees

• This table represents data only for the 59 Fresh Coat franchisees that owned a single unit and excludes the data from 14 Fresh Coat franchisees who owned multiple units.

• Number of Franchisees:  59

• Highest Gross Revenue:  $1,667,845.79
• Average Gross Revenue:  $533,010
• Median Gross Revenue:  $438,837
• Lowest Gross Revenue:  $65,542
• Number of Franchisees Who Attained or Surpassed the Average Gross Revenue:  30
• Percentage of Franchisees Who Attained or Surpassed the Average Gross Revenue:  50.85%

• Highest Gross Profit Percentage:  82.94%
• Average Gross Profit Percentage:  42.88%
• Median Gross Profit Percentage:  43.07%
• Lowest Gross Profit Percentage:  -5.16%
• Number of Franchisees Who Attained or Surpassed the Average Gross Profit Percentage:  32
• Percentage of Franchisees Who Attained or Surpassed the Average Gross Profit Percentage:  54%

• Average Time in Operation:  5 years, 5 months

• The preceding data has been extracted from royalty reports and income statements submitted to Fresh Coat by its franchisees. The income statements submitted to Fresh Coat were prepared by the franchisee.

• For purposes of this Item 19, “Gross Revenue” means the total of all income arising from the operation of the franchised business, whether cash or credit. It is recognized on an accrual basis and regardless of collection, which means that a franchisee’s Gross Revenue for any period represents how much a franchisee billed its clients during the period, not how much the franchisee received.

• Gross Revenue does not include the amount of refunds and discounts made to clients, or the amount of sales or excise taxes that are separately stated and that the franchisee is required to and does collect from clients and pays to the appropriate taxing authority.

• “Gross Profit” means Gross Revenue minus the cost of direct labor and paint.

• Neither the Gross Revenue figures nor the Gross Profit figures reflect the costs of sales, other operating expenses, or other costs or expenses that must be deducted from Gross Revenue to obtain your net income or profit.

• You should conduct an independent investigation of the costs and expenses you will incur in operating a Fresh Coat franchise. Franchisees and former franchisees listed in the disclosure document may be one source of this information.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – Fresh Coat Painters Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️