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Fresh Coat Franchise ProfileCleaning Franchises > Residential Cleaning |
What Are the Initial Investment Costs for a Fresh Coat Franchise?
The initial investment for a Fresh Coat franchise ranges from $81,150 to $120,250. This includes a franchise fee of $49,900. Prospective franchisees should also consider additional costs such as equipment, supplies, and working capital. Having a minimum net worth of $300,000 to $500,000 is required to ensure financial stability during the startup phase.
What Are the Ongoing Fees Associated with a Fresh Coat Franchise?
Fresh Coat franchisees are subject to ongoing royalty and marketing fees. The royalty fee is set at 6% of gross sales, while a marketing fee of 2% is also required. These fees contribute to the brand's overall marketing efforts and support, helping franchisees maximize their visibility and profitability in the competitive home services market.
What Is the Average Revenue Potential for Fresh Coat Franchisees?
Fresh Coat franchises have shown promising financial performance, with an average annual revenue of $614,294 per unit. The median revenue stands at $533,010, indicating a solid earning potential for franchisees. However, it's important to note that revenue can vary significantly, with the lowest annual revenue reported at $65,542 and the highest reaching $2,502,197.
How Long Does It Take to Break Even with a Fresh Coat Franchise?
Franchisees can expect to break even within approximately 22 months of operation. The investment payback period is relatively quick, averaging around 16 months. This timeline can provide a sense of security for new franchisees, allowing them to plan their financial future effectively as they establish their business in the home services industry.
Fresh Coat Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Fresh Coat Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 165 | 166 | 174 |
| Net Change YoY | 1 | 8 | |
| Franchised Units | 165 | 166 | 174 |
| Net Change YoY | 1 | 8 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
Fresh Coat offers an appealing investment opportunity with an initial investment ranging from $81,150 to $120,250. The franchise fee is set at $49,900, with ongoing royalty fees of 6% and a marketing fee of 2%. Aspiring franchisees should prepare for a cash requirement within the same range as the initial investment, alongside a net worth requirement between $300,000 and $500,000.
Revenue Potential
The average annual revenue per Fresh Coat unit stands at $533,010, with a median revenue of $484,642. Units have reported a wide range of revenue, from as low as $65,542 to as high as $2,502,197. This potential for revenue highlights the brand's ability to cater to various market segments and operational strategies.
Breakeven and Payback
Franchisees can expect to break even within approximately 22 months of operation. The investment payback period is notably shorter, at around 16 months. This favorable timeline makes Fresh Coat an attractive option for those seeking a quicker return on their investment.
Franchise Growth
Fresh Coat has shown steady growth in its franchise network, with 165 units in 2021, increasing to 166 in 2022, and reaching 174 in 2023. This consistent expansion indicates a healthy demand for the franchise model and the effectiveness of its operational strategies.
Financial Performance
The average financial performance of Fresh Coat units reveals a gross profit margin of 41.66%, with an EBITDA of $50,275, representing 8.18% of revenue. These metrics suggest that franchisees can achieve a reasonable level of profitability while managing their operating expenses effectively.
Operational Expenses
Key operational expenses for Fresh Coat include advertising and marketing at $695,608 annually, along with significant costs for professional fees ($274,321) and rent ($110,246). Understanding these expenses is crucial for franchisees to manage their budgets and optimize profitability effectively.
Frequently Asked Questions
The initial investment for a Fresh Coat franchise ranges from $81,150 to $120,250, which includes the franchise fee of $49,900.