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Description
Investment Icon

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.

Fees Icon

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.

Revenue Icon

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.

Breakeven Icon

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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$300,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

16 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$49,900
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

22 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$81,150 - $120,250
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$81,150 - $120,250
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$533,010
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$484,642
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,502,197
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$65,542
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Cleaning Franchises
Category icon A more specific division within the broader industry.

i Category:

Residential Cleaning
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Gary Green
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

10700 Montgomery Road, Suite 210Cincinnati, Ohio 45242
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2005
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

F.C. Franchising Systems, Inc.

Fresh Coat Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

174
The number of locations owned by independent franchisees.

Franchised Units i

174
The number of locations owned and run by the franchisor.

Corporate Units i

0
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 About

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.

Potential About

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.

Metrics About

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.

Fees About

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.

Breakeven About

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.

Units About

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.