Detailed Information on Fresh Coat Painters’ Initial Franchise Fee, Royalty Fee + 19 Other Fees (Items 5 and 6, 2026 FDD)
1. Initial Franchise Fee: $54,900
- The franchise fee for a territory with a population of between 175,000 and 200,000 is $54,900. If the population of your territory exceeds 200,000, you must pay an additional $500 for each 1,000-population unit (or any portion of a 1,000-population unit) in excess of 200,000.
- For example, for a territory with a population of 201,135, the total franchise fee would be $55,900 [$54,900 + (2 x $500)].
- The initial franchise fee is fully earned and non-refundable upon receipt.
- After you purchase your first franchise, you may be eligible for a 10% discount on the then-current initial franchise fee for each additional franchise that you purchase. To be eligible for this discount, you must pay the entire franchise fee at the time you sign the Franchise Agreement for the initial franchise and for each additional franchise.
- Fresh Coat is a member of the International Franchise Association and participates in the IFA’s Veterans Transition Franchise Initiative (“VetFran Program”), which encourages franchise ownership by offering financial incentives to honorably discharged veterans of the U.S. Armed Forces. Fresh Coat offers a discount of up to 15% of the initial franchise fee to veterans who meet Fresh Coat’s requirements and those of the VetFran program.
2. Deposit: $10,000
- You can reserve a specific territory for up to 30 days by paying a $10,000 deposit and sending Fresh Coat a signed Remittance Form. The deposit is fully earned and non-refundable upon Fresh Coat’s receipt, in consideration of its reservation and removal from the market of your territory for 30 days, and will be applied toward your initial franchise fee.
3. Royalty Fee: 6% down to 4% of Gross Revenues; $500 monthly minimum for 1st year; $1,000 monthly minimum thereafter
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
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- Paid on Gross Revenues for preceding month; the actual rate you pay will depend upon your annual Gross Revenues.
4. National Branding Fund: 2% of Gross Revenues; $350 monthly minimum
- Due Date: Payable by the fifth day of each month.
5. Local Cooperative Advertising: up to 3% of your Gross Revenues unless a majority of the cooperative members agree on a higher contribution
- Due Date: Monthly.
- If an advertising cooperative is established or operating in your area, you must contribute.
6. Transfer Fee: the greater of either $12,500 or 5% of the purchase price, plus legal and administrative costs
- Due Date: Prior to consummation of transfer.
- Payable when you sell your franchise; no Transfer Fee is payable for transfers to a company you form for the convenience of ownership.
7. Lead Referral Fee: $10,000
- Due Date: Upon the sale of your franchise to a third-party buyer who was already listed in Fresh Coat’s sales database at the time you and the buyer began discussing a sale.
- Intended to partially reimburse Fresh Coat for its costs in developing leads who then purchase from existing owners.
8. Formation of Business Entity: variable
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Due Date: Within 90 days after signing the Franchise Agreement.
- If you sign the Franchise Agreement individually, then you must form a business entity (such as a corporation) and assign your individual rights in the franchise to the business entity.
9. Grand Opening Promotion: $3,000 to $4,000
- Due Date: 1-2 months before opening.
- Before opening, you must spend at least $3,000, as directed by Fresh Coat, on a grand opening promotion.
10. Electronic Copies of Marketing Materials: variable
- Due Date: Upon order by you.
- Should you request electronic copies of marketing materials, you will need to reimburse the national branding fund for its costs in creating the materials.
11. Technology/Software License Fee: $499
- Due Date: Monthly.
- You must pay a fee for technology/proprietary software that Fresh Coat licenses or makes available to you for use in the operation of the business.
12. Local Advertising: the greater of 10% of Gross Revenues or $3,000 for the first three years of operation; the greater of 8% of Gross Revenues or $3,000 thereafter
- Due Date: Monthly.
- You are required to spend the greater of 10% of Gross Revenues or $3,000 a month per territory on local advertising for the first three years of operation and the greater of 8% of Gross Revenues or $3,000 per territory thereafter.
13. Franchisee Owner Meetings: $599 per person
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Due Date: Prior to attending meeting.
- Fresh Coat may hold regional and/or national meetings with its support personnel and franchise owners.
14. 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
- Due Date: On demand.
- You must pay a late fee on any payment or sales report that Fresh Coat receives more than 5 days late.
15. Interest: 18%
- Due Date: On demand.
- In addition to the late fee above, any payments more than 30 days late accrue interest at the rate of 18% per year.
16. Audit Fee: cost of audit, plus 18% interest on underpayment
- Due Date: On demand.
- Payable only if audit is prompted by your failure to maintain or submit records or audit shows an understatement of Gross Revenues of at least 3%.
17. Territory Amendment Fee: $1,500
- Due Date: Prior to amending territory.
- If Fresh Coat allows you to amend your franchise territory, you must pay a fee to compensate it for its costs.
18. Sales/Use Taxes: variable
- Due Date: Payable with your royalty or national branding fee payments.
- You must pay any state or local sales or use tax that may be assessed on the royalties, advertising fees, or other fees you pay to Fresh Coat.
19. Reimbursements: amount of expense advanced, plus 18% interest
- Due Date: On demand.
- You must reimburse Fresh Coat if it pays your expenses if you fail to so do, such as rent, taxes, customer refunds, or other liabilities.
20. Legal Expenses: amount of expense advanced, plus 18% interest
- Due Date: On demand.
- You must pay any legal expenses Fresh Coat incurs, including attorney fees, to enforce your Franchise Agreement.
21. Indemnification: amount of expense advanced, plus 18% interest
- Due Date: On demand.
- You must reimburse Fresh Coat fully if it is held liable for claims arising from your business.
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