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

• Section I – Background information on the Fresh Coat Painters franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Fresh Coat Painters franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Fresh Coat Painters franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned Fresh Coat Painters outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Fresh Coat Painters’ financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average, median, highest, and lowest gross revenue and gross profit percentage for the 71 single-unit and multi-unit Fresh Coat franchisees (combined) that were open for at least one year before December 31, 2019, operated on a full-time basis in the U.S., reported Gross Revenue for all 12 months between January 1, 2019 and December 31, 2019, and submitted income statements by March 30, 2020

• 2019 average, median, highest, and lowest gross revenue and gross profit percentage for the 57 single-unit Fresh Coat franchisees that were open for at least one year before December 31, 2019, operated on a full-time basis in the U.S., reported Gross Revenue for all 12 months between January 1, 2019 and December 31, 2019, and submitted income statements by March 30, 2020

Section I – Background Information

22 Things You Need to Know About the Fresh Coat Painters Franchise

Adapting New Guidelines Amidst Ongoing COVID-19 Pandemic

1.  In late March 2020, as the COVID-19 pandemic hit the United States, Fresh Coat Painters said that it had been monitoring the impact of COVID-19 on the safety of its staff, its franchise owners, and their customers. In an effort to contain the spread of the virus, Fresh Coat has instituted new processes that prioritize the well-being of the current Fresh Coat family and potential franchise owners during the path to ownership. Fresh Coat has successfully adapted to the new health guidelines, and continues to provide the same high level of commitment and energy, while guiding and supporting all current and potential franchise owners.

2.  It’s situations like these where you can see how Fresh Coat is able to react and adjust quickly to the needs of the brand and owners. When asked about Fresh Coat’s strategy, Steve Kwon, the company’s senior vice president of franchising, said, “I want to give kudos to our entire organization. Our rapid transition from face-to-face visits to a customized virtual experience ensures that Fresh Coat candidates remain safe in their homes during this time. And like all our corporate visits, this allows them to participate in strategy sessions with our professional business coaches and meet with our leadership team to game plan their business launch.”

3.  Kwon added, “To ensure the highest chance of success, we will continue to leverage our state-of-the-art technology and resources. By overcoming challenges, effectively communicating, and working together to leverage expertise and specialized skills, we’re prepared to continue to assist candidates who are interested in investigating opportunities.”

4.  Fresh Coat said that its team is dedicated to working with potential franchisees to discuss if this is the best opportunity for their future. Looking forward, with all this free time from working from home and/or practicing social distancing, now can be the perfect time to investigate all possible options. In the current situation, there is time to research and explore options, so there doesn’t have to be a delay in anyone’s pursuits.

5.  Since people are taking this time for themselves, Fresh Coat wants to return the favor. For those who take this time to investigate business ownership in Fresh Coat, the company has adapted its training programs to provide flexibility in its business plan and to ensure there is the perfect launch period for all new owners.

6.  Due to an increased interest, Fresh Coat has adapted the franchise discovery process to include a virtual presentation allowing prospects to meet the team. In fact, potential owners are already attending corporate visits in the safety of their own home. These visits make meeting Fresh Coat’s support team convenient and flexible because there is limited travel at this time.

7.  Candidates will engage in the full experience of the in-person visits, which now features customized and interactive visits with the marketing, operations, support, and executive teams. Fresh Coat’s team will maximize the time for an informative visit that everyone will get to know the team on a personal level and walk through the portfolio of support and resources Fresh Coat gives everyone in the franchise system.

Makes Entrepreneur Magazine’s Franchise 500 List for 2020

8.  At the end of February 2020, Fresh Coat Painters, Pet Wants, and Caring Transitions, three brands curated and nurtured by Strategic Franchising Systems, joined elite company in Entrepreneur’s list of the Top 500 Franchises for 2020. Steve Kwon, senior vice president of Strategic’s franchising division, was glowing with pride. This isn’t his first rodeo. Kwon previously headed franchising efforts for several Franchise 500 companies with tremendous success but this accomplishment feels a bit more special.

9.  Kwon said, “I couldn’t be more excited about the fact that we have most of our brands honored in the Entrepreneur Magazine Franchise 500. It is a testament to our tremendous franchise owners and the shared resources of in-house marketing, promotion, accounting and legal departments, tactfully utilized across the entire Strategic Franchising network.”

10.  “Unlike almost any other group of franchise businesses, our brands enjoy a truly symbiotic relationship,” Kwon continued. “Our younger brands remain nimble while capitalizing on the buying power of a national network, as our more established brands continue to benefit from the cutting-edge growth efforts of their younger counterparts…It’s all about equilibrium.”

11.  This strategy has paid off big and was Strategic Franchising’s secret formula to realizing steady growth in the number of franchise locations across the U.S. this past year. “I like to think of Strategic Franchising as a franchise ecosystem; always growing, and always winning,” Kwon said. “It’s a privilege to see the balance and coordinated growth continue to pay off across all brands.”

New Location

12.  In late October 2020, Fresh Coat Painters opened a new location in Morgantown, West Virginia. The new Fresh Coat is owned and operated by Chad and Tina Smith. With the overwhelming success of Fresh Coat Painters of Charleston, serving the area around Morgantown became important.

13.  Fresh Coat Painters of Morgantown offers painting services including interior and exterior painting, sealing and staining; pressure washing; popcorn ceiling and wallpaper removal; and drywall repair. Fresh Coat Painters of Morgantown has a 24/7 receptionist, online scheduling and free detailed quotes, and they only use high-quality materials. Fresh Coat Painters of Morgantown serves Morgantown and the surrounding communities from Bridgeport to Fairmont.

14.  The Smiths launched the first Fresh Coat Painters franchise in Charleston in 2017 and have since been recognized for their growth and leadership across the Fresh Coat Painters system. Prior to opening Fresh Coat, Chad spent 20 years in the construction and environmental industry and was a licensed home inspector. Tina has her West Virginia real estate license.

15.  According to Chad Smith, “Throughout the course of my career, I saw the need for a truly professional painting company in this region. It’s hard to find a high quality professional painter – you basically have to know someone. We chose to franchise with Fresh Coat because Fresh Coat is a professional painting company with a commitment to quality and customer service with the support of a marketing and operations team.”

16.  Mr. Smith continued, “After growing our company in Charleston to almost 20 staff members, we saw an opportunity to open a second operation in Morgantown. We asked two of our great staff members – Dwayne Dizon and Felicha Townsend – to relocate to Morgantown and lead the business locally under our guidance. We are thrilled to be growing, offering excellent painting services and creating jobs across West Virginia.”

17.  Dwayne Dizon, who is the supervisor for Fresh Coat Painters of Morgantown, has worked for Fresh Coat Painters since 2017. He started as a painter before being promoted to a foreman and then a manager before helping to launch Fresh Coat Painters of Morgantown. He has an associate’s degree in design.

18.  Dizon said, “I’ve always wanted to really build a career with a company that allows me to grow and Fresh Coat Painters has been a perfect fit. I’m excited about this opportunity and I’m looking forward to bringing a new kind of painting experience to this community. Our on-staff painters are professional, background checked, licensed and insured and, from day one through the warranty, we are always focused on quality and service.”

19.  Felicha Townsend also joined the Fresh Coat Painters team in 2017 as a painter after staying home with her children full time. She was promoted to an estimator in Charleston before being asked to help lead the team in Morgantown. “Fresh Coat Painters is different because of our focus on quality. Some painting companies hand you a quote on a napkin, slap paint on your walls and collect their fee. From our first quote with our professional estimating software to our professional painting services and workmanship warranty, we stand behind the work and process,” Townsend said.

Company History

20.  Fresh Coat Painters was founded in 2004 as part of Strategic Franchising Systems and is based out of Cincinnati, Ohio. According to the brand’s website, Fresh Coat was started as a way to provide people with high quality, professional painting services. Fresh Coat’s painters are vetted, bonded and insured, and hired as employees (not contractors), to give customers the security they need to let these people in their homes.

21.  Fresh Coat started franchising a year after the first location was opened. Today, there are Fresh Coat franchises across the United States.

Entrepreneur’s Franchise 500

22.  Fresh Coat Painters ranked No. 401 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Fresh Coat Painters franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Fresh Coat Painters’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  116
• Outlets at the End of the Year:  131
• Net Change:  +15

2018

• Outlets at the Start of the Year:  131
• Outlets at the End of the Year:  132
• Net Change:  +1

2019

• Outlets at the Start of the Year:  132
• Outlets at the End of the Year:  154
• Net Change:  +22

Company-Owned

2017

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

2018

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

2019

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

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

• Presented below are historic Gross Revenue and Gross Profit figures for franchised Fresh Coat business owners for the one-year period from January 1, 2019 through December 31, 2019.

• Only data from franchisees who were already open for at least one year before December 31, 2019, 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, 2020 were included in the table.

• The information 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 in most cases, not reviewed or audited by an independent accountant. Fresh Coat has not audited or independently verified any of this information.

Table 1

• The below table combines data from 14 Fresh Coat franchisees that owned multiple units and from 57 Fresh Coat franchisees that owned single units.

• Number of Franchisees:  71