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How Fresh Coat’s Proactive Employee Business Model Leads to Higher Average Gross Revenue

The brand works with its own employees instead of subcontractors in order to help its franchisees build profitable businesses.

Standing out in the $31 billion home services industry is no easy task. When decorating or renovating a home, consumers are faced with hundreds of thousands of companies competing for their business. But when the right business model is combined with dedicated employees and the highest quality products, it’s easy to break away from the crowd.

Fresh Coat first established itself as the industry’s leading residential painting company in 2004. Since its founding, the brand has specialized in both interior and external painting with a mission to provide the best quality service to all of its customers. But its passionate, skilled employees are what make Fresh Coat different from the competition. Every Fresh Coat painter is screened, bonded and insured. The brand’s painters are also all Fresh Coat employees—they aren’t subcontracted out from other sources. By using a network of employees over subcontractors, Fresh Coat can ensure that every customer experience is successful.

“If you’re doing it right, it’s less expensive to operate and build an employer model than it is to use subcontractors. That’s why we have one set up for all of our franchisees,” said Tara Riley, president of Fresh Coat. “It ultimately enables Fresh Coat owners to have more control over quality, and it creates a higher profit margin.”

Those higher profit margins are reflected in Fresh Coat’s Franchise Disclosure Document, or FDD. The brand’s Item 19 shows that its average unit volumes (AUVs) are on the rise. In 2015, the brand’s average gross revenue reached above $418,200 after coming in at $361,686 the year before. It’s average and median revenues are also very close together, showing that its Item 19 provides information from a solid sample set.

Fresh Coat’s positive financial indicators are only a part of what makes the brand’s franchising opportunity so strong. When future franchisees are looking through Fresh Coat’s FDD, they’re looking at completely up to date information. That’s something unique to Fresh Coat in the residential services industry—the brand provides franchisees information from the most recent year in order to help their partners make the best business decisions.

“We’re constantly working to make sure that our FDD is hot off the press. Whenever future franchisees are considering investing with Fresh Coat, they’re getting the most accurate and up to date information that we can offer,” said Riley. “We’re committed to our proactive business coaching model, and that means providing our franchise partners with the best data available.”

Their coaching model is another way Fresh Coat sets itself apart. When the brand sees a franchisee that needs help, they’re prepared to offer their services right away. In the painting trade, there are often stagnation points when a unit’s average gross revenue reaches the $400,000 range. Fresh Coat is able to guide franchisees out of that period by growing their business to the next level.

Franchising opportunities with Fresh Coat are also incredibly affordable—prospects can expect to make an initial investment that ranges from $53,850 to $81,750, including the franchise fee.

“We take our franchisees’ profitability very seriously. From our FDD and Item 19 to our employer model and corporate support system, we do everything we can to make sure that our owners run profitable businesses. At its core, Fresh Coat is a really strong team,” said Riley.