Owning a franchise can be a great opportunity for the right person. Fresh Coat believes learning the advantages and disadvantages of franchising will help you determine if it’s the right path for your future.
Fresh Coat is a low-investment, recession-resistant franchise option in the booming home services sector. This industry employs more than 5 million service professionals and generates more than $506 billion in direct spending in the United States alone, and franchise owners are staying busy as Americans complete approximately 511,345,000 home improvement projects each year, or about 16 projects per second.
These trends can cause those with an entrepreneurial spirit to consider starting a new home services business. This idea often leads to a search for franchises, but it can be challenging to know if it’s best to join a franchise system or to go into business completely on your own.
7 Truths of Franchising
If you are considering becoming a franchise owner, it’s important to understand the truths of franchising. Here are some of the advantages and disadvantages of joining a franchise system and becoming a franchise owner.
- Access to Capital. Many banks and lenders are more willing to provide loans to people opening a franchise business because it's a business model with a proven track record of success. Many times franchise organizations already have relationships with various banks and lenders who can help expedite the process.
- Ability to Expand. Franchise owners follow a plan to open their business. As a result, they tend to generate profits faster than a startup business, giving them the opportunity to expand territories or add new locations at an accelerated rate. Many franchise systems offer scalable business models, allowing franchise owners to grow their business as they gain experience.
- Peer Network and Coaches. Support from a franchisor and a team of franchise owners is beneficial for a new business owner. They can learn best practices from existing franchise owners and get ongoing training and marketing support from the franchisor.
- Flexibility. Being a business owner gives you flexibility. Operating a home-based franchise with a low initial investment is a great option for people who want to create work-life balance and achieve financial freedom.
5. Alliance & Support. Franchise owners do not have to start from scratch. They benefit from existing brand marketing strategies and name recognition of the established franchise system. Owners also gain access to partnerships and discounts from national vendors that wouldn’t be available to a business owner who is not part of a franchise system.
6. Profit Sharing. Most franchisors charge royalty fees for the continued use of their trademarks and business model. Not all franchise systems require royalties, but it is very common. While royalties are often seen as a disadvantage of joining a franchise system, they are actually quite the opposite. Without the income from royalties, franchisors would not be able to afford the ongoing support, technological advances, and other investments they make in an effort to drive the brand’s success and the success of its franchise owners. Though royalties may seem like a large portion of money being paid back to the franchisor, in reality they are small compared to what it would cost an individual business owner who wants to make these kinds of investments in their business
7. Established Systems. Franchising is a great option for people who want to be in business for themselves but not by themselves. Having a proven system and guide can streamline your business and enable you to focus your efforts on growth. Some entrepreneurs might find following a franchise system stifling and restrictive, however, many franchise systems provide business models with multiple revenue streams that can be customized to the strengths of the owners. This provides a best of both worlds scenario for franchise owners in these types of systems. They get proven systems and some flexibility.
Fresh Coat Helps Franchise Owners Flourish
Now that you understand the truths of franchising, it’s important to find a franchisor that shares your values and vision. Fresh Coat is a home-based franchise system with low inventory and multiple revenue streams, including residential and commercial painting. In addition to the opportunity to operate a proven business model, Fresh Coat provides franchise owners with on-boarding, marketing, technology, and ongoing coaching to ensure success.
Another benefit to franchising with Fresh Coat is the recently launched comprehensive commercial training program that provides owners with the tools to be successful in the robust commercial painting market. The program provides franchise owners with commercial lead generation and quoting support provided by the home office team at no additional charge, assistance with vetting contractors, and project management support. Following the new initiative, Fresh Coat is seeing results in its commercial painting sector. In the first quarter of 2021, about 25 percent of the brand’s painting projects shifted to commercial work..
“Fresh Coat Painters isn’t just another painting company. We are able to leverage the power of a national brand with a proven system, successful partnerships, and corporate support to benefit our clients. We are a locally-owned small business, but we’re not doing it alone.” Sandy Sullivan, Owner Fresh Coat Painters of Wilmington, NC
If you are ready to open a business and join our team of successful franchise owners, learn more about becoming a painting franchise owner here.