About Fresh Coat Franchise
Fresh Coat is a residential and commercial painting franchise that has been offering franchise opportunities since 2005.
The brand provides interior and exterior painting as well as wallpapering services to homeowners, businesses, and property managers, building its customer base through direct marketing and referral partnerships with real estate agents and other professionals.
The initial franchise fee is $44,900, with an additional $500 per 1,000 population over 200,000 in the territory.
Fresh Coat Franchise Cost & Fees
Minimum Investment
$54K
Average Investment
$65K
Maximum Investment
$77K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $44,900, plus $500 per 1,000 population over 200,000 | One-time payment upon signing |
| Royalty Fee | 6% down to 4% of Gross Revenues; $500 monthly minimum for 1st year; $1,000 monthly minimum thereafter of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues; $350 monthly minimum (National Branding Fund) | National brand fund |
| Total Investment Range | $53,850 – $76,750 | Includes build-out, inventory, working capital |
The investment range of $54K–$77K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% down to 4% of Gross Revenues; $500 monthly minimum for 1st year; $1,000 monthly minimum thereafter) and marketing fee (2% of Gross Revenues; $350 monthly minimum (National Branding Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $44,900 | $44,900 |
| Furniture and Equipment | $0 | $1,000 |
| Computer System (Note 2) | $1,000 | $3,000 |
| Travel & living expenses while training (Note 3) | $500 | $1,500 |
| Initial Rent, Telephone, Bank, Licensing Fees, and Other Deposits (Note 4) | $0 | $2,000 |
| Insurance (Note 5) | $2,000 | $6,000 |
| Grand Opening Promotion (Note 9) | $3,000 | $4,000 |
| Compliance with regulations (Note 10) | $450 | $1,350 |
| Additional Funds – 3 Months (Note 6) | $2,000 | $10,000 |
| Monthly Office Rental Payment (Note 7) | $0 | $1,000 |
| Vehicle (Note 11) | $0 | $2,000 |
| Total (Note 8) | $53,850 | $76,750 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of either $10,000 or 3% of the purchase price, plus legal and administrative costs |
| Technology Fee | $299 Monthly |
| Audit Fee | Cost of audit plus 18% interest on under-payment |
| Local Cooperative Advertising | Up to 3% of your Gross Revenues unless a majority of the cooperative members agree on a higher contribution |
| Lead Referral Fee | $10,000 |
| Formation of Business Entity | Variable |
| Grand Opening Promotion | $3,000 to $4,000 |
| Electronic Copies of Marketing Materials | Variable |
| Franchise Owner Meetings | $350 per person |
| Late Fee | Greater of $100.00 or 10% of royalty or branding fee; $50.00 for ACH payments returned for insufficient funds; $100 for late sales reports or other business records |
| Interest | 18% |
| Territory Amendment Fee | $1,500 |
| Sales/Use Taxes | Variable |
| Reimbursements | Amount of expense advanced plus 18% interest |
| Legal Expenses | Amount of expense advanced plus 18% interest |
| Indemnification | Amount of expense advanced plus 18% interest |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training program for up to 2 people. Franchisees typically begin operating 1 to 4 months after signing the agreement. Training programs are typically held every 4 to 6 weeks. |
| Classroom Training | 40 hours |
| On-the-Job Training | 0 hours |
| Training Location | Cincinnati, Ohio |
| Additional Training | The EPA requires certain training and certification for home improvement contractors encountering lead-based coating in buildings (8 hours for owner, 4-8 hours for employees, $300 initial certification, $150-$325 for training). Regional and/or national meetings may be held with a $350 per person registration fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Population between 175,000 and 200,000 for the minimum franchise fee. Additional $500 per 1,000 population over 200,000. No maximum limit on population. |
| Description | Geographical area delineated by postal codes. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional consecutive terms of ten years each |
| Renewal Conditions | Franchisee must provide written notice of election to renew 6-12 months prior to expiration, not be in default, substantially comply with agreement terms, execute franchisor's then-current franchise agreement (which may have different terms/fees), execute a general release (if permitted by state law), and comply with current qualification and training requirements. |
| Transfer Fee | The greater of $10,000 or 3% of the purchase price, plus legal and administrative costs |
| Transfer Conditions | All monetary obligations must be satisfied, transferor's compensation subordinated to franchisor's rights, general release executed, transferee assumes obligations, transferee meets franchisor's standards (background, educational, managerial, business, financial), transferee executes current franchise agreement and ancillary agreements, transferee completes pre-opening training, and franchisee complies with all applicable laws. |
| Termination for Cause | Franchisor may terminate with immediate effect if franchisee fails to commence/complete initial training within 90 days or fails to open business within 90 days after training. Other defaults (e.g., non-payment of fees, understatement of gross revenues, failure to comply with system standards, criminal misconduct) may lead to termination, some with a 30-day cure period, others immediate. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement and for two years after termination/expiration/transfer, franchisee (and principals) may not directly or indirectly own, operate, or have interest in a competing painting business within 15 miles of their territory or any other Fresh Coat franchisee's territory. Also includes a 2-year non-solicitation of customers and shared referral sources. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We do not require that you personally supervise the franchised business, although we recommend that you do so. Each franchised business must be directly supervised “on-premises” by a manager approved by us who has successfully completed our training program. The manager need not have an ownership interest. If you acquire additional Fresh Coat franchised businesses, each must have its own full-time manager or marketing employee. |
| Required Suppliers | Franchisor has the right to require Franchisee to purchase all goods and services used in the franchised business solely from suppliers designated by Franchisor, which may include Franchisor or an affiliate. Approved suppliers are listed in the operations manual. The Sherwin-Williams Company and PPG Porter Paints are negotiated suppliers for paints, tools, and equipment at reduced prices. |
| Supply Restrictions | Franchisor has the unlimited right to change and add designated suppliers and to change the list of goods and services required to be purchased from designated suppliers at any time. Franchisee must offer and sell only products and services authorized by Franchisor. |
| Franchisor Revenue from Suppliers | The national branding fund may derive revenue from the sale of marketing materials to franchise owners. In 2021, the national branding fund received $369,368 from arrangements with suppliers. Approved suppliers may pay a fee of up to five percent of franchisee sales to the National Branding Fund. Some suppliers pay fees for sponsorships or display space at franchisor meetings. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Fresh Coat Franchise Earnings — Item 19
Average Revenue
$633K
Median Revenue
$505K
Revenue Range
$124K – $2.5M
Sample Size
85 units
Past financial performance does not guarantee future results. Individual results will vary.
Fresh Coat Litigation & Risk Flags
Clean Litigation RecordFresh Coat has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fresh Coat System Growth
Total Units
174
Franchised
174
Company-Owned
0
Fresh Coat currently operates 174 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 41 | 19 | 154 |
| 2020 | 31 | 20 | 165 |
| 2021 | 30 | 21 | 174 |
Transfers: 8 | Closures: 21
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$6.3M
Net Income
$2.1M
Total Assets
$2.5M
Audited by Clark, Schaefer, Hackett & Co. for year ending December 31.
Fresh Coat Franchise — FAQ
The total investment to open a Fresh Coat franchise ranges from $53,850 to $76,750, per their Franchise Disclosure Document. This includes the initial franchise fee of $44,900, plus $500 per 1,000 population over 200,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Fresh Coat charges a royalty fee of 6% down to 4% of Gross Revenues; $500 monthly minimum for 1st year; $1,000 monthly minimum thereafter of gross sales, plus a 2% of Gross Revenues; $350 monthly minimum (National Branding Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Fresh Coat Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Fresh Coat to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Fresh Coat franchise owners report average revenue of $633K and median revenue of $505K. This is based on a sample of 85 units. Past performance does not guarantee future results.
Fresh Coat has been franchising since 2005. The FDD shows an investment range of $53,850-$76,750, a 6% down to 4% of Gross Revenues; $500 monthly minimum for 1st year; $1,000 monthly minimum thereafter royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $44,900, plus $500 per 1,000 population over 200,000 and the total investment ranges from $53,850 to $76,750 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Fresh Coat and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Fresh Coat or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com