To get started in investing in the painting industry, especially with Color World Painting you must first understand what it means to franchise. In franchising, there is an FDD, Franchise Disclosure Document, which is a legal document that must be given to prospective franchise owners looking to buy a franchise. The document contains information essential to regarding investing in a franchise including, start up fees, royalties, financials, etc. In the FDD, there is a clear definition of the relationship between franchisor and franchisee and is designed to benefit both parties.
Like any business, there are costs associated with opening, supporting, and operating. By opening a painting franchise, you are more likely to know and understand how much it really costs to own your own business which takes out most of the guesswork.
Prospect franchise owners can look at the FDD to get estimates on how much it costs to open and run a Color World Painting Franchise based on data from franchise owners. An FDD must be signed by all franchisees, and according to FTC guidelines cannot be signed before 14 days of receiving the FDD.
These numbers we will discuss are in reference to the 2022 most updated Color World Painting FDD. To consider investing in a painting business with Color World Painting, there are three main categories to look at when understanding the costs. This includes:
Franchise Fee: This is an upfront fee charged by franchise companies to give you a license to operate. In Item 7 of the FDD, Color World Painting franchise fee is $49,500 currently. This can be reduced or lowered if you are a veteran, a woman, or a minority owner.
Start-up costs: These are the expenses you can incur when you start your business and start operating. This can vary from franchise to franchise, Item 7 outlines an estimated initial investment of Color World Painting ranging from $106,500-$166,800 including the franchise fee. This does not include the purchasing of real estate. This is an estimate based on previous years of experience in the painting service industry. This cost can vary considerably based on many factors including how closely franchise owners follow the system, management skills, experience, and other considerations.
Re-Occurring Fees: This is in addition to the franchise and start-up fees but charges ongoing fees that support you as a franchise owner. This includes royalty fees, advertising, marketing, technology, and more. This is found in Item 6 of the FDD which outlines all the re-occurring fees.
Starting a business is a great step toward entrepreneurship, especially in the home improvement industry.
To fully understand what it takes to be a franchise owner, click here to learn more about the Color World Painting FDD and more