With a strong system and widely recognized brand identity, Fresh Coat Painters — the nearly 200-unit painting franchise — has made a name for itself nationwide. While many franchise owners are drawn to the franchise because of the opportunity to complete residential projects, commercial projects offer additional opportunities for franchisees to scale with Fresh Coat’s systems and expertise behind them. From retail and office spaces to health care, hospitality and more, here’s what entrepreneurs need to know about the potential to grow with Fresh Coat in the lucrative commercial sector.
“Before we started the commercial division of Fresh Coat, I ran the residential side, and I would see franchisees come in just starstruck by the prospect of commercial projects,” said Greg Platz, senior vice president of national accounts, commercial division. “They saw big dollars. Big commercial projects can be some franchisees’ big whale. You have to be very careful with them, which is why we started the national accounts and commercial divisions, but these resources allow franchisees to get a level of comfort in the commercial space and give them a distinct advantage.”
Commercial projects are a key driver for financial scale because they typically offer higher revenue per project. While the average residential project provides a strong opportunity for franchisees, commercial projects can bring in double the revenue.
In addition to the financial potential commercial projects provide, they also set the stage for franchisees to build steady, long-lasting partnerships with other business owners. For example, once a Fresh Coat owner delivers satisfactory work at a multi-family development or manufacturing facility, they have made a good impression with the property manager or facility operator and can nurture that relationship to increase the likelihood of repeat business in the future.
It’s also important to note that, because of the type and scale of projects commercial clients present, the opportunities flow relatively consistently throughout the year. While owners may experience lulls in residential opportunities on a seasonal basis, commercial demand remains steady, allowing owners to create additional stability in their businesses.
By pursuing a mix of both residential and commercial projects, franchisees can diversify their revenue streams and create healthier, more scalable businesses.
The prospect of bidding on and completing large-scale projects can be intimidating for new owners. The leadership team recognizes this, and it’s one of the key reasons they built the national accounts and commercial teams.
“We’re invested in our franchisees’ long-term success, and part of this support structure is that, if they’re not ready for a large-scale commercial project in their territory, we’ll partner them up with another franchisee so they can gain the experience and get a portion of the revenue without taking such a big risk,” Platz said. “The national accounts division typically takes on smaller projects that are geared toward stair-stepping a franchisee into commercial work at a more comfortable pace.”
Platz says that, if a Fresh Coat owner can complete a project to paint someone’s house, they can generally complete about 95% of the projects that flow through the national accounts division. Then, once they’re comfortable at this scale, they can begin growing into commercial even more, taking on larger projects like full warehouses.
In addition to guiding franchisees in which projects may be the best fit for them, the franchisor offers additional tools and practical support to drive the projects forward. This operational support is designed to remove the most intimidating barriers to entry for commercial projects, including bidding and estimation.
“Without the support team, an owner would have to go out and find blueprints, which often included paying a subscription fee to download those blueprints, then pay an estimator to review the blueprints and determine how much paint and what kind of equipment would be needed,” Platz said. “Now, if an owner wants to bid on a project, they fill out an online form that comes to us. My team downloads the blueprints, runs them through our software and provides the franchisee with what I like to call a ‘paint-by-number.’ We tell them what they need to paint, what to paint it with and how much paint they need to buy.”
This package also includes project scope with data like how much the franchisee should charge for labor and how long the project will take. This saves the franchisee both time and money in the estimation and bidding phase, and it acts as a critical safety net to help ensure the bid is accurate and positions the franchisee for a profitable project.
Fresh Coat also receives direct requests for bids on some commercial projects. When these projects are secured, the team funnels them directly to the local franchisee, providing yet another revenue stream — and one that essentially drives itself, as far as franchisee involvement is concerned.
“Other painting franchisees do not offer this type of support, or if they do, the franchisee pays a premium royalty on any project funnelled through the franchisor,” Platz said. “Whether a franchisee goes out and identifies commercial projects to bid on independently or we hand it to them, they’re paying the exact same royalty. No one buys into a franchise to go it alone, and with Fresh Coat, they have a team in place with years of experience to draw on.”
Though they are all painting projects, the demands of commercial projects are different from those of residential.
“Franchisees can use the same crews for residential and national accounts work, but when they get into production-based commercial work — something that’s totally driven by how much square footage you can get sprayed in a day, it’s a different mentality and different painter than the team that’s going to go into Mrs. Smith’s house to paint her living room,” Platz said. “The personality is even different. The person that I would send into my mother’s home may not be the fastest, but they’re going to put her at ease. It may take a day longer to get the project done, but at the end of the day, my mother’s going to say, ‘I love that person. Next time I need something done, let’s call Fresh Coat.’”
Alternatively, when owners take on production-focused commercial projects, they’re less concerned about personality and more focused on identifying someone who can get in, get the work done, and get out.
“When those opportunities present themselves, you’re not necessarily going to have those commercial painters on payroll,” Platz said. “That’s why we work with our owners on knowing where to look and helping them develop that Rolodex of people to call when the opportunity arises.”
In addition to their own team connections, Fresh Coat’s partnership with Sherwin-Williams contributes to staffing solutions, too. Store managers and field representatives are other great resources for helping franchisees identify and connect with commercial talent.
Fresh Coat owners completing commercial projects must carefully consider the contract and scope of work. In commercial scenarios, specifically when there are other vendors and ongoing work at play, Fresh Coat owners must understand how to navigate scope and change orders to ensure they stay profitable.
“Part of the support process is that, once we’ve won a bid, we review the contracts and send them over to the franchisee,” Platz said. “We tell them, ‘Here’s everything you’re responsible for. And if they ask you to do XYZ, that’s not in the scope; it’s a change order and a billable addition.’ You would be shocked — you can double or triple the size of a normal contract on change orders. We’re there to teach our franchisees and help them navigate those scenarios.”
Generally, franchisees who find the most success with commercial projects have strong communication skills and are great relationship builders. This is essential for managing client expectations, coordinating amidst the moving parts of a commercial project and nurturing long-term relationships that position owners for repeat business opportunities.
Pairing these skills and efforts with Fresh Coat’s support structures allows owners to scale at their own pace while setting the stage for a more stable, diversified and valuable business.
“With our support structures, we’ve removed the guesswork and many of the highest risk factors,” Platz said. “We provide the systems, bidding power and brand identity. When franchisees bring the drive to pursue this growth and build relationships along the way, we’re able to build something truly scalable together.”
To find out more information on costs to buy this franchise, please visit https://1851franchise.com/freshcoat/info.
Fresh Coat
SPONSORED
Fresh Coat’s bidding, staffing and contracts support empowers franchisees to tap into the scalable, high-potential commercial space with the backing of expert teams.
With a strong system and widely recognized brand identity, Fresh Coat Painters — the nearly 200-unit painting franchise — has made a name for itself nationwide. While many franchise owners are drawn to the franchise because of the opportunity to complete residential projects, commercial projects offer additional opportunities for franchisees to scale with Fresh Coat’s systems and expertise behind them. From retail and office spaces to health care, hospitality and more, here’s what entrepreneurs need to know about the potential to grow with Fresh Coat in the lucrative commercial sector.
“Before we started the commercial division of Fresh Coat, I ran the residential side, and I would see franchisees come in just starstruck by the prospect of commercial projects,” said Greg Platz, senior vice president of national accounts, commercial division. “They saw big dollars. Big commercial projects can be some franchisees’ big whale. You have to be very careful with them, which is why we started the national accounts and commercial divisions, but these resources allow franchisees to get a level of comfort in the commercial space and give them a distinct advantage.”
Commercial projects are a key driver for financial scale because they typically offer higher revenue per project. While the average residential project provides a strong opportunity for franchisees, commercial projects can bring in double the revenue.
In addition to the financial potential commercial projects provide, they also set the stage for franchisees to build steady, long-lasting partnerships with other business owners. For example, once a Fresh Coat owner delivers satisfactory work at a multi-family development or manufacturing facility, they have made a good impression with the property manager or facility operator and can nurture that relationship to increase the likelihood of repeat business in the future.
It’s also important to note that, because of the type and scale of projects commercial clients present, the opportunities flow relatively consistently throughout the year. While owners may experience lulls in residential opportunities on a seasonal basis, commercial demand remains steady, allowing owners to create additional stability in their businesses.
By pursuing a mix of both residential and commercial projects, franchisees can diversify their revenue streams and create healthier, more scalable businesses.
The prospect of bidding on and completing large-scale projects can be intimidating for new owners. The leadership team recognizes this, and it’s one of the key reasons they built the national accounts and commercial teams.
“We’re invested in our franchisees’ long-term success, and part of this support structure is that, if they’re not ready for a large-scale commercial project in their territory, we’ll partner them up with another franchisee so they can gain the experience and get a portion of the revenue without taking such a big risk,” Platz said. “The national accounts division typically takes on smaller projects that are geared toward stair-stepping a franchisee into commercial work at a more comfortable pace.”
Platz says that, if a Fresh Coat owner can complete a project to paint someone’s house, they can generally complete about 95% of the projects that flow through the national accounts division. Then, once they’re comfortable at this scale, they can begin growing into commercial even more, taking on larger projects like full warehouses.
In addition to guiding franchisees in which projects may be the best fit for them, the franchisor offers additional tools and practical support to drive the projects forward. This operational support is designed to remove the most intimidating barriers to entry for commercial projects, including bidding and estimation.
“Without the support team, an owner would have to go out and find blueprints, which often included paying a subscription fee to download those blueprints, then pay an estimator to review the blueprints and determine how much paint and what kind of equipment would be needed,” Platz said. “Now, if an owner wants to bid on a project, they fill out an online form that comes to us. My team downloads the blueprints, runs them through our software and provides the franchisee with what I like to call a ‘paint-by-number.’ We tell them what they need to paint, what to paint it with and how much paint they need to buy.”
This package also includes project scope with data like how much the franchisee should charge for labor and how long the project will take. This saves the franchisee both time and money in the estimation and bidding phase, and it acts as a critical safety net to help ensure the bid is accurate and positions the franchisee for a profitable project.
Fresh Coat also receives direct requests for bids on some commercial projects. When these projects are secured, the team funnels them directly to the local franchisee, providing yet another revenue stream — and one that essentially drives itself, as far as franchisee involvement is concerned.
“Other painting franchisees do not offer this type of support, or if they do, the franchisee pays a premium royalty on any project funnelled through the franchisor,” Platz said. “Whether a franchisee goes out and identifies commercial projects to bid on independently or we hand it to them, they’re paying the exact same royalty. No one buys into a franchise to go it alone, and with Fresh Coat, they have a team in place with years of experience to draw on.”
Though they are all painting projects, the demands of commercial projects are different from those of residential.
“Franchisees can use the same crews for residential and national accounts work, but when they get into production-based commercial work — something that’s totally driven by how much square footage you can get sprayed in a day, it’s a different mentality and different painter than the team that’s going to go into Mrs. Smith’s house to paint her living room,” Platz said. “The personality is even different. The person that I would send into my mother’s home may not be the fastest, but they’re going to put her at ease. It may take a day longer to get the project done, but at the end of the day, my mother’s going to say, ‘I love that person. Next time I need something done, let’s call Fresh Coat.’”
Alternatively, when owners take on production-focused commercial projects, they’re less concerned about personality and more focused on identifying someone who can get in, get the work done, and get out.
“When those opportunities present themselves, you’re not necessarily going to have those commercial painters on payroll,” Platz said. “That’s why we work with our owners on knowing where to look and helping them develop that Rolodex of people to call when the opportunity arises.”
In addition to their own team connections, Fresh Coat’s partnership with Sherwin-Williams contributes to staffing solutions, too. Store managers and field representatives are other great resources for helping franchisees identify and connect with commercial talent.
Fresh Coat owners completing commercial projects must carefully consider the contract and scope of work. In commercial scenarios, specifically when there are other vendors and ongoing work at play, Fresh Coat owners must understand how to navigate scope and change orders to ensure they stay profitable.
“Part of the support process is that, once we’ve won a bid, we review the contracts and send them over to the franchisee,” Platz said. “We tell them, ‘Here’s everything you’re responsible for. And if they ask you to do XYZ, that’s not in the scope; it’s a change order and a billable addition.’ You would be shocked — you can double or triple the size of a normal contract on change orders. We’re there to teach our franchisees and help them navigate those scenarios.”
Generally, franchisees who find the most success with commercial projects have strong communication skills and are great relationship builders. This is essential for managing client expectations, coordinating amidst the moving parts of a commercial project and nurturing long-term relationships that position owners for repeat business opportunities.
Pairing these skills and efforts with Fresh Coat’s support structures allows owners to scale at their own pace while setting the stage for a more stable, diversified and valuable business.
“With our support structures, we’ve removed the guesswork and many of the highest risk factors,” Platz said. “We provide the systems, bidding power and brand identity. When franchisees bring the drive to pursue this growth and build relationships along the way, we’re able to build something truly scalable together.”
To find out more information on costs to buy this franchise, please visit https://1851franchise.com/freshcoat/info.
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