CertaPro Painters Franchise Cost & Fees
Date of Incorporation: 1971
Franchising Since: 1990
U.S. Headquarters: Oaks, Pennsylvania
Country of Origin: Canada
Business Description: CertaPro sells residential and commercial painting and decorating franchises. The franchisor conducts its own franchise sales as well as through the services of franchise brokers. CertaPro has offered painting franchises in the United States since the fall of 1992 and in Canada, through its affiliate, CertaPro Painters, Ltd. (Canada), since 1990.
Franchise Offer: CertaPro licenses franchise rights to use the CertaPro trademark, logo, operations manual, business format, and computer programs for the operation of a residential painting and decorating business. The license the franchisee is granted gives the franchisee the right to perform residential painting and decorating services on certain types of residential buildings within a defined geographic area.
Financial Assistance: CertaPro may finance up to one-half of the initial franchise fee paid (maximum of $23,625) for qualified veterans participating in the IFA’s VetFran Program and who are approved franchisees, subject to availability. For an approved franchisee, who is in the process of obtaining financing, such as an SBA loan or 401(k) retirement fund rollover or otherwise, CertaPro may finance up to one-half of the initial franchise fee (maximum of $26,250) for a limited time period of 90 days, subject to availability. Franchisees of the CertaPro System are eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program. Except as stated above, CertaPro does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The initial training program begins with a series of six required training webinars for new franchisees and eight required training webinars for purchasers of an existing CertaPro business, approximately two hours each in length, that occur over a three-week period, before franchisees attend Training Session A. The initial training program generally includes 12 days of class time and six days of field training. Initial training sessions are scheduled several times through the year. CertaPro generally holds additional training sessions and/or meetings each year. Typically, the additional training session and/or meetings may offer advanced training in project and people management, marketing, selling and general business skills. Most of the training takes place at CertaPro's principal offices in Oaks, Pennsylvania, at the franchisee's business site or in the field. Training is available to other personnel as the franchise matures. During the first year, franchisees are required to participate in 12 web-based conference calls after initial training, and a series of monthly, web-based two-hour training conference calls with other new franchises, called a Forum Group. During the first two years, all national, regional and sales conferences are part of the required training program. The franchisee must attend the initial training program, including participation in the Forum Group and Mentor Programs, the national conferences, and regional and sales meetings each year.
Territory: The franchisee will receive an exclusive territory in which the franchisee may offer and sell residential painting and decorating services. Generally, the territory will have a population of between 25,000 and 35,000 persons, but could vary considerably in some cases. The geographic boundaries of the franchise Territory are set by natural and artificial boundaries and town lines, principally zip codes. The franchisee will not receive an exclusive territory to sell commercial painting or decorating services.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. Upon expiration of the franchise agreement, the franchisee has the right to enter into a new contract, upon CertaPro's then current terms and conditions, if requirements are met.
Obligations and Restrictions: Franchisees must assure that the franchised business is operated by a person who has successfully completed CertaPro’s initial and recurring training and Mentor Program, and that person must devote full time and effort to the operation of the franchised business. Franchisees must offer and sell only those services approved by CertaPro. Depending on the services they choose to offer, franchisees may perform exterior and interior residential and/or commercial painting and decorating services for customers in the franchise Territory for the term of the Franchise Agreement.
Estimated Number of Units: 475
|Name of Fee||Low||High|
|Initial Franchise Fee||$57,500||$57,500|
|Advertising & Marketing||$40,000||$40,000|
|Miscellaneous Opening Costs||$2,000||$3,000|
|Computer System and Proprietary Software||$10,500||$12,500|
|Travel and Living Expenses while Training||$6,000||$10,000|
|Additional Funds (3 - 12 months of operations)||$9,500||$19,500|
|ESTIMATED TOTAL (excluding real estate costs)||$134,750||$169,500|
|Type of Fee||Amount|
|Royalties||The greater of 5% of Gross Sales or the required Minimum Royalty Payment.|
|CertaPro University Recurrent Training||$40 per month.|
|Additional Training||$100 to $300 per day.|
|Advertising Fees and Expenses||12% of Gross Sales during your 1st year of operation; after 1st year, 8% of Gross Sales.|
|General Advertising Funds||3% of Gross Sales.|
|Local Advertising Cooperative Fees||As voted by franchisees in the local advertising cooperative and can range from of 1% to 3.5% of Gross Sales.|
|Transfer/ Sale/Assignment||The greater of $5,750 or 10% of amount of the Initial Franchise Fee in effect at the time of the sale of the Franchised Business or other transaction.|
|Renewal||10% of then current franchise fee; reasonable attorneys' fees.|
|Annual Conference||$1,500 to $4,500|
|Sales/Production/Marketing Conference||$1,000 to $1,500|
|Software Upgrade Fee||Up to 0.25% of Gross Sales.|
|Late Payment Penalty||The lesser of 1.5% or the maximum rate allowed by law.|
|Commercial Services Fee||$6,000|
|Commercial Services CRM Software Fee||$30/month.|
|Legal Fees||Franchisee will reimburse CertaPro and/or pay for all costs and expenses.|
The above information has been taken from the FDD of CertaPro painters. Year of FDD: 2016
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