CertaPro Painters
Date of Incorporation: 1975
Franchising Since: 1990
U.S Headquarters: Oaks, Pennsylvania
Country of Origin: Canada
Description: Certa Pro sells residential and commercial painting and decorating franchises. In August of 1975, College Pro Painters Limited was incorporated in Ontario, Canada. In 1978, College Pro Painters Limited expanded into the United States and formed a subsidiary, College Pro Painters (U.S.) Ltd.
Franchise Offer: Certa Pro licenses franchise rights to use the Certa Pro 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: Certa Pro may finance up to $25,000 of the initial franchise fee for approved franchisees, subject to availability. Except as stated above, Certa Pro does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The initial training program generally includes 13 days of class time and six days of field training. Certa Pro 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. The franchisee must attend the initial training program and must pay the travel and living expenses for all persons attending the training sessions and Mentor Program. Most of the training takes place at Certa Pro'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.
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, including zip codes, town lines and rivers.
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 Certa Pro's then current terms and conditions.
Obligations and Restrictions: If the franchisee is an individual, they must directly supervise the franchised business on a full-time basis. If the franchisee is a corporation, Limited Liability Company or other limited liability entity, the franchised business must be supervised by a person who owns at least 51% of the limited liability entity. The franchisee must offer and sell only those services approved by Certa Pro. Depending on the services they choose to offer, the franchisee 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.
Total Number of Units: 398 units
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Advertising | $40,000 | $40,000 |
| Miscellaneous Openings Costs | $3,000 | $5,000 |
| Equipment | $6,000 | $8,000 |
| Office Equipment | $500 | $1,000 |
| Vehicle | $2,500 | $5,000 |
| Contractor License | $0 | $1,500 |
| Computer System and Proprietary Software | $9,500 | $12,000 |
| Travel and Living Expenses while Training | $3,000 | $5,000 |
| Insurance | $5,000 | $7,000 |
| Additional Funds (3-6 months of operation) | $9,500 | $19,500 |
| Total | $129,000 | $154,000 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalties | The greater of 5% of Gross Sales or the required Minimum Royalty Payment |
| Additional Training | $100 to $300 per day |
| Advertising Fees and Expenses | 12% of Gross Sales during your 1st year of operation; after 1st year, 6% of Gross Sales |
| General Advertising Fund | 3% of Gross Sales |
| Local Advertising Cooperative Fees | As voted by the individual cooperative franchisees of 1% to 2% |
| Transfer/ Sale | The greater of $3,000 or 10% of the sale price of the franchised business |
| Renewal | 10% of then current franchise fee; reasonable attorneys' fees |
| Annual Conference | $1,500 to $3,000 |
| Software Upgrade Fee | Up to 0.25% of Gross Sales. |
| Late Payment Penalty | 1.5% or the maximum rate allowed by law, whichever is less |
| Commercial Services Fee | $6,000 |
| Legal Fees | Franchisee will reimburse Certa Pro and/or pay for all costs and expenses |
Date of FDD: 2010
The above information has been compiled from the FDD of Certa Pro Painters along with online sources.
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