Franchising Since: 1990
U.S. Headquarters: Audubon, Pennsylvania
Country of Origin: Canada
Estimated Number of Units: 360
Franchise Description: The franchisor is CertaPro Painters, Ltd. The franchisor grants the right to use the CertaPro trademark, logo, operations manual, business format, and certain technology 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.
Training Overview: Most of the training takes place at the franchisor’s offices in Audubon, Pennsylvania, or at the franchisee’s business site. New franchise owners are required to attend and successfully complete Development Owner Training/School, which consists of two sections where content is presented in a graduated learning format: Development Owner School 101 and Development Owner School 201. Development Owner School 101 consists of three components: two weeks of instructor led virtual classroom training, one week of in-field shadowing of other CertaPro businesses, and two weeks of live classroom training. After successful completion of Development Owner School 101, franchisees will be required to complete additional eLearning and virtual preparation for Development Owner School 201. The live classroom training portion of Development Owner School 201 is typically four to five consecutive days at CertaPro’s Office and may include exercises assigned as “training homework” that are completed during the evenings. In addition to the virtual and live training listed, during their first year, franchisees are also required to participate in a series of monthly, web-based one and one-half hour training conference calls with other new franchises, called a Forum Group. Additional training programs may not be mandatory, but it is advised that franchisees attend these training sessions which offer advanced training in estimating, marketing, management and general business skills.
Territory Granted: Franchisees will receive an exclusive territory for the offer and sale residential painting and decorating services. The size and configuration of the exclusive territory is based on households, income levels and number of residential dwellings, and is determined before franchisees sign the Franchise Agreement. The geographic boundaries of the franchise territory are set by natural and artificial boundaries and town lines, principally zip codes. Franchisees may not sell or offer any services outside the boundaries of the territory, except as provided in the Franchise Agreement. The franchisor will not grant other residential services franchises in the territory without the franchisee’s permission. Franchisees will not receive an exclusive territory to sell commercial painting or decorating services.
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 Forum 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 the franchisor. 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 their franchise territory for the term of the Franchise Agreement. Franchisees must receive written approval from the franchisor before they offer or sell any services other than those described.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Upon expiration of the Franchise Agreement, franchisees have the right to enter into a new contract on CertaPro's then current terms and conditions, if requirements are met.
Financial Assistance: The franchisor reduces the Initial Franchise Fee by 15% to $55,250 for qualified veterans participating in the VetFran program. Except as noted, the franchisor does not offer financing at this time. The franchisor does not guarantee any notes, leases or obligations for any of its franchisees.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $65,000 | $65,000 |
| Advertising & Marketing | $45,000 | $40,000 |
| Commercial Services Fee | $10,000 | $10,000 |
| Miscellaneous Opening Costs | $2,000 | $5,000 |
| Equipment | $1,000 | $15,000 |
| Office Equipment | $500 | $5,000 |
| Vehicle | $2,500 | $40,000 |
| Contractor License | $250 | $7,500 |
| Computer System and Proprietary Software | $9,000 | $11,500 |
| Travel and Living Expenses while Training | $2,250 | $5,000 |
| Insurance | $5,000 | $12,500 |
| Real Estate and Improvements | $9,000 | $24,000 |
| Additional Funds (3-6 months of operation) | $19,500 | $75,000 |
| ESTIMATED TOTAL | $171,000 | $320,500 |
Other Fees
| Type of Fee | Amount |
| Royalties | Royalty is the greater of a percentage (between 4% and 6%) based upon total annual gross sales in any calendar year or the required minimum royalty payment. |
| CertaPro University Recurrent Training | $40 per month. |
| Additional Training | The franchisor does not charge for additional training that it facilitates or coordinates. If franchisees or their employee(s) attend in-person training, they may incur costs for airfare or other travel, meals and accommodations. |
| Advertising Fees and Expenses | 12% of gross sales during the 1st year of operation; after 1st year, 8% of gross sales. |
| General Advertising Fund (GAF) | Contributions to the GAF are based upon total annual gross sales. |
| Local Advertising Cooperative Fees | As voted by franchisees in the local advertising cooperative and can range from of 1% to 4% of gross sales. |
| Transfer / Sale / Assignment | $25,000 |
| Renewal | 15% of the current initial franchisee fee at the time of renewal. |
| Annual Conference | $2,500 to $5,500 |
| Sales / Production / Marketing Conference | $2,000 to $3,000 |
| Technology Fee | 0.35% of gross sales. |
| CertaOne User Fee | Currently, $90 per month per user for franchise owners, office associates and commercial marketing associates. $30 per month per user for sales associates, commercial estimators and production associates; includes cost of license fees due Microsoft for Dynamic 365 and Office 365; user fee is subject to increase upon 60 days’ advance notice. |
| Production Scheduler User Fee | Currently not assessed. |
| Late Payment Penalty | The lesser of 1.5% or the maximum rate allowed by law. |
| Commercial Services Fee | $10,000 |
| Assumption of Management | $500 per day, plus costs and expenses. |
| Legal Fees | Franchisees must pay the franchisor’s costs and expenses if it is involved in litigation by or against the franchisee. |
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