CertaPro Painters Franchise Cost & Fees

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Description

Year Business Began: 1971 Franchising Since: 1990U.S. Headquarters: Oaks, Pennsylvania Country of Origin: CanadaEstimated Number of Units: 365 Franchise Description: The franchisor is CertaPro Painters, Ltd. The franchisor licenses franchise rights 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: 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. The franchisor 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. Franchisees must attend the initial training program, including participation in the Forum Group and Mentor Programs, the national conferences, and regional and sales/production/marketing meetings each year. 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 Group, 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, upon CertaPro’s then current terms and conditions, if requirements are met.Financial Assistance: The franchisor may finance up to one-half of the initial franchise fee paid 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, the franchisor may finance up to one-half of the initial franchise fee 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, the franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation. Investment Tables: Estimated Initial Investment 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 Equipment $1,000 $6,000 Office Equipment $500 $1,500 Vehicle $2,500 $5,000 Contractor License $250 $5,000 Computer System and Proprietary Software $10,500 $12,500 Travel and Living Expenses while Training $6,000 $10,000 Insurance $5,000 $9,000 Real Estate Varies Additional Funds (3 – 12 months of operations) $9,500 $19,500 ESTIMATED TOTAL (excluding real estate costs) $134,750 $169,500 Other Fees 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 Fund 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 Technology Fee 0.25% of Gross Sales CertaOneMonthly; amount of User Fee not yet finalized and is subject to change; will range $80-$110 per month per User. User Fee is subject to increase upon 60 days’ advance notice. 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 Franchisees must pay the franchisor’s costs and expenses if it is involved in litigation by or against the franchisee. The above information has been taken from the FDD of CertaPro painters. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
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 Fund 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
Technology Fee 0.25% of Gross Sales
CertaOne Monthly; amount of User Fee not yet finalized and is subject to change; will range $80-$110 per month per User. User Fee is subject to increase upon 60 days’ advance notice.
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 Franchisees must pay the franchisor’s costs and expenses if it is involved in litigation by or against the franchisee.