Cash Investment (Liquid): $80,000
Minimum Investment: $90,750
Maximum Investment: $232,400
Minimum Net Worth: $250,000
Franchise Fee: $64,900
Royalty Type: Flat Percentage Fee
Royalty Fee Structure:
Royalty is the greater of the percentage listed below or the required minimum royalty payment. Royalty is 5% of Gross Sales. If the initial franchise fee is waived, then for the first through the fifth calendar years, the royalty is 7%; and for the sixth through the tenth year, the royalty is 5% of gross sales
Ad Fee Structure:
1-3% General Advertising Fund -National ncludes technical fund
Average # of Employees:
Year Established: 1991
Year First Franchised: 1992
WHO ARE WE?
Incorporated in the United States in 1991 in the category of residential and commercial property paining, CertaPro has become the largest nationwide painting company with over 380 franchises in the US and Canada. The company’s market potential is built upon the aging of the housing stock of North America and the need to paint it every three to seven years.
$40 Billion industry that is extremely fragmented.
Low overhead (no inventory, no store front, and low employee with sub-contractor model)
Revenue from both B2B and B2C clientele.
Marketplace is underserved by contractors that deliver less than professional experience to consumers.
Growth in our commercial business. In 2015, 38% of franchisee revenues came from commercial business. You won’t find this with competitors, and this is important for your clients as it allows them to grow quickly and build a large business.
National and local Network TV and Radio advertising – our brand is “tipping”.
Resales – opportunities in our model to purchase businesses with existing cash flow. In 2015, CertaPro completed 18 resale transactions. For your clients, this speaks to asset value and wealth creation as they look towards an exit point in the future – our resale validation is strong.
National Accounts are an additional way CertaPro supports its franchisees. Our National Accounts team negotiates contracts with major accounts to do their commercial painting, and this work is performed by our franchisees. We’ve done work for Best Buy, Crate and Barrel, Macys, Men’s Warehouse, Nike, Gap----among
2 weeks of training (non-concurrent) 1 week month #1, 1 week month #2 in classroom setting. Multiple visits from General Manager through start up all the way through to operations. Operations is a peer to peer learning environment
Our franchise owners do not paint. Most of our owners come from strong corporate backgrounds, and are used to a six-figure income. Assertive communicators that don’t want to be in a store front business or behind a counter will like what they hear in validation with our owners.
What about labor?
A “hot button” with prospects looking at our model, they should understand that most of our franchisees are choosing to work with subcontractors to do the painting rather than using hourly employees. It reduces management time, lowers overhead costs dramatically, and protects profit margin. Initially, the franchisee will typically handle the sales/estimating in the business, and then hire salespeople to do this as the business grows. In addition, a franchisee will typically hire a person to handle the administrative duties in the business within the 3-6 months of operation.
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