Updated June 30, 2019.
Detailed Estimates of CertaPro Painters Franchise Costs Based on Item 7 (Estimated Initial Investment) of CertaPro Painters’ 2019 Franchise Disclosure Document
- This table estimates your initial start-up expenses, most incurred during the first three months of operation. Training expenses may be spread out over a longer time period.
- All fees are non-refundable unless otherwise indicated.
1. Initial Franchise Fee: $57,500
2. Advertising and Marketing: $40,000
3. Miscellaneous Opening Costs: $2,000 to $3,000
4. Equipment: $1,000 to $3,000
- If you use subcontractors, most usually have the necessary equipment. If a new franchisee uses an employee model, as most do in the states of Arizona, California, Nevada, and New Mexico, there could be an additional cost of $5,000.
5. Office Equipment: $500 to $4,500
- The estimate given for office equipment includes the cost of office desks and chairs, and other office equipment such as laptops, printers, and internet.
6. Vehicle: $2,500 to $5,000
- You are required to purchase or lease only one vehicle. This amount represents the cost of a lease.
- The specifications for this vehicle are that it must be an approved, wrapped vehicle suitable for the operation of your painting franchise.
- You may elect to purchase additional vehicles to keep up with the growth of your franchise, but are not required to do so.
7. Contractor License: $250 to $5,000
- Many states and localities require you to obtain a painting or home improvement contractor license or registration before you begin operating your franchise.
8. Computer System and Proprietary Software Solution: $9,000 to $11,500
- This amount is an estimate of the cost for the hardware and any auxiliary software. This amount includes the $7,500 business and technology setup fee. The business and technology setup fee covers setup and configuration of the franchise territory, website, email, CertaPro portal, accounting, financial and vendor integration, Office 365 and CertaOne setup, and data conversion, as applicable.
- You must pay a CertaOne User fee for each person, staff member, or worker in your CertaPro business who has access to CertaOne. The CertaOne User fee is $70 per month per User for Franchise Owners, Office Associates, and Commercial Marketing Associates, and $30 per month per User for Sales Associates, Commercial Estimators, and Production Associates.
- These User fees include applicable license fees for use of Microsoft Dynamic 365, the platform for CertaOne, and Microsoft Office 365.
- You must obtain the CertaOne proprietary software solution directly from CertaPro and purchase the hardware from CertaPro’s designated vendor.
9. Travel and Living Expenses While Training: $6,000 to $10,000
- Training includes participation in Forum Program, as well as attendance at sales, regional, and national conferences.
10. Insurance: $5,000 to $9,500
- You must purchase:
- workers’ compensation in the minimum amount required by state law;
- employers’ liability insurance with limits of $500,000/$500,000/$500,000;
- general liability insurance (occurrence basis), including products and ongoing and completed operations in the aggregate amount of $2,000,000; $1,000,000 per occurrence, excess insurance of $1,000,000 per occurrence; and
- business automobile liability insurance of $1,000,000 combined single limit per occurrence.
- Some states may require a deposit for workers’ compensation insurance.
11. Real Estate and Improvements: Amount Not Specified
- Initially, franchisees operate their franchises out of their homes, although if you reside outside your Territory or have staff, the franchisor recommends that you rent a small office within your Territory as soon as possible. Within the first three months of starting your business, you are required to hire an Office Assistant and, therefore, may want to secure office space, which must be located in your Territory.
- If you decide to rent office space, your initial investment will increase by the amount of any deposit you may be required to pay in connection with such rental, build-out costs, or prepaid rent which the landlord may require.
- Your office must be located in your Territory.
12. Additional Funds (3-6 months of operation): $9,500 to $20,500
- These additional funds represent the working capital requirements you should expect to need for the first three to six months of operations, including your payroll costs.
- Franchisees may not need the entire amount of working capital; however, those franchisees who intend to operate their franchise in the states of Arizona, California, Florida, Maryland, Michigan, Nevada, New Mexico, New York, Oregon, Utah, Virginia, or Washington should expect it to take a longer period of time to get their business fully operational due to licensing requirements, and, therefore, should budget for six to twelve months of start-up expenses.
- Although CertaPro does not list living expenses necessary to support your lifestyle on the initial investment chart, you will need to have adequate funds available to you to support your standard of living for up to 15 months after you begin operation of your business, which are separate from the funds necessary for your initial franchise investment requirements and are not included in this Item 7.
13. Total: $133,250 to $169,500
- CertaPro cannot guarantee that you will not have additional expenses starting your business. It based these figures on information it gathered from its franchisees.