Detailed Estimates of CertaPro Painters Franchise Costs Based on Item 7 (Estimated Initial Investment) of CertaPro Painters’ 2016 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 $6,000
- If you use subcontractors, most will have the necessary equipment. If a new franchisee uses an employee model, as most do in the states of Arizona, California, and Nevada, there could be an additional cost of $5,000.
5. Office Equipment: $500 to $1,500
- The estimate given for office equipment includes the cost of installing an additional telephone line and a fax machine.
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: $10,500 to $12,500
- This amount is an estimate of the cost for the hardware and auxiliary software that includes the P7,500 proprietary software fee.
- You must purchase an identity for Lotus Notes at a cost of $155 each, payable directly to the vendor. Currently, additional identities may be arranged at a cost of $155 per identity payable to the vendor.
- You must purchase the hardware and proprietary software directly from CertaPro or its 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 amount required by state law without exclusion of principals;
- employers’ liability insurance with limits of $500,000/$500,000/$500,000;
- general liability insurance, including broad form contractual liability, products, and completed operations in the aggregate amount of $2,000,000; $1,000,000 per occurrence, excess insurance of $1,000,000 per occurrence;
- business automobile liability insurance of $1,000,000 combined single limit per occurrence; and
- commercial crime coverage insurance covering any worker used by your business, including employees and subcontractors, with limits of no less than $15,000.
11. Real Estate and Improvements: Amount Not Specified
- Initially, franchisees operate their franchises out of their homes, although if you reside outside your Territory, you will be encouraged to rent a small office within your Territory. After you have been operating your business for approximately 6 months, you may want to secure office space for an Office Assistant, which must be located within 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.
12. Additional Funds (3-6 months of operation): $9,500 to $19,500
- 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 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 and living 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 twelve 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: $134,750 to $169,500
- CertaPro cannot guarantee that you will not have additional expenses starting your business. It based these figures on information gathered from its franchisees.