In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the CertaPro Painters franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a CertaPro Painters franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of CertaPro Painters’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average gross sales (consisting of sales for labor, material, and/or residential services) for the 299 CertaPro franchisees that operated a CertaPro franchise for the full 12 months of 2014, including those that are certified and perform commercial services
- 2014 average revenue for the 26 new CertaPro franchisees who had been in production for their first full 12 months as of December 31, 2014
- 2014 total sales for residential and commercial services work produced by all CertaPro franchisees that were active at any time during the year listed, whether for a full year or only a portion of the year, including any that started or ceased operations during the year listed
- 2014 average revenue, cost of goods sold, gross profit, sales expense, operations expense, marketing expense, royalty and fees, general and administrative expense, occupancy expense, other expense, and EBITDA plus owner’s compensation for 123 geographically diverse CertaPro franchisees, most of whom participate in CertaPro’s Flight Program
- 2014 average EBITDA plus owner’s compensation for the top third, middle third, bottom third, and all 123 geographically diverse CertaPro franchisees, most of whom participate in CertaPro’s Flight Program
- 2014 average revenue for the top third, middle third, bottom third, and all 123 geographically diverse CertaPro franchisees, most of whom participate in CertaPro’s Flight Program
Section I – Background Information
CertaPro Painters was founded in 1992 and has grown into the largest residential and commercial painting franchise in North America. Its current number of franchises stands at around 444, and has grown steadily with around 20 new locations added each year over the last 5 years.
It is part of the FirstService Corporation, a company with two major types of operation, including management of residential communities (FirstService Residential) and its various home services franchises (FirstService Brands) that include CertaPro Painters, College Pro Painters, Paul Davis Restoration, California Closets, and others.
Headquartered in Oaks, Pennsylvania, northwest of Philadelphia, CertaPro claims to be North America’s most referred painting company. Here’s how CertaPro keeps the brushes moving in the painting industry:
The Certainty Service System
Residential and commercial painting services live and die largely by reputation. CertaPro touts its Certainty approach, providing peace of mind to customers that their paint job will be well done by working closely with them to establish the expectations so everyone is on the same page.
CertaPro does more than paint residential homes. On average, CertaPro claims it completes at least 14,000 commercial painting projects each year, making it by far the largest-volume commercial painting company in the country.
It also claims to have an on-time completion rate that is the envy of any painting or contracting company.
CertaPro raised $200,000 for a special non-profit group called Homes for Our Troops (HFOT), which builds specially adapted, mortgage-free homes nationwide for the most severely injured Veterans from Iraq and Afghanistan.
Call Center Services
Not many franchises of this type offer a professionally-staffed call center. The CertaPro call center is open from 8 AM until 11 PM (East Coast time) to assist customers in reviewing their proposals, answer basic questions, schedule color consultation appointments, or help solve any problems that come up during a project.
CertaPro has a Quality Callback Program with the motto of “We call back after the paint has dried.” This is a post-job Quality Assurance survey conducted anywhere from one to three weeks after project completion to find out how satisfied customers are with every aspect of the project.
Section II – Estimated Costs
- Please click here for detailed estimates of CertaPro Painters franchise costs, based on Item 7 of the company’s 2015 FDD.