In this FDD Talk 2016 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 2016 FDD
- Section III – Presentation and analysis of CertaPro Painters’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average gross sales (consisting of sales for labor, material, or services) for the 306 CertaPro franchisees that operated a CertaPro franchise for the full 12 months of 2015, including those that are certified and perform commercial services
- 2015 average revenue for the 6 new CertaPro franchisees who had been in production for their first full 12 months as of December 31, 2015
- 2015 average revenue for the 286 CertaPro franchisees that were in production for more than 2 full years as of December 31, 2015, excluding the 20 franchisees in the Development Program
- 2015 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
- 2015 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 113 geographically diverse CertaPro franchisees, most of whom participate in CertaPro’s Flight Program
- 2015 average EBITDA plus owner’s compensation for the top third, middle third, bottom third, and all 113 geographically diverse CertaPro franchisees, most of whom participate in CertaPro’s Flight Program
- 2015 average revenue for the top third, middle third, bottom third, and all 113 geographically diverse CertaPro franchisees, most of whom participate in CertaPro’s Flight Program
Section I – Background Information
Creative Inspiration, Painting Services at CertaPro Painters
Customers looking to revitalize their homes can look toward CertaPro Painters, the largest residential and commercial painting company in North America with about 500 locations in the United States and Canada, for both inspiration and professional painting services.
The company, founded in 1992 and based in Oakes, Pennsylvania, uses the tagline North America’s Most Referred Painting Company. It’s part of First Service Brands, which also includes California Closet Company, Paul Davis Restoration, Handyman Connection, Pillar-to-Post, Floor Coverings International and College Pro Painters.
All CertaPro Painters businesses are independently owned and operated franchises. The businesses do both residential and commercial painting work, both interior and exterior. They are licensed and insured and offer free home painting consultations.
Mike Stone was named president of CertaPro Painters in March 2015. Stone has been with CertaPro since 2003, most recently as vice president of operations.
Company Helps Customers Get Inspired
CertaPro offers inspiration for those contemplating the colors and designs they will want in their homes, from complementary color schemes to palettes that are currently popular. Customers can find four-color color strips for living rooms, kitchens, bedrooms and bathrooms.
These color suggestions can be used as primary and accent paint colors as well as ideas for fabrics, furniture and accent pieces.
Tools Help Visualize Results
The MyPaintColors color visualizer, available through CertaPro’s website, provides sample projects to examine and tweak, as well as tools to try out a new color scheme for an existing home. Customers can upload photos of their homes to see what they would look like with a variety of paint colors.
Franchisees Sought Throughout U.S. and Canada
The company seeks franchisees in the United States and Canada, looking for seasoned and motivated business professionals who want to develop successful teams. Prospective franchisees do not have to be experienced or interested in painting.
Franchisees initially work out of their homes, driving vans, pickups or sport utility vehicles and purchasing equipment from local paint suppliers. Marketing is primarily done through CertaPro’s direct mail program.
After annual sales are in excess of $500,000 to $600,000, a franchisee will generally add an office location and hire an office employee.
CertaPro Committed to Helping Veterans
CertaPro offers discounts for veterans and supports Home for Our Troops through fundraisers and donations of painting services for homes provided to severely injured veterans from Iraq and Afghanistan.
Homes for Our Troops helps these veterans focus on their families and recovery while rebuilding their lives after multiple amputations, paralysis, traumatic brain injuries and other challenging injuries. Homes are specially adapted for the special needs of these veterans. More than 90 percent of donations go directly to support veterans.
Chain No. 107 on Franchise 500 List
CertaPro Painters was ranked No. 107 on Entrepreneur’s Franchise 500 list for 2016. The company has stayed around the No. 100 mark for the past few years after plummeting from No. 93 to No. 299 in 2011 and climbing back to No. 94 in 2013.
The chain finished 2015 with 444 U.S. locations and 30 locations in Canada.
Section II – Estimated Costs
- Please click here for detailed estimates of CertaPro Painters franchise costs, based on Item 7 of the company’s 2016 FDD (updated).