Incorporated in the United States in 1991 in the category of residential and commercial property painting, CertaPro has become the largest nationwide painting company with over 500+ franchised units 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. CertaPro is a subsidiary of First Service Brands, which also owns other home/commercial service brands such as California Closets, Paul Davis Restoration, Pillar to Post, and Floor Coverings International.

The overall customer experience is their competitive advantage over other players in the space. They have strong systems and procedures in place to make sure the customer only tells their story once, and that communication is ongoing with the Job Site Supervisor providing daily updates to the customer.

Why Painting?

• $60 Billion industry that is extremely fragmented
• Low overhead (no inventory, no storefront, and low employee with sub-contractor model)
• Revenue from both B2B and B2C clientele (Resident, Commercial, Interior, and Exterior)
• Scalable by adding salespeople
• Marketplace is underserved by contractors that deliver less than professional experience to consumers

Why CertaPro?

• Growth in the commercial business. In 2020, 34% 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
• Average EBITDA over $239K in 2020 (See Item 19 of FDD)
• Network TV and Radio advertising – their brand is “tipping”
• Resales – opportunities in their model to purchase businesses with existing cash flow. In 2020, CertaPro completed 21 resale transactions. For your clients, this speaks to asset value and wealth creation as they look towards an exit point in the future – their resale validation is strong
• National Accounts are an additional way CertaPro supports its franchisees. Their National Accounts team negotiates contracts with major accounts to do their commercial painting, and this work is typically performed by their franchisees. They’ve done work for Best Buy, Crate and Barrel, Macys, Men’s Warehouse, Nike, Gap — among many others

What’s the profile of a CertaPro franchisee?

Their franchise owners do not paint. Most of their owners come from strong corporate backgrounds and are used to a six-figure income. Assertive communicators that don’t want to be in a storefront business or behind a counter will like what they hear in validation with their owners. Backgrounds in Sales, Marketing, or Management are helpful.

What about labor?
A “hot button” with prospects looking at their model, they should understand that most of their 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 along with networking and building relationships, 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.