FRANCHISE·WATCH·DESK

Verified — real FDD extraction

SBA-eligible · directory code S0356 since 2017

CERTA PROPAINTERS

Other · independent · est. —

CertaPro Painters is a residential and commercial painting franchise. Franchisees run an office- or home-based business, marketing to homeowners and businesses, estimating jobs, and managing painting crews or subcontractors who do the work.

CERTA PROPAINTERS net unit count declined -6.7% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & steady

Distress

0
STABLE

A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The main concern in the record: the system is shrinking.

Exit rate · latest year

5.9%

fiscal 2025, per Item 20

Cost to open

$171K–$321K

Item 7 total investment range

SBA loan defaults

15.8%

vs 14.8% avg across rated brands

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Weak
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Fair
Transfer / churn15%

transfers vs. base · Table 3

Fair
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2023–2025

-6.7%
326202330720243042025

Survival record

FDD Item 20 · outlet status by year

In fiscal 2025, 18 of 303 franchised outlets left the system — a 5.9% annualized exit rate. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202320242025
Outlets at start331326307
Opened4315
Transfers231921
Terminations2136
Non-renewals125
Reacquired by franchisor101
Ceased — other reasons697
Outlets at end326307304
Net change-5-19-3

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 268 SBA-backed loans to CERTA PROPAINTERS franchisees since 1995. Of the 184 that have resolved, 15.8% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.

Charge-off rate

15.8%

29 of 184 resolved defaulted

Loss given default

67.9%

avg. charged-off $ ÷ approved $

Expected loss

10.7%

default rate × loss severity

Avg. loan · FY2020+

$515,020

what recent franchisees borrowed

Median time to default

39 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

47 vs 28

distinct banks still lending

Charge-off rate by loan approval year (%)

33'9520403316033025040'0800401011131000'21

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO CERTA PROPAINTERS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Manageable debt load

A typical CERTA PROPAINTERS buyer since 2020 borrowed $515K through SBA — about $72K a year in debt service. Against the brand's own disclosed median unit revenue of $1.3M, that is 5.6% of every dollar the store takes in — before rent, payroll, food, or royalty.

Who finances it

Wells Fargo Bank National Association

8.0% of this brand's loans

That lender charges off 15.6% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

63.3%

first-time franchise owners

The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.

Does experience help here?

6.0pp

multi-unit vs single-unit owners

Owners of multiple units default at 4.5%; single-unit owners at 10.5%.

Computed from 268 SBA 7(a)/504 loans to CERTA PROPAINTERS franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $65K franchise fee (Item 5) and a total investment of $171K–$321K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$171K–$321K

all-in investment range

Franchise fee (Item 5)

$65K

upfront, one-time

Royalty (Item 6)

6%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$60K

6% of sales, before profit

Over a 10-yr term

$600K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for CERTA PROPAINTERS with an independent CPA

Labor record

US Dept. of Labor enforcement · franchisee-level · FY2005–present

Federal investigators have concluded 1 wage case against operators of this system, recovering $0 in back wages for 0 workers. These cases name franchisee-owned locations, not the franchisor itself.

Concluded cases

1

Back wages owed

$0

Employees affected

0

Since 2020

0

Read this carefully. The employers in these cases are individual CERTA PROPAINTERS franchisees — separately owned businesses operating under the brand name — not CERTA PROPAINTERS itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2017.

Modeled risk

FDD Risk Score · modeled from the public record

Moderate

Modeled from the public record, this brand sits mid-pack: riskier than 50% of systems we score.

Risk percentile

50 / 100

Measured

Modeled SBA charge-off

12.4%

Observed SBA charge-off

15.8%

Top drivers: Share financed by high-loss lenders (lowers) · Single-lender dependence (raises) · System size (log units) (lowers) · Investment ceiling (log) (raises). 50+ resolved loans and complete disclosure data — the score is checkable against the brand's observed rate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for CERTA PROPAINTERS. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing CERTA PROPAINTERS's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →

CERTA PROPAINTERS franchise questions, answered from the filings

What percentage of CERTA PROPAINTERS franchises closed last year?

In CERTA PROPAINTERS's latest FDD Item 20 (fiscal 2025), 18 of 303 franchised outlets left the system — an annualized exit rate of 5.9%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a CERTA PROPAINTERS franchise cost?

Per CERTA PROPAINTERS's 2026 FDD, buying in requires an initial franchise fee of $65K (Item 5) and a total initial investment of $171K–$321K (Item 7).

What royalty does CERTA PROPAINTERS charge?

CERTA PROPAINTERS charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.

Does CERTA PROPAINTERS disclose earnings (Item 19)?

Yes — CERTA PROPAINTERS makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $1.3M. Read it closely: franchisors choose which units and which metrics to include.

How often do SBA loans for CERTA PROPAINTERS franchises default?

Across 268 SBA-backed loans to CERTA PROPAINTERS franchisees since 1995, 29 of the 184 that have resolved were charged off — a 15.8% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.

Is CERTA PROPAINTERS a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk