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The Color Me Rad Franchise ProfileChildren’s Franchises > Art & Craft Programs |
What Are the Initial Investment Requirements for a Color Me Rad Franchise?
To open a Color Me Rad franchise, you will need to prepare for an initial investment ranging from $164,350 to $197,300. This includes a franchise fee of $30,000 and additional costs for equipment, supplies, and working capital. It's important to have at least $30,000 in cash readily available and a net worth between $100,000 and $200,000 to qualify for this opportunity. Understanding these financial commitments is essential to ensure you're well-prepared for the journey ahead.
What Are the Ongoing Fees for a Color Me Rad Franchise?
As a Color Me Rad franchisee, you'll be responsible for ongoing fees that include a royalty fee of 5% of your gross revenue and a marketing fee of 1%. These fees contribute to the support and resources provided by the franchisor, such as marketing initiatives and operational assistance. Being aware of these fees will help you manage your financial expectations and plan for long-term profitability.
What Are the Financial Performance Metrics for Color Me Rad Franchise Units?
Color Me Rad franchises have shown an average annual revenue of $315,684, with a median revenue matching this figure. The lowest reported annual revenue is $127,462, while the highest is $315,684. With a breakeven time of just 12 months and an investment payback period also averaging 12 months, the financial outlook for franchisees appears promising. Understanding these metrics can help you evaluate the potential return on your investment.
What Are the Key Operational Insights for Running a Color Me Rad Franchise?
Operating a Color Me Rad franchise involves managing various expenses, which total around $64,853 annually, excluding rent. Key costs include utilities, payroll processing, and marketing. The gross profit margin stands at an impressive 83.67%, indicating that effective management of operating expenses can lead to substantial profitability. Familiarizing yourself with these operational insights can empower you to optimize your franchise's performance and enhance its success.
The Color Me Rad Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
The Color Me Rad Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2015 | 2016 | 2017 |
|---|---|---|---|
| Total Units | 136 | 142 | 139 |
| Net Change YoY | 6 | -3 | |
| Franchised Units | 129 | 133 | 130 |
| Net Change YoY | 4 | -3 | |
| Corporate Units | 7 | 9 | 9 |
| Net Change YoY | 2 | 0 |
Initial Investment
The Color Me Rad franchise requires a low initial investment ranging from $164,350 to $197,300. This includes a franchise fee of $30,000, which allows franchisees to join a vibrant and growing brand. With a cash requirement of $30,000 and a net worth requirement of $100,000 to $200,000, aspiring franchisees need to ensure they meet these financial criteria to pursue ownership.
Revenue Potential
Franchisees can expect an average annual revenue of $315,684, with a median revenue that matches this figure. The lowest annual revenue recorded is $127,462, while the highest reaches $315,684. This revenue potential illustrates the profitability of the Color Me Rad franchise, making it an attractive opportunity for investors looking to enter the event-based franchise market.
Franchise Structure
As of 2017, Color Me Rad has a total of 139 units, comprising 130 franchised units and 9 corporate units. The franchise has shown steady growth, with a slight increase in franchised units from 129 in 2015 to 133 in 2016, before stabilizing in 2017. This structure reflects a balanced approach to franchise development, combining corporate oversight with franchisee independence.
Operational Costs
The average operating expenses for a Color Me Rad franchise total $64,853 annually, accounting for about 20.54% of revenue. Key expenses include utilities, marketing, and royalties, which contribute to the overall cost of running the business. Understanding these costs is crucial for franchisees to effectively manage their operations and maintain profitability.
Breakeven and Payback
Color Me Rad franchisees can anticipate a breakeven time of approximately 12 months, along with an investment payback period of the same duration. This rapid return on investment is appealing for potential franchisees, as it indicates a strong revenue-generating capability within the first year of operation.
Brand Experience
The Color Me Rad franchise is known for its fun, colorful 5K events that appeal to a wide demographic. The brand creates a unique experience for participants, combining fitness with entertainment. This engaging approach not only attracts runners but also fosters community involvement, making it a popular choice for families and friends looking to participate in a memorable event.
Frequently Asked Questions
The initial investment for a Color Me Rad franchise ranges from $164,350 to $197,300, which includes a franchise fee of $30,000.