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Colors On Parade Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for a Colors On Parade Franchise?
To open a Colors On Parade franchise, you will need to prepare for a range of initial investment costs. The franchise fee is set at $25,000, with total investment estimates ranging from $33,800 to $441,000. Additionally, you'll need to have cash on hand between $85,750 and $441,000 and a net worth of at least $100,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they can meet the requirements and sustain operations.
What Are the Ongoing Fees Associated with a Colors On Parade Franchise?
Owning a Colors On Parade franchise comes with ongoing financial obligations, including a royalty fee of 7% on gross sales and a marketing fee of 1%. These fees are essential for maintaining brand presence and support, ensuring that your franchise benefits from the company's marketing initiatives and operational guidance. It's important to budget for these recurring costs as they can impact your overall profitability.
What Is the Average Annual Revenue for a Colors On Parade Franchise?
The average annual revenue per unit for a Colors On Parade franchise is approximately $146,642. This figure represents the potential earnings you could generate, with a median annual revenue matching this average. However, revenues can vary significantly, ranging from a low of $90,000 to a high of $1,000,000, depending on factors like location, market demand, and operational efficiency. Understanding these revenue dynamics can help you set realistic financial goals.
How Quickly Can You Expect to Break Even with a Colors On Parade Franchise?
Franchisees of Colors On Parade can anticipate a breakeven period of around 12 months. This relatively quick return on investment is appealing for many entrepreneurs. Furthermore, the average investment payback period is approximately 30 months, allowing franchisees to recover their initial investments and start generating profits in a reasonable timeframe. This information can help you evaluate the financial viability of this franchise opportunity.
Colors On Parade 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:
Colors On Parade 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 | 228 | 247 | 237 |
| Net Change YoY | 19 | -10 | |
| Franchised Units | 218 | 236 | 225 |
| Net Change YoY | 18 | -11 | |
| Corporate Units | 10 | 11 | 12 |
| Net Change YoY | 1 | 1 |
Initial Investment
The Colors On Parade franchise offers a range of initial investment options, with costs ranging from $33,800 to $441,000. This includes a franchise fee of $25,000, allowing aspiring franchisees to enter a growing market with a relatively low barrier to entry compared to other franchise opportunities.
Financial Performance
Franchisees can expect an average annual revenue of approximately $146,642, with a median revenue also at this level. The revenue potential varies, with the lowest reported annual revenue at $90,000 and the highest reaching $1,000,000, demonstrating significant earnings potential for dedicated operators.
Royalties and Fees
Franchisees are required to pay a royalty fee of 7% on gross sales, along with a marketing fee of 1%. These fees contribute to the ongoing support and brand recognition provided by Colors On Parade, helping franchisees to effectively market their services and grow their businesses.
Breakeven and Payback Period
The average breakeven time for a Colors On Parade franchise is 12 months, indicating a relatively quick return on investment. Additionally, franchisees can expect to see their initial investment paid back within approximately 30 months, making it an appealing option for those looking for a timely return.
Corporate and Franchise Growth
Since its inception, Colors On Parade has shown consistent growth in the number of franchised units, with 218 units in 2015, 236 in 2016, and 225 in 2017. This growth reflects the brand's expanding market presence and the increasing demand for its services, providing franchisees with a solid foundation for success.
Operational Insights
Franchisees incur various operating expenses, with total operating costs averaging 30.8% of gross sales. Key expenses include employee wages (11.1%), van expenses (3.2%), and fuel costs (5.3%). Understanding these costs is essential for effective financial management and maximizing profitability within the Colors On Parade franchise system.
Frequently Asked Questions
The initial investment for a Colors On Parade franchise ranges from $33,800 to $441,000, which includes the franchise fee and other startup costs.