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Creative Colors Franchise ProfileAutomotive Franchises > Auto Repair |
What is the Initial Investment for a Creative Colors Franchise?
To open a Creative Colors franchise, you can expect an initial investment ranging from $86,980 to $102,410. This includes a franchise fee of $49,500, which grants you access to the brand's proven business model and support system. It's important to also consider the cash required to cover startup costs and ensure you meet the net worth requirement of $150,000 to $300,000.
What are the Ongoing Fees for Creative Colors Franchisees?
As a Creative Colors franchisee, you will be responsible for ongoing fees, which include a royalty fee of 7.5% of your gross revenue and a marketing fee of 1%. These fees contribute to the overall support and resources provided by the franchise, helping you to effectively market your business and maintain brand standards.
What Can You Expect in Terms of Revenue and Profitability?
Creative Colors franchisees can anticipate an average annual revenue of approximately $305,220 per unit, with a median annual revenue of $283,137. The financial metrics show a robust gross profit margin of about 79.07%, allowing for a healthy EBITDA of 58.59%. With a breakeven time of around 10 months and an investment payback period of just 24 months, this franchise offers a solid potential for profitability.
How Many Creative Colors Franchises Are Currently Operating?
As of 2022, Creative Colors has a total of 72 units, with 69 being franchised and 3 corporate-owned. The franchise has seen a slight decline in the number of units over the past few years, from 76 in 2020 to 72 in 2022. This trend highlights the importance of assessing market conditions and operational strategies as you consider joining the Creative Colors franchise network.
Creative Colors 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:
Creative Colors Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 76 | 74 | 72 |
| Net Change YoY | -2 | -2 | |
| Franchised Units | 73 | 71 | 69 |
| Net Change YoY | -2 | -2 | |
| Corporate Units | 3 | 3 | 3 |
| Net Change YoY | 0 | 0 |
Company Background
Creative Colors is a franchise chain specializing in the restoration and repair of leather, vinyl, and plastic surfaces. Founded with the vision of providing high-quality, on-site service, Creative Colors has established itself as a leader in the restoration industry. With a commitment to sustainability and customer satisfaction, the brand has grown steadily, offering franchise opportunities that empower entrepreneurs to tap into a lucrative market.
Franchise Opportunity
Investing in a Creative Colors franchise offers aspiring entrepreneurs the chance to own a business with a proven model and strong support system. The initial investment ranges from $86,980 to $102,410, making it accessible for individuals looking to enter the franchise world. With a focus on training and ongoing operational support, franchisees can confidently build their businesses while benefiting from the brand's established reputation.
Financial Performance
Creative Colors franchises demonstrate strong financial potential, with an average annual revenue of $305,220 per unit. The median annual revenue stands at $283,137, showcasing the brand's ability to generate income for its franchisees. Additionally, the breakeven time is approximately 10 months, with an investment payback period of about 24 months, making it an attractive opportunity for investors.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 7.5% on gross sales, along with a marketing fee of 1%. These fees contribute to the brand's marketing efforts and support services that help franchisees succeed in their local markets. This structure allows franchisees to benefit from a collective marketing strategy while maintaining a manageable cost structure.
Corporate Structure
Creative Colors operates under a well-defined corporate structure, with a total of 72 units as of 2022. This includes 69 franchised units and 3 corporate-owned locations, indicating a balanced approach to growth. The company's headquarters provide comprehensive support to franchisees, ensuring they have access to the resources needed to thrive in a competitive industry.
Company Mission
The mission of Creative Colors is to provide exceptional restoration services that enhance the value and appearance of clients' belongings. By focusing on quality workmanship and customer satisfaction, Creative Colors aims to be the go-to solution for leather, vinyl, and plastic repairs. The brand is dedicated to sustainability and innovation, ensuring that franchisees can offer environmentally friendly services while building a successful business.
Frequently Asked Questions
The initial investment for a Creative Colors franchise ranges from $86,980 to $102,410, which includes the franchise fee and other startup costs.