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Color Glo Franchise ProfileAutomotive Franchises > Auto Repair |
What is the Initial Investment for a Color Glo Franchise?
To start a Color Glo franchise, you will need an initial investment ranging from $63,300 to $68,375. This includes a franchise fee of $40,000. It's essential to have liquid cash available within this range to cover startup costs and ensure you can maintain operations in the early stages. Additionally, prospective franchisees should meet a net worth requirement of $100,000 to $200,000 to qualify for ownership.
What Are the Ongoing Fees for a Color Glo Franchise?
Color Glo franchisees are subject to ongoing fees that include a royalty fee of 4% of gross sales and a marketing fee of 4%. These fees contribute to the overall brand support and marketing efforts that help drive customer awareness and sales. It's crucial to factor these costs into your financial planning to ensure the sustainability and growth of your franchise unit.
What Can Franchisees Expect in Terms of Revenue?
On average, Color Glo franchise units generate annual revenues of approximately $63,233, with a median revenue of $77,472. However, revenue can vary significantly, with the lowest reported annual revenue at $21,531 and the highest reaching $569,349. Understanding these revenue ranges can help potential franchisees assess the financial viability of their investment and set realistic expectations for their business performance.
How Quickly Can Franchisees Expect to Break Even?
Franchisees can anticipate reaching their breakeven point within 12 months of opening their Color Glo unit. This swift breakeven timeline is appealing for new investors, as it suggests a potentially quick return on investment. Furthermore, franchisees can expect to recoup their initial investment within approximately 24 months, making Color Glo a potentially lucrative opportunity for those looking to enter the franchise market.
Color Glo 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:
Color Glo Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 73 | 70 | 70 |
| Net Change YoY | -3 | 0 | |
| Franchised Units | 73 | 70 | 70 |
| Net Change YoY | -3 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Color Glo franchise offers a low initial investment range of $63,300 to $68,375, making it an accessible option for aspiring entrepreneurs. The initial franchise fee is set at $40,000, while potential franchisees should also prepare for ongoing royalty and marketing fees of 4% each.
Financial Performance
With an average annual revenue per unit of $63,233 and a median annual revenue of $77,472, Color Glo demonstrates solid financial potential. Franchisees can expect a breakeven period of approximately 12 months and an investment payback timeframe of around 24 months, indicating a favorable return on investment.
Franchise Growth
Color Glo has maintained a stable number of franchised units over the past few years, with 73 units in 2021 and 70 units in both 2022 and 2023. This stability suggests a consistent demand for their services, providing a reliable foundation for new franchisees entering the market.
Required Net Worth
To qualify for a Color Glo franchise, potential franchisees must have a net worth ranging from $100,000 to $200,000. This requirement ensures that franchisees have the financial stability necessary to support their business operations and navigate initial startup costs.
Operational Expenses
While specific operational expenses are not detailed, franchisees should account for various costs such as insurance (between $1,500 and $3,000), product purchases, and additional working capital. Understanding these expenses is crucial for effective financial planning and management.
Corporate Structure
Color Glo operates as a franchise model without any corporate-owned units, as evidenced by the absence of corporate units from 2021 to 2023. This structure emphasizes the brand's commitment to franchising, allowing individual entrepreneurs to build and manage their own Color Glo businesses.
Frequently Asked Questions
The initial investment for a Color Glo franchise ranges from $63,300 to $68,375, which includes a franchise fee of $40,000.