|
Color World Housepainting Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Costs to Open a Color World Housepainting Franchise?
To become a Color World Housepainting franchisee, you'll need to prepare for an initial investment ranging from $103,625 to $190,325. This includes a franchise fee of $49,500. Additionally, you'll need to ensure you have liquid cash available within this range and meet a net worth requirement of $100,000 to $500,000. Understanding these costs upfront can help you assess your financial readiness for this business opportunity.
What Are the Ongoing Fees for a Color World Housepainting Franchise?
As a Color World Housepainting franchisee, you will be required to pay a royalty fee of 6% on your gross revenue, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand standards and supporting marketing initiatives that benefit all franchisees. It's important to factor these fees into your financial projections to ensure sustainable profitability.
What Is the Average Revenue Potential for a Color World Housepainting Franchise?
Color World Housepainting franchises show promising revenue potential, with an average annual revenue per unit of $491,038. The median annual revenue is $319,363, while some units report revenues as high as $1,088,757. These figures highlight the earning potential within this franchise model, making it an attractive option for aspiring entrepreneurs in the home services industry.
How Long Until You See a Return on Your Investment with Color World Housepainting?
The breakeven period for a Color World Housepainting franchise is approximately 18 months, with an investment payback period estimated at 24 months. Understanding these timelines is crucial for financial planning and can help you gauge how quickly you can expect to recoup your initial investment while building a profitable business.
Color World Housepainting 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 World Housepainting Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 5 | 51 | 79 |
| Net Change YoY | 46 | 28 | |
| Franchised Units | 4 | 50 | 78 |
| Net Change YoY | 46 | 28 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
Color World Housepainting offers a low initial investment range of $103,625 to $190,325, making it accessible for aspiring franchisees. The franchise fee is set at $49,500, with ongoing royalty fees of 6% and a marketing fee of 2%, ensuring franchisees have the support needed for growth while maintaining a manageable cost structure.
Revenue Potential
The average annual revenue per unit for Color World Housepainting is approximately $491,038, with a median of $319,363. This indicates strong earning potential, with some units generating as much as $1,088,757 annually. This diverse revenue range allows franchisees to gauge their expected performance based on market conditions and operational efficiency.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within 18 months of operation, with an investment payback period of around 24 months. This timeline highlights the potential for quick returns on investment, making Color World Housepainting an attractive option for those looking to enter the franchise market.
Franchise Growth
Color World Housepainting has experienced significant growth, expanding from 4 franchised units in 2018 to 78 by 2020. This rapid increase in franchised units demonstrates the brand's popularity and the successful implementation of its business model, providing a solid foundation for new franchisees.
Operational Expenses
The average annual operating expenses for a Color World Housepainting franchise total approximately $661,474. Key expenses include staff costs ($254,738) and marketing ($176,957), which are essential for maintaining service quality and brand visibility. Understanding these costs is crucial for franchisees to manage their financial performance effectively.
Franchisor Support
Color World Housepainting provides robust support to its franchisees, including training, marketing assistance, and operational guidance. This comprehensive support system helps franchisees navigate the challenges of running a business, ensuring they are well-equipped to succeed in the competitive housepainting industry.
Frequently Asked Questions
The initial investment for a Color World Housepainting franchise ranges from $103,625 to $190,325, which includes the franchise fee and other startup costs.