Color World Painting Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$106,900 - $168,000
Franchise Fee
$10,150
Min Cash Required
$20,000
Total US Locations
46
Business Summary
COLOR WORLD PAINTING Franchised Business provides residential and commercial painting services, along with other related home improvement and maintenance tasks. These services include deck painting, staining, or repair, fence painting or staining, power washing, minor carpentry, cleaning or repair services, drywall repair, gutter installation or removal, and holiday lighting services and products for consumers.
Corporate History
Color World New Franchise Systems, LLC, the franchisor, was organized in January 2022. Shortly after its formation, Color World New Franchise Systems, LLC acquired the COLOR WORLD PAINTING system from a predecessor company which was formed in 2016. The original COLOR WORLD PAINTING brand originated from an Ohio corporation formed in 1998, which never directly offered franchises. Currently, Color World New Franchise Systems, LLC does not operate any company-owned COLOR WORLD PAINTING businesses, although an affiliate did until the end of 2023.
Financial Overview
Investment Range
$106,900 - $168,000
Franchise Fee (Low)
$10,150
Franchise Fee (High)
$66,000
Minimum Cash Required
$20,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$25,400
Equipment Costs (High)
$39,700
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Authority Brands Inc., the guarantor of COLOR WORLD PAINTING's obligations, received an unqualified opinion from the independent auditors. The auditors' report indicates that management evaluates for conditions that raise substantial doubt about the company's ability to continue as a going concern, but no such concerns or impairment charges were identified as of December 31, 2023. This suggests that Authority Brands Inc. is considered to be in good financial health.
Financing Details
COLOR WORLD PAINTING may allow franchisees to finance up to 75% of their initial Franchise Fee and any Additional SFDU Fee. If financed, the remaining balance can be paid over up to 36 monthly installments, with an interest rate of 12% per annum. Payments begin on the first of the month following the first full month after the Franchise Agreement is signed. This financing is not available for transactions involving brokers or other third-party referral sources.
Performance Metrics
Total US Locations
46
Franchised Units
45
Corporate Units
1
Avg Square Footage
400
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
COLOR WORLD PAINTING has no litigation history to report.
Bankruptcy History
COLOR WORLD PAINTING has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a COLOR WORLD PAINTING franchise, franchisees must provide written notice of their desire to renew, ensure they are not in default of their agreement, maintain a good record of customer service and Brand Standards compliance, and be on good terms with COLOR WORLD PAINTING, with no ongoing litigation. Franchisees may be required to sign the then-current form of franchise agreement, which could have different terms or fees, and pay a renewal fee. Additionally, they must sign a general release of claims against COLOR WORLD PAINTING, meet all training requirements, confirm their right to operate from the Approved Location for the renewal term, and remodel or update their vehicles, premises, and computer systems to current Brand Standards.
Training & Support Program
Franchisor Assistance
COLOR WORLD PAINTING provides extensive support to its franchisees. Before opening, franchisees receive an initial training program and assistance with ordering equipment, technology, and initial inventory. They also gain access to the Operations Manual and a Franchisee Portal, along with help setting up their call center services and required software. COLOR WORLD PAINTING assists with creating a pre-opening and grand opening marketing plan and offers general opening support. On an ongoing basis, the franchisor offers additional training programs, develops and maintains Brand Standards, manages the Franchisee Portal, provides updates on vendor specifications, and runs a Brand Standards assessment program. They also manage the Brand Fund for advertising, make creative marketing materials available, review franchisees' local marketing plans, and oversee social media accounts that promote the brand. Furthermore, COLOR WORLD PAINTING monitors compliance with customer warranty programs and manages relationships with Key Accounts.
Initial Training Hours
320
Training Location
Online/virtual and in-person in Columbus, Ohio
Ongoing Support
COLOR WORLD PAINTING provides ongoing support through additional required and optional training programs and by continuously developing and maintaining Brand Standards. Franchisees benefit from the management of a dedicated Franchisee Portal, regular updates on approved vendors and specifications, and participation in a Brand Standards assessment program. The franchisor also manages the Brand Fund for system-wide advertising, reviews franchisees' local marketing plans, and oversees social media accounts that promote the brand. Furthermore, COLOR WORLD PAINTING monitors compliance with customer warranty programs and manages relationships with Key Accounts. Franchisees are also required to attend an annual conference.
Franchise Requirements
Ideal Candidate Profile
COLOR WORLD PAINTING offers franchises to individuals and business entities that meet its qualifications and are willing to invest and exert effort to own and operate a COLOR WORLD PAINTING Franchised Business. The Key Person, who is responsible for the day-to-day operations, must successfully complete the initial training program and work on-premises at the business office. All owners with a five percent or greater interest in the business entity must personally guarantee the franchisee's obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
COLOR WORLD PAINTING territories are typically defined by postal zip codes and aim for a population of approximately 75,000 Single-Family Dwelling Units. The actual population may vary based on factors like geographic size, the ratio of single-family homes to multi-unit dwellings, and median household income.
Staffing Notes
COLOR WORLD PAINTING franchisees are responsible for all employment decisions and functions, including recruiting, hiring, training, and managing their employees. They must maintain staffing levels adequate to meet Brand Standards and comply with all labor laws. Franchisees are solely in control of their employees, though subject to Brand Standards, which may include initial and periodic drug testing and background checks. The franchisor provides no specific staff count but emphasizes the franchisee's responsibility for all personnel matters.