Creative Colors Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$101,380 - $122,911
Franchise Fee
$53,550
Total US Locations
73
Business Summary
Creative Colors International operates a mobile business that specializes in the repair, coloring, cleaning, protection, and restoration of various upholstery surfaces, including leather, cloth, vinyl, velour, and plastics. The business also provides services for upholstering furniture, booths, and tables. These specialized services are delivered on a mobile basis, primarily catering to commercial customers.
Corporate History
Creative Colors International's business roots trace back to J&J's Creative Colors, Inc., which was established in Illinois in 1980 and operated a similar business. Creative Colors International, Inc. itself was incorporated in Illinois in December 1990 and began offering franchises in June 1991. The proprietary System and Trademarks were initially owned by J&J's and licensed to Creative Colors International, Inc. in 1991. The trademarks were later fully assigned to Creative Colors International, Inc. in 2020, solidifying J&J's as its predecessor. Creative Colors International, Inc. has directly operated a business similar to the franchised model since January 1999.
Financial Overview
Investment Range
$101,380 - $122,911
Franchise Fee (Low)
$53,550
Franchise Fee (High)
$59,500
Royalty %
7.5%
Marketing %
1%
Equipment Costs (High)
$6,600
Working Capital
$300
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Creative Colors International, Inc. demonstrates a healthy financial position. The independent auditor's report for the years ending December 31, 2024, and 2023, gives a clean opinion on its financial statements, indicating they are presented fairly in all material respects according to generally accepted accounting principles (GAAP). The company has positive working capital, with $325,234 as of December 31, 2024, and $268,469 as of December 31, 2023. This means Creative Colors International, Inc. has sufficient liquid assets to cover its short-term liabilities, and the auditors did not identify any substantial doubt about its ability to continue operations, which is a good sign for potential franchisees looking for a stable franchisor.
Financing Details
Creative Colors International offers indirect financing for the mobile unit. Franchisees can lease their mobile unit through Creative Colors International, which arranges the lease via a third-party (Enterprise Fleet Management). Franchisees are required to make a 20% down payment and then 60 monthly lease payments with an interest rate of approximately 6% to 9%. At the end of the 60-month term, franchisees have the option to buy the mobile unit for $0 to $500 or return it. Creative Colors International guarantees this mobile unit lease, but no other direct financing is offered by the franchisor.
Performance Metrics
Total US Locations
73
Franchised Units
70
Corporate Units
3
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Creative Colors International has no litigation history to report, as no litigation is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
Creative Colors International has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Creative Colors International franchisees must provide written notice between 6 to 12 months before their agreement expires, ensure their business fully complies with all current brand standards, complete any required updated training, and pay a $1,000 renewal fee. They also need to sign a new franchise agreement which may have materially different terms and conditions (though royalty fees won't be higher than for other similarly situated renewing franchisees) and execute a general legal release.
Training & Support Program
Franchisor Assistance
Creative Colors International offers extensive assistance to its franchisees. Before opening, Creative Colors International lends franchisees copies of its Operations, Training, and Sales & Marketing Manuals, provides initial start-up equipment and supplies, and delivers initial training which includes three weeks at headquarters and one week in the franchisee's territory. The franchisor also reviews and approves all franchisee promotional and marketing materials, and can arrange for mobile unit leasing and buildout if the franchisee chooses that option. For ongoing support, Creative Colors International provides a list of approved suppliers, updates on new operational methods and services, and offers advice on pricing and administrative procedures. The franchisor's personnel are available for telephone consultation and conduct periodic field visits, delivering written reports with suggested improvements. Franchisees also gain access to an online marketing portal and customized email address. Creative Colors International maintains a Marketing and Development Fund for national and regional advertising. Additionally, ongoing training is provided through mandatory annual conferences, unlimited one- or two-week CCI Certified Training classes for new technicians, and optional advanced or supplemental training programs, some of which may incur additional fees. Creative Colors International may also offer franchisees opportunities to service National Accounts.
Initial Training Hours
156
Training Location
Franchisor headquarters in Mokena, Illinois, and in the franchisee's territory.
Ongoing Support
After opening, Creative Colors International franchisees receive ongoing assistance including updated information on new methods and services, advice on pricing, and guidance on administrative, bookkeeping, accounting, and general operating procedures. The franchisor's personnel provide telephone consultation and periodic field visits, delivering written reports with suggested improvements. Franchisees also gain access to an online marketing portal and customized email address. Creative Colors International maintains a Marketing and Development Fund for national and regional advertising. Additionally, ongoing training is provided through mandatory annual conferences, unlimited one- or two-week CCI Certified Training for new technicians, and optional advanced or supplemental training programs.
Franchise Requirements
Ideal Candidate Profile
Creative Colors International, Inc. seeks "qualified individuals" or business entities to become franchisees. The ideal candidate profile suggests individuals who are committed to a hands-on approach, as the franchisee or a fully-trained manager is expected to devote full-time and best efforts to the business operations. Creative Colors International, Inc. also demonstrates a preference for veterans of the U.S. Armed Forces by offering a 10% discount on the initial franchise fee for those with at least 4 years of honorable military service and an honorable discharge.
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
exclusive
Staff Count
1
Territory Size Requirements
Creative Colors International territories are exclusive and are defined by zip code and/or street boundaries, covering a population of approximately 500,000 people. The specific size and dimensions are mutually agreed upon by the franchisee and franchisor.
Staffing Notes
Creative Colors International requires that all personnel who perform services for franchisees must be W-2 employees, not independent contractors. These employees, including any managers, are required to complete the franchisor's training program. Additionally, all employees with access to confidential information must sign a confidentiality and non-competition agreement. Franchisees are also required to keep Creative Colors International informed of their employees' identities and contact information.