FDD Analysis 2024 FDD

Color World Housepainting Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Color World Housepainting's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Color World Housepainting FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$106,900 - $168,000
Franchise Fee$49,500

Investment Breakdown

Franchise Fee$49,500 - $49,500
Start-Up Business Outfitting Fee$8,000 - $8,000
Holiday Outfitting Fee$15,000 - $15,000
Pre-Opening/Grand-Opening Marketing Fee$7,000 - $7,000
Business Licenses and Permits

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee6% of gross sales
Marketing/Advertising Fee2% of gross sales

Other Ongoing Fees

Brand Fund Contribution2%
Brand Fund MaterialsVaries
Key Account ProgramsVaries
Technology Fees - Operating and Production FeeVaries
Additional Opening Support FeeVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$149,901/year
Disclosure Year2024
Reporting Units
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

46

Total Units

-5

Net Growth (YoY)

-9.8%

Growth Rate

Franchised Units45
Company-Owned Units1

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

No material litigation disclosed in Item 3.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

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