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ColorTyme

Rent-to-own electronics/furniture/appliances

Background

Founded: 1979 Franchising since: 1982
In the late 1970s, electronics manufacturer Curtis Mathis Co. established ColorTyme as a distributor for its line of televisions. Willie Talley purchased the company in 1981 and began franchising the concept the following year. ColorTyme stores offer a complete line of home electronics, appliances and furnishings. All products are sold "rent-to-own," with customers making weekly or monthly payments on their purchase.

ColorTyme is owned by Rent-A-Center Inc.

5501 Headquarters Dr.
Plano, Texas 75024
Phone:
(972)403-4905


Franchisor is a publicly-held company with 20 employee(s); 1 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 203 0 0 0
2008 214 0 0 0
2007 214 0 0 0
2006 284 0 0 0
2005 -- -- -- --

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Washington, West virginia, Wyoming

Exclusive territories available.
Territory size: Varies

Special Programs
ColorTyme supports Kids Across America, a camp for inner-city children.

Costs and Fees

Total investment: $402K-627K
Franchise fee: $7.5K-25K
Ongoing royalty fee: 5%
Term of agreement: 5-10 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee Yes Yes
Startup Costs Yes Yes
Equipment Yes Yes
Inventory Yes Yes
Accounts Receivable Yes Yes
Payroll Yes Yes

Qualifications
Net worth requirement: $350K
Cash liquidity requirement: $120K-160K
Business Experience:
  • Industry experience
  • General business experience
  • Marketing skills

Operations
  • 85% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 5
  • Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators)

Training and Support

Training
  • Available at headquarters: 2 weeks
  • At franchisee's location: 2-4 weeks

Ongoing Support
  • Newsletter
  • Meetings
  • Grand opening
  • Internet
  • Field operations/evaluations
  • Purchasing cooperatives

Marketing Support
  • Co-op advertising
  • Ad slicks

Other marketing support
  • Direct mail, local radio and TV commercials, POS

Rankings

Franchise 500® rank:
#298 (2009);


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