ColorAll Technologies International
Date of Incorporation: May 20, 1996.
Franchising Since: January 1, 1998
Address: Florida
Description: ColorAll Technologies International grants qualified parties the right to operate a franchise business involving the cosmetic repair of the exterior of motor vehicles on a mobile, on-site, or fixed location basis. The basic services the franchisee offers consists of repairs and/or paint restoration to the extent necessary, but limited, in size and complexity. The franchisee may also offer "Smart Repairs™," which enhance the appearance of vehicles.
Franchise Offer: The franchisee must pay a $75,000 initial franchise fee for a Protected Territory including a population of 400,000 to 600,000 people. A franchise whose Protected Territory includes a population of 400,000 to 600,000 people is considered a Full-Market Franchise; a franchise whose Protected Territory includes a population of less than 300,000 people is considered a Mid-Market Franchise, for which the initial franchise fee is $65,000. If the proposed Protected Territory contains a population greater than 600,000 people, the franchisor may pro rate the initial franchise fee accordingly.
The proration is as follows: if the population is greater than 600,000 people, ColorAll raises the franchise fee by $7,000 for each 100,000 increment over the 600,000 population base {e.g., for a Protected Territory with a population of 1 million the $75,000 base franchise fee is raised from $75,000 to $103,000 ($75,000, plus $28,000).
Financial Assistance: ColorAll offers a Draw of $3,000 per week for a period of four consecutive weeks to all qualifying franchisees. This Draw is offered to qualified franchisees that need working capital during the start-up of the business.
To obtain a Draw, the franchisee must assign their accounts receivable to the franchisor until the Draw is repaid to them. The franchisor makes the first advance of the Draw on the Tuesday following the franchisee’s first full week of business. The franchisee must fully repay the total advance under this loan within the next four consecutive weeks of the fourth weekly draw payment to them along with the franchisor’s 10% royalty fee.
Training and Assistance: The franchisor will provide the franchisee with 4 days of Management Orientation and an additional 4 days of Smart Repair Systems training for mid-market franchisees only at ColorAII South Florida headquarters; the franchisor will also provide the franchisee and/or their manager and up to five technicians if the franchisee is a Full-Market Franchisee or up to three technicians if the franchisee is a Mid-Market franchisee, with 4 days technical initial training.
The franchisor will provide the franchisee with 4 days of account opening training at a site acceptable to ColorAII within the Protected Territory, Following these 4 days of account opening, an additional 4 days of operational support will be made available by one staff member. ColorAll does not have any obligation to perform any additional training.
Territory: The franchisee will receive a Protected Territory with a population between 400,000 to 600,000 people for a Full-Market franchise. The franchisee may receive a territory with a population larger than this and the franchise fee may be adjusted accordingly.
Alternatively, the franchisee may acquire a Protected Territory with a population below 300,000, in which case, the franchise will be considered a Mid-Market franchise and the franchise fee will be $65,000. The franchisee is forbidden from operating your business outside of this Protected Territory and from soliciting business from outside the territory.
ColorAll will not operate or grant franchises for mobile or fixed base ColorAll businesses within the franchisee’s territory.
Term of Agreement and Renewal: The term of the franchisee agreement is 10 years with an option to renew for a second term of 10 years if certain conditions are meet. The franchisee will have to be in good standing with the franchisor and sign a new franchise agreement. The fee for renewal is $5,000.
Obligations and Restrictions: ColorAll does not require that the franchisee personally supervise the Franchised Business. If, however, the franchisee does not personally supervise the business, they must retain a full-time manager who has successfully completed ColorAll's training program. The franchisee must offer and sell only those goods and services that ColorAll has approved. Currently approved services include exterior color-reconditioning services for vehicles and any other industrial equipment.
Total Number of franchised Units Open in 2007: 113
Financial Statements: Net Income for May 31st 2005: $271,647
Investment Table:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $65,000 | $75,000 |
| Travel and Living Expenses while Training | $1,000 | $2,500 |
| Real Estate and Improvements | None | None |
| Computer Hardware and Software | $770 | $2,555 |
| Environmental Record Keeping | $320 | $1,080 |
| Miscellaneous Opening Costs | $300 | $2,500 |
| Opening Inventory | No extra charge | No extra Charge |
| Advertising Fee | None | None |
| Insurance Fees | $3,000 | $12,000 |
| Additional Funds-3 Months | $5,000 | $12,000 |
| Total | $75,390 | $107,635 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 10% of total monthly gross sales (but, beginning three months after opening, not less than $1,000 a month) |
| Billing and Collections | 1/10 of 1% per day from the funding date through the collection date |
| Additional Technical Training | Free at corporate training center or $250 per day + travel expenses at a location within the territory. |
| Additional Account-Opening Assistance | $400 per day + travel expenses |
| Conferences | No charge imposed |
| Transfers | $5,000 |
| Transferee Management Orientation and Smart Repair System Training | $4,000, plus travel and related expenses, for the Orientation program; and $4,000, plus travel and related expenses for the Training program |
| Adding or Changing Authorized Products and Services | Not more than $4,000 a year (on an average cumulative basis) |
| Audit | Cost of audit. Interest on underpayment at the lesser of 1.5% per month or the highest legal rate |
| Renewal | $5,000 |
| Copies of Book and Records | Cost of copies |
| Under-reporting | Costs of inspection, but not less than $2,500 |
| Late Fees | $100 |
| Interest | Interest on any overdue amount at the lesser of 1.5% per month or the maximum rate permitted by law |
| Liquidated Damages-Premature Termination | $1,000 minimum monthly royalty fee |
| Liquidated Damages-Hiring ColorAll Staff | Twice the total amount of annual gross income the franchisee or any of other Restricted Parties earns that is attributable to employing or hiring the person who held the managerial or technical position with the franchisor, plus collection costs. |
| Liquidated Damages— Disparagement | An amount equal to the initial franchise fee, plus collection costs. |
| Liquidated Damages-Sale of Set-Up Kits or Prep Stations |
For each unauthorized sale of: 1. Tech set up kit -$6,500; |
| Post-expiration or termination Operation of Franchised Business | 10% of the monthly Gross Sales or $5,000 per month (pro rated) whichever is greater, for so long as the franchisee operates |
| Indemnification | The amount of the franchisor’s losses and expenses. |
| Failing to Return Manual | $1,000 |
The above information has been taken from the UFOC/FDD of the ColorAll Technologies International Inc.
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