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Color Glo Franchise Cost & Fees

Date of Incorporation: 1976
Franchising Since: 1984
Headquarters: Minneapolis, Minnesota

Business Description: The franchisor is Color Glo International, a division of CGI International, Inc. Color Glo businesses provide services for the color restoration of leathers, vinyls, velour, fabrics, carpet and wood grain panels.

Franchise Offer: Color Glo sells business format franchises. These franchises are area franchises and are engaged in the color restoration of leathers, vinyls, fabrics, carpet and wood grain panels and can be operated as mobile franchises. Color Glo is also in the business of developing and franchising Color Glo product distribution franchises. Color Glo product distribution franchises are also engaged in the color restoration of leathers, vinyls, velour, fabrics, carpet and wood grain panels but the franchise is limited to one fixed location.

Financial Assistance: Color Glo does not offer direct or indirect financing. Color Glo does not guarantee any note, lease or obligation. It is able to refer franchisees to lenders who may be willing to enter into a financial arrangement with them.

Training and Assistance: Training is begun within 90 days of execution of the Franchise Agreement and must be attended by the new franchisee. CGI’s classroom instructor has ten years of experience. The field training is done by a franchisee with a minimum of ten years of experience. Refresher training and additional training is conducted during regional seminars and at the annual seminar in Minneapolis. The particular training criteria used to train franchisees is up to the discretion of Color Glo. Color Glo may, but is not required to offer additional training as it deems appropriate. Any such additional training is not mandatory and will be provided at no cost to franchisees. Color Glo provides additional training for new products and services introduced at the annual International Seminar. Attendance, which will not exceed three days in duration, is mandatory.

Territory: Each Color Glo franchise is granted an Exclusive Territory, but no specific location is designated for the premises of the Franchised Business. Each Color Glo franchisee is granted an Exclusive Territory, which requires a minimum population of 500,000, but no specific location is designated for the premises of the Franchised Business. The Color Glo Service must be based within the Exclusive Territory. There will normally be at least about 300,000-500,000 people in the Exclusive Territory. The exact boundaries of the territory will be negotiated in accordance with the most recent city and county census figures available.

Term of Agreement and Renewal: The length of the initial franchise agreement is 5 years. If franchisees are in good standing they can renew for an additional term of 5 years.

Obligations and Restrictions: Color Glo does not require the franchisee to personally manage or operate the Color Glo business. The operator or manager of the Color Glo business does not have to complete the Color Glo training program. The manager cannot have an interest or business relationship with any of Color Glo's business competitors. Color Glo reserves the right to require operator or manager to sign a written agreement to maintain confidentiality of its trade secrets. However, Color Glo requires that the operator of the Color Glo business have a 10% ownership interest in the business. The License Agreement provides that the franchisee must sell all the products and services required by Color Glo.

Estimated Number of Units: 145

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $30,000 $30,000
Start-up Fee (plus shipping costs) $19,500 $19,500
Travel Expenses while Training $500 $2,500
Business Vehicles/Signs $175 $1,500
Business Licenses/Permits $50 $200
Equipment and Supplies $200 $300
Computer Equipment, iPad, iPhone $250 $750
Additional Funds (working capital) $500 $1,800
Internet Marketing $125 $125
ESTIMATED TOTAL $50,050 $55,625
Other Fees
Type of Fee Amount
Maintenance 4% of gross sales or $150 per month, whichever is greater. $200 for the second full year or $300 a month following a full year of business.
Annual License Fee and Product Purchases $2,500
Audit Cost of Audit.
Insurance Estimated cost of $1,500 to $3,000 per year (excluding automobile liability insurance).
Transfer Fee $5,000

The above information has been taken from the FDD of Color Glo. Year of FDD: 2015

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