Color Glo Franchise Costs, Fees & FDD

Year Business Began: 1976

Franchising Since: 1984

Headquarters: Minneapolis, Minnesota

Estimated Number of Units: 140

Franchise Description: The franchisor is Color Glo International, a division of CGI International, Inc. The franchise is a mobile service that repairs and restores leather, vinyl, velour, and plastic under the franchisor’s trademarks, service marks trade names, color schemes and logos using the franchisor’s distribution programs, processes, standards, manuals and other confidential business systems, practices and materials. Color Glo franchised businesses are typically based out of a home office, however, a retail location is suitable and acceptable to the franchisor.

Training Overview: Initial training is begun within 90 days of execution of the Franchise Agreement and must be attended by the new franchisee. Initial training currently lasts three weeks. Training is held at the franchisor’s corporate office in Minneapolis, Minnesota. Locations for field training vary. Some training is also held in the franchisee’s market area. Refresher training and additional training is conducted during regional seminars and the franchisor’s annual seminar in Minneapolis.

Territory Granted: Each Color Glo franchisee is granted an exclusive territory. No specific location is designated for the premises of the franchised business, but the franchisee’s Color Glo service must be based within the exclusive territory. There will normally be at least about 300,000 to 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. The Franchise Agreement restricts the franchisor and its affiliates from selling proprietary products to end users or product resellers in the exclusive territory. However, Color Glo and its affiliates and franchisees can sell Craftsman’s Choice Products and CGI Boutique Services Products to end users and resellers regardless of their locations (including through the franchisor’s channels of distribution).

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

Term of Agreement and Renewal: The length of the initial franchise agreement is 10 years. If franchisees are in good standing, they can renew for an additional term of 10 years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor is able to refer franchisees to lenders who may be willing to enter into a financial arrangement with them.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$40,000	$40,000
Start-Up Fee (plus shipping costs)	$21,500	$21,500
Travel Expenses While Training	$500	$2,500
Business Vehicle/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	$1,500
Internet Marketing	$125	$125
ESTIMATED TOTAL	$63,300	$68,375

 
Other Fees

Name of Fee	Amount
Royalty Fee	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.
Product Purchases	$2,500 per year.
Audit	Cost of audit.
Insurance	Estimated cost of $1,500 to $3,000 per year (excluding automobile liability insurance).
Transfer Fee	$10,000

The above information has been compiled from the FDD of Color Glo. Year of FDD: 2024.

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