About Color World New Franchise
Color World Housepainting is a comprehensive property services franchise offering interior and exterior painting, deck staining and repair, fence painting, power washing, minor carpentry, drywall repair, gutter services, and holiday lighting installation.
The brand is part of the Authority Brands portfolio and has been franchising since 2022.
The franchise fee is $49,500.
Color World New Franchise Cost & Fees
Minimum Investment
$104K
Average Investment
$147K
Maximum Investment
$190K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, 2% of Gross Revenue | National brand fund |
| Total Investment Range | $103,625 – $190,325 | Includes build-out, inventory, working capital |
The investment range of $104K–$190K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue) and marketing fee (Currently, 2% of Gross Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Business Outfitting Fee | $15,000 | $15,000 |
| Initial Advertising/Marketing | $7,000 | $7,000 |
| Business Licenses and Permits | $0 | $1,500 |
| Office and Computer Equipment; Hardware and Software | $1,000 | $3,000 |
| Vehicle/Wraps | $1,000 | $35,000 |
| Inventory/Supplies | $1,000 | $1,500 |
| Initial Technology Bundle Expenses | $5,325 | $7,725 |
| Travel and Living Expenses to Attend Training | $1,000 | $5,000 |
| Travel Reimbursement for Onsite Training | $0 | $3,000 |
| Insurances | $1,800 | $6,600 |
| Office Rent and Set-up; Deposits | $0 | $3,500 |
| Miscellaneous Opening Costs | $1,000 | $2,000 |
| Additional Funds | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Generally, $10,000. Additional fees apply if referred by third-party or if franchisor identifies purchaser. |
| Renewal Fee | The greater of: (a) 10 % of the then-current Franchise Fee; or (b) $5,000 |
| Technology Fee | One-time initial set-up fee of $500 and then $1,650 per month |
| Audit Fee | Our costs and expenses of conducting audit, including travel and lodging. |
| Brand Fund Materials | Our costs |
| Local Marketing | $42,000 per year, paid in equal monthly installments of $3,500 (for 1 territory); $24,000 per year, paid in equal monthly installments of $2,000 (for additional contiguous territories) |
| National Vendor Programs | Your pro rata share based on number of participating franchisees |
| Additional Opening Support Fee | A reasonable fee, plus the reasonable travel, meal, and lodging expenses of our opening support personnel |
| Training Fees – Pre-Opening | None, unless you request and we agree to accept extra trainees. $300 per day per extra trainee plus our trainers’ reasonable costs and expenses, when applicable |
| Training Fees – Remedial and Optional Training | $300 per day and you must reimburse us for our reasonable out of pocket costs |
| Annual Conference | Currently, up to $500 per attendee |
| Non-attendance Fee | $2,000 |
| Call Center Fee | Currently covered by the Technology Fee |
| Service Deficiency Fee | Our costs |
| Change of Ownership Fee | Currently, (a) the greater of $500 or our external legal and administrative costs; plus (b) applicable training fee, currently $100 per day for each individual we require to attend training. |
| Procurement of Insurance | Cost of insurance plus reasonable fee |
| Vendor Review | Our reasonable costs |
| Management Fee | Commercially reasonable fee |
| Step In Fee | Up to $500 per day, plus our costs and overhead |
| Interest | 12% per annum or the maximum rate permitted by applicable law, whichever is less |
| Late Fee | $100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence |
| Insufficient Funds Fee | $50 or the amount the bank charges us due to the insufficient funds, whichever is greater. |
| Indemnity for Tax Withholding | Amount of any penalties, interest, and expenses we incur |
| Non-compliance Fee | 1% of Gross Revenue |
| Enforcement Costs | Will vary under circumstances |
| Defense Costs | Our actual costs and expenses |
| Indemnification | Will vary under circumstances |
| Liquidated Damages | The greater of: (i) two years of Royalty Fees (calculated as your average Royalty Fees per payment period in the year preceding the termination of your Franchise Agreement, multiplied by the number of payment periods occurring in a two-year period); or (ii) $100,000. |
| De-identification Fee | Our costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 6-week online pre-training course and a 5-day in-person training and familiarization program. |
| Classroom Training | Up to 257 hours |
| On-the-Job Training | 22 hours |
| Training Location | Online/Webinar for pre-training. In-person component usually at the franchisor's office in Powell, Ohio. |
| Additional Training | After the Franchised Business opens, the franchisor will make available, at designated times and locations, other required and optional training programs as deemed necessary and appropriate. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Approximately 100,000 Households |
| Description | A typical Territory will consist of a population of approximately 100,000 Households (with a variance that may be granted by Franchisor in its discretion) and will be defined using postal zip codes present at the time the Territory is established. The Household population may vary depending on geographic size, ratio of single-family residences to multi-unit dwellings, and median/average household income. Franchisees choose from available pre-defined Territories. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | The greater of: (a) 10 % of the then-current Franchise Fee; or (b) $5,000 |
| Renewal Conditions | Written notice of desire to renew; no default; good record of customer service and Brand Standards compliance; on good terms with franchisor (no litigation); at franchisor's option, sign then-current franchise agreement; pay renewal fee; sign general release of claims; meet training requirements; demonstrate right to remain in Approved Location; remodel, refurbish, or renovate vehicles and premises; and update computer systems and vehicles. Successor agreement may have materially different terms. |
| Transfer Fee | Generally, $10,000. Additional fees apply if referred by third-party or if franchisor identifies purchaser. |
| Transfer Conditions | No default exists; proposed transferee meets qualifications, signs then-current Franchise Agreement (and owners sign personal guarantee), successfully completes training, makes arrangements to upgrade business to current standards, and, if a current franchisee, is not in default and signs a general release; transferor pays transfer fee (plus any applicable third-party broker fee) and signs release of claims; price and terms do not negatively impact viability; and any financing is subordinated to obligations to franchisor. |
| Termination for Cause | Non-curable defaults include: failure to obtain Approved Location or open by deadline; failure to complete pre-opening training to satisfaction; unauthorized closing; loss of premises or right to do business; refusing inspection or access to records; operating Competing Business; unapproved transfer of ownership or business assets; disclosure of confidential information; maintaining false books, underreporting sales, engaging in fraud or embezzlement, or misappropriating employee funds; conviction of felony or certain other crimes; insolvency, receivership, or dissolution of business entity or loss of business license; if Franchisee or any Owner appears on a list of “blocked” persons under any anti-terrorism or similar law; breach of essential provision; failure to achieve minimum score on consecutive assessments; failure to maintain required insurance; failure to resolve customer complaint; failure to attend annual convention for two consecutive years; failure to conduct background checks; repeated defaults even if cured. |
| Non-Compete Period | During term: No involvement in “Competing Business”. After term: 2 years. |
| Non-Compete Details | During term: No involvement in "Competing Business," defined as any business that: (i) engages in residential or commercial interior or exterior painting; deck painting, staining, or repair; fence painting or staining; power washing; minor carpentry or repair services; drywall repair; gutter installation or removal; or holiday lighting or services similar to those offered by the Franchised Business, (ii) grants franchises or licenses to others to operate such businesses, or (iii) is the same or substantially similar in nature or purpose to the Franchised Businesses (other than a “Color World Housepainting” business operated under a franchise agreement with us). After term: No involvement with Competing Business for 2 years after expiration, termination, or approved transfer of the franchise. Applies if the Competing Business is located or serves customers (i) within the Territory, (ii) within forty (40) miles of the Territory, (iii) within any zip code where the Franchised Business served customers during the term, (iv) within the territory of any other then-existing Franchised Businesses plus the area formed by extending the boundaries of that territory ten (10) miles in all directions, or (v) within the territory serviced by any business operated under the Marks by us or our affiliates, plus the area formed by extending the boundaries of that territory ten (10) miles in all directions. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | A designated Key Person, who may or may not be an owner, must be responsible for the day-to-day operational performance of the Franchised Business, have authority to bind the Franchisee, complete initial training, and work on premises at the business office. |
| Required Suppliers | Yes, for Holiday Lighting Outfitting package, Sales and marketing materials and services, Branded Products, Customer Relationship Management (CRM) Software, Bookkeeping (currently Out of the Box Technology), Customer-Service Production Platform, Paint and Related Application Products (Sherwin Williams through official Color World account), Equipment, Inventory, and Supplies, and Vehicle Wrapping. |
| Supply Restrictions | Yes, all equipment, technology, inventory, supplies, vehicles, signs, furnishings, fixtures, décor items, retail merchandise, payment systems, and other products and services must meet franchisor specifications, be purchased from expressly approved vendors, or from a single designated source (which may include the franchisor or its affiliates). Unapproved products or services cannot be sold without prior written consent. |
| Franchisor Revenue from Suppliers | For the fiscal year ended December 31, 2020, our Predecessor had revenue of $167,539 from purchases by Color World Housepainting franchisees, which was 12.9% of our Predecessor’s total revenue of $1,293,088 for the fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may permit financing of up to 75% of the Franchise Fee and any applicable Additional Household Fee. The balance can be paid in up to 36 monthly installments of principal and interest at an interest rate of 12% per annum. Prepayment is allowed without penalty. A Promissory Note and Guaranty must be signed, and the franchisor requires a security interest in the assets of the Franchised Business. |
Color World New Franchise Earnings — Item 19
Average Revenue
$491K
Median Revenue
$319K
Revenue Range
$95K – $1.1M
Sample Size
11 units
Past financial performance does not guarantee future results. Individual results will vary.
Color World New Litigation & Risk Flags
Clean Litigation RecordColor World New has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Color World New System Growth
Total Units
79
Franchised
78
Company-Owned
1
Color World New currently operates 78 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 0 | 0 | 5 |
| 2019 | 47 | 1 | 51 |
| 2020 | 36 | 8 | 79 |
Transfers: 4 | Closures: 8
Franchisor Financials (Item 21)
Total Assets
$844.7M
Audited by PricewaterhouseCoopers LLP for year ending December 31.
Color World New Franchise — FAQ
The total investment to open a Color World New franchise ranges from $103,625 to $190,325, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Color World New charges a royalty fee of 6% of Gross Revenue of gross sales, plus a Currently, 2% of Gross Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Color World New Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Color World New to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Color World New franchise owners report average revenue of $491K and median revenue of $319K. This is based on a sample of 11 units. Past performance does not guarantee future results.
Color World New has been franchising since 2022. The FDD shows an investment range of $103,625-$190,325, a 6% of Gross Revenue royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,500 and the total investment ranges from $103,625 to $190,325 depending on location size and market. A minimum of $20,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Color World New and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Color World New or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com