Rent-to-own franchises – ColorTyme Rent-To-Own
ColorTyme Rent-To-Own
Jim Deering (jdeering@colortyme.com)
5501 Headquarters Drive
Plano, TX 75024
800/411-8963 or 972/403-4905;
fax 972/403-4923
Type of rent-to-own business: Furniture, appliances, electronics
Company-owned stores: 0
Franchise-owned stores: 214
Expansion plans: “We are expanding nationally right now,” says Jim Deering, director of franchise development. “We have areas of opportunity and room for expansion in nearly all states.” And yet, ColorTyme is represented in 34 states and climbing. As Deering says, “We can offer development opportunities in areas where our franchisees are comfortable operating.”
Type of franchise owner they’re looking for: Small business operating experience is almost a necessity and RTO experience is highly regarded. Capitalization is critical and “that’s why we offer franchisor backed financing” Deering says. Ideally, he says the right candidate will have at least $140,000 in cash availability with a net worth of at least $400,000. “The franchisees’ initial cash position coupled with our financing produces a winning combination.
Why they’re different: Flexibility and support. ColorTyme provides the “room” for the franchisees to operate as their sign says: “Hometown ColorTyme Store”. That combined with a 100% franchisee support focus from the headquarters provides the ColorTyme franchisee with the greatest potential for success.
What they’ll do for you: “A lot”, according to Deering, citing things that the company can help with, such as purchasing, accounting, payroll processing, legal assistance and human resources. They’ll help out with 100 percent inventory financing and store opening assistance, including the installation of everything. Training for the franchisee and their managers is state-of-the-art. ColorTyme has huge buying power. “We provide our franchisees with pricing they simply could not achieve on their own or through the buying groups. We have a complete franchise program” says Deering.
License master franchise rights: No, but will offer Multi-unit store development areas.
Selling primary multiple store location agreements: Yes
Selling franchise agreements for just one store: Yes
Active franchisee advisory board: Yes. It has 10 members; with franchise members that have from one to 40 stores. The FAC also acts as the approval body for advertising fund expenditures. Members are elected for two-year cycles, with about half of the council rotating in/out every year.
Net worth of candidate: At least $400,000.
Franchise fees: $25,000, although you can get a $1,000 discount for every year of RTO experience, up to a $10,000. There is also a second store discount of $5,000 and a third store discount of $7,500. A big plus is the franchisee does not have to contract up-front for the multiple units to get the discounts.
Royalties: 5 percent