About Creative Colors International Franchise
Creative Colors International is a mobile franchise specializing in the repair, coloring, cleaning, protection, and restoration of upholstery surfaces including leather, cloth, vinyl, velour, and plastics.
Owners operate mobile vans, bringing services directly to commercial, automotive, and furniture clients on site.
The franchise fee is $49,500, and the brand has been franchising since 1991.
Creative Colors International Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 7.5% of gross sales, or a minimum of $375-$625/month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales, or a minimum of $50 a month for the 1st full year of business; a minimum of $75 a month for the 2nd year in business; and a minimum of $100 a month for each following full year of business. Not to exceed 2% of Gross Sales. | National brand fund |
| Total Investment Range | $86,980 – $102,410 | Includes build-out, inventory, working capital |
The investment range of $87K–$102K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7.5% of gross sales, or a minimum of $375-$625/month) and marketing fee (1% of Gross Sales, or a minimum of $50 a month for the 1st full year of business; a minimum of $75 a month for the 2nd year in business; and a minimum of $100 a month for each following full year of business. Not to exceed 2% of Gross Sales.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Start-Up Fee | $34,500 | $34,500 |
| Van | $720 | $7,595 |
| Van Setup | $0 | $2,500 |
| Pre-Opening Travel and Initial Training | $760 | $1,265 |
| Insurance | $750 | $3,000 |
| Office Equipment and Office Supplies | $0 | $1,600 |
| Technology Expenses | $750 | $1,850 |
| Additional Funds | $0 | $600 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 due at time of renewal. |
| Technology Fee | $750 a year |
| Audit Fee | Cost of audit, including travel, lodging, and wage expense, reasonable legal and accounting costs, not to exceed $5,000, plus 21% annual interest on underpayment. Payable only if audit shows an understatement of at least 3% of gross sales for any month. |
| Proprietary Products | Per our price list. Minimum inventory purchase of 2% of gross sales or $1500 per van annually, starting 2nd anniversary. |
| CCI Certified Training Class Registration Fee | $500 registration fee per person (credit for supplies if attended). |
| Extended CCI Certified Training Class | $1,000 |
| Conference Registration Fee | $300 - $600 per person |
| Non-Attendance Fee (Annual Conference) | $1,000 |
| Additional Assistance in Territory | $300 per person per day plus transportation and lodging |
| National Account Admin Fee | Up to 5% of your gross sales from National Accounts |
| Van Lease Payments | $475 per month, depending on amount of down payment. |
| Interest on Van Lease Agreement | Lesser of 18% or highest legal rate, if delinquent. |
| Interest on Payment Due to us other than under Van Lease Payments | Highest legal rate for open account business credit not to exceed 2% per month. |
| Insurance | Our costs, if we pay your premium when you fail to do so. |
| Business Listing Fee | $600 a year |
| Late Fee | $25 for all royalty fees paid late. |
| NSF Fee | $50 per occurrence |
| Warranty Reimbursement | Amount we pay your customer, if you decline to honor it. |
| Service Fee | $500 per day, plus our out-of-pocket travel, lodging and meal expenses, if we operate your business while you are in default. |
| Attorney’s Fees and Costs | Our reasonable fees and costs, if we incur legal costs in enforcing the Franchise Agreement. |
| Indemnification | Our loss, liability, taxes, or damages and costs, if a claim is brought against us due to your ownership or operation. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 4 weeks (3 weeks at headquarters, 1 week in territory) |
| Classroom Training | 125 hours |
| On-the-Job Training | 40 hours |
| Training Location | Franchisor's headquarters in Mokena, Illinois, and in your franchised territory. |
| Additional Training | One or two-week CCI Certified Training program for new managers/employees (no fee for 1 week, $1,000 for 2 weeks, plus $500 non-refundable deposit). Mandatory refresher training at annual conference (3 business days, $300-$600 registration fee). If conference not attended for two consecutive years, $1,000 non-attendance fee plus $200 per day for alternative training at headquarters. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Approximately 300,000 people population |
| Description | Determined by people population and identified by zip code and/or street boundary, described in writing and on a map attached to the Franchise Agreement. Exclusive, provided franchisee is in compliance with the agreement. Can be reduced if franchisee fails to service a National Account. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive terms of ten (10) years each |
| Renewal Fee | $5,000.00 |
| Renewal Conditions | Substantially complied with all provisions, brought business into full compliance with current standards, given timely notice, satisfied all monetary obligations, executed current form of agreement (terms may differ, but royalty fee not greater), complied with current qualification and training, and executed a general release. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisor's prior written consent required (not unreasonably withheld). Transferee must meet franchisor's standards, complete training, execute new agreements, and pay all accrued monetary obligations and the transfer fee. Franchisor has a right of first refusal. |
| Termination for Cause | Franchisor can terminate for various defaults, including failure to equip vans, complete training, commence business within 90 days, material misrepresentation, conviction of certain crimes, unauthorized use of confidential info, abandonment, unauthorized transfer, understating reports by >5%, bankruptcy, misuse of Marks, repeated defaults, soliciting outside territory, or terrorist activities. Curable defaults have 10 or 30 days to cure after notice. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | During the term, franchisee cannot divert business to competitors, employ franchisor/other franchisee employees, or have interest in a Competitive Business (upholstery repair/restoration). Post-term, no competing business for 2 years to any accounts serviced by franchisee or other franchisees, or within a 10-mile radius of any franchised business/J&J's, or within franchisee's Area of Primary Responsibility. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee or a fully-trained manager must devote full time and best efforts to the operation of the Franchised Business. The business must always be under the direct supervision of the franchisee or a manager who completed training. If an individual, the franchisor recommends the franchisee be the manager. All owners of a corporate, LLC, or partnership franchisee, and their spouses, must jointly and severally guarantee obligations. |
| Required Suppliers | You must purchase Proprietary Products from us. We are the designated supplier of the Proprietary Products listed in Exhibit I. We also provide a list of approved manufacturers, suppliers, and distributors (Approved Supplier List) and approved inventory products (Approved Supplies List). Currently, we are the only approved supplier for Proprietary Products. You must use only approved warranty and guarantee forms, work order forms, invoices and other forms, obtained from us or approved suppliers. You must obtain insurance from any licensed company but must name us as an additional insured. |
| Supply Restrictions | You must purchase Proprietary Products exclusively from us to preserve trade secrets and maintain uniform quality. Beginning on the second anniversary, you must purchase a minimum inventory of Proprietary Products equal to 2% of gross sales or $1500 per van annually. You may only use solvents and cleaners (other than our proprietary products) if approved by us. You must use computer hardware with internet access and specific software meeting our specifications. You may purchase or lease vans from any source, but we are an approved vendor for van leases. |
| Franchisor Revenue from Suppliers | In 2021, revenues from the sale of Inventory to franchisees was $443,736 (16.26% of total revenues of $2,729,463). Revenues from the lease of vans to franchisees was $6,591 (0.24% of total revenues of $2,729,463). No other affiliate derived revenue from required purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | We have arrangements to lease your Van through us via a third-party agreement with Enterprise Fleet Management. You pay a down payment of $5,400.00 to $5,600.00 (or 20% of delivered price) and 48 monthly lease payments at approximately 6% interest. You may buy out the van at $0 to $500 at the end of the term. Enterprise Fleet Management retains title as collateral. A personal guarantee of the van lease is required from all individual owners. We guarantee the van lease if leased through Enterprise. We do not receive direct or indirect payments for placing financing. |
Creative Colors International Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Creative Colors International Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Creative Colors International System Growth
Creative Colors International currently operates 71 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 6 | 79 |
| 2020 | 1 | 4 | 76 |
| 2021 | 0 | 2 | 74 |
Transfers: 5 | Closures: 12
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Wipfli LLP for year ending December 31.
Creative Colors International Franchise — FAQ
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