Colors On Parade Franchise FDD, Profits & Costs (2025)

Colors On Parade is a leading franchise specializing in eco-friendly, mobile automotive paint and dent repair services. Established in 1988 by founder Robert Lowery in Conway, South Carolina, the company has grown significantly over the past three decades. The first franchise was granted in 1991 in North Carolina, marking the beginning of its expansion across the United States.

Headquartered in Myrtle Beach, South Carolina, Colors On Parade offers a range of services, including scratch and dent repair, paintless dent repair, headlight restoration, alloy wheel repair, and RV body repair.

What sets the franchise apart is its proprietary EcoSmart System, which utilizes advanced technology to perform high-quality repairs with minimal environmental impact. This system focuses on repairing only the damaged area, reducing waste and emissions compared to traditional body shop methods.

The franchise operates through a two-tiered system: Unit/Operator Franchises, where individuals run their own mobile repair businesses, and Area Developer Franchises, where franchisees manage multiple units within a specific region, supporting and expanding the network.

Initial Investment

How much does it cost to start a Colors On Parade franchise? It costs on average between $21,000 – $98,000 to start a Colors On Parade franchised facility.

This includes costs for equipment, vehicle outfitting, initial supplies, and operating expenses. The exact amount depends on various factors, including the type of service area, the region of operation, and whether the franchisee chooses to lease or purchase their vehicle and repair equipment.

Type of ExpenditureAmount
Initial Franchise Fee$2,500 – $7,500
Vehicle$5,000 – $35,000
Laptop Computer & Printer$300 – $2,000
Equipment$10,000 – $24,500
Insurance$300 – $6,000
Travel and Living Expenses While Training$1,500 – $6,000
Miscellaneous Opening Costs$250 – $1,500
Additional Funds – 3 to 6 Months$2,000 – $15,000
Totals$21,850 – $97,500

Average Revenue (AUV)

How much revenue can you make with a Colors On Parade franchise? A Colors On Parade franchised location makes on average $119,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Colors On Parade fdd item 19 extract

This compares to $748,000 yearly revenue for similar other automotive franchises. Below are a few Colors On Parade competitors as a comparison:

Colors On Parade franchise competitors

Colors On Parade Franchise Disclosure Document

Frequently Asked Questions

How many Colors On Parade locations are there?

As of the latest data, Colors On Parade operates 214 franchised locations across the United States. The company does not own any company-operated units; all locations are franchisee-owned.

What is the total investment required to open a Colors On Parade franchise?

The total investment required to open a Colors On Parade franchise ranges from $21,000 to $98,000.

What are the ongoing fees for a Colors On Parade franchise?

Colors On Parade franchisees pay a royalty fee based on their role. Operator Franchisees pay 30% of gross sales, while Area Developer Franchisees pay 10%. Additionally, all franchisees contribute 1% of gross sales to a national advertising fund.

What are the financial requirements to become a Colors On Parade franchisee?

To become a Colors On Parade franchisee, candidates are generally required to have a minimum net worth of $100,000 and liquid capital of at least $20,000. These financial requirements ensure that franchisees have the necessary resources to support the initial investment and ongoing operations of the franchise.

How much can a Colors On Parade franchise owner expect to earn?

The average gross sales for a Colors On Parade franchise are approximately $0.12 million per location. Assuming a 15% operating profit margin, $0.12 million yearly revenue can result in $18,000 EBITDA annually.

Who owns Colors On Parade?

Colors On Parade franchise is owned by Total Car Franchising Corporation (TCFC).

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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