Rent-to-own franchises - ColorTyme Rent-To-Own

ColorTyme Rent-To-Own

Pat Sumner (pat@colortyme.com)

500 Tennyson Pkwy., #180

Plano, TX 75024

800/411-8963 or 972/403-4905;

fax 972/403-4923

www.colortyme.com

Type of rent-to-own business: Furniture, appliances, electronics

Company-owned stores: 0

Franchise-owned stores: 275

Expansion plans: “We are always looking to grow,” says Pat Sumner, director of franchise development and financing. “We have no stores yet in the states of Iowa or Nebraska. I have a lot of openings in Tennessee.” And yet, ColorTyme is represented in the far-flung states of Hawaii and Alaska. As Sumner says, “We go where people want to go.”

Type of franchise owner they’re looking for: No slackers need apply, but other than that, Sumner seems pretty open-minded. Ideally, he says the right candidate will have experience as a multi-unit manager.

Why they’re different: There are great arguments for having company stores, but Sumner makes a compelling case for not having them. “Usually, with franchises, it’s the tail wagging the dog, but we strictly focus on the franchisees.”

What they’ll do for you: A lot, according to Sumner, citing things that the company can help with, such as accounting, payroll processing and human resources. They’ll help out with 100 percent of the inventory financing and store opening assistance, including the installation of everything. They’ll do extensive training. And because Rent-A-Center is the parent company, ColorTyme has a lot of buying power. “We have combined buying power along with 3,500 stores,” says Sumner, who notes that if you don’t have enough inventory, “you’re dead in the water.”

License master franchise rights: Yes

Selling primary multiple store location agreements: Yes

Selling franchise agreements for just one store: Yes Active franchisee advisory board: Yes. It has 10 members; six are franchise members with two stores or less. People are elected for two-year cycles, and there is never the same 10 people every year.

Net worth of candidate: At least $100,000, but the company will try to match you with a partner program who will invest in the franchise if you don’t have the capital needed.

Franchise fees: $25,000, though you can get up to a $10,000 discount if you have 10 years’ experience. The discount is based on the number of years the candidate has been in the rent-to-own business.

Royalties: 5 percent

Advertising co-op: $250 flat fee per store. An actual co-op is up to the stores, depending on the region. ColorTyme will help set it up if the franchise owners want one.

Use this link for a PDF of Colortyme Rent-to-Own franchise information Back to more Rent-to-own Franchise Companies Information