Color Glo
Bottom line
- Total investment $63K – $68K including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $63K/year (median $77K).
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System contracting at -15.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Color Glo unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Color Glo units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$114K
on $569K purchase
Total debt
$455K
SBA $0.3M + senior + seller note
Overview
About
Color Glo franchisees operate mobile or storefront-based businesses offering exterior restoration services, likely including driveway sealing, concrete restoration, or similar color-coating applications. Day-to-day operations involve customer acquisition, service delivery, equipment maintenance, and territorial management within their protected zone.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Color Glo presents elevated risk due to franchisor going concern issues, shrinking franchise network, historical litigation over product claims, and unclear profitability with average revenues barely exceeding initial investment.
Score breakdown · what drove the 65 / 100 rating
- 01MINORDeclining unit count (-4.4% YoY) suggests system contraction and potential franchisee dissatisfaction
- 02HIGHGoing Concern status is FALSE, indicating serious financial viability questions about franchisor
- 03HIGHLitigation history (2012-2014 product performance lawsuit settled for $70,000) raises product liability and misrepresentation concerns
- 04MINORNo Item 19 (Average Net Income) disclosure prevents assessment of actual franchisee profitability
- 05MINORAverage revenue of $63,233 is only marginally above total investment ($63,300-$68,375), making ROI timeline unclear and risky
- 06MINORRoyalty structure ($150/month minimum) creates fixed cost burden even during low-revenue months
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
69 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Color Glo · FDD (2024) PDF