Color GloFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Color Glo franchise requires a total initial investment of $63K – $68K, including a $40K franchise fee and an ongoing 4.0% royalty[2]. Per the 2024 FDD, average unit revenue was $63K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $63K – $68K
- 5th pct Automotive
- Avg gross sales
- $63K
- 0th pct Automotive
- Royalty
- 4.0%
- 4th pct Automotive
- Units
- 65
- 19th pct Automotive
- SBA default
- 25.0%
- system-wide median varies by category
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1983. Systems this mature have refined operations and brand recognition.
Franchised units fell from 77 to 65 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $63K – $68K including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $63K/year (median $77K).
- Verdict F (Bottom Quintile) with a risk score of 89/100.
- 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
- Legal entity
- CGI INTERNATIONAL, INC.
- Parent company
- CGI INTERNATIONAL, INC.
- CEO title
- President, Chief Operating Officer and Director
- Gary E. Smith
- CEO experience
- 17 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- MN
- HQ
- 9825-35 West 74th St. Eden Prairie, MN 55344 USA
- Auditor
- Abdo
- Audited financials
- Franchisor revenue
- $1.2M
- vs $2.0M prior year
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.
- CEO
- Gary E. Smith
- Headquarters
- MN
- Founded
- 1983
- FDD year
- 2024
- States available
- 24
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $500 | $2K |
| Equipment, build-out, other | $23K | $27K |
| Total initial investment | $63K | $68K |
Source: Color Glo 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$11K
18.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $63K – $68K
- Better than avg vs category
- Liquid capital req'd
- $500 – $2K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Transfer fee | $10K |
| Total fee load | 4.0% of rev |
A 4.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $63K
- Per unit, per year
- Median gross sales
- $77K
- Item 19 type
- gross_sales
- Sample size
- 65 units
- vs category median 70
- Range (low → high)
- $22K→$463K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 221 Automotive brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Automotive averages
How Color Glo Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 65
- Opened
- 0
- Last reporting year
- Closed
- 1
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 2.0%
- Net growth (yr3)
- -4.4%
- Net unit change last year
- 3-yr CAGR
- -15.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 95.6%
- Units that stayed open
- Termination rate
- 1.5%
- Franchisor-initiated terminations
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $1.0M
- Median loan
- $60K
- 50th percentile
- Charge-off rate
- 25.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Color Glo's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
American Refinishing, LLC v. Color Glo International, Inc. filed December 14, 2012 in Chancery Court of Davidson County, Tennessee (file #12-1748-II). Former franchisees sought rescission and damages under Tennessee Consumer Protection Act. Settled July 16, 2014 with $70,000 payment to plaintiffs.
Largest disclosed settlement: $70,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Abdo
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 89 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 500,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Minnesota |
| Governing law | Minnesota |
| Litigation count | 1 |
View Item 3 litigation summary
American Refinishing, LLC v. Color Glo International, Inc. filed December 14, 2012 in Chancery Court of Davidson County, Tennessee (file #12-1748-II). Former franchisees sought rescission and damages under Tennessee Consumer Protection Act. Settled July 16, 2014 with $70,000 payment to plaintiffs.
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 63 hrs
- Training location
- Corporate Office in Minneapolis, Minnesota and field locations
- Field support
- 15 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
69 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Color Glo · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Color Glo franchise?
The total investment to open a Color Glo franchise ranges from $63K – $68K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Color Glo franchise owners earn?
According to Item 19 of the Color Glo FDD, the average gross sales per unit is $63K. The median is $77K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Color Glo's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Color Glo (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Color Glo franchise locations are there?
As of their most recent FDD filing, Color Glo has 65 total units in the United States, including 77 franchised units and 0 company-owned units.
Is Color Glo a good franchise to buy?
FranchiseVerdict rates Color Glo as a F-grade franchise with a risk score of 89 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.