Color World Painting Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Color World Painting is a home services franchise offering residential and commercial painting plus minor repairs and power washing. Franchisees run local operations, managing crews, estimates, and customer accounts within a territory.
FranchiseVerdict summary · 2026
A COLOR WORLD PAINTING franchise requires a total initial investment of $107K – $168K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $149K[2]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $107K – $168K
- 38th pct Home Services
- Avg gross sales
- $149K
- 1st pct Home Services
- Royalty
- 6.0%
- 15th pct Home Services
- Units
- 46
- 44th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $107K – $168K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $149K/year.
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- FLAG3 units terminated last reporting year (6.5% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Color World New Franchise Systems, LLC
- Parent company
- Color World Topco LLC
- Ultimate parent
- Authority Brands, Inc.
- Predecessor
- Color World Franchise Systems, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Stewart Vernon
- Incorporated in
- DE
- HQ
- 7120 Samuel Morse Drive, Suite 300, Columbia, MD 21046
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $429.5M
- vs $375.4M prior year
Affiliated brands
- Color World New Housepainting
- Color World Painting
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Stewart Vernon
- Headquarters
- MD
- Founded
- 2022
- FDD year
- 2024
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 39% below the typical home services franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $50K | $50K | |
| Start-Up Business Outfitting Feenot refundable | $8K | $8K | |
| Holiday Outfitting Feenot refundable | $15K | $15K | |
| Pre-Opening/Grand-Opening Marketing Feenot refundable | $7K | $7K | |
| Business Licenses and Permits | $0 | $2K | |
| Office and Computer Equipment; Hardware and Software | $1K | $4K | |
| Vehicle | $0 | $8K | |
| Vehicle Wrap | $1K | $5K | |
| Initial Technology Feesnot refundable | $2K | $2K | |
| Travel and Living Expenses to Attend Training | $1K | $5K | |
| Travel Reimbursement for Onsite Trainingnot refundable | $0 | $3K | |
| Insurance | $2K | $7K | |
| Office Rent and Set-up; Deposits | $0 | $4K | |
| Additional Funds | $20K | $50K | |
| Total initial investment | $107K | $168K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $107K – $168K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $50K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $2K |
| Training fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 88% below the home services norm.
Source: FDD 2024 · Item 19
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
$16K
11.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
10.5 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one COLOR WORLD PAINTING unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
10%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 COLOR WORLD PAINTING units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$119K
on $596K purchase
Total debt
$477K
SBA $0.3M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
- Avg gross sales
- $149K
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Revenue (by territory quartile and by franchisee quartile and by years in operation)
- Sample size
- 36 territories
- vs category median 32
- Range (low → high)
- $27K→$390K
- Cohort dispersion (min → max)
- Quartile band
- $55K→$294K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $149K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 8.0% (near the Home Services average).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -19.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How Color World Painting Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 46
- Opened
- 12
- Last reporting year
- Closed
- 14
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 37.8%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -19.6%
- Net unit change over 3 years
- 3-yr CAGR
- -19.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 12
- Closed (3yr)
- 14
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 14
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 0.7%
- Franchisor-initiated terminations
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 11 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.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Contracting franchise system with undisclosed profitability metrics and high relative fees creates elevated risk despite no litigation history.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $49,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 35 / 100 verdict
- 01MINORUnit count declining 10% YoY (46 units) indicates system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 — inability to assess actual profitability despite $149K avg revenue
- 03MINORHigh minimum royalty structure (6% or minimum) creates cash flow risk for lower-revenue locations
- 04MINORFranchise fee of $49,500 represents 33% of average revenue in first year, requiring significant ramp time
- 05MINORNo going concern statement suggests franchisor financial stability concerns
- 06MINORSmall system size (46 units) limits brand recognition and support infrastructure scalability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 75,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 40 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Columbia, Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 280 hrs
- On-the-job training
- 40 hrs
- Training location
- Online/Webinar (pre-training); Columbus, Ohio (in-person)
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks online and designated CRM software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks online and designated CRM software
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
COLOR WORLD PAINTING · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a COLOR WORLD PAINTING franchise?
The total investment to open a COLOR WORLD PAINTING franchise ranges from $107K – $168K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do COLOR WORLD PAINTING franchise owners earn?
According to Item 19 of the COLOR WORLD PAINTING FDD, the average gross sales per unit is $149K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the COLOR WORLD PAINTING FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the COLOR WORLD PAINTING FDD and qualifies whose outlets they describe.
What is COLOR WORLD PAINTING's franchise failure rate?
SBA 7(a) loan charge-off data is not available for COLOR WORLD PAINTING (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 WORLD PAINTING franchise locations are there?
As of their most recent FDD filing, COLOR WORLD PAINTING has 46 total units in the United States, including 45 franchised units and 1 company-owned units. 12 new units were opened in the latest reporting year.
Is COLOR WORLD PAINTING a good franchise to buy?
FranchiseVerdict rates COLOR WORLD PAINTING as a D-grade franchise with a verdict score of 35 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent COLOR WORLD PAINTING, you can request corrections or provide updated information.
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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.