Color World Painting
Bottom line
- Total investment $107K – $168K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $149K/year (median $150K).
- Rated MODERATE with a risk score of 62/100.
- System contracting at -19.6% 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 WORLD PAINTING unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
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
Overview
About
COLOR WORLD PAINTING franchisees operate residential and commercial painting services, managing crews, scheduling jobs, coordinating with customers, and handling estimates and invoicing. Day-to-day activities include customer acquisition, job supervision, crew management, and maintaining service quality standards within their protected territory.
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 · 14 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting franchise system with undisclosed profitability metrics and high relative fees creates elevated risk despite no litigation history.
Score breakdown · what drove the 62 / 100 rating
- 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
- 05HIGHNo 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
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
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
COLOR WORLD PAINTING · FDD (2024) PDF