Colors On ParadeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A COLORS ON PARADE franchise requires a total initial investment of $21K – $98K, including a $8K franchise fee and an ongoing 20.0% royalty[2]. Per the 2023 FDD, average unit revenue was $144K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $21K – $98K
- 0th pct Automotive
- Avg gross sales
- $144K
- 0th pct Automotive
- Royalty
- 20.0%
- 31st pct Automotive
- Units
- 223
- 30th pct Automotive
- SBA default
- 0.0%
- 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 1991. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $21K – $98K including a $8K franchise fee, 20.0% ongoing royalty.
- Average unit revenue of $144K/year (median $119K).
- Verdict A (Top Quintile) with a risk score of 39/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- TOTAL CAR FRANCHISING CORPORATION
- Predecessor
- TCI
- Prior franchisor entity
- CEO title
- President, CEO and Director
- Jeffrey Cox
- Incorporated in
- SC
- HQ
- 125 Daytona Street, Conway, SC 29526
- Auditor
- Smith Sapp Professional Association
- Audited financials
- Franchisor revenue
- $3.4M
- vs $3.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Colors on Parade franchisees operate a mobile face painting and character entertainment service, traveling to events like birthday parties, festivals, corporate events, and community gatherings. Day-to-day operations involve scheduling appointments, traveling to client locations, applying face paint/makeup, and managing customer relationships. The business model is service-based and highly dependent on personal performance, marketing, and local market saturation.
- CEO
- Jeffrey Cox
- Headquarters
- SC
- Founded
- 1991
- FDD year
- 2023
- States available
- 25
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $8K | $8K |
| Working capital (3–6 mo) | $2K | $15K |
| Equipment, build-out, other | $12K | $75K |
| Total initial investment | $21K | $98K |
Source: COLORS ON PARADE 2023 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
$7K
5.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
9.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $21K – $98K
- Better than avg vs category
- Liquid capital req'd
- $2K – $15K
- Better than avg vs category
- Franchise fee
- $3K – $8K
- Better than avg vs category
- Royalty
- 20.0%
- Gross Sales · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 20.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Training fee | $8K |
| Transfer fee | $1K |
| Renewal fee | $4K |
| Total fee load | 20.0% of rev |
At 20.0% total fee load, roughly $29K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $144K
- Per unit, per year
- Median gross sales
- $119K
- Item 19 type
- gross_sales
- Sample size
- 203 units
- vs category median 70 · large
- Range (low → high)
- $0→$733K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 221 Automotive brands
vs Automotive averages
How Colors On Parade Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 223
- Opened
- 26
- Last reporting year
- Closed
- 22
- Turnover rate
- 9.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (yr3)
- +1.8%
- Net unit change last year
- 3-yr CAGR
- +2.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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
- New York
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $150K
- Median loan
- $75K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Colors On Parade's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Colors on Parade presents HIGH CAUTION to HIGH RISK due to franchisor going concern issues, undisclosed net income, extremely high royalty rates on modest average revenue, stagnant growth, and unprotected territories.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith Sapp Professional Association
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Restricted to system-approved products: Yes
Score breakdown · what drove the 39 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates franchisor financial distress or viability concerns
- 02MEDNet income not disclosed in FDD Item 19 — impossible to validate actual profitability claims
- 03MINORExtremely high royalty burden (20-30% of gross) combined with $143.5K avg revenue leaves minimal profit margin (~$28.7K-$57.4K gross after royalties alone)
- 04MINORMinimal system growth (1.8% YoY) with only 223 units — stagnant franchise system
- 05MINORNo territory protection — franchisees face cannibalization risk and direct competition from other franchisees
- 06MINORHigh royalty-to-revenue ratio suggests unit economics may not support franchisee profitability
- 07MINOR20-year term is unusually long and locks franchisees into relationship with struggling franchisor
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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic area based on population |
| Protected territory | No |
| Exclusive territoryℹ | Yes |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Conway, SC |
| Jury trial waiver | Yes |
| Governing law | South Carolina |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 152 hrs
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks Pro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Pro
Item 20 · call current owners
Franchisee Contacts
84 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
COLORS ON PARADE · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a COLORS ON PARADE franchise?
The total investment to open a COLORS ON PARADE franchise ranges from $21K – $98K, with an initial franchise fee of $8K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do COLORS ON PARADE franchise owners earn?
According to Item 19 of the COLORS ON PARADE FDD, the average gross sales per unit is $144K. The median is $119K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is COLORS ON PARADE's franchise failure rate?
SBA 7(a) loan charge-off data is not available for COLORS ON PARADE (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 COLORS ON PARADE franchise locations are there?
As of their most recent FDD filing, COLORS ON PARADE has 223 total units in the United States, including 217 franchised units and 0 company-owned units. 26 new units were opened in the latest reporting year.
Is COLORS ON PARADE a good franchise to buy?
FranchiseVerdict rates COLORS ON PARADE as a A-grade franchise with a risk score of 39 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.