Colors On Parade Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Colors on Parade is a mobile automotive-reconditioning franchise providing paintless dent repair, paint touch-up, and cosmetic repairs for dealers and consumers. Franchisees run a van-based service traveling to dealerships and customers in a territory.
FranchiseVerdict summary · 2026
A COLORS ON PARADE franchise requires a total initial investment of $22K – $98K, including a $3K – $8K franchise fee and an ongoing 30.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $22K – $98K
- 1st pct Automotive
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 30.0%
- 45th pct Automotive
- Units
- 223
- 40th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive 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 $22K – $98K including a $8K franchise fee, 30.0% ongoing royalty.
- RETURNSAverage fiscal-2022 gross sales for the 179 franchises operating more than three years (printed p.28), which is 179 of the 203 that had operated at least a year. All units are mobile. Data is fiscal 2022.
- RISKVerdict A (Strongest tier), verdict score 81/100 (higher is better).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Total Car Franchising Corporation
- Predecessor
- TCI, Inc.
- 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
- $3.5M
- vs $3.4M 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
- CEO
- Jeffrey Cox
- Headquarters
- SC
- Founded
- 1991
- FDD year
- 2023
- States available
- 25
Can you afford it, and what does the money buy?
Entry cost runs 94% below the typical automotive franchise.
Source: FDD 2023 · Items 5–7
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 | $22K | $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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $22K – $98K
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $15K
- Top 40% of category vs category
- Franchise fee
- $3K – $8K
- Top 40% of category vs category
- Royalty
- 30.0%
- Percentage of 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 | 30.0% 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 |
What do units actually make?
Source: FDD 2023 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
COLORS ON PARADE did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one COLORS ON PARADE unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
-55%
Negative returns. Costs exceed revenue at these inputs
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: 2023 FDD
Financial Performance
Average fiscal-2022 gross sales for the 179 franchises operating more than three years (printed p.28), which is 179 of the 203 that had operated at least a year. All units are mobile. Data is fiscal 2022.
Reported for a subset of outlets rather than the whole system
- Item 19 type
- gross sales
- Sample size
- 196
- vs category median 70 · large
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2022
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 20.0% — above the Automotive average of 9.3%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System roughly stable (+2.8% 3-year CAGR) with 223 units.
Multi-unit rate
Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Automotive averages
How Colors On Parade Compares
Is the system healthy?
Source: FDD 2023 · Item 20
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 (3-yr)
- +2.8%
- Net unit change over 3 years
- 3-yr CAGR
- +2.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 26
- Closed (3yr)
- 0
- Terminated (3yr)
- 22
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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
- N/A
- limited sample (2 loans) — rate not shown below 10
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
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
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
- Franchisor sells you products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 81 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 20.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 | SC |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 0 hrs
- Training location
- Conway, SC or Springdale, AR (paint); approved third parties (PDR and interior)
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Franchisor financing
- Not 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
82 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 $22K – $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?
COLORS ON PARADE does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the COLORS ON PARADE 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 COLORS ON PARADE FDD and qualifies whose outlets they describe.
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 223 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 verdict score of 81 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
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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.