Skip to main content
FranchiseVerdict

How Much Does a Colors On Parade Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$21K – $98K

Franchise Fee

$8K

Royalty

20.0%

Ad Fund

0.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Colors On Parade is $8K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Colors On Parade franchise requires a total investment of $21K – $98K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $2K to $15K.

Ongoing Costs

Beyond the initial investment, Colors On Parade franchisees pay ongoing fees. The royalty fee is 20.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 0.0% of gross sales.

Net Worth & Liquid Capital Requirements

Colors On Parade requires working capital of $2K – $15K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to Colors On Parade's Item 19 financial performance representation:

$144KAvg. Gross Sales

Median gross sales: $119K

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View Colors On Parade?

SBA Loans Issued

2

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Colors On Parade has 2 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current Colors On Parade franchise owners

Get verified franchisee phone numbers for due diligence

See full Colors On Parade research

Risk analysis, unit growth, contract terms, and more

Compare Colors On Parade to similar franchises

Side-by-side investment, revenue, and risk comparison