Established
1979
Franchise Units
28
Minimum Investment
$363,275
Franchise Fee
$35,000
Total Investment Range
$569,525
Home Based
No
Description
ColorTyme stands as a pioneer in the rent-to-own (RTO) industry, offering a unique franchise opportunity for entrepreneurs seeking to enter a proven business model with a legacy of success. Established in 1979, ColorTyme has been providing quality furniture, electronics, appliances, and computers through flexible rental agreements, catering to customers who prefer affordable payment options without the need for credit checks.
As America's first franchisor of independently owned-and-operated rent-to-own stores, ColorTyme has built a reputation for reliability, customer service, and community involvement. The brand's commitment to excellence is evident in its extensive network of franchise locations across the United States, supported by a robust infrastructure and comprehensive training programs.
Whether you're an experienced business owner or a first-time entrepreneur, ColorTyme offers a scalable and rewarding business model backed by decades of industry expertise.
Why Invest in This Franchise?
Investing in a ColorTyme franchise provides several compelling advantages:
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Established Brand Recognition: Benefit from the trust and recognition ColorTyme has built over decades in the RTO industry.
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Comprehensive Support: Receive extensive training and ongoing support in operations, marketing, and customer service.
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Flexible Financing Options: Access to in-house inventory financing and a $45 million funding pool to assist franchisees.
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Proven Business Model: Operate a business with a track record of success and profitability.
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Community Impact: Engage with local communities by providing essential household items to customers in need.
Background
ColorTyme holds the prestigious title of being the first franchisor in the rent-to-own industry.
Established: 1979
Franchise since: 1982Founders: Willie Talley and a group of visionary entrepreneurs who saw a gap in the consumer finance market.
Ownership: Today, ColorTyme operates as a wholly-owned subsidiary of Rent-A-Center (RAC), the global leader in the lease-to-own sector. This backing provides franchisees with unparalleled corporate stability and resources.
Active Units: 28
Market Presence: ColorTyme has a footprint in over 30 states, primarily focusing on mid-sized markets where local community connections are strongest.
Industry Category: Rent-to-Own / Lease-to-Purchase Retail.
Support Training
Operational & Academic Training
New owners undergo an intensive multi-week training program that covers:
The "ColorTyme System" of store management.
Inventory procurement and lifecycle management.
Legal compliance regarding rental-purchase agreements.
Proprietary POS software training.
Marketing & Ongoing Support
You’ll have access to a national marketing fund that produces high-quality digital ads, circulars, and social media content. Regionally, field consultants visit your location to audit performance and provide coaching on collections and sales growth.
Ideal Candidate
The most successful ColorTyme owners share a specific set of traits:
The "People Person": This is a relationship business. You need to be comfortable talking to your neighbors and managing a small team of 3-6 employees.
Financial Literacy: While you don't need to be a CPA, understanding cash flow and P&L statements is vital.
Community Minded: We look for owners who want to be the "face" of their business—someone who joins the local Chamber of Commerce and sponsors the local Little League team.
Financial Detail
| Financial Component | Details / Range |
|---|---|
| Total Investment Required | $363,275 – $569,525 |
| Initial Franchise Fee | $35,000 |
| Royalty Fee | 5% of monthly gross sales |
| Advertising Fee | 3% of monthly gross sales |
| Minimum Liquid Capital | $100,000 |
| Net Worth Requirement | $350,000 |
| Infrastructure / Store Setup Cost | $150,000 – $250,000 (includes leasehold improvements, furniture, POS system) |
| Inventory Cost | $100,000 – $200,000 |
| Working Capital | $50,000 – $100,000 |
| Marketing Budget | Included in ongoing advertising fee; local marketing may require additional $5k–$10k |
| Expected ROI | Typically 18–36 months depending on location and management |
| Break-Even Time | 18–24 months |