1979
190
$363,275
$35,000
$569,525
No
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.
Investing in a ColorTyme franchise provides several compelling advantages:
Established Brand Recognition: Benefit from the trust and recognition ColorTyme has built over decades in the RTO industry.
Comprehensive Support: Receive extensive training and ongoing support in operations, marketing, and customer service.
Flexible Financing Options: Access to in-house inventory financing and a $45 million funding pool to assist franchisees.
Proven Business Model: Operate a business with a track record of success and profitability.
Community Impact: Engage with local communities by providing essential household items to customers in need.
Established Year:
ColorTyme was founded in 1979, making it one of the most experienced brands in the rent-to-own (RTO) retail industry in the United States. Its longevity demonstrates stability, industry expertise, and a proven business model that continues to attract entrepreneurs.
Franchise Units:
The brand has over 190 franchise locations across more than 30 U.S. states, providing widespread market presence and brand recognition. Each franchise operates independently but benefits from the guidance and systems of a national network.
Founders & Ownership:
ColorTyme was initially founded as a standalone company in the RTO sector. Today, it operates as a wholly owned subsidiary of Rent-A-Center, the largest rent-to-own retailer in the world. This affiliation provides franchisees access to robust operational systems, industry insights, and capital resources.
Brand Journey & Company History:
1979: ColorTyme launched, focusing on affordable rent-to-own solutions for furniture, electronics, appliances, and computers.
1982: The company began offering franchise opportunities, expanding its reach nationwide.
Over the decades, ColorTyme has evolved with industry trends, embracing digital platforms, inventory financing solutions, and modern customer service practices.
Its parent company, Rent-A-Center, acquired it to further strengthen its portfolio and provide a larger support system for franchisees.
Market Presence & Industry Category:
ColorTyme operates within the retail rent-to-own (RTO) sector, targeting customers who want access to essential household products without upfront capital or credit hurdles. Its locations are strategically placed in both urban and underserved communities, ensuring accessibility to a wide customer base.
Additional Information:
The brand is known for community engagement, supporting local initiatives and providing essential products to families who might not qualify for traditional financing.
ColorTyme’s business model is scalable, allowing franchisees to open single or multiple units depending on their investment capacity.
Franchisees benefit from brand credibility, advanced technology for inventory management, and a strong marketing framework to drive local sales.
ColorTyme offers a comprehensive support system designed to ensure franchisee success from pre-launch through ongoing operations. Their structured approach helps franchise owners navigate all aspects of the rent-to-own business effectively.
Before opening, ColorTyme assists franchisees with:
Site Selection & Lease Negotiation: Guidance on choosing optimal locations based on traffic, demographics, and market potential.
Store Setup & Design: Assistance with store layout, décor, signage, and display planning to meet brand standards.
Inventory Planning & Procurement: Help in stocking initial inventory, from furniture and electronics to appliances and computers.
Pre-Opening Marketing: Support in creating buzz in the local community, including grand opening promotions and advertising campaigns.
Franchisees receive thorough training in all day-to-day operations, including:
Store Management: Best practices for scheduling, staff management, and operational workflows.
Sales & Customer Service: Techniques for engaging customers, building relationships, and driving sales while maintaining high service standards.
Inventory & Asset Management: Training on tracking rental agreements, managing returns, and maintaining products in good condition.
Technology Systems: Guidance on using advanced point-of-sale and inventory management software to streamline operations.
ColorTyme provides ongoing marketing assistance to help franchisees grow their business:
National Marketing Campaigns: Participation in brand-wide promotions and advertising initiatives.
Local Marketing Assistance: Strategies for social media, local events, and community engagement to drive foot traffic and brand awareness.
Promotional Materials: Access to templates, graphics, and digital marketing tools tailored to franchise locations.
Franchisees benefit from continuous learning programs:
Workshops & Webinars: Regular sessions on industry trends, operational improvements, and customer engagement strategies.
Field Support Visits: On-site guidance from experienced business consultants to ensure stores operate efficiently and profitably.
Updates on Policies & Technology: Continuous support on new business tools, systems updates, and compliance requirements.
Financing Guidance: Assistance with in-house inventory financing and capital planning.
Performance Monitoring: Tools and support to track sales, profitability, and operational efficiency.
Business Strategy: Advice on scaling the business, opening additional units, or expanding product offerings.
Overall, ColorTyme ensures franchisees are never alone in managing their business. From initial setup to long-term growth, the support system covers every operational and strategic aspect, empowering franchisees to achieve profitability and success in the competitive RTO market.
The ideal ColorTyme franchisee is an entrepreneur or investor who aligns with the company’s values, operational model, and customer-focused approach. This profile ensures the franchisee can successfully manage the business and achieve strong returns on investment.
Retail or Customer Service Experience: Prior experience in retail, sales, or customer service is highly advantageous, though not mandatory. Familiarity with managing staff, handling customer interactions, and overseeing daily operations will help the franchisee quickly adapt to the ColorTyme business model.
Entrepreneurial Mindset: The franchisee should be proactive, self-motivated, and capable of making strategic decisions to grow the business.
Investment Readiness: Ability to meet the total investment requirements, which typically range from $363,275 to $569,525.
Working Capital: Sufficient liquid capital to manage day-to-day operations and unexpected expenses.
Commitment to Growth: Willingness to invest in marketing, store enhancements, and potential expansion opportunities.
Customer-Focused: Passion for delivering excellent customer service and building strong relationships with local communities.
Leadership Skills: Ability to manage a team, motivate employees, and maintain high operational standards.
Adaptability: Comfortable adopting new technologies, systems, and marketing strategies as the business evolves.
Problem-Solving: Capability to handle challenges in inventory, staffing, or customer issues efficiently.
Community-Oriented: Interest in serving both urban and underserved areas, helping families access essential products through rent-to-own options.
Market Awareness: Ability to analyze local market needs, identify growth opportunities, and tailor offerings to meet customer demand.
Commitment to the Brand: Willing to uphold ColorTyme’s reputation for reliability, quality, and community involvement.
Growth-Oriented: Open to expanding the business by adding additional units or product lines over time.
In summary, the ideal ColorTyme franchisee is financially capable, operationally skilled, customer-focused, and motivated to grow a scalable and profitable rent-to-own business while contributing positively to their local community.
| 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 |
| Potential Revenue Streams | - Rental income from furniture, electronics, and appliances - Sales of refurbished items - Delivery and setup fees - Extended service plans |
| Franchise Units in USA | Over 190 locations across 30+ states |
