ColorTyme vs IKEA Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of ColorTyme vs IKEA including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
ColorTyme Franchise
IKEA Franchise
Investment $229,575 - $357,500N/A
Franchise Fee $25,000N/A
Royalty Fee 4%-
Advertising Fee $250/ mo-
Year Founded 1979-
Year Franchised 1982-
Term Of Agreement 5-10 years-
Term Of Agreement 5-10 years-
Renewal Fee --


Business Experience Requirements

 
ColorTyme Franchise
IKEA Franchise
Experience � Business Experience: � Industry experience � General business experience � Marketing skillsWhen selecting franchisees, Inter IKEA Systems B.V., among other things, evaluates the following: -experience -local market knowledge and presence (able to demonstrate ability to establish and operate IKEA stores nationally) -corporate culture and values -financial strength and ability to carry through the investment penetrating a country in full and in a large-scale retail environment format

Financing Options

 
ColorTyme Franchise
IKEA Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/Yes-/-
Start-up Costs Yes/Yes-/-
Equipment Yes/Yes-/-
Inventory Yes/Yes-/-
Receivables Yes/Yes-/-
Payroll Yes/Yes-/-

Training & Support

 
ColorTyme Franchise
IKEA Franchise
Training 4 Weeks -
Support o Central Purchasing: Included in Fees o Field Operation Evaluation: Included in Fees o Field Training: Included in Fees o Initial Store Opening: Included in Fees o Inventory Control: Included in Fees o Franchisee Newsletter: Included in Fees o Regional or National Meetings: Included in Fees-
Marketing *National Advertising *Regional Advertising *Local Advertising *Marketing Materials *Additional Services: customized ads *Other Marketing Support-
Operations � 49% of all franchisees own more than one unit � Number of employees needed to run franchised unit: 5 � Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) � Average Number of Employees: 5 Full-time, 0 Part-time-

Expansion Plans

 
ColorTyme Franchise
IKEA Franchise
US Expansion YesYes
Canada Expansion No-
International Expansion YesYes

Company Overviews

About ColorTyme

ColorTyme is America’s first franchisor of independently owned and operated rent-to-own stores.The nation's oldest rental-purchase franchise company, specializing in electronics, furniture, appliances and computers.ColorTyme franchised stores provide the best selection of name brand home furnishings, appliances, computers and electronics to buy, rent or lease to own. Products are typically delivered and set-up with no hassles and no down payment. Customers are able to lease living room furniture, bedroom furniture, big screen televisions and more! Name recognition, a national product service system, and 100% inventory financing are all reasons to join the ColorTyme family. Compelling unit economics combined with a well established, respected and trusted Franchisor provides an unparalleled opportunity.ColorTyme is an independent, wholly owned subsidiary of the largest rent-to-own company in the world, Rent-A-Center (NASDAQ: RCII).

About IKEA

Franchises are granted by Inter IKEA Systems B.V. as part of a detailed expansion plan. Serious applicants are carefully researched and evaluated and franchises are granted only to companies and/or individuals with strong financial backing and a proven record in retail.

When selecting franchisees, Inter IKEA Systems B.V., among other things, evaluates the following: