ColorTyme vs Rent - A - Center Franchise Comparison

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

Start-Up Costs and Fees
 
ColorTyme Franchise
Rent - A - Center Franchise
Investment $229,575 - $357,500$355,268 - $560,225
Franchise Fee $25,000$35,000
Royalty Fee 4%5.5%
Advertising Fee $250/ mo3%
Year Founded 19791980
Year Franchised 19822013
Term Of Agreement 5-10 years5-10 years
Term Of Agreement 5-10 years5-10 years
Renewal Fee --


Business Experience Requirements
 
ColorTyme Franchise
Rent - A - Center Franchise
Experience � Business Experience: � Industry experience � General business experience � Marketing skills-

Financing Options
 
ColorTyme Franchise
Rent - A - Center Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/Yes-/-
Start-up Costs Yes/Yes-/Yes
Equipment Yes/Yes-/Yes
Inventory Yes/Yes-/Yes
Receivables Yes/Yes-/-
Payroll Yes/Yes-/-

Training & Support
 
ColorTyme Franchise
Rent - A - Center Franchise
Training 4 Weeks On-The-Job Training: 73 hours Classroom Training: 36 hours
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 FeesNewsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
Marketing *National Advertising *Regional Advertising *Local Advertising *Marketing Materials *Additional Services: customized ads *Other Marketing SupportAd Templates National Media Regional Advertising Social media SEO Website development Email marketing
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-timeAbsentee Ownership Allowed Number of Employees Required to Run: 4 - 6

Expansion Plans
 
ColorTyme Franchise
Rent - A - Center Franchise
US Expansion YesYes
Canada Expansion NoNo
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 Rent - A - Center

There's no better way to join the exciting and profitable rent-to-own industry than to franchise with Rent-A-Center. With over 4,100 locations in the United States and Mexico and over $3 billion in annual revenue, Rent-A-Center is the undisputed segment leader. We offer the resources unmatched in rent-to-own to support our franchisees. In addition to world-class marketing, training and operations support, Rent-A-Center franchisees benefit from in-house financing and a competitive royalty structure that decreases as you grow. Rent-A-Center Franchising is the nation's first franchisor of independently owned and operated rent-to-own stores, with over 35 years of franchising experience. Today, we are committed to creating value for our Franchisees by supporting them with superior systems, programs and processes every step of the way. Their successes are what drive our franchise model, one that is poised to continue its long, successful history.

Veteran Incentives  $5,000 off franchise fee
"Entrepreneur
#209 in Franchise 500 for 2020.
#153 in Franchise 500 for 2021.