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Updated RecentlyColorTyme vs RadioShack Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of ColorTyme vs RadioShack including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $229,575 - $357,500 | $144,875 - $643,851 |
| Franchise Fee | $25,000 | $39,900 |
| Royalty Fee | 4% | 5% of net sales |
| Advertising Fee | $250/ mo | 3% for the Ad Fund |
| Year Founded | 1979 | 1921 |
| Year Franchised | 1982 | 1968 |
| Term Of Agreement | 5-10 years | 10 years |
| Term Of Agreement | 5-10 years | 10 years |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | � Business Experience: � Industry experience � General business experience � Marketing skills | Significant business experience; we are particularly interested in individuals who have demonstrated successful ownership or management of multiple business units or have managed multiple departments Individuals who possess the capability to grow with RadioShack. The ability to develop and execute a business plan. An entrepreneurial spirit and strong desire to work hard and be part of an established franchise system Ability to manage finances, including a thorough understanding of business financial statements The capability to effectively manage an organization that recruits, trains, and motivates employees who deliver an exceptional customer experience An acceptable credit history Sufficient liquid assets (i.e., cash) to invest into the business |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | No/No |
| Start-up Costs | Yes/Yes | No/No |
| Equipment | Yes/Yes | Yes/No |
| Inventory | Yes/Yes | Yes/No |
| Receivables | Yes/Yes | No/No |
| Payroll | Yes/Yes | No/No |
Training & Support |
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| Training | 4 Weeks | Local workshop, annual convention |
| 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 | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations |
| Marketing | *National Advertising *Regional Advertising *Local Advertising *Marketing Materials *Additional Services: customized ads *Other Marketing Support | Co-op advertising, Ad slicks, National media |
| 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 |
9% of all franchisees own more than one unit Number of employees needed to run franchised unit: 2 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | Yes | - |
| Canada Expansion | No | No |
| International Expansion | Yes | Yes |
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 RadioShack
RadioShack was opened in 1921 by the Deutchmann family, offering ham radio operators and electronics buffs a retail and mail order source for their electronics needs. By the 1960s, the company had nine stores and was shipping electronics to people all over the world, but was falling on hard times.
Charles Tandy purchased the company in 1963 and turned its $4 million debt into a $20 million profit. Today the company operates stores nationwide, selling everything from batteries to satellite dishes to electronics buffs and general consumers.