The companies have reached an amicable settlement on the early termination of franchise agreements that includes payment for the contractually required, future royalties to ColorTyme.

Effective July 31, 2007, Talley Rents, owned by Mike and Mark Tally, and the Cole Group, owned by Jim Cole, Jr., and Willie Cole, and ColorTyme, Inc. have agreed to end their current business relationship. The agreement involves approximately 65 stores and reduces ColorTyme's total store count to 207.

ColorTyme officials said "The companies have reached an amicable settlement on the early termination of franchise agreements that includes payment for the contractually required, future royalties to ColorTyme." ColorTyme would not specify the dollar amount.

Talley Rents and the Cole Group will join forces to operate their existing stores and future stores under the Rent 1st brand, which will focus on renting appliances and electronics with the ability to expand into new territories while protecting ColorTyme’s existing franchisees for a two year period.

The deal allows ColorTyme to immediately begin to offer franchises in major markets in Kansas, Arizona, Oklahoma, Louisiana, Nevada, Michigan and Texas.

Willie Talley founded ColorTyme 28 years ago.