In 2004, ColorTyme launched a program offering partnerships to multi-store managers with investors. For an investment of $20,000, multi-unit operators can own 51 percent of their own ColorTyme store.
Pat Sumner, Director of Franchise Development and Financing, ColorTyme

Most new franchisees start their relationship with a phone call to Pat Sumner (above) and open their first store in an average of six months.

Over the years, franchisee innovation and ColorTyme financing have become critical factors to ColorTyme’s success. Within the last year, programs such as custom wheels and tires, initiated by ColorTyme franchisee Jim Moore, and Pay Day Loans (PDL), pioneered by rent-to-own (RTO) legend and ColorTyme franchisee Gary Hughes, have increased ColorTyme, Inc.’s growth capabilities and its franchisees’ profits.

ColorTyme President and CEO Bob Bloom and Director of Franchise Development and Financing Pat Sumner provide aggressive financing and encourage these entrepreneurial attitudes because they know franchisees are the heart of the creative process and integral to a successful company. “ColorTyme is a leader in new RTO programs, thanks largely to our franchisees,” said Sumner.

Currently, more than 25 ColorTyme stores offer PDLs and there are another 12 planned for this year. While Moore launched the custom wheels prototype, additional franchisees are taking advantage of the program and ColorTyme projects 50 stores will offer custom wheels by the end of 2006.

“Part of my job at ColorTyme is to find the people that love RTO who also have the experience to make their own business a success,” Sumner said. “ColorTyme can support them with financing and empower them through creative and business freedoms that are above and beyond what is typical for our industry.”

ColorTyme gives new franchisees a foothold in entrepreneurship through the company’s rather simple franchising process. Most new franchisees start their relationship with a phone call to Sumner; and open their first store in an average of six months. In 2005, ColorTyme franchisees opened 40 new stores, 16 of those by 12 new franchisees, more than double 2004’s numbers. Among those twelve were four independent RTO dealers that converted a total of eight stores to ColorTyme locations. Charles Hobbs and his wife, Holley, sold four of their Hometown Rentals stores to ColorTyme and Rent-A-Center and converted the remaining four to ColorTyme in July 2005.

“Several pieces of the puzzle fell into place with ColorTyme,” Hobbs said. “The ease of the deal made it more attractive to me, in addition to having access to national advertising and name recognition. What sealed the deal was being able to take advantage of 100 percent inventory financing. As a former independent RTO dealer, I know that’s crucial to my business.”

According to the International Franchise Association, the average investment to start a franchise, excluding real estate costs, is nearly $319,000. Depending on the industry, costs can range from $20,000 to more than $1 million. With that in mind, ColorTyme dedicates resources to support those with a passion for and experience in RTO, trading sweat equity for monetary equity.

For example, in 2004, ColorTyme launched a program offering partnerships to multi-store managers with investors. For an investment of $20,000, multi-unit operators can own 51 percent of their own ColorTyme store. Another equally innovative program gives new franchisees $1,000 credit from ColorTyme towards the initial franchise fee for each year of experience they have in the rent-to-own industry - up to $10,000.

The entrepreneurial spirit of franchisees paired with total support and marketing is working for ColorTyme. The company is on track to top 2005’s record numbers, with eight new franchisees to date and another six in franchise agreement discussions. Sumner expects 2006 to be another good year for the company: 14 new franchisees have already executed franchise agreements this year. Two of these new franchisees were independent RTO dealers converting to the ColorTyme name and concept.

“Why have I stayed in RTO for 25 years?” Sumner asks. “Putting scores of people into business for themselves is quite something. I’m proud of what we do to help people become owners in an industry they love.”

ColorTyme, Inc. is the oldest franchised rent-to-own or rental purchase company in the United States with nearly 300 stores. Headquartered in Plano, Texas, ColorTyme offers customers the opportunity to purchase products in a way they can afford, just as founder Willie Talley envisioned ColorTyme 25 years ago. The company got its start when Talley began selling Curtis Mathes color televisions and realized many of his customers couldn’t afford to buy a new TV in one payment. A new brand and concept was born. Now in its 25th year, the company has launched an aggressive franchise development plan and is on track to grow significantly in the next five years with many of its newest locations being developed by former rent-to-own professionals who want to the opportunity to go into business for themselves.