"...a multi-unit operator at Rent-A-Center, Aarons or Rent-Way with eight years in the business would receive $8,000 credit toward a ColorTyme franchise fee"

In a world where less experienced but more affordable employees put seasoned individuals out of jobs, ColorTyme sees veterans of the rent-to-own industry as its best asset. By offering options like using 401K funds to help pay for start-up costs and incentives based on years of experience, ColorTyme makes the dream of becoming a business owner a reality.

According to the International Franchise Association, the average investment cost 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.

"After spending 16 years in rent-to-own and being great at what I do, I decided it was time to stop making money for other people and make it for myself," Louis Hall, Tannersville, Pa. ColorTyme franchisee, said. "I had reached a point in my career at Rent-A-Center where I had accomplished all I could in my position. The logical move to keep moving upward in my career was to own my own business."

Because of ColorTyme’s ability to flexibly finance new franchises, Hall was able to use the funds in his 401K to finance his first ColorTyme store in Tannersville, Pa. The low franchising costs will also give Hall a head start on opening his second store within the next six months.

"Without using my 401K, I wouldn’t have been able to become a franchisee," Hall said. "If I had used a small business loan, and managed to make it through the applications, I still probably wouldn’t qualify. I would also have to wait three years before opening my second store."

In a speech today to franchisees at the company's Winter Operations meeting, ColorTyme President and CEO Bob Bloom announced two new programs that will give further incentive for rent-to-own veterans to stay in the industry. Franchisees will receive $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. For example, a multi-unit operator at Rent-A-Center, Aarons or Rent-Way with eight years in the business would receive $8,000 credit toward a ColorTyme franchise fee.

For those multi-store managers that may not have the funding to back their own franchise, ColorTyme is offering partnerships between multi-store managers and investors. For an investment of $20,000, multi-unit operators can own 51 percent of their own ColorTyme store. With this and other incentives, ColorTyme plans to welcome 10 new franchisees into the realm of business owners in 2005.

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 own the things they want and need in a way they can afford, just as founder Willie Talley did at the first store in the small town of Athens, Texas 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.