CREATIVE COLORS INTERNATIONAL

Item 7 outlines the initial investment at $101,380 to $122,911, dominated by the hefty $59,500 franchise fee—higher than many peers in services—plus vehicles, equipment, and inventory around $40K-$50K. Ongoing fees from Item 6 include 7.5% royalties on gross sales, 1% brand fund, $750 annual tech fee, and $600 listing fee, totaling about 8.5% plus fixed costs that could eat 12-15% of average receipts. Item 19's $147,058 average gross revenue across disclosed units suggests potential profitability after expenses, especially in a mobile model with no storefront rent; subtract royalties (~$11K), fees (~$1.5K), and operating costs (est. 50-60% for labor/materials), and EBITDA might hit $40K-$60K for top performers. Ten SBA loans averaging $165,290 indicate lender confidence despite the startup capital needs.

System metrics paint a stable but stagnant picture: 70 franchised plus 3 corporate locations as of 2024 FDD, flat from 69 in 2023 per Item 20, with just 1 termination, 2 transfers, and 1 projected new unit. This low churn (under 2%) reflects operational resilience since 1991, but minimal expansion signals limited brand momentum or market saturation in upholstery repair. For hands-on investors eyeing $100K+ returns on a $110K investment, the numbers support viability in underserved commercial sectors like auto and hospitality, though flat growth demands self-driven marketing to scale beyond averages.