ProColor Collision
ProColor Collision offers full-service auto collision repair franchises using proprietary methods. Known for quality automotive repair and replacement services, it operates in the competitive collision repair industry.
ProColor Collision franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a ProColor Collision franchise can vary widely. For a converted facility, the range is $38,300 to $199,500, including an additional $10,000 to $20,000 that must be paid to the Franchisor or its affiliates. For a new location, the total investment ranges from $316,800 to $3,129,500, with the same affiliate payment included. [p.1]
What is the initial franchise fee?
The initial franchise fee is typically $20,000 [p.16]. However, if you are an existing ProColor Collision Center franchisee in good standing and are purchasing an additional franchise, or buying multiple franchises at the same time, the initial fee can be reduced to $10,000 [p.26].
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are not specified in terms of exact amounts. According to [p.179], these fees can be paid through one-time, weekly, or monthly ACH debit entries, but the dollar amount per payment is variable. Additionally, franchisees contribute to advertising funds managed by the company, which must be spent on advertising and related activities without recognizing net income for the company ([p.110] and [p.97]).
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.121], but it allows for renewal up to two additional terms of five years each, provided that you give written notice between 210 and 270 days before the expiration of the current term [p.121].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of your ProColor Collision Center franchise except for good cause. Good cause includes but is not limited to unspecified reasons [p.5(g)]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on grounds such as the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity, which cannot exceed 30 days [p.5]. Additionally, the franchisor may terminate the agreement based on other unspecified grounds available by law [p.71].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them [p.44].
What training and ongoing support does the franchisor provide?
The franchisor provides an Initial Training Program that must be completed within 60 days after signing the Franchise Agreement and before opening the ProColor Collision Center [p.35]. This training can be conducted at your location, in Minnesota at a specified corporate headquarters or conference room, or electronically [p.35]. Additionally, vendors may require additional online or on-location training for staff [p.36]. The franchisor also offers ongoing support through required staff training and certification before staff begin performing services [p.37].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD provides information on active franchised locations but does not mention any closures or terminations.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and if it is included in the disclosure document [p.56]. However, the franchisor does not make any representations about future financial performance of franchises or company-owned outlets, nor do they authorize their employees to make such representations [p.56].
What am I restricted to selling, and where must I buy supplies?
You must sell products and services that meet ProColor Collision Center's specifications and may be subject to approval. You are required to purchase all necessary items from approved suppliers, which may include ProColor Collision Center itself or other sources designated in writing by them [p.30-31]. This includes inventory, supplies, equipment, furniture, fixtures, branded items, signage, computer hardware and software, technology, advertising materials, and products for use or sale through your center [p.28].