Estimated Initial Investment
The estimates below show the low to high range for the Estimated Initial Investment. This amount is based on the franchise fee, building improvements, furniture, fixtures, equipment, signage, inventory, travel, rent deposits, insurance, some working capital and other costs.
|Reservation & Franchise Fee||$30,000||$30,000|
|Rent & Deposit||$4,500||$7,500|
|Architect, Electrical & Permit Fees||$3,000||$8,500|
|Furniture, Fixtures, & Equipment||$52,000||$60,000|
|Sales Tax & Shipping||$6,000||$10,000|
|Computers, Communications, & Digital Marketing||$6,500||$7,100|
|Accounting Setup Fee||$300||$500|
|Credit Card & Gift Card Processor||$500||$500|
|Additional Funds (Working Capital)||$10,000||$15,000|
While the above programs are similar, start up and construction costs will vary in each country.
The franchise fee is a one-time payment of $30,000 made at the time you sign the franchise agreement. If you open another studio, the franchise fee is reduced by $5,000. There are no additional charges for your training and for our assistance in opening your studio, other than out-of-pocket travel and lodging expenses.
Royalties and Other Fees:
The on-going royalty rate is 5% of sales. There is also a contribution to the marketing materials development fund of 1% of sales. Color Me Mine requires that you allocate 2% of your sales to your own local marketing and advertising. There is also an information and accounting service fee of $80 per month. Color Me Mine provides each studio with password protected online access to numerous reports designed to help the studio operator continually evaluate the business, and also supports the Point-of-Sale software system.
1. All fees are imposed by and payable to CMME. None are refundable.
2. The Royalty and all other fees paid to CMME are to be paid without deduction of any Taxes. Taxes are defined in §3 of the Franchise Agreement as “any present or future sales tax, use tax, services tax, excise or other tax of whatever nature (other than taxes generally assessed on the overall net income of the recipient) now or hereafter imposed by any governmental or other authority as well as all levies, imports, duties, charges or fees of whatever nature.” You will be responsible for paying any Tax. If you are required by law to deduct or withhold Taxes on any payment to CMME, you will increase the amount to be paid to CMME as necessary so that the net amount to be received by CMME after the deduction or withholding equals the amount CMME would have received if no deduction or withholding was required.
3. Gross Revenues are described in §3 of the Franchise Agreement as “the total amount of money or other compensation received or earned by you and your Related Parties for all goods sold and services rendered from the Accepted Location or in connection with the Trade Name or Marks, excluding money received for sales tax, returned merchandise, sale of food and beverage items, and sale of types of items not currently constituting part of the COLOR ME MINE® System and specifically exempted from the definition of ‘Gross Revenue’ in writing by CMME, within an accounting period.” Royalties are calculated and paid monthly. Periodically, at CMME’s sole option, the Royalties and/or Marketing Materials Development Fee may be reduced based on your sales and the number of COLOR ME MINE® Studios operated by you.