January 24, 2012 // Franchising.com // FRISCO, Texas – New ColorTyme CEO Cathy Skula delivered shock-and-awe punch to the kick off of the ColorTyme 2012 National Convention, themed Make It Happen, by rolling out a new strategic plan for growth that included lower fees.
A crowd of approximately 300 franchisees, operators and vendors listened silently and intensely, erupting periodically with bursts of applause and shouts of approval as Skula outlined a growth plan which entailed reducing the capital requirement by as much as $30,000 and reducing royalty fees from 5 percent to 4 percent, with a sliding scale that takes it as low as 2 percent.
“The net effect of all these changes means instead of requiring someone to have $140,000 in cash to open a new ColorTyme franchise, we can now look at candidates with as little as $80,000,” said Skula. “Additionally, the growth plan allows for much better cash flow and operating costs. A motivated and successful multi-unit operator can get their royalty fees down to 2 percent, which is not only low for our rent-to-own segment but for any franchised concept.”
Mitch Fadel, Rent-A-Center president and COO, presented a state of the rent-to-own industry address in which he said that he expects the sector to remain strong and get even stronger as credit remains tight and consumer confidence returns. Additionally, he talked about the parent company’s commitment and investment in the ColorTyme strategic growth plan.
One hundred and seven awards were given to recognize winners in the Bronze, Silver, Gold, Platinum, Million Dollar and Diamond categories. Three stores, two ColorTymes and one RimTyme, received the highest honor ColorTyme bestows, the Double Diamond award, which recognizes the managers and owners of the stores that exceed $2 million in revenues. There were also ten recipients, eight ColorTymes and two RimTymes, of the Million Dollar Club Award. Kids Across America gave a powerful presentation on their programs that deliver energy and hope to underprivileged children, thanking ColorTyme for their 19 years of support. Rhonda Davis was honored for her pivotal role in the company and 30 years of dedicated service as an employee at the corporate headquarters by being inducted into ColorTyme’s Circle of Excellence, a lifetime achievement award.
“I was surprised and honored,” said Davis. “I’m still here because I love the company and the franchisees. This company has been extremely good to me and I’m truly blessed to be able to work here.”
Franchisees of RimTyme, ColorTyme’s growing rim and tire franchise business, attended the convention for the first time reflecting its part in Skula’s overall growth vision. Their top operators were presented with numerous awards.
“The franchisees are coming up to me following the morning sessions with very positive feedback on our strategic growth plan,” said Skula. “I feel great about the energy it has created.”
Following a vendor show highlighting products and services from 36 vendors, franchisees will meet later in the evening for fun, games and camaraderie at the Main Event in Frisco, Texas.
ColorTyme, Inc., founded in 1979, is America’s oldest franchisor of independently owned-and-operated rent-to-own stores. ColorTyme franchisees operate 196 rent-to-own stores in 33 states, and the company’s custom-wheels-and-tires franchise brand, RimTyme, operates 19 stores in 10 states. ColorTyme is headquartered in Plano, Texas, and is an independent, wholly owned subsidiary of the largest RTO company in the world, Rent-A-Center (NASDAQ: RCII).
Sandy Bell, S.
Bell Public Relations