factual

Does Creative Colors have any purchasing or distribution cooperatives?

Creative_Colors Franchise · 2025 FDD

Answer from 2025 FDD Document

We have no purchase arrangements with our suppliers. We do not provide material benefits to you based on your use of approved suppliers. We do try and negotiate pricing with our approved suppliers for better buying power and discounts for you. We do not have any purchasing or distribution cooperatives. We do not receive payments from any designated suppliers on account of purchases made by you from those suppliers.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)

What This Means (2025 FDD)

According to Creative Colors's 2025 Franchise Disclosure Document, Creative Colors does not have any purchasing or distribution cooperatives. However, Creative Colors does try to negotiate pricing with its approved suppliers for better buying power and discounts for its franchisees.

Creative Colors provides franchisees with a list of approved manufacturers, suppliers, and distributors, as well as a list of approved inventory products, equipment, signs, stationery, supplies, chemicals, products, merchandise, and other items or services necessary to operate the franchised business. These lists are provided in the Operations Manual and may be revised at Creative Colors's discretion. Franchisees are required to notify Creative Colors in writing if they propose to use any brand of product or purchase from a supplier not on the approved lists, and Creative Colors will test the items and review the supplier's information before granting approval.

While franchisees must purchase Proprietary Products from Creative Colors, they can purchase or lease mobile units from any source. In 2024, Creative Colors's revenue from the sale of inventory to franchisees was $368,511, representing 15.22% of its total revenues. Revenue from mobile unit leases was $5,941, or 0.25% of total revenue. Franchisees can expect to spend 15% to 23% of their overall purchases on supplies, equipment, inventory, and other items from approved sources when establishing the franchised business, and 3-8% when operating the business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.