House of Colour Franchise
Cost, fees, owner earnings, closure rate and litigation for a House of Colour franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
House of Colour discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No financial performance representations disclosed. Franchisor explicitly states no representations about franchisee earnings or outlet performance provided.
What a House of Colour franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $30,000 | Item 5 — paid up front, before you open |
| Royalty | 4% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 6% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $33,345 – $52,260 | Item 7 — franchisor's own low/high estimate |
$175 minimum monthly royalty or 4% gross revenues; $500 CPD annual fee; $95-$200 tech fee monthly; marketing fund up to 2% if established.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
House of Colour system size and owner turnover
| Total outlets | 312 |
| Ceased operations | 9 |
| Terminated by franchisor | 5 |
| Transferred to new owners | 11 |
| Closure rate | 2.9% of outlets |
9 ceased operations in FY2025; lowest 10% territory performance triggers intervention or termination.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is House of Colour worth it? — how it compares to 436 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 8%) |
| Startup cost | from $33,345 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 2.9% of outlets | worse than 61% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a House of Colour
The franchisor's framing: No financial performance representations disclosed. Franchisor explicitly states no repres… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
House of Colour franchise — frequently asked
- How much does a House of Colour franchise cost?
- The FDD lists a total initial investment of about $33,345–$52,260, including a $30,000 initial franchise fee.
- How much do House of Colour franchise owners make?
- House of Colour discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the House of Colour franchise fees?
- House of Colour's FDD discloses a $30,000 initial franchise fee, a 4% royalty on gross sales, a 2% advertising-fund contribution, for roughly 6% of gross sales in recurring fees before rent, labor, or debt service. $175 minimum monthly royalty or 4% gross revenues; $500 CPD annual fee; $95-$200 tech fee monthly; marketing fund up to 2% if established.
- What is the House of Colour franchise profit margin?
- House of Colour discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the House of Colour franchise failure rate?
- 9 ceased operations in FY2025; lowest 10% territory performance triggers intervention or termination.
- How many House of Colour locations are there?
- House of Colour's FDD reports 312 total outlets, with 9 that ceased operations in the most recent reporting year and 11 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does House of Colour have complaints or lawsuits?
- House of Colour discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a House of Colour franchise worth it?
- It depends on the numbers, not the pitch. House of Colour scores F on disclosure honesty, carries about 6% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare House of Colour to similar franchises
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Source: MN CARDS 34639-202508-03 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with House of Colour or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.