I tend to be on the conservative side as far as cichlid space goes, so.....As a grow out tank, a 40 breeder could work for a little while. But I believe long term it will not not be sufficient. I've had FMs easily reach 7", and get 4" tall, with some serious girth to match. Especially if you want a colony, you'd need to be doing daily water changes to have them look their best, show true colors, and be healthy in such a small tank.
To me, a 75 would be minimum for a small colony, but a 6 ft tank would be much better. With space you would also get to see more natural behavior, and could have a shoal of dithers beside.