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Econo Lube N' Tune & Brakes Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for an Econo Lube N' Tune & Brakes Franchise?
To become a franchisee with Econo Lube N' Tune & Brakes, you need to prepare for an initial investment ranging from $173,234 to $366,460. This includes a franchise fee of $30,000, along with ongoing royalty and marketing fees of 5% each. Additionally, having a net worth between $250,000 and $500,000 is essential to qualify for this franchise opportunity. Be sure to assess your financial readiness before proceeding.
What Is the Average Revenue Potential for Econo Lube N' Tune & Brakes Franchisees?
Econo Lube N' Tune & Brakes offers franchisees a promising revenue potential, with an average annual revenue per unit of approximately $157,515. While some units can generate as low as $100,000, others can achieve revenues as high as $1,000,000. Understanding these figures can help you gauge the potential return on your investment and set realistic financial goals for your franchise unit.
How Quickly Can You Expect to Break Even with an Econo Lube N' Tune & Brakes Franchise?
Franchisees can anticipate a breakeven time of around 12 months, which is a relatively quick turnaround in the franchise industry. With an investment payback period of approximately 34 months, this model offers a favorable financial outlook for those looking to recover their initial investment. Careful management and operational efficiency will be key to achieving these timelines.
What Are the Operating Costs Associated with an Econo Lube N' Tune & Brakes Franchise?
Operating expenses for Econo Lube N' Tune & Brakes average around $62,024 annually, with additional costs for advertising and supplies. Overall, total annual expenses can reach approximately $471,504. Understanding these costs will help you budget effectively and maintain profitability. It’s crucial to have a clear financial plan to navigate these expenses while maximizing revenue.
Econo Lube N' Tune & Brakes Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Econo Lube N' Tune & Brakes Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 16 | 14 | 14 |
| Net Change YoY | -2 | 0 | |
| Franchised Units | 16 | 14 | 14 |
| Net Change YoY | -2 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Econo Lube N' Tune & Brakes franchise offers a low initial investment range from $173,234 to $366,460, making it accessible for aspiring entrepreneurs. With a franchise fee of $30,000 and ongoing royalty and marketing fees of 5% each, potential franchisees can expect a clear financial structure to navigate as they establish their business.
Financial Performance
Average annual revenue per unit stands at $157,515, with a median of $150,000. Franchisees can benefit from a strong financial performance, as the highest annual revenue reported is $1,000,000. This indicates a solid revenue potential for those who effectively manage their operations and marketing strategies.
Breakeven and Payback
Franchisees can anticipate a breakeven time of approximately 12 months, which is favorable for new business owners. Furthermore, the investment payback period is estimated at 34 months, allowing franchisees to recover their initial investment in a reasonable timeframe, supporting long-term financial planning.
Required Financials
To qualify for an Econo Lube N' Tune & Brakes franchise, applicants must have a net worth between $250,000 and $500,000. Additionally, prospective franchisees need to have cash readily available within the same investment range, ensuring they are financially equipped to handle startup costs and initial operating expenses.
Operational Insights
The average operating expenses for franchise units total around $62,024 annually, which includes costs associated with supplies, advertising, and general administration. Understanding these expenses is crucial for franchisees to maintain profitability and efficiently manage their business operations.
Growth Potential
Since 2018, Econo Lube N' Tune & Brakes has seen a consistent number of franchised units, with 16 units in 2018 and 14 units in both 2019 and 2020. This stability suggests a solid foundation for growth, providing opportunities for new franchisees to join a brand with an established presence in the automotive service sector.
Frequently Asked Questions
The initial investment for an Econo Lube N' Tune & Brakes franchise ranges from $173,234 to $366,460. This includes the franchise fee, equipment, and other startup costs.