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Fix Auto Franchise ProfileAutomotive Franchises > Auto Repair |
What is the Initial Investment for a Fix Auto Franchise?
To start a Fix Auto franchise, you will need to consider a range of initial investment costs. The franchise fee is set at $10,000, but total investment can vary significantly, with a low end of $55,100 and a high of $3,090,000. Additionally, potential franchisees should have a cash reserve between $10,000 and $250,000 and a net worth of at least $1,000,000 to qualify for ownership. These financial requirements are crucial for ensuring that franchisees can sustain their operations and navigate the initial phases of business.
What Are the Revenue Expectations for a Fix Auto Franchise?
Franchisees can expect substantial revenue from their Fix Auto locations. The average annual revenue per unit is approximately $2,390,879, with the highest reported revenue reaching $12,982,500. Understanding these figures is essential for potential franchisees as they evaluate the return on investment and plan for growth. Moreover, the breakeven time is around 10 months, and investment payback is typically achieved within 14 months, indicating a potentially profitable venture for those who manage their operations effectively.
What Are the Ongoing Fees Associated with a Fix Auto Franchise?
Owning a Fix Auto franchise involves ongoing fees that franchisees must budget for. A royalty fee of 3% is applied to gross revenue, alongside a marketing fee of 2%. These fees contribute to the overall support and brand recognition that Fix Auto provides its franchisees. It’s important for potential investors to factor these costs into their financial planning to ensure long-term profitability and brand alignment.
How Many Units Does Fix Auto Have and What Does it Mean for Growth?
As of 2022, Fix Auto has expanded to 178 franchised units, demonstrating a steady growth trend from 155 units in 2020. The absence of corporate-owned units indicates a strong franchise model that relies on independent operators. This growth not only reflects the brand's market acceptance but also presents opportunities for new franchisees to enter a proven system with an established customer base. Understanding the franchise landscape can help potential owners gauge the competitive environment and identify areas for potential expansion.
Fix Auto 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:
Fix Auto Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 155 | 171 | 178 |
| Net Change YoY | 16 | 7 | |
| Franchised Units | 155 | 171 | 178 |
| Net Change YoY | 16 | 7 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Fix Auto franchise offers a wide range of investment options, with a low initial investment starting at $55,100 and a high of $3,090,000. This flexibility allows potential franchisees to choose a financial commitment that aligns with their budget and business goals. The initial franchise fee is set at $10,000, making it accessible for aspiring entrepreneurs looking to enter the automotive repair industry.
Financial Performance
Franchisees can expect an average annual revenue of approximately $2,390,879 per unit, with the highest revenue reported at $12,982,500. The breakeven time is estimated at just 10 months, and the investment payback period is around 14 months, indicating a potentially lucrative opportunity for franchise owners willing to invest in their success.
Ongoing Fees
Franchisees are required to pay a royalty fee of 3% on gross sales, alongside a marketing fee of 2%. These fees contribute to the overall brand strength and marketing efforts of Fix Auto, ensuring that franchisees benefit from a well-established brand presence and ongoing support.
Required Financials
To become a Fix Auto franchisee, a net worth of $1,000,000 is required, with cash reserves ranging from $10,000 to $250,000. This financial threshold helps ensure that franchisees have sufficient resources to manage their operations effectively and respond to any unforeseen challenges.
Franchise Growth
The Fix Auto franchise has shown consistent growth in its number of franchised units, increasing from 155 in 2020 to 178 in 2022. This upward trend reflects the brand's strong market presence and the increasing demand for automotive repair services, making it an attractive option for potential investors.
Operational Insights
Average operating expenses for a Fix Auto franchise unit are approximately $1,175,670, which includes various costs such as company-operated store expenses, advertising, and general administrative expenses. Understanding these costs is crucial for franchisees to manage their budgets effectively and optimize profitability in their operations.
Frequently Asked Questions
The initial investment for a Fix Auto franchise ranges from $55,100 to $3,090,000, which includes the franchise fee, equipment, and other startup costs.