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Super Wash Franchise ProfileAutomotive Franchises > Car Wash |
What is the Initial Investment for a Super Wash Franchise?
To open a Super Wash franchise, you need to be prepared for a significant initial investment ranging from $540,065 to $993,770. This includes a franchise fee of $9,000, which is a one-time cost for securing your franchise rights. Additionally, you should consider the cash required to cover start-up expenses, which aligns with the overall investment range. It's essential to have a solid financial foundation, as the net worth requirement is between $500,000 and $1,000,000.
What are the Ongoing Fees for a Super Wash Franchise?
As a Super Wash franchisee, you will be responsible for ongoing fees that contribute to the brand's marketing and operational support. The royalty fee is set at 10% of your unit's revenue, which is standard in the franchise industry. Additionally, there is a marketing fee of 4% that helps fund national and local advertising efforts. These fees are crucial for maintaining brand presence and driving customer traffic to your location.
What Financial Performance Can You Expect from a Super Wash Franchise?
Super Wash franchises show promising financial performance, with average annual revenue per unit reported at $341,700. The median annual revenue stands at $116,000, while the highest annual revenue can reach up to $359,135. The breakeven time for new units is approximately 12 months, and the investment payback period is around 22 months, allowing franchisees to recoup their initial investment relatively quickly.
What Operational Insights Should You Know About Super Wash?
Running a Super Wash franchise involves understanding various operational aspects. The average operating expenses are approximately $330,158 annually, which includes management fees and other necessary costs. Franchisees should be prepared to manage these expenses effectively to maintain profitability. With a solid support system from the franchisor, including training and operational guidance, franchisees can navigate challenges and optimize their business performance.
Super Wash 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:
Super Wash Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 253 | 235 | 221 |
| Net Change YoY | -18 | -14 | |
| Franchised Units | 136 | 127 | 115 |
| Net Change YoY | -9 | -12 | |
| Corporate Units | 117 | 108 | 106 |
| Net Change YoY | -9 | -2 |
Investment Overview
The Super Wash franchise presents a compelling investment opportunity for aspiring entrepreneurs. The initial investment ranges from $540,065 to $993,770, with a franchise fee of $9,000. Franchisees should be prepared for ongoing royalty fees of 10% and a marketing fee of 4%. With a cash requirement of at least $540,065 and a net worth requirement between $500,000 and $1,000,000, potential franchisees should assess their financial readiness before proceeding.
Financial Performance
Super Wash franchises generate an average annual revenue of $341,700, with a median revenue of $116,000. The revenue range varies significantly, from a low of $26,491 to a high of $359,135 per unit. Aiming for a breakeven point within 12 months and an investment payback period of 22 months, franchisees can expect a solid return on investment with effective management and operational efficiency.
Franchise Growth
Since its inception, Super Wash has shown steady growth in franchised and corporate units. In 2016, there were 136 franchised units alongside 117 corporate units. By 2018, the number of franchised units decreased to 115, while corporate units also saw a slight decline to 106. This trend highlights the importance of strategic management and market adaptation as the franchise continues to evolve.
Operating Expenses
Franchisees should be aware of the operating expenses associated with running a Super Wash unit. Total operating expenses average $330,158 annually, which includes management fees of $291,500, legal and accounting costs of $13,129, and miscellaneous expenses. Understanding these costs is crucial for maintaining profitability and ensuring the sustainable operation of the franchise.
Royalty Structure
Super Wash implements a royalty fee of 10% on gross sales, which is vital for supporting the brand's marketing and operational initiatives. Additionally, a marketing fee of 4% is required to fund advertising efforts that benefit all franchisees. This structure ensures that franchisees contribute to the overall growth and visibility of the Super Wash brand.
Franchise Support
Super Wash provides comprehensive support to its franchisees, including training programs, operational guidance, and marketing resources. The franchise aims to equip its owners with the tools and knowledge necessary for success, fostering a collaborative environment that encourages growth and innovation within the franchise network. This commitment to support helps franchisees navigate challenges and maximize their business potential.
Frequently Asked Questions
The initial investment for a Super Wash franchise ranges from $540,065 to $993,770, depending on various factors such as location and facility size.