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Tommy's Express Car Wash Franchise ProfileAutomotive Franchises > Car Wash |
What is the Initial Investment for a Tommy's Express Car Wash Franchise?
To open a Tommy's Express Car Wash franchise, you will need an initial investment ranging from $5,296,471 to $7,166,726. This includes a franchise fee of $50,000 and requires a cash investment within the same range. It's essential to prepare for additional costs like equipment, construction, and operational expenses to ensure a successful launch.
What Are the Financial Performance Metrics for Tommy's Express Car Wash Franchise?
Tommy's Express Car Wash units generate impressive revenues, with an average annual revenue of approximately $1,476,699. The median revenue per unit is even higher at $1,962,126, showcasing the brand's potential for profitability. Franchisees can expect a breakeven time of about 12 months and a payback period for their investment of approximately 34 months, making it a potentially lucrative business opportunity.
What Are the Ongoing Fees Associated with a Tommy's Express Car Wash Franchise?
Franchisees of Tommy's Express Car Wash are subject to ongoing fees that include a royalty fee of 4% on gross sales and a marketing fee of 2%. These fees are essential for maintaining brand presence and operational support, helping franchisees to effectively compete in the car wash industry while benefiting from the brand's marketing initiatives.
What Are the Requirements to Become a Tommy's Express Car Wash Franchisee?
Aspiring franchisees must meet specific financial requirements to qualify for a Tommy's Express Car Wash franchise. A net worth of $1,000,000 to $3,000,000 is required, along with sufficient liquid capital to cover the initial investment. This ensures that franchisees are financially equipped to handle the business's operational demands and can leverage the franchise's support for growth and success.
Tommy's Express Car 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:
Tommy's Express Car Wash Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 10 | 29 | 58 |
| Net Change YoY | 19 | 29 | |
| Franchised Units | 6 | 26 | 53 |
| Net Change YoY | 20 | 27 | |
| Corporate Units | 4 | 3 | 5 |
| Net Change YoY | -1 | 2 |
Investment Overview
Tommy's Express Car Wash offers a promising franchise opportunity with an initial investment ranging from $5,296,471 to $7,166,726. The franchise fee is set at $50,000, accompanied by a royalty fee of 4% and a marketing fee of 2%. Prospective franchisees should have a net worth of $1,000,000 to $3,000,000 and sufficient cash reserves to cover the total initial investment.
Revenue Potential
Franchisees can expect significant revenue potential from their Tommy's Express Car Wash units. The average annual revenue per unit is approximately $1,137,000, with a median revenue of $1,962,126. Notably, revenues can vary widely, with the lowest annual revenue recorded at $779,986.60 and the highest reaching $4,411,263.
Breakeven and Payback Period
Tommy's Express Car Wash franchises have a relatively quick breakeven timeframe of just 12 months. Franchisees can anticipate recovering their initial investment in approximately 34 months, making this a potentially lucrative venture for those ready to commit.
Operational Insights
Operating expenses for a Tommy's Express Car Wash unit average around $1,067,695.20 annually, which constitutes approximately 72.27% of total revenue. Franchisees can expect a gross profit margin of 62.97%, translating to an EBITDA of about $409,171.04, or 27.67% of revenue.
Franchise Growth
Tommy's Express Car Wash has demonstrated robust growth in franchised units. In 2019, there were 6 franchised locations, which expanded to 26 in 2020, and reached 53 by 2021. This growth trajectory indicates a strong demand for the brand and an expanding market presence.
Support and Training
Franchisees benefit from comprehensive support and training provided by Tommy's Express Car Wash. Initial training expenses are estimated at $17,500, ensuring that new franchisees are well-equipped to operate their units effectively. Ongoing support from the corporate team helps franchisees navigate operational challenges and optimize performance.
Frequently Asked Questions
The initial investment for a Tommy's Express Car Wash franchise ranges from approximately $5,296,471 to $7,166,726. This includes the franchise fee of $50,000 and other startup costs.