One way to get involved in the car wash business is through a car wash franchise company. A franchise business is one where you will authorize a qualified person to open, operate and benefit from your brand, goods and/or services in a particular location. Examples of popular franchise companies are Burger King and McDonalds. A person will purchase a franchise license, open the business, and then pay a certain percentage of the profits to the parent company (also known as the franchise fee). The actual franchise fee is usually a percentage and will vary from company to company. There may also be up-front fees, liquidity requirements, additional rules and regulations, and more.
The benefits of buying a car wash franchise are many. For one thing, you are buying instant brand recognition, as the franchise’s parent company will be promoting and advertising your franchise name. Second, you are buying a support network. The car wash franchise company should help you with some or all of the following; site selection, advice and advice on construction, legal and financial advice, advertising and marketing exposure and, above all, training. Chances are, a car wash franchise company has a very specific training program that is meant to help you not only run your business but also run it well. If this is your first time running a car wash business, or a business in general, then a franchise may be a good option. There is an extensive interview process and be prepared to provide detailed personal and financial information to the franchisee. The business will have a set of minimum qualifications when it comes to net worth, credit score, liquid assets, and more. The company will want to make sure that when they grant you a franchise license, you will be able to run the business well and, above all, protect the brand that they have spent a lot of time and money to promote. The downside of car wash franchise businesses, and franchise businesses in general, can be the ongoing fee schedule and lack of flexibility.
As a franchisee, you are contractually obligated to pay the prevailing franchise fees, operate the business in the manner set forth in the franchise agreement, promote and market your business in a certain manner set forth by the franchise company, etc. To find out if a car wash franchise is right for you, contact a few different franchises and talk to their advisors. Be sure to talk to different franchise owners and learn about their experiences, both good and bad (you probably don’t want to call other car wash owners in your town on this one…call the next county or state!) look at many different companies! One final note on car wash franchises. Everyone is different. Different in its regional and national marketing, start-up fee, ongoing fees, structure, level of support, quality of service and equipment and more. Some franchise companies also require you to purchase car wash supplies from them. If you find a better product from a different supplier, it’s bad luck for you. Weigh the pros and cons of each and, along with the information you gather from existing franchisees, make an informed decision. Good luck!