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Garage Experts Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a Garage Experts Franchise?
To open a Garage Experts franchise, you will need to prepare for an initial investment ranging from $102,932 to $198,682. This includes a franchise fee of $50,000, which is part of your startup costs. Additionally, you should have a net worth of between $300,000 and $600,000 and be prepared for ongoing fees, including a 6% royalty on revenue and a 1% marketing fee. Having sufficient cash on hand is crucial to cover these expenses and ensure a smooth launch.
What Is the Average Revenue Potential for Garage Experts Franchisees?
Garage Experts franchisees can expect an average annual revenue of approximately $609,775 per unit, with a median revenue of $1,351,035. The revenue can vary significantly, with the lowest annual revenue reported at $107,591 and the highest at $2,204,482. This potential for high revenue underscores the lucrative nature of the franchise, making it an attractive option for aspiring entrepreneurs.
How Quickly Can You Expect to Break Even with a Garage Experts Franchise?
One of the appealing aspects of a Garage Experts franchise is the relatively quick breakeven time of about 12 months. This means that if you manage your operations effectively and attract customers, you could recover your initial investment within the first year. Furthermore, the investment payback period is estimated at 22 months, providing a clear timeline for when you might start seeing profits.
What Are the Operational Insights for Running a Garage Experts Franchise?
Operating a Garage Experts franchise involves understanding various financial metrics. For instance, the average cost of goods sold (COGS) is around 50% of revenue, which indicates that managing inventory and supply costs is essential for profitability. Additionally, total operating expenses average about $1,619,062 annually, highlighting the importance of effective cost control and operational efficiency to maximize your EBITDA, which averages $288,264 per unit. By focusing on these operational aspects, franchisees can enhance their financial performance and overall success.
Garage Experts 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:
Garage Experts Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 96 | 101 | 107 |
| Net Change YoY | 5 | 6 | |
| Franchised Units | 96 | 101 | 107 |
| Net Change YoY | 5 | 6 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Garage Experts franchise offers a low to moderate initial investment, ranging from $102,932 to $198,682. The franchise fee is set at $50,000, with ongoing royalties at 6% of gross sales and a marketing fee of 1%. Potential franchisees should have a net worth between $300,000 and $600,000 to qualify, making it an accessible opportunity for aspiring entrepreneurs.
Revenue Potential
Garage Experts franchises demonstrate robust revenue potential, with average annual revenue per unit at $609,775 and a median of $1,351,035. Franchisees can expect a breakeven time of approximately 12 months, with an investment payback period of around 22 months, making it an attractive option for those seeking a profitable business model.
Franchise Growth
The Garage Experts franchise has shown steady growth, increasing from 96 franchised units in 2021 to 107 in 2023. This upward trend reflects the brand's expanding market presence and the increasing demand for their services, providing franchisees with a supportive network and opportunities for collaboration.
Financial Performance
The financial performance of Garage Experts reveals a healthy operating structure, with average operating expenses totaling $315,000, which is about 52% of revenue. The EBITDA stands at $288,264, accounting for approximately 47% of the revenue, indicating strong profitability potential for franchise owners.
Marketing Support
Franchisees benefit from dedicated marketing and advertising support, with annual expenses amounting to $574,914. This investment in marketing helps drive customer awareness and engagement, essential for building a successful franchise and ensuring sustained growth in local markets.
Operational Insights
Garage Experts franchisees are equipped with comprehensive operational guidance to navigate the day-to-day challenges of running their business. This includes training programs, ongoing support, and access to best practices, empowering franchisees to optimize their operations and enhance overall performance.
Frequently Asked Questions
The initial investment for a Garage Experts franchise ranges from $102,932 to $198,682. This includes the franchise fee of $50,000 and other startup costs.