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Garage Force Franchise ProfileIndustrial Franchises > Industrial Cleaning |
What Are the Initial Costs to Open a Garage Force Franchise?
To open a Garage Force franchise, you should be prepared for an initial investment ranging from $127,900 to $195,600. This includes a franchise fee of $49,500 and requires you to have a net worth between $300,000 and $500,000. Additionally, you'll need to account for ongoing royalty fees of 5% and a marketing fee of 1%. Having sufficient cash on hand is crucial for covering these initial costs and ensuring a smooth start to your franchise journey.
What Is the Financial Performance of a Garage Force Franchise?
Garage Force franchises have shown promising financial performance, with an average annual revenue of $465,974 per unit. The median revenue stands at $372,581, indicating a solid revenue potential across the franchise network. The lowest annual revenue recorded is $206,786, while the highest reaches an impressive $1,404,270. With a breakeven time of approximately 18 months and an investment payback period of 39 months, franchisees can anticipate a reasonable return on their investment.
What Are the Typical Operating Expenses for a Garage Force Franchise?
Running a Garage Force franchise involves various operating expenses, which total approximately $195,356 annually. Labor costs account for about $74,670, while continuing fees and local advertising each contribute around $23,298. Fuel expenses, consumables, equipment maintenance, and insurance also factor into the overall costs. Understanding these expenses is vital for effective financial planning and ensuring profitability in your franchise operations.
How Has the Garage Force Franchise Network Grown?
The Garage Force franchise network has experienced significant growth in recent years. In 2021, there were 80 franchised units, which increased to 133 in 2022, and reached 164 in 2023. This upward trajectory indicates a strong demand for their services and a solid market presence. The stability of having one corporate unit throughout these years further highlights the franchise's commitment to supporting its franchisees while expanding its footprint in the industry.
Garage Force 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 Force 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 | 81 | 134 | 165 |
| Net Change YoY | 53 | 31 | |
| Franchised Units | 80 | 133 | 164 |
| Net Change YoY | 53 | 31 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Garage Force franchise offers an initial investment ranging from $127,900 to $195,600. This includes a franchise fee of $49,500. Potential franchisees should be prepared for additional costs, including a 5% royalty fee on gross sales and a 1% marketing fee. A cash requirement between $127,900 and $195,600 and a net worth of $300,000 to $500,000 are also necessary for interested investors.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $465,974 per unit, with a median revenue of $372,581. The revenue can vary significantly, as some units report as low as $206,786 while others achieve as high as $1,404,270. This range highlights the potential for profitability within the Garage Force franchise model.
Operational Metrics
The average breakeven time for a Garage Force franchise is 18 months, indicating a relatively quick path to profitability. The investment payback period is estimated at 39 months, allowing franchisees to recoup their initial investment within a reasonable timeframe. These metrics are crucial for potential franchisees assessing the financial viability of the opportunity.
Franchise Growth
Garage Force has shown consistent growth in franchised units, increasing from 80 units in 2021 to 164 units in 2023. This growth trajectory reflects the brand's expanding market presence and the increasing popularity of its services. The stability of corporate units, remaining at one, indicates a strong focus on franchisee success.
Financial Performance
The average cost of goods sold (COGS) for Garage Force is approximately $151,812, accounting for 32.5% of revenue. Estimated operating expenses are around $186,200, which represents 40% of revenue. With an EBITDA of about $127,962, or 27.4% of revenue, these figures suggest a healthy financial structure that supports franchisee profitability.
Franchise Support
Garage Force provides robust support to its franchisees, including training, marketing assistance, and operational guidance. This support system is designed to help franchisees navigate the challenges of running their business and to maximize their chances of success. The emphasis on franchisee support is a key element of the brand's growth strategy and overall mission.
Frequently Asked Questions
The initial investment for a Garage Force franchise ranges from $127,900 to $195,600, including a franchise fee of $49,500.