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Honest-1 Auto Care Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for an Honest-1 Auto Care Franchise?
To start an Honest-1 Auto Care franchise, you should be prepared for an initial investment ranging from $255,750 to $1,242,250. This includes a franchise fee of $75,000. Additionally, you will need to have a net worth between $250,000 and $450,000. It's essential to ensure you have sufficient cash available to cover these costs as well as the ongoing operational expenses.
What Are the Financial Performance Metrics for Honest-1 Auto Care Franchisees?
Honest-1 Auto Care franchisees can expect an average annual revenue of approximately $1,491,020 per unit, with a median revenue of $1,358,038. The breakeven time is typically around 12 months, while the investment payback period averages 16 months. These financial metrics indicate a potentially lucrative opportunity for those who manage their operations effectively.
What Are the Ongoing Fees Associated with an Honest-1 Auto Care Franchise?
Franchisees are required to pay a royalty fee of 6% on their gross sales, along with a marketing fee of 2%. These ongoing fees are crucial for maintaining brand standards and supporting marketing efforts, ensuring that your franchise remains competitive in the market. Understanding these fees will help you budget effectively and plan for long-term profitability.
What Support Does Honest-1 Auto Care Provide to Franchisees?
Honest-1 Auto Care offers comprehensive support to its franchisees, including training programs, operational guidance, and marketing assistance. This support is designed to help you navigate the complexities of running an auto care business, from managing day-to-day operations to implementing effective marketing strategies. With ongoing support, franchisees can focus on building their business and serving their customers.
Honest-1 Auto Care 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:
Honest-1 Auto Care 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 | 65 | 64 | 64 |
| Net Change YoY | -1 | 0 | |
| Franchised Units | 63 | 62 | 61 |
| Net Change YoY | -1 | -1 | |
| Corporate Units | 2 | 2 | 3 |
| Net Change YoY | 0 | +1 |
Initial Investment
The Honest-1 Auto Care franchise requires an initial investment ranging from $255,750 to $1,242,250. This investment covers various startup costs, including equipment, real estate, and initial inventory, allowing franchisees to establish their auto care business effectively.
Franchise Fees
Franchisees are required to pay an initial franchise fee of $75,000. Additionally, there is a royalty fee of 6% of gross sales and a marketing fee of 2%, which contribute to ongoing support and brand development.
Financial Performance
The average annual revenue per unit for Honest-1 Auto Care is approximately $1,491,020, with a median revenue of $1,358,038. Revenue can vary significantly, with the lowest reported annual revenue being $380,226 and the highest reaching $2,917,373, showcasing the potential for profitability across different locations.
Breakeven and Payback
Franchisees can expect to reach breakeven within about 12 months of operation. Investment payback is estimated at 16 months, indicating a relatively quick return on investment compared to many other franchise opportunities.
Corporate and Franchised Units
As of 2023, there are a total of 64 Honest-1 Auto Care units, with 61 being franchised and 3 corporate-owned. This steady presence in the market reflects the brand's stability and commitment to growth.
Operational Expenses
The average annual running expenses for an Honest-1 Auto Care unit total approximately $253,500. Key expenses include rent ($67,500), utilities ($12,000), and marketing ($48,000), which are essential for maintaining operations and driving customer engagement.
Frequently Asked Questions
The initial investment for a Honest-1 Auto Care franchise ranges from $255,750 to $1,242,250. This includes the franchise fee, equipment, and other startup costs.