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Interstate All Battery Center Franchise ProfileAutomotive Franchises > Auto Parts |
To open an Interstate All Battery Center franchise, you will need to prepare for an initial investment ranging between $179,200 and $438,000. This includes a franchise fee of $37,500. It's essential to have cash on hand within this range to cover startup costs, which may include equipment, inventory, and leasehold improvements. Additionally, potential franchisees should be aware of ongoing costs such as a 5% royalty fee and a 1.5% marketing fee, which will affect your overall profitability.
The average annual revenue per unit for an Interstate All Battery Center franchise is approximately $410,000, with a range from $200,000 to $1,200,000. This suggests a strong revenue potential for franchisees. The average gross profit margin is around 76.2%, indicating that the business model is designed for profitability. Moreover, the breakeven time is estimated at 12 months, with an investment payback period of about 24 months, making it an attractive option for those looking to enter the franchise market.
To qualify as a franchisee with Interstate All Battery Center, you need a net worth of $250,000 to $500,000. This financial stability is crucial for both initial investment and ongoing operational expenses. Additionally, having cash reserves between $179,200 and $438,000 will help ensure that you can meet the franchise's financial obligations. Understanding these requirements is vital for aspiring franchisees to assess their readiness for ownership.
As of 2023, there are 162 franchised units of Interstate All Battery Center, down from 171 in 2021. The company also operates 9 corporate units, remaining stable over the past few years. This slight decline in franchised units may indicate market challenges or a strategic shift, making it important for potential franchisees to analyze the brand's growth trajectory and market presence before making a commitment.
Interstate All Battery Center 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.
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Interstate All Battery Center 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 | 178 | 174 | 171 |
Net Change YoY | -4 | -3 | |
Franchised Units | 171 | 165 | 162 |
Net Change YoY | -6 | -3 | |
Corporate Units | 7 | 9 | 9 |
Net Change YoY | +2 | 0 |
The Interstate All Battery Center franchise requires an initial investment ranging from $179,200 to $438,000. This includes a franchise fee of $37,500, which grants you the rights to operate under the established brand. The total cash required to start a franchise unit falls within the same range, ensuring potential franchisees are prepared for the financial commitment involved in launching their business.
Franchisees can expect an average annual revenue of approximately $410,000 per unit, with a range from $200,000 to $1,200,000. This variance highlights the potential for strong financial performance depending on location and management. The breakeven time is estimated at 12 months, with an investment payback period of around 24 months, making it a potentially lucrative opportunity for investors.
Franchisees are required to pay a royalty fee of 5% of gross sales and a marketing fee of 1.5%. These ongoing fees support the brand’s marketing efforts and provide franchisees with continued access to corporate resources and support. Understanding these fees is crucial for financial planning and long-term profitability.
The Interstate All Battery Center operates under a well-defined corporate structure, with both franchised and corporate-owned units. As of 2023, there are 162 franchised units and 9 corporate units. This mix allows for diverse operational insights and best practices to be shared across the network, enhancing overall brand performance.
The average operating expenses for an Interstate All Battery Center franchise amount to roughly $4.87 million annually. Key expenses include team member compensation and benefits, advertising and marketing, and administrative costs. Understanding these expenses is essential for franchisees to manage their budgets effectively and maximize profitability.
Interstate All Battery Center is a recognized leader in the battery retail industry, providing a wide range of battery products and services. With a focus on customer satisfaction and quality, the brand has built a reputation for reliability and expertise. This strong brand presence offers franchisees the advantage of entering a market with established consumer trust and loyalty, positioning them for success in their local communities.
Frequently Asked Questions
The initial investment for an Interstate All Battery Center franchise ranges from $179,200 to $438,000. This includes the franchise fee, equipment, inventory, and other startup costs.