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Description
Investment Icon

What is the Initial Investment for an Interstate All Battery Center Franchise?

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.

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What are the Revenue Potential and Financial Metrics?

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.

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What are the Requirements to Become a Franchisee?

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.

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How Many Units are Currently Operating?

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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$250,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$37,500
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1.50%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$179,200 - $438,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$179,200 - $438,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$69,161
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$410,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,200,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$200,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Automotive Franchises
Category icon A more specific division within the broader industry.

i Category:

Auto Parts
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Scott Miller
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

4301 121stStreetUrbandale, IA 50323
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2000
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Interstate Battery Franchising & Development, Inc.

Interstate All Battery Center Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

171
The number of locations owned by independent franchisees.

Franchised Units i

162
The number of locations owned and run by the franchisor.

Corporate Units i

9
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
Investment About

Initial Investment

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.

Potential About

Financial Performance

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.

Metrics About

Ongoing Fees

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.

Fees About

Corporate Structure

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.

Breakeven About

Average Expenses

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.

Units About

Brand Overview

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.