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Tire Pros Franchise ProfileAutomotive Franchises > Auto Repair |
Initial Investment Overview for Tire Pros Franchise
To become a Tire Pros franchisee, you'll need to consider the initial investment, which ranges from $278,975 to $482,725. This includes a franchise fee of $7,000 and a marketing fee of $250. It's essential to have sufficient cash on hand, with a net worth requirement between $100,000 and $1,000,000 to ensure financial stability as you launch your business.
Revenue Potential of Tire Pros Franchise
Tire Pros franchises show promising revenue potential, with average annual revenue per unit reported at $620,000. Some units even achieve median revenues of $1,147,000, while the highest-performing locations can generate up to $1,500,000 annually. Understanding these figures can help you project your earnings and assess the viability of your investment.
Financial Performance and Breakeven Timeline
Franchisees can expect to reach breakeven within approximately 12 months, which is a relatively short period in the franchise industry. Additionally, the investment payback period is around 24 months, providing a clear timeline for when you might start seeing returns on your initial investment. This information is crucial for financial planning and decision-making.
Franchise Growth and Stability
Tire Pros has demonstrated consistent growth, with the number of franchised units increasing from 615 in 2020 and 2021 to 623 in 2022. This stability and slight growth indicate a strong brand presence and potential for future expansion, making it an appealing option for entrepreneurs looking to enter the tire and automotive service market.
Tire Pros 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:
Tire Pros Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 615 | 615 | 623 |
| Net Change YoY | 0 | 8 | |
| Franchised Units | 615 | 615 | 623 |
| Net Change YoY | 0 | 8 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Tire Pros franchise offers a low to moderate initial investment, ranging from $278,975 to $482,725. The franchise fee is set at $7,000, and new units incur a royalty fee of 6.95%. Additionally, a marketing fee of $250 is required, making it essential for potential franchisees to assess their financial readiness carefully.
Financial Performance
Franchisees can expect an average annual revenue of approximately $620,000, with a median revenue of $1,147,000. The revenue figures range from a low of $240,000 to a high of $1,500,000, indicating significant earning potential. Notably, the average payback period for the investment is around 24 months, with a breakeven time of just 12 months.
Franchised Units Growth
The Tire Pros franchise has shown steady growth in the number of franchised units, increasing from 615 in 2020 and 2021 to 623 in 2022. This consistent growth reflects the brand's stability and appeal within the tire and automotive service industry, making it an attractive option for prospective franchisees.
Operational Costs
Franchisees should be prepared for various operational costs, including initial expenses like rent, utilities, and miscellaneous opening costs. Estimated rent for the first three months ranges from $15,000 to $24,000, while additional funds for the first three months are projected between $87,475 and $101,725. These costs are crucial for budgeting and financial planning.
Support and Training
Tire Pros provides comprehensive support and training for new franchisees, ensuring they are well-equipped to manage their operations effectively. This includes assistance with site selection, marketing strategies, and ongoing operational guidance, helping franchisees navigate the complexities of running a successful tire and automotive service business.
Brand Reputation
With a strong reputation in the tire and automotive service industry, Tire Pros is recognized for its commitment to quality and customer satisfaction. The brand's established presence and recognition can help franchisees attract and retain customers, contributing to long-term success and profitability within their local markets.
Frequently Asked Questions
The initial investment for a Tire Pros franchise ranges from $278,975 to $482,725, which includes the franchise fee and other startup costs.