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Ziebart Franchise ProfileAutomotive Franchises > Auto Repair |
What is the Initial Investment for a Ziebart Franchise?
To open a Ziebart franchise, the initial investment ranges from $370,820 to $566,100. This includes a franchise fee of $45,000, which is a one-time payment made to the franchisor. Potential franchisees should also prepare for ongoing costs, including an 8% royalty fee and a 2% marketing fee. It's essential to ensure you have sufficient cash reserves, with a required net worth of between $350,000 and $500,000.
What Are the Revenue Expectations for Ziebart Franchisees?
Ziebart franchisees can anticipate significant revenue potential, with an average annual revenue of $969,101 per unit. The median revenue stands at $808,121, while some units have reported as low as $94,188 and as high as $4,117,716. Understanding these figures can help potential franchisees gauge the financial viability of the investment and set realistic performance targets.
What Are the Financial Performance Metrics of a Ziebart Franchise?
Ziebart franchises have a gross profit margin of approximately 39.7%, with an average cost of goods sold (COGS) amounting to $584,153. Operating expenses are around $468,821, which accounts for 48.3% of revenue. While the EBITDA shows a negative figure of -$83,873, it's crucial for franchisees to analyze these metrics to identify areas for improvement and optimize profitability.
What is the Breakeven and Investment Payback Period for a Ziebart Franchise?
Franchisees can expect to reach breakeven within approximately 18 months of operation, with an investment payback period of around 19 months. This timeline is vital for potential franchisees to understand, as it indicates how long it may take to recover the initial investment and begin generating profit. Planning for this timeframe can help in managing cash flow and operational strategies effectively.
Ziebart 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:
Ziebart 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 | 92 | 97 | 96 |
| Net Change YoY | 5 | -1 | |
| Franchised Units | 81 | 86 | 85 |
| Net Change YoY | 5 | -1 | |
| Corporate Units | 11 | 11 | 11 |
| Net Change YoY | 0 | 0 |
Investment Overview
Ziebart offers a franchise opportunity with an initial investment ranging from $370,820 to $566,100. This includes a franchise fee of $45,000. Franchisees should be prepared for ongoing royalty fees of 8% of gross sales, along with a 2% marketing fee. It's essential for prospective franchisees to have a cash requirement in the same range as the initial investment and a net worth of $350,000 to $500,000 to ensure financial stability.
Financial Performance
The average annual revenue per Ziebart unit is approximately $969,101, with a median of $808,121. Revenue can vary significantly, with the lowest annual revenue recorded at $94,188 and the highest at $4,117,716. This wide range highlights the potential for profitability, but also underscores the importance of location and operational efficiency in achieving financial success.
Breakeven and Payback
Ziebart franchisees can expect to reach breakeven within about 18 months of operation. Investment payback is projected at 19 months, indicating a relatively quick return on initial investment. This timeframe can be attractive for entrepreneurs looking to see a return on their investment sooner rather than later.
Corporate Presence
As of 2023, Ziebart operates 85 franchised units alongside 11 corporate-owned locations, maintaining a consistent number of corporate units over the years. The growth in franchised units from 81 in 2021 to 86 in 2022, followed by a slight decrease to 85 in 2023, reflects the brand's stability and adaptability in the market.
Operational Expenses
Average running expenses for Ziebart franchises total approximately $371,600 annually. Major expense categories include rent ($81,600), management and administrative salaries ($120,000), and marketing and advertising ($30,000). Understanding these costs is crucial for franchisees to manage their budgets effectively and maximize profitability.
Brand Mission
Ziebart's mission is to provide high-quality automotive services, including rust protection, detailing, and window tinting, with a focus on customer satisfaction. The brand emphasizes innovation and excellence in service delivery, aiming to be the go-to choice for vehicle care. Ziebart's commitment to quality reflects its dedication to preserving the value and appearance of customers' vehicles.
Frequently Asked Questions
The initial investment for a Ziebart franchise ranges from $370,820 to $566,100, which includes the initial franchise fee of $45,000 and other startup costs.