One way to get involved in the car wash business is to go through a car wash franchise company. A franchise company is one in which you will authorize a qualified person to open, operate and benefit from your brand, goods and / or services in a particular place. Examples of popular franchise companies are Burger King and McDonalds. A person will buy a franchise license, open the business, and then pay a certain percentage of the profits to the parent company (also known as a franchise fee). The actual franchise fee is usually a percentage and will vary from company to company. There may also be upfront fees, liquidity requirements, more rules and regulations, and more.
The benefits of buying a car wash franchise are many. On the one hand, you are buying instant brand recognition, as the parent company of the franchise will promote and advertise its franchise name. Second, you are buying a support network. The car wash franchise company should help you with some or all of the following; site selection, construction consulting and advice, legal and financial advice, marketing and advertising exposition and above all training. A car wash franchise company will like to have a very specific training program aimed at helping you not only run your business, but do it well. If this is the first time you have a car wash business, or a business in general, then a franchise may be a good option. There is an extensive interview process and be prepared to provide detailed personal and financial information to the franchisee. The company will have a set of minimum ratings when it comes to net worth, credit score, liquid assets, and more. The company will want to make sure that when and if you are granted a franchise license, you will be able to run the business well and, above all, protect the brand that they have spent a lot of time and money promoting. The downside to car wash franchise companies, and franchise companies in general, can be the ongoing fee schedule and lack of flexibility.
As a franchisee, you are contractually obligated to pay the current franchise fees, operate the business in the manner set forth in the franchise agreement, promote and market your business in a certain manner set by the franchise company, etc. To find out if a car wash franchise is the best for you, contact a few different franchises and talk to their consultants. Make sure to talk to the different franchise owners and learn about their experiences, both good and bad (you probably don’t want to call other car wash owners in your city in this one … call the next county or state!) To look at many different companies! A final note on car wash franchises. Everyone is different. Different in their regional and national marketing, startup fee, ongoing fees, structure, level of support, quality of service and equipment, and more. Some franchise companies also require you to purchase car wash supplies from them. If you find a better product from another supplier, it’s bad luck for you. Weigh the pros and cons of each and, together with the information you gather from existing franchisees, make an informed decision. Good luck!