Detail Garage Franchise Costs, Fees & Profits (2024)
Founded in 2015, Detail Garage has quickly become a go-to brand for car enthusiasts. Detail Garage is a professional detailing car care equipment and supplies franchise retailer with already 75 stores in North America today.
Why is it so popular among franchisees? Well, with an initial investment of $206,000 on average and a yearly revenue of $568,000, Detail Garage seems like a very profitable franchise. Is it really?
If you’re considering buying a Detail Garage franchise, you may want to know how much profits you can really make with this business. This is what we’re looking at in this article, by diving into the latest Franchise Disclosure Document.
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About Detail Garage
Detail Garage is a chain of detailing supplies and car care product facilities headquartered in Gardena, California.
Its outlets offer car care, professional auto detailing supplies, detailing equipment, car care accessories, and training.
Detail Garage was founded in 2015 by the owners of Chemical Guys. Its mission was to create the ultimate experience for car enthusiasts to get access to car care products, accessories, and knowledge in a friendly community.
It began franchising in 2016 and by the end of 2021 it had opened 75 locations with 53 franchises in the US.
Today, Detail Garage has evolved into one of the leading chains in the car care industry and offers a promising career to passionate franchise owners who want to help car owners take care of their cars and keep them clean.
Detail Garage franchise: pros and cons
The Pros:
- Extensive training and support: The franchisor offers its franchisees a comprehensive training and education program to run a successful garage franchise. It trains them on products and services, customer service, inventory management, and how to hire and train staff.
- Marketing and advertising: Detail Garage provides its franchisees with access to a framework and marketing systems to promote their stores and increase sales. Franchisees get access to national media, ad templates, email marketing, loyalty app programs, etc.
- Third-party financing: The franchisor has established third-party relationships to help franchisees access funding for the franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll.
- Exclusive territory protection: Detail Garage grants the franchisees the right to operate in a protected territory, usually defined in their franchise agreement. The franchisor or its affiliates do not establish any other franchise or operate a competing business in the designated area.
- Site selection assistance: The franchisor helps its franchisees identify a suitable location for their stores. Also, it helps them with lease negotiations and construction.
The Cons:
- Not a home-based business opportunity: The franchise cannot be operated from a mobile facility or vehicle. It requires franchisees to establish an office space, retail facility, or warehouse for their operations.
- Not a passive investment: The franchisor does not allow for absentee ownership. Franchisees must be actively involved in the day-to-day decision-making and management of their garages.
- Not a part-time business: The franchisor requires its franchisees to have their outlets open on a full-time basis as per their working hours.
Detail Garage franchise costs
On average, you may need to invest around $206,000 to open a Detail Garage franchise.
As the amount is an average (midpoint), it will vary depending on several conditions like the location of your business and other factors. According to the latest FDD, the investment can be as low as $151,000 and as high as $260,000.
Startup costs
The investment covers all the startup costs needed to start a Detail Garage franchise. You must pay the franchisor an initial franchise fee of $30,000. If you are a veteran of the U.S. Armed Forces, you will get a $5,000 discount.
In addition to this franchise fee, the investment also covers:
- Formation Costs: initial training expenses, real estate, leasehold improvements, signage, business license, professional fees, etc.
- Equipment: furniture, fixtures, equipment, computer system, entertainment system, etc.
- Initial Marketing: grand opening expenses
- Operating Costs: opening inventory, insurance, uniforms, utilities, supplies, and working capital for the first 3 months, etc.
| Type of Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Formation Costs | $28,000 | $81,000 |
| Equipment | $22,000 | $35,050 |
| Initial Marketing | $1,500 | $5,000 |
| Operating Costs | $69,475 | $109,400 |
| Total | $150,975 | $260,450 |
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Detail Garage franchise fees
The initial franchise fee for a Detail Garage franchise is $30,000. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of [franchise_value_royalty_fee] of revenues.
Detail Garage franchise revenue
On average, a Detail Garage franchise generates $568,000 in revenue per year.
This is the annual median sales of 37 franchises operating in 2020. There was a total of 49 franchises operating in 2020, but 37 of them were in full operation for 12 consecutive months.
The sales number may vary depending on various situations. Logically, there’s a positive correlation between revenue and the age of the business as can be shown below:
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Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
