Fix Auto USA Franchise Costs $170K – $3.1M (+ 2024 Profits)

Fix Auto USA is a prominent franchise network in the collision repair industry, founded by Erick and Shelly Bickett. The concept was introduced to create a national network of high-performing independent body shops backed by a unified infrastructure to ensure optimal service quality.

This innovative business model launched as a franchise system in 2011, quickly gaining traction and expanding its reach across the United States. Headquartered in Charlotte, North Carolina, Fix Auto USA differentiates itself by maintaining a commitment to quality repairs and customer satisfaction.

The network offers services such as collision repair, paint repair, and windshield repair. The franchise prides itself on providing fast repairs, quality assurance, and a lifetime guarantee on all services, cementing its reputation by focusing on superior service standards and consistent performance across its locations.

Type of Expenditure	Amount
Initial Franchise Fee	$10,000
Integration Fee	$10,000
Initial Training Expenses	$2,000 – $10,000
Signage	$3,000 – $20,000
Real Estate	$10,000 – $300,000
Leasehold Improvements	$1,000 – $300,000
Insurance	$3,000 – $25,000
Utilities	$0 – $5,000
Licenses and Permits	$200 – $10,000
Office Equipment/Supplies	$1,500 – $5,000
Initial Inventory	$16,500 – $55,000
Initial Local Advertising	$2,000 – $10,000
Uniforms	$500 – $5,000
Equipment and Fixtures	$40,000 – $2,000,000
Computer System and Software	$20,000 – $75,000
Additional Funds – 3 months	$50,000 – $250,000
Total Estimated Initial Investment	$170,000 – $3,090,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee is $10,000.

Royalty Fee

The standard royalty fee for Fix Auto USA franchisees is set as a Base Fee, which is typically 3% of monthly Gross Sales. This fee is payable monthly and may be adjusted based on certain criteria, such as the use of preferred suppliers or meeting performance standards.

Marketing/Advertising Fee

Marketing/Advertising Fees are varied and can be as much as $10,000 annually unless increased by a majority franchisee vote or prior written consent.

Transfer Fees

The Transfer Fee is $7,500, applicable at the time of franchise transfer.

Renewal Fees

Renewal fees include a timely renewal fee of $1,000 and a delayed renewal fee of $10,000.

Growth Fee

The Growth Fee is 3% of Gross Sales growth for a particular quarter, payable quarterly.

Base Fee

The Base Fee varies, with a minimum of $2,000 per month and a maximum of $7,500 per month, subject to annual increases of up to 5%.

Additional Marketing Campaigns

The cost varies for additional marketing campaigns, with annual amounts not to exceed $10,000 without franchisee consent or a majority vote.

Franchise pros and cons

The pros:

• Centrally managed claims processes: The franchisor integrates and manages all claims from its San Diego headquarters. 
• Latest technology: The franchisor uses cutting-edge technology and repair methodologies to ensure quality services. 
• Marketing support: The franchisor’s comprehensive marketing support in the form of ad templates, co-op advertising, regional advertising and SEO helps business owners penetrate the target market with ease. The franchisor combines this with an entrepreneurial spirit many clients crave. 
• Financial support: Fix Auto USA has preferred relationships with third-party sources to help brand owners cover the franchise fee, startup costs, inventory, equipment, accounts receivable and payroll.
• Training: The franchisor offers 6-10 hours of on-the-job training and 16-20 hours of classroom training to help franchisees run successful businesses. The ongoing support covers lease negotiation, security and safety procedures, site selection, field operations and anything else that may directly impact your franchise. 

The cons:

• No absentee ownership: The franchisor doesn’t allow passive ownership. 
• Can’t be run from home/as a mobile unit: Franchises must operate from physical locations. 
• No exclusive territories: The franchisor doesn’t provide exclusive territory rights, meaning franchisees may compete for clients with other Fix Auto USA franchises. 
• Not a part-time investment opportunity: The franchises can’t be run part-time or as a side business. 
• Strong competition: Other car repair shops such as Meineke, Maaco, Christian Brothers Automotive or Ziebart to name a few.

How to open A Fix Auto USA franchise

Opening a Fix Auto USA franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Fix Auto USA franchise.

1: Contact the Franchise Development Team

• Reach out to Fix Auto USA to express your interest in opening a franchise. This can usually be done through a form on their website or by contacting their business development team via phone or email.
• Provide your contact details and any preliminary information requested by Fix Auto to facilitate initial communications.

2: Participate in an Initial Discussion and Qualification Review

• Engage in discussions with the Fix Auto USA franchise team to understand the business model, expectations, and the support they provide.
• Undergo a qualification review which may involve assessing your financial capabilities, business background, and your fit with the franchise’s culture and goals.

3: Review Franchise Disclosure Document (FDD)

• Once preliminary qualifications are confirmed, you will receive the Franchise Disclosure Document. This document contains important information about the franchise, including fees, the support structure, and obligations of both the franchisor and franchisee.
• Review the FDD carefully, ideally with the assistance of a lawyer who specializes in franchise law.

4: Attend Discovery Day

• Attend a Discovery Day, which is typically held at the corporate headquarters or a regional office. This event is a deeper dive into the operational aspects of the franchise.
• Use this opportunity to meet other franchisees and the corporate team, and get a firsthand look at how the franchise operates.

5: Site Selection and Approval

• Work with the Fix Auto USA team to identify and approve a suitable location for your franchise. The location is crucial as it needs to meet certain market and demographic criteria to optimize the chances of success.
• Receive support from Fix Auto in negotiating leases and preparing the site for operations.

6: Training and Onboarding

• Undergo comprehensive training which covers the technical aspects of collision repair, business operations, and customer service specific to Fix Auto USA.
• Training may occur at a dedicated training center or at an existing franchise location.

Disclaimer

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