GoMobile Tires Franchise Costs $127K – $258K (2024 Fees & Profits)
GoMobile Tires, based in Portland, Oregon, stands out as a leading network of on-the-go tire service centers. It offers a comprehensive range of tire services, including sales, fittings, Tire Pressure Monitoring Systems (TPMS) adjustments, puncture repairs, and rotations, directly to customers at their homes, offices, or even leisure locations.
The company began its journey in 2018 and started offering franchise opportunities in 2019. For entrepreneurs looking for dynamic and customer-focused business opportunities within the automotive sector, the GoMobile Tires franchise presents an attractive option. Its modern approach to providing tire services makes it a significant contender in the lucrative tire market.
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Initial investment
Here’s what you can expect to spend to start a GoMobile Tires franchise.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,000 |
| Initial Advertising Fee | $25,000 |
| Branded Vehicle and Certain Initial Equipment and Supplies | $135,000 to $150,000 |
| Vehicle Delivery | $2,000 to $3,000 |
| Payroll – 3 months | $9,000 to $12,000 |
| Travel and Living Expenses During Training | $1,000 to $5,000 |
| Utility Deposits | $100 to $500 |
| Business Licenses and Permits | $1,000 to $2,500 |
| Professional Fees/Services | $5,000 to $7,000 |
| Office Equipment & Supplies | $500 to $2,000 |
| Additional Funds – 3 months | $25,000 to $50,000 |
| Total Estimated Initial Investment | $221,600 to $257,600 |
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.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee for GoMobile Tires
GoMobile Tires has established an Initial Franchise Fee of $35,000 for new franchisees. This initial investment is essential for launching the franchise and encompasses a range of startup and administrative expenses.
Initial Franchise Fee for GoMobile Detail
The GoMobile Detail franchise requires a lower Initial Franchise Fee of $10,000. This fee is mandatory for kickstarting the franchise and includes costs associated with initial setup and administrative tasks.
Monthly Royalty Fee
Franchisees are obligated to contribute a Monthly Royalty Fee equivalent to 5% of their Gross Revenue from the previous month. This fee remains in effect throughout the life of the franchise agreement.
Initial Advertising Fee for GoMobile Tires
An Initial Advertising Fee of $25,000 is required from GoMobile Tires franchisees. This amount is allocated for marketing and promotional activities within the franchisee’s local area during the first three months of operation. GoMobile Detail franchisees face a smaller Initial Advertising Fee of $10,000, designated for similar marketing efforts in the initial phase.
Monthly Local Advertising Expenditure
Beyond the Initial Advertising Fee, franchisees must allocate a minimum of 2.5% of their Gross Revenue towards local advertising and marketing efforts monthly, starting from the fourth month post-launch.
Monthly Software Fee
A Monthly Software Fee of $350 per vehicle is imposed to cover essential operational software needs, such as scheduling and e-commerce functionalities.
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How to apply
Opening a GoMobile Tires 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 GoMobile Tires franchise.
1. Initial Research and Inquiry
- Begin by gathering detailed information about the GoMobile Tires franchise opportunity.
- Visit the GoMobile Tires official website or contact their franchise development team to request more information and express your interest.
2. Review Franchise Disclosure Document (FDD)
- Once you’ve made initial contact, you’ll receive the Franchise Disclosure Document (FDD) which outlines important details about the franchise, including fees, obligations, and performance expectations.
- Thoroughly review the FDD to understand the legal and financial commitments involved in opening a GoMobile Tires franchise.
3. Financial Assessment and Qualification
- Assess your financial situation to ensure you meet the minimum financial requirements for opening a franchise, including the initial franchise fee, startup costs, and liquidity requirements.
- Submit financial documentation as requested by GoMobile Tires to qualify for franchise ownership.
4. Initial Interview and Approval Process
- Participate in an initial interview with the GoMobile Tires franchise team to discuss your background, goals, and qualifications.
- If the initial interview is successful, you may go through additional interviews and a vetting process before receiving preliminary approval.
5. Territory Selection and Agreement
- Work with the GoMobile Tires team to select an available territory for your franchise location.
- Once a territory is agreed upon, you will be presented with a franchise agreement. Review this document carefully with legal counsel before signing.
6. Training and Support
- Upon signing the franchise agreement, you will undergo comprehensive training covering all aspects of running a GoMobile Tires franchise, including operational procedures, marketing, and customer service.
- Take advantage of ongoing support provided by GoMobile Tires, such as marketing assistance, operational guidance, and access to an established business model.
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.
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