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Ziebart Franchise: Revenue, Costs & Profits (2023)

Founded in 1959, Ziebart is one of the leading automotive protection provider. Today, Ziebart has over 400 shops globally, of which 78 are franchises in the US.

With an initial investment of $491,000 on average and a turnover of over $1 million per year, Ziebart looks like a great franchise. Is it really?

So if you’re looking to buy and open a new Ziebart franchise, you may want to understand how much it really costs, and how much money you can realistically make as a franchisee.

In this article we’re looking at Ziebart and its Franchise Disclosure Document to find out all you should know about this franchise. Let’s dive in!

Key stats

Franchise fee$36,000
Royalty fee8.0%
Marketing fee5.0%
Investment (mid-point)$492,000
Average sales$1,038,000
Sales to investment ratio2.1x
Payback period6-7 years
Minimum net worth$350,000
Minimum liquid capital$150,000
Ziebart franchise business plan template

Ziebart Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews

What is Ziebart?

Ziebart is an American automotive aftermarket shop based in Troy, Michigan.

The brand was founded in 1954 by Kurt Ziebart in Detroit, Michigan.

Ziebart offers services such as rustproofing, paint sealant, paint protection film, automobile detailing, window tinting and the installation of various aftermarket accessories.

The franchise began franchising in 1963 and currently has 400 locations worldwide, with 78 franchises in the US.

Ziebart franchise: pros and cons

The Pros:

  • Site selection and development: Ziebart provides its franchisees assistance with site selection to help identify a viable business location. It also helps them in lease negotiations, designing and developing their shops.
  • Multiple income channels: The franchise has designed a variety of income channels such as retail, car dealerships, maintenance programs, marine/RC services and fleet programs. These give franchisees improved earning potential and quicker break-even timelines.
  • Financial assistance: The franchisor provides its franchisees with in-house financing for equipment and accounts receivable. It also has relationships with third-party lenders to finance the startup costs, equipment and inventory.
  • Comprehensive training: The franchisor has a detailed training program to train its franchisees and their staff about its concept and systems. It also trains them on operations and prepares them for a successful grand opening, as well as offering them ongoing training on the best practices.
  • Marketing and advertising: The franchisor provides its franchisees with robust marketing and publicity tools to help them increase store traffic, grow sales and build lasting relationships with customers. These include national media, ad templates, social media, regional advertising, loyalty program apps and targeted local store promotional campaigns.
  • Flexible franchise models: The franchisor supports the development of single or multiple units. Also, franchisees can establish new locations or convert an existing one. This allows franchisees to choose a plan that fits their budget and the available real estate opportunities in their locations.
  • Sales support: The franchisor helps franchisees hire the right team and ensures they develop outside accounts to diversify their revenue stream and customer base.

The cons:

  • No exclusive territory protection: Ziebart does not allow its franchisees to operate in a protected area. They may face competition from franchises licensed by the parent company, Driven Brands, its affiliates or rival brands it controls.
  • Not a home-based opportunity: The franchise cannot be operated from home or a mobile unit. Franchisees must have an office space, warehouse or retail facility.
  • Not a passive investment opportunity: The franchise does not allow for absentee ownership. It requires franchisees to be actively involved in the decision-making and operations of their shops.
  • Not a part-time business: The franchise cannot be operated on a part-time basis; it needs to be open for at least over 40 hours per week.
  • Competition: These may include Fix Auto, Meineke and Maaco.

How much does Ziebart franchise cost?

You would have to invest on average $491,500 to open a Ziebart franchise.

The investment covers all the start-up costs you may need to open a Ziebart franchise business. You must pay the franchisor an initial franchise fee of $36,000. In addition to this franchise fee, the investment also covers:

  • Formulation costs: initial training, leasehold improvements, exterior and interior décor packages, etc.
  • Equipment: equipment, computer equipment, etc.
  • Initial marketing: grand opening advertising
  • Operating costs: insurance, initial inventory and supplies, rent, utilities, miscellaneous funds, additional funds for 3 months, etc.

Startup costs

Here’s the full breakdown of costs:

Type of ExpenditureAmount
Initial franchise fee$36,000
Formulation costs$63,000 – $98,500
Equipment $152,500 – $183,000
Initial Marketing$5,000 – $7,000
Operating costs$160,320 – $241,600
Total$416,820 – $566,100
Source: Franchise Disclosure Document 2022
Ziebart franchise business plan template

Ziebart Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews

How much revenue does a Ziebart franchise make?

On average, a Ziebart franchise makes $1,037,500 in revenue per year.

This number is the average sales per outlet for 4 of the 92 outlets that operating in all of 2021 (as disclosed in the 2022 Franchise Disclosure Document).

How profitable is a Ziebart franchise?

We estimate a Ziebart franchise makes $110,000 in profits per year (11% EBITDA margin).

Note that the franchisor provides a detailed profit and loss for 4 of its company-owned stores, which we used to estimate the average profits for franchised-owned stores instead. Indeed, some of the data below is from company-owned stores (COGS and operating costs, see footnote). We also added royalty fees to adjust profits as if it were for franchised-units instead.

Profit and lossAmount% revenueSource
Revenue$1,037,500100%as per FDD
COGS$(481,058)46%as per FDD*
Gross Profit$556,44154%as per FDD
Operating costs$(235,359)23%as per FDD**
Owner’s compensation$(75,000)7%assumption***
Royalties$(83,000)8%as per FDD
Marketing fee$(51,875)5%as per FDD
*company-owned stores
**Operating costs for company-owned stores are 27.7% of revenue on average, to which we deducted marketing fees. Excludes owner’s compensation
*** assuming owner’s compensation is $75,000
Source: 2022 Franchise Disclosure Document

Is Ziebart a good franchise investment?

As per our estimates, Ziebart has a 6 to 7 years payback, which is excellent for a car servicing franchise.

So if you were to buy a Ziebart franchise and open a new location, you would be able to reimburse the initial investment ($491,500 on average) within 6 to 7 years on average. Therefore we do consider Ziebart as a great investment if you are looking for a car repair franchise to buy.

Yet please note that these numbers are purely estimates and have been calculated using both our own assumptions as well as the available data in the Franchise Disclosure Document. We do not guarantee your franchise will perform as well.

Ziebart franchise business plan template

Ziebart Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews

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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.