How To Get a Car Wash Franchise: What You Need To Know

Opening a new business is the goal of every entrepreneur, but you don’t always have to start from scratch. Choosing a franchise provides you with a proven business model that you can adapt to your local market. Learning how to get a car wash franchise started may just convince you that it’s the best option for you. On the other hand, you may find that starting your own car wash business makes the most sense.

The car wash industry is worth an estimated $14 billion a year and continues to grow. Comparing your car wash franchise costs and options will help you decide if it’s the right time for you to enter this industry using the franchise model.

Understanding the Car Wash Franchise Business

Car wash franchises are distinct from other types of car cleaners, such as detailers or upholstery experts. These car washes are designed to operate largely hands-off for the franchise owners, with hired labor handling daily tasks like retrieving cash from payment points and refilling chemical tanks. 

Advantages of Owning a Car Wash Franchise

Using an established and recognized brand for your new car wash can help you attract customers from a loyal base. This can reduce your marketing costs as a new business, especially if the franchise has local and national marketing campaigns you can tap into without much expense. Some franchise opportunities may have a lower initial investment than a self-started car wash business. This varies, so compare the costs of starting an independent location before assuming that going with a franchise will save you money.

Disadvantages of Owning a Car Wash Franchise

Buying into a franchise is not always a guarantee of success. You’ll still need to find the right location, build a customer base through marketing, and balance your costs versus your income. You may have to deal with exclusive contracts for car wash products like consumable cleaning chemicals, leaving you unable to choose products that provide a better profit margin or perform better.

Getting a Car Wash Franchise: Key Considerations and Tips

Before you sign up for the first car wash franchise you can find in your area, take a little more time to make the right decision. Start by choosing a specific business model, then do some background research into the most popular opportunities in the industry.

Considering the Business Model

While you may consider mobile car wash franchise opportunities, fixed locations provide more advantages for most business owners. There are a number of options for a franchise model even among fixed-location car wash brands. The most popular types of car wash franchise opportunities are:

• Full-service locations offering both automated and manual washing options along with waxing, detailing, and other services
• Automated car washes that rely on special machinery to provide a complete wash with minimal labor costs, available in either touch-free or tunnel styles
• Self-serve car washes, which are less popular with car owners because they have to handle the hard work themselves

When you balance out both the startup and ongoing costs of operation, tunnel and touch-free automated car washes tend to come out on top. There’s far less labor involved for daily operation, although there is a larger upfront investment in equipment.

Finding the Best Franchise Opportunities

Visit nearby locations of the franchise you’re interested in and arrange to meet with the owners if possible. Attend a national or regional franchising expo, especially one focused on the automotive industry, to find good opportunities as well. Consider an automated franchise model where a product tracking system places automatic orders for cleaning refills and other products to reduce the workload for you and your team. If you’re in a low-traffic area, pairing with a franchise that offers other services like lube changes and tires can make a big difference to your success.

Don’t forget to look for car wash franchises that offer extra support from the franchisor, such as marketing materials and training. You can also turn to the International Carwash Association for support whether you choose a franchise or open your own independent business. Even if you choose one of today’s top automatic car washes that handle most of the hard work for you, you’ll still need advice on topics like taxes, hiring, and environmental concerns.

Financial Considerations: Revenue and Costs

The initial franchise fee is just part of what you can expect to pay to start your car wash business. Even with the help of an existing franchisor, you’ll need thousands of dollars to cover costs like utility connections, chemicals for cleaning cars and the equipment itself, and labor to maintain the facility. When pricing consumables like car wash cleaning products, keep in mind that saving even a few pennies per ounce could lead to a big difference in your total revenue.

Getting the Required Documentation and Support

Depending on the state where you start your business, you’ll need to file some important paperwork. Register with the secretary of state or local courthouse as a business, and make sure you’re meeting all state and local environmental regulations that affect car washes. Check to see if your state requires specific licensing for this type of business before making any franchise decisions since the franchisor is likely not responsible for that part of the process.

Franchise vs Independent Business: How To Make the Right Choice

While getting a car wash franchise agreement can connect you with an established brand name and some guidance on how to run the business, it’s not your only option. You can secure your own location and order the car wash chemicals of your choice as an independent business owner as well. If you see starting an independent car wash business as the better option, contact us at AP Formulators for the best deal on quality cleaning chemicals. You can get custom formulations and everything you need from the same source to simplify your startup process.

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