Recent market research shows that more people are increasingly paying attention to the care and maintenance of their vehicles. With expected industry growth, this seems to be a great time to open a car wash business. Let’s dive into a little more about the outlook for the market and some of the best car wash franchise opportunities.
Car Wash Business Outlook
Current projections for the car wash industry are out through 2025. These projections show steady growth every single year. Experts predict a growing trend of people caring about the appearance and cleanliness of their cars but not having the time or energy to clean them themselves.
This follows the patterns from previous years, as fewer people have chosen to wash their vehicles at home over the years. Just from 1996 to 2014, the percent of people who preferred to wash their cars at home dropped from 47.6% to 28.4%.
Experts predicted that from 2019 to 2025, the industry would post a 3.2% compound annual growth rate. So far, this appears to be on track, so it is fair to assume that the trend will continue. This industry growth makes owning a car wash franchise a savvy business decision as the demand will be there.
Best Car Wash Franchise Opportunities
Once you have decided to go ahead and open a car wash business, one of the easiest and most efficient ways is via a car wash franchise. While there are many options available, the following are widely regarded as the best.
Mr. Clean Car Wash
Franchise Fee: $35,000
Initial Investment: $2,417,500-$3,271,000
Mr. Clean Car Wash is among the best-known car wash franchises. It has been in business since 2008.
Opening a franchise from this company provides you with assistance for training, site selection, supplies, and advertising.
There is an initial franchise fee of $35,000, but total investments are typically from $2.3 to $3.2 million. Keep in mind that there is an ongoing royalty fee of 6% plus a 5% ad royalty fee.
Tommy’s Express
Franchise Fee: $40,000-$50,000
Initial Investment: $4,179,621-$5,432,908
Tommy’s Express gives you access to a brand name with more than 50 years of business on the books, first opening in 1969. It has offered franchises since 2016.
Thanks to the unique 300-point process of setting up your franchise, the setup should go smoothly. Franchisees get support for marketing, innovation, and operations. They also receive access to training and events.
You must have a net worth of at least $2 million, including at least $1 million in liquid capital. Expect to pay $40,000 to $50,000 as the initial franchise fee. Most initial investments are between $4.1 million and $5.4 million. There is an ongoing royalty fee of 4%.
Fleet Clean USA
Franchise Fee: $30,000-$75,000
Initial Investment: $158,375-$321,375
This is a somewhat unique car wash business as it focuses on providing car wash services to fleets or other companies. That uniqueness can improve the stability of your income. The company has offered franchises since 2013 and has been in business since 2009.
Conveniently, you do not need a dedicated location to open a Fleet Clean USA franchise, reducing entry barriers.
Expect an initial franchise fee between $30,000 and $75,000. That being said, most franchisees initially invest $158,375 to $321,375. The ongoing royalty fee is a high 8.5%, with the ad royalty fee set to a low 2.5%.
Green Shine
Franchise Fee: $19,900
Initial Investment: $47,910-$160,615
As the name implies, this car wash franchise is an eco-friendly option that does not use water during the cleaning process. Green Shine was founded in 2005 and has offered franchises since 2011.
You can choose a specific location or a mobile business. The fact that specific sites can be as simple as parking lots helps create low barriers to entry.
The franchise fee is only $19,900. Expect your total investment to be anywhere from around $47,000 to $160,000. The ongoing royalty fee is a standard 5%, and the ad royalty fee is just 1%.
DetailXPerts
Franchise Fee: $35,000
Initial Investment: $88,500-$195,100
This is a good choice for those interested in owning a more eco-friendly car wash. Instead of relying on chemicals, DetailXPerts relies on steam cleaning.
You can open either a detail shop or a mobile unit. You get to take advantage of a company that has been in business since 2002 and offered franchises since 2008.
You must have at least a net worth of $300,000 and pay a franchise fee of $35,000. Expect your initial investment to be between $88,500 and $195,000. There is a 6% ongoing royalty fee and a 2% ad royalty fee.
It’s All About the Detail
While any of the above franchises offer an excellent opportunity for owning a car wash franchise, the choice of which one to invest in is up to you. You will want to compare the offers’ details, including requirements and support, to decide which franchise opportunity best meets your needs.
Let Franchise123 help you find your franchise match today!
