Franchise News

Franchise Information for Successful Business Ownership

There are an estimated 14,200 car wash outlets in the US with revenues that exceed $ 5 Billion. Car wash franchises are located throughout the country and it is a relatively profitable business to venture into. There are a few steps that one needs to take before successfully opening a car wash franchise and include: Identify a good location for your business. Busy streets or heavily populated neighborhoods are good areas for starting a car wash business. Identify a source of financing for your business. This will ensure that your operating expenses are taken care of especially in the first few months before your business becomes profitable. Banks are one place to look since their rates are normally favorable. The Small Business Administration (SBA) will also help. Venture capital firms can also be of great help and ensure that you negotiate a favorable exit strategy. Carry out adequate research on the available franchises in your area and compare their franchise fees. Compare these to the benefits that come from franchising such as advertising and training offered by the parent company. Determine the start up cost. Modern no-touch systems are generally preferred over older models but cost more to build. You should also determine whether to build a partially or fully automated unit. Economical units that have water recycling capabilities are preferable especially in times of drought or water shortages; therefore, you should aim at getting one. Get the necessary legal documentation such as business permits, insurance and worker’s compensation, sales tax license, building permits (if you are planning to build), in place. Organize a promotion to launch your business and make sure to invite a representative from the parent company. Once you get your business up and running, make sure you advertise frequently. Develop a performance scorecard for your business. A return on investment of 16-21% is considered fair in the retail world or an average of 6 years to recoup your starting capital. Opening a car wash franchise does not require former experience. Basic business skills as well as a passion for the business are more important in ensuring you succeed in your venture. It is a good idea to talk to your equipment supplier when you plan to start a car wash franchise since they have lots of experience in the best services to offer in any area and will give advice on how to lay out your outlet to ensure you attract more customers.