Are you looking for a Car Wash franchise? How about grabbing this opportunity by setting up a Tommy’s Car Wash Franchise in your city. Ya, you heard it right, there is a right opportunity in this industry, we’ll discover more about this in detail.
In this article, we’ll dive deep into the Tommy’s Car Wash with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
Did you know:
According to recent research, The global car wash services market size was valued at USD $29.3 billion in 2021 and is anticipated to grow 3.1% annually from 2022 to 2030.
Car Wash Industry growth
- Franchise Fee: $50,000
- Royalty Fee: 4%
- Ad Royalty Fee: 1%
- Cash Requirements: $1,000,000
- Net worth: $2,000,000
- Agreement Period: 20 Years, Renewable
- Total Initial Investment: $5,296,471 – $7,166,726
Table of Contents
Overview of Tommy’s Car Wash Franchise
Started in 1969 by Jun and Sonny Essenburg, Tommy’s Car Wash is one of the fastest-growing businesses with the most proven and complete opportunity in one of the fastest-growing franchise industries.
Over the years, the chain has established itself as a prominent player in this industry by providing customers with high-quality car wash services.
Certainly, A strong and steady growth would be expected for Interested applicants with the presence of more than 169 stores in several cities across the United States, and more planned for future expansion.
Please continue reading if you are passionate about Car Wash franchises & this little snippet about the Tommy’s Car Wash chain excites you.
We will offer comprehensive and well-researched information regarding the Tommy’s Car Wash chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.
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Tommy’s Car Wash – The Journey
Having opened the first Quality Car Wash with a dual rollover system on 17th street in Holland, Michigan, and quickly implementing new technology has allowed the chain to rank #7 on the list of the Top 50 Conveyorized Car Washes by Professional Car Wash, Detailing Magazine, and #1 in its respective category on Entrepreneur Franchise 500.
Key facts on Tommy’s Car Wash
| Sr No. | Type | Private |
| 1 | Trade Name | Tommy’s Car Wash |
| 2 | Industry | Car Wash |
| 3 | Founded | 1969, Holland, Michigan |
| 4 | Founders | Jun and Sonny Essenburg |
| 5 | Headquarters | 240 E 8th Street Holland, MI 49423 |
| 6 | Number of locations | Over 94 locations, and 200 planned for future |
| 7 | Area served | Across several states in the US |
| 8 | Franchise model | Express, Mini, Gas Station, Flex, World, and Double |
| 9 | Services | Quality and affordable Car Wash |
| 10 | Revenue or Sales | $3,093,558 (Median Gross Sales*) |
| 11 | Website | https://tommys-express.com/ |
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How much does a Tommy’s Car Wash Franchise Cost?
To start a Tommy’s Car Wash franchise, one would at least require an initial investment of $5,296,471 – $7,166,726. This initial investment of Tommy’s car wash does cover the franchise fee, marketing fee, and other necessary expenses.
Nevertheless, based on your financial limitation and chosen model, the franchise does provide support in selection and setting up a Tommy’s car wash outlet, but we advise you to conduct proper market research before opening an outlet.
Tommy’s Car Wash Franchise Fee
The franchise fee for the Tommy’s Car wash is estimated to be $50,000. Furthermore, to qualify financially, franchise candidates and their partners/investors must have minimum net worth of $2,000,000 with available liquidity of $1,000,000.
Additional Cost for Tommy’s Car Wash
Typically, to run and maintain a Tommy’s Car Wash franchised outlet, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.
What is the Tommy’s Car Wash Royalty Fee and other fee?
The on-going royalty fee for Tommy’s Car Wash franchise is 4% and ad royalty fee is 1% of gross sales.
| Type of Fee | Cost and Other Details |
|---|---|
| Franchise Fee | $50,000 |
| Royalty Fee | 4% |
| Ad Royalty Fee | 1% |
| Net Worth | $2,000,000 |
| Cash Requirements | $1,000,000 |
| Agreement Period | 20 Years, Renewable |
| Scheme for Veterans | $20,000 off from Franchise Fee |
| Total Initial Investment | $5,296,471 – $7,166,726 |
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Is Tommy’s Car Wash Franchise Profitable?
Considering the Tommy’s Car Wash expertise of over 60 years, a wide range of affordable & quality car wash services, and a loyal customer base, one can certainly expect to generate an impressive profit margin.
According to our estimate, if the franchisee has chosen a perfect location with high customer footfall, one can expect a gross profit margin of 12-20% with Tommy’s car wash. These estimate may vary depending on the chosen model and location.
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What does it take to own a Tommy’s Car Wash franchise?
- Interested applicant must meet the financial requirements of the franchise i.e. minimum net worth of $2,000,000 with available liquidity of $1,000,000.
- Candidates and its team should be willing to work in the Car washing industry, and it would be better if you have prior experience in the same field.
- In order to become a franchisee, interested parties must complete the franchise’s training program and adhere to its standards.
- There are different Tommy’s car wash agency models, each requiring a specific amount of floor space and meeting certain requirements.
- He/she should be committed to delivering the Tommy’s Car wash customer experience.
Reasons to Own a Tommy’s Car Wash Franchise
- End-to-End Support:
- The Tommy’s Car Wash chain offers complete support right from their in-house guest services team to ongoing training opportunities, they help support all areas of your business.
- Nation-wide expansion:
- The chain has a wide network of franchise outlets across several cities in US, and once you join Tommy’s Express, you become part of a national brand with a growing network of locations and a large membership base.
- Best-in-class marketing support:
- Tommy’s Express offers a clear marketing strategy that will help you turn your guests into raving fans.
- Innovation-led growth:
- Tommy’s Car Wash provides an app-based membership, license plate recognition, proprietary point of purchase, detergent management system, real-time business analytics, and much more. It helps new franchisee owner to garner and offer better and reliable services to their customers.
- Expertise and Experience:
- Tommy’s car wash brings in an expertise and experience of over 60 years, which helps them understand consumers and industries’ needs and innovate & modify their products accordingly.
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How to get a Tommy’s Car Wash Franchise?
Getting a Tommy’s Car Wash Franchise requires a relatively moderate investment and in return may offers an impressive profit. Nevertheless, Tommy’s car wash may offer several benefits, and interested candidates can take up franchise outlet locally through their endless support systems.
To get a Tommy’s Car Wash outlet, please visit their official website and fill in the required details in franchise form. One need to navigate to the bottom of the franchise page.
Fill in the personal and location details such as Name, Company name, Email, Phone number, Interested city and State, Cash available, Net worth, and other requirements information.
Journey with Tommy’s Car Wash
- Discovery Day:
- Interested partners will begin with the franchise webinar, get to know the franchise, sign the Franchise Disclosure documents. The franchise will host you for a tour of their West Michigan locations and finally, you need to sign the franchise agreement.
- Site Selection:
- Site selection is one of the crucial aspects of any franchise and most of the franchises offers this service. However, the real estate team will guide and assist you to find the perfect location and closing the deal.
- Project Development:
- The franchise will assist you in setting up the complete solution for car wash by assigning a general contractor and Project manager. You’ll meet your permanent Franchise Business Consultant and Franchise Marketing Coordinator. Then, equipment is installed and calibrated. Now, after some pre-opening marketing, you’re nearly ready to open.
- Operational:
- Once you ready to start washing cars, their team will provide you with soft opening and grand opening support, ongoing national and regional marketing campaigns, and continued education through Tommy University. It will help and prepare to open more locations.
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Final Takeaway
Considering its growth potential, unique, affordable, complete car washing solution program, proven business model of over 60 years, brand recognition & awareness, opening a Tommy’s Car Wash outlet will prove profitable to the interested aspirants.
Furthermore, the Tommy’s Car wash chain is seeking qualified candidates with the financial and management resources to develop multiple locations in a market and the passion to successfully operate a concept that has been proven over the past 60 years.
With an Initial investment of $5,296,471 – $7,166,726 and a franchise fee of $50000, Tommy’s Car Wash chain may offers an impressive profit margin to its stake holders.
The Bottom line – In case you are interested in the Car Washing Industry and want to take advantage of the opportunity, then start this franchise by paying minimal franchisee fee of $50,000. Once you gain the confidence, then you can open expand and open multiple locations across the states.
Good Luck!! Happy Franchising!!
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FAQ
How much does it cost to open a Tommy’s Car Wash Outlet?
Ans: To open a Tommy’s Car Wash outlet, one would at least require an initial investment of $5,296,471 – $7,166,726. There are some other cost involved and a few of them are list below;
Franchise Fee: $50,000
Royalty Fee: 4%
Ad Royalty Fee: 1%
Cash Requirements: $1,000,000
Net worth: $2,000,000
Agreement Period: 20 Years, Renewable
Total Initial Investment: $5,296,471 – $7,166,726How much does a Tommy’s Car Wash Franchise owner make?
Ans: Considering the Tommy’s Car wash growth potential, rapid expansion plan, low cost business, staggering demand, loyal customer base, more than 60years of proven business model, and immense franchise support, one can certainly churn an impressive profit margin.
However, as per our estimate and industry standards, one can anticipate to earn a gross profit margin of 25-35% with Tommy’s Car Wash chain.What is the royalty fee for Tommy’s Car Wash?
Ans: To be an approved Tommy’s Car Wash unit holder, one needs to have an initial investment of $5,296,471 – $7,166,726, and required to pay a royalty fee is 4% and ad royalty fee of 1%.
