Tommy’s Express Car Wash Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $50,000
2. Soft Costs: $83,500 to $562,000
- You must use Tommy’s architect for architectural drawings or an architect approved by Tommy’s.
- Fees paid to civil engineers, fees paid for site reports and testing and zoning will vary according to local requirements.
- Water tap fees vary greatly from municipality to municipality. Tommy’s recommends you check and verify tap fees prior to purchasing your site.
- If you have no experience developing real estate projects, Tommy’s recommends you hire a developer or project manager to assist with acquiring property, working with local governments for entitlements and permits, and oversight of the construction process.
3. Total Construction Costs: $1,391,348 to $2,427,179
- Tommy’s recommends you hire a qualified, experienced general contractor to develop your site. Costs to build your car wash may vary greatly due to market conditions.
4. Total Tommy Building: $1,114,491 to $1,155,766
- You must buy the complete Tommy’s Express Car Wash building package as recommended in order to operate your Franchised Business. Tommy’s affiliate is the sole approved supplier of this package and may earn a profit on its sale to you. This package includes the steel, roof, erection of the building, and costs of shipping the building.
- You must buy the complete Tommy’s Express Car Wash signage package as recommended in order to operate your Franchised Business. Tommy’s affiliate is the sole approved supplier of this equipment package and may earn a profit on its sale to you. This package includes the exterior signage and the installation of the signage ($107,463 to $108,806).
5. Total Tommy Equipment: $1,301,789 to $1,334,333
- You must buy the complete Tommy Car Wash equipment package as recommended in order to operate your Franchised Business. Tommy’s affiliate is the sole approved supplier of this equipment package and may earn a profit on its sale to you. This package includes point of sale equipment, vacuum equipment, water reclamation equipment, electrical control systems, vending and mat wash systems, and other systems.
- You must purchase the Tommy’s Express Car Wash point of sale and computer system, as recommended and included in the Tommy’s Equipment Package, in order to operate your Franchised Business. Tommy’s affiliate is the sole approved supplier of this point of sale and computer system and may earn a profit on its sale to you.
6. Other Costs: $15,850 to $42,000
- You must have the insurance coverages that Tommy’s requires for your Franchised Business. The low end of Tommy’s estimate represents a semi-annual premium and the high end of Tommy’s estimate represents the cost of the annual premium ($12,000 to $15,000).
- You must verify the specific business licenses and permits that you will need to operate the Franchised Business. Tommy’s estimate represents the initial cost for licenses and permits which typically remain in effect for one year ($350 to $2,925).
- Office Equipment and Supplies ($1,000 to $1,500)
- Furniture and Fixtures ($2,500 to $17,000)
7. Training Expenses: $17,500 to $21,527
- Tommy’s estimate includes the out-of-pocket expenses for three trainees to attend Tommy’s initial training program. The low end of Tommy’s estimate assumes that the trainees are within driving distance of Tommy’s training facility. The high end of Tommy’s estimate assumes that additional travel, such as airline travel, will be required.
- Your total costs may vary depending on the number of trainees you sent to Tommy’s training program, the distance they must travel, the mode of transportation selected, and the types of accommodations you choose.
8. Grand Opening Marketing: $10,000
- You must conduct a grand opening marketing campaign to promote the opening of your Franchised Business. Tommy’s recommends that your grand opening marketing campaign include distribution of flyers, free washes, mailers, and coupons for discounted washes.
9. Additional Funds: $75,000
- You will need capital to support ongoing expenses, such as payroll and additional purchases of cleaning supplies, if these costs are not covered by sales revenue for your first three months of operation. New businesses often generate a negative cash flow.
- Tommy’s estimates that the amount given will be sufficient to cover ongoing expenses for the start-up phase of the business, which Tommy’s calculates to be three months. This is only an estimate and there is no guarantee that additional working capital will not be necessary during this start-up phase or after.
10. Grand Total: $4,059,478 to $5,677,805 (average: $4,863,234)
- Tommy’s relied on its affiliates’ experience in operating Tommy’s Businesses since 1969. These figures are merely estimates, and there is no assurance that additional working capital will not be necessary during this initial phase or after.
- A standard Tommy’s Express car wash has a wash tunnel that ranges from 110 to 160 feet in length, but franchisees will typically be limited to a tunnel with a length of 130 feet.