In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Tommy’s Express Car Wash franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Tommy’s Express Car Wash franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Tommy’s Express Car Wash franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Tommy’s Express Car Wash outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Tommy’s Express Car Wash’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, highest, and lowest gross sales for the 20 first year Tommy’s Express Car Wash sites, 5 second year Tommy’s Express Car Wash sites, and 2 mature (i.e. open for 36 months or more) Tommy’s Express Car Wash sites that were open a full 12 months in 2020

• 2020 average cost of goods sold, repairs and maintenance, utilities, customer claims, labor, and other expenses for the 20 first year Tommy’s Express Car Wash sites, 5 second year Tommy’s Express Car Wash sites, and 2 mature Tommy’s Express Car Wash sites that were open a full 12 months in 2020

Section I – Background Information

17 Things You Need to Know About the Tommy’s Express Car Wash Franchise

Announces Plans to Bring Eight New Locations to Greater Washington, DC Area

1.  At the end of January 2021, Tommy’s Express Car Wash announced that it will be bringing eight new locally owned and operated locations to the greater Washington, DC area. Michael Cianelli, Navy veteran and franchise co-owner, said, “We couldn’t be more excited to be a part of these growing and vibrant communities near our nation’s capital. We are dedicated to providing sustainable jobs to team members and reinvesting in the communities we serve. We love the Tommy’s system because of the outstanding customer experience it provides and its soft impact on the environment thanks to its use of recycled water and energy-efficient buildings.”

2.  Future Tommy’s customers throughout the greater Washington, DC area should expect short waits even at peak hours, three-minute travel down the car wash tunnel, an excellent product menu, and free floor mat washers and vacuum stations on-site. TOMMYCLUB wash memberships will be available for purchase via the Tommy’s Express app, allowing member vehicles to be automatically admitted to the wash via a proprietary license plate reader system.

3.  According to Ryan Essenburg, president and chief innovation officer of Tommy’s Express, “Tommy’s Express represents the best the car wash industry has to offer, from our commitment to guest experience to the custom, proprietary equipment we pioneered to give you the finest car wash result possible. We work hard to give our guests an unforgettable car wash experience, and because of that, we seek out only the best properties to showcase our ground-breaking building designs. If you’re ready to see what the best car wash in the world looks and feels like, Tommy’s Express is for you!”

Announces Sponsorship of Historic NASCAR Racer Bill Lester

4.  In mid-March 2021, Tommy’s Express Car Wash announced that it would be entering into the world of NASCAR and motorsports for the first time by partnering up with historic NASCAR driver, Bill Lester in the NASCAR Camping World Truck Series, Fr8 Auctions 200 at the Atlanta Motor Speedway on March 20, 2021.

5.  Bill Lester has been a huge player in NASCAR’s story as the 4th African American driver to ever compete in the top level of the sport and one of only seven to date. Wanting to come back to the track, Lester’s team reached out and keeping true to their slogan “not just a car wash,” Tommy’s Express jumped on the opportunity to make it happen. Tommy’s Express’s iconic oval branding will be a part of the David Gilliand Racing Team (DGR) and on the #17 DGR Camping World/Ford Dealers/Tommy’s Express Ford F-150.

6.  Lester said, “It’s amazing to realize that I will soon be back to racing behind the wheel of a NASCAR Truck. It’s been more than a few years since my last race in the series, but to have a strong partner like Tommy’s Express joining me is quite a feather in my cap. I look forward to competing at Atlanta Motor Speedway on the 20th and hope to make all the folks from Tommy’s Express proud.”

7.  Ryan Essenburg, president of Tommy’s Express, added, “We’re thrilled to join exceptional brands with the Atlanta Area Ford Dealers and Camping World as sponsors of Bill Lester’s #17 Ford F-150 for this upcoming race. It’s a great partnership and exceptional opportunity to support an amazing driver like Lester, who is an integral part of NASCAR history. We’re proud to be a part of his return after 14 years and are eager to be a part of his success.”

Announces Groundbreaking of New Headquarters

8.  In early July 2021, Tommy’s Express and Tommy Car Wash Systems announced the groundbreaking for a new $30 million headquarters in Holland, Michigan. The project will consolidate operations from several existing locations into a single 75,000-square-foot office and 200,000+ square-foot warehouse space. The expansion will create opportunity for hundreds of new jobs over the next 3 years. Construction on the new headquarters, located at Waverly and M-40 in Holland, began in July 2021 with completion projected in fall 2022.

9.  Ryan Essenburg, president and CIO of Tommy’s Express, said, “Given the recent growth of our operations, we see an expanded headquarters as a continued commitment to our valuable team members. We also anticipate an upgraded space as a means to broaden our impact, and we thank and appreciate EV Construction for their role in helping us reach this goal.”

10.  Interactive Studios of Grand Rapids is the project lead designer and architect. Concepts for the new facility were developed by Tommy’s over several years of planning and studying the needs of their growing business. The building will feature a large warehouse, fabrication and logistics center, two stories of modern office space, and ample room for events and employee collaboration with vendors and customers.

11.  The focal point of the building is a two-story, round office which will feature training and technical support areas for Tommy’ Express franchise partners. The project’s exterior design will also feature architectural inspiration from the iconic Tommy’s Express Car Washes, which are being built across the United States.

12.  Alex Lemmen, CEO of Tommy’s Express and Tommy Car Wash Systems, added, “The design of the building is intended to show our franchise partners and employees that they are the center of our business. The space is all about supporting them as they deliver a world-class car wash experience.”

Company History

13.  Tommy’s Express Car Wash was founded as Quality Car Wash in 1969 by Jun and Sonny Essenburg in Holland, Michigan. Building on the success of the first location, the Essenburgs opened more car washes in the area. As the business expanded, the Essenburgs began producing their own car washing equipment. They converted the traditional car washes into automated 60′ tunnels.

14.  In the 1980s, the Essenburgs built and opened a 180′ Gas C-Store Car Wash. The site was the first to incorporate the Integrated Flight Deck System. Tommy’s Express Car Wash still uses this system today. Over the next decade, the company continued to grow and in 1990, Tommy’s Car Wash Systems partnered with AVW Equipment to launch a national distributorship network.

15.  After another decade, in 2001 the company launched the Tommy Car Wash Systems equipment line as a new signature series equipment. At that time, the company opened the first Tommy’s Express Car Wash in Grand Rapids, Michigan.

16.  In 2016, Tommy Car Wash Systems began franchising Tommy’s Express Car Wash. Tommy’s Express car washes feature the Totally Tommy building design and a complete Tommy Car Wash Systems equipment package. Growth has been steady over the past few years and Tommy’s Express Car Wash continues to seek franchisees around the United States.

Entrepreneur’s Franchise 500

17.  Tommy’s Express Car Wash ranked No. 148 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Tommy’s Express Car Wash franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on Tommy’s Express Car Wash’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  6
• Net Change:  +5

2019

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  26
• Net Change:  +20

2020

• Outlets at the Start of the Year:  26
• Outlets at the End of the Year:  53
• Net Change:  +27

Company-Owned

2018

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  4
• Net Change:  0

2019

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  4
• Net Change:  0

2020

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  3
• Net Change:  -1

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• This Item 19 includes an historical financial performance representation of existing Tommy’s Express franchised outlets for the calendar year 2020.

• As of December 31, 2020, Tommy’s Express had 53 franchised outlets open. Tommy’s Express has excluded the financial performance of 26 franchised outlets, as they had not been in operation for a full 12 months. Tommy’s Express has included the performance of the one franchised outlet that was purchased by a franchisee from Tommy’s Express in 2020.

Part 1 – Gross Sales for First Year Sites, Second Year Sites, and Mature Sites

First Year Sites (Outlets open more than 12 months but less than 24 months; must be open 12 full months in 2020)

• Number of Outlets:  20
• Average Gross Sales:  $1,346,090.66
• Median Gross Sales:  $1,328,972.75
• Lowest Performing:  $661,875.50
• Highest Performing:  $3,333,438.14

Second Year Sites (Outlets open more than 24 months but less than 36 months; must be open 12 full months in 2020)

• Number of Outlets:  5
• Average Gross Sales:  $2,488,930.89
• Median Gross Sales:  $2,744,300.90
• Lowest Performing:  $1,819,065.39
• Highest Performing:  $3,001,845.57

Mature Sites (Outlets open more than 36 months; must be open 12 full months in 2020)

• Number of Outlets:  2
• Average Gross Sales:  $2,257,784.64
• Median Gross Sales:  $2,257,784.64
• Lowest Performing:  $2,209,627.36
• Highest Performing:  $2,305,941.92

• “Gross Sales” is all revenue, less any returns or credits, from the sale of all products and services and all other income of every kind and nature at or from the Franchised Business or otherwise related to the Franchised Business, including any proceeds from business interruption insurance, whether for cash or credit, and regardless of collection in the case of credit.

• Gross Sales does not include any sales taxes or other taxes collected from customers by you and paid directly to the appropriate taxing authority, or any customer refunds or adjustments.

• Gross Sales does not reflect the cost of sales, operating expenses, royalty fees, marketing fees, or other costs or expenses that must be deducted from gross sales figures to obtain your net income or profit.

• Tommy’s Express offered the same services to the Businesses described in this statement. These Businesses offered the same products and services to the public as you will.

• These outlets have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.

Part 2 – Cost of Goods Expenses for First Year Sites, Second Year Sites, and Mature Sites

• With regards to expenses, Tommy’s Express closely monitors cost of goods wash expenses. These expenses are chemical costs (soap, detergents, tire shine, etc.), repair and maintenance, utilities, customer claims, and labor. The table below reflects costs of goods expenses.

Mature Sites

Cost of Goods Sold – Detergents:  $176,703.81 (7.83%)

Repairs and Maintenance:  $148,460.11 (6.58%)

Utilities

• Waste Removal:  $7,525.97 (0.33%)
• Communications:  $4,613.76 (0.20%)
• Gas:  $25,798.95 (1.14%)
• Sewer:  $13,442.01 (0.60%)
• Water:  $34,210.39 (1.52%)
• Electric:  $86,523.23 (3.83%)

Customer Claims:  $22,671.99 (1.00%)

Labor:  $342,786.47 (15.18%)

Second Year Sites

Cost of Goods Sold – Detergents:  $191,720.16 (7.70%)

Repairs and Maintenance:  $107,570.14 (4.32%)

Utilities

• Waste Removal:  $10,771.23 (0.43%)
• Communications:  $3,909.89 (0.16%)
• Gas:  $17,912.00 (0.72%)
• Sewer:  $36,022.36 (1.45%)
• Water:  $57,552.57 (2.31%)
• Electric:  $67,759.42 (2.72%)

Customer Claims:  $9,580.13 (0.38%)

Labor:  $363,288.56 (14.60%)

First Year Sites

Cost of Goods Sold – Detergents:  $98,275.25 (7.30%)

Repairs and Maintenance:  $50,886.17 (3.78%)

Utilities

• Waste Removal:  $3,051.57 (0.23%)
• Communications:  $4,187.66 (0.31%)
• Gas:  $16,592.78 (1.23%)
• Sewer:  $32,924.60 (2.45%)
• Water:  $49,939.19 (3.71%)
• Electric:  $51,224.49 (3.81%)

Customer Claims:  $14,591.60 (1.08%)

Labor:  $282,743.85 (21.00%)

Part 3 – Other Operational Expenses for First Year Sites, Second Year Sites, and Mature Sites

• Other operational expenses include cost of merchandise, credit card charges, G&A expenses, property taxes, advertising, computer and technology costs, insurance, workers’ compensation, health insurance costs, payroll taxes, and supplies.

Mature Sites

Other Expenses

• Local Marketing:  $47,226.36 (2.09%)
• Credit Card Fees:  $71,687.76 (3.18%)
• Property Tax:  $65,962.02 (2.92%)
• Property and Casualty Insurance:  $17,160.12 (0.76%)
• Technology Costs:  $4,338.75 (0.19%)
• Bank Charges:  $411.26 (0.02%)
• Payroll Taxes:  $32,734.24 (1.45%)
• Workers’ Compensation:  $5,632.00 (0.25%)
• Health Insurance:  $13,309.17 (0.59%)
• General Administrative:  $17,875.69 (0.79%)
• Office Supplies:  $20,087.63 (0.89%)

Second Year Sites

Other Expenses

• Local Marketing:  $58,551.61 (2.35%)
• Credit Card Fees:  $72,963.97 (2.93%)
• Property Tax:  $47,468.68 (1.91%)
• Property and Casualty Insurance:  $20,185.63 (0.81%)
• Technology Costs:  $4,018.11 (0.16%)
• Bank Charges:  $117.22 (0.00%)
• Payroll Taxes:  $42,368.87 (1.70%)
• Workers’ Compensation:  $10,286.36 (0.41%)
• Health Insurance:  $13,102.02 (0.53%)
• General Administrative:  $29,151.83 (1.17%)
• Office Supplies:  $21,345.38 (0.86%)

First Year Sites

Other Expenses

• Local Marketing:  $33,750.90 (2.51%)
• Credit Card Fees:  $37,404.04 (2.78%)
• Property Tax:  $17,248.89 (1.28%)
• Property and Casualty Insurance:  $17,337.10 (1.29%)
• Technology Costs:  $4,054.56 (0.30%)
• Bank Charges:  $2,024.49 (0.15%)
• Payroll Taxes:  $34,148.96 (2.54%)
• Workers’ Compensation:  $7,668.41 (0.57%)
• Health Insurance:  $8,381.35 (0.62%)
• General Administrative:  $98,275.25 (2.51%)
• Office Supplies:  $10,853.67 (0.81%)

• Tommy’s Express Businesses report gross sales information to the franchisor based upon a uniform reporting system.

• As part of the Tommy’s Express franchise model, club membership and its growth is an integral part of a franchised car wash’s revenue. Due to the COVID-19 pandemic, some of the First Year Sites were not open a significant length of time to achieve stable membership growth before the pandemic.

• From January 1, 2021, through March 31, 2021, the First Year sites included in this financial performance representation have seen revenue increase 59.41% over the same time period in 2020.

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