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

• Section I – Estimated initial investment (franchise costs) for a GarageExperts franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a GarageExperts franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned GarageExperts outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the GarageExperts franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of GarageExperts’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average, median, highest, and lowest gross sales, and average gross profit after labor and cost of goods sold for the 66 single-unit GarageExperts franchise owners who operated a single territory for the entirety of 2021

• 2021 annual gross sales and gross profit after labor and cost of goods sold for each of the top 5 and bottom 5 (by annual gross sales) single-unit GarageExperts franchise owners who operated a single territory for the entirety of 2021

• 2021 average, median, highest, and lowest gross sales, and average gross profit after labor and cost of goods sold for the 12 multi-territory GarageExperts franchise owners who operated two or more territories for the entirety of 2021

• 2021 annual gross sales and gross profit after labor and cost of goods sold for each of the 12 multi-territory GarageExperts franchise owners who operated two or more territories for the entirety of 2021

• Section VI – Key ratios, comparables, computations, and analyses for the GarageExperts franchise opportunity (exclusive content for Platinum subscribers)

Section I – GarageExperts Franchise Costs

• GarageExperts franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $15,000
• Equipment, Furniture, Fixtures, and Signage:  $27,684.16 to $32,519.96
• GarageExperts Vehicle(s):  $1,000 to $60,000
• Computer Hardware and Software:  $5,003
• Cellular Phone and a Mobile Wireless Hotspot:  $300 to $500
• Wages, Travel, and Living Expenses During Training:  $1,500 to $5,000
• Leasing Costs:  $1,000 to $2,500
• Advertising:  $4,000 to $10,000
• Insurance Deposits and Premiums:  $200 to $1,000
• Licenses and Permits:  $100 to $1,500
• Professional Fees:  $1,500 to $5,000
• Miscellaneous Supplies:  $100 to $500
• Additional Funds for 3 Months:  $5,000 to $12,000
• Total Estimated GarageExperts Franchise Costs:  $62,387.16 to $150,522.96

Section II – GarageExperts’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• GarageExperts’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $15,000
• Continuing Royalty:  you pay a monthly continuing royalty as follows: $500 for first 6 months after the Effective Date of your Franchise Agreement; $800/month for months 7-12; $1,200/month for months 13-18; $1,800/month thereafter
• National Advertising Fee:  $500/month until GarageExperts’ U.S. franchisee territory count is 125 or more, then $1,000/ month
• Local Advertising:  during each calendar quarter, you shall expend an amount equal to not less than 5% of your Gross Sales for the preceding calendar quarter for permitted local advertising and promotion

Section III – Number of Franchised and Company-Owned GarageExperts Outlets

Franchised

2019

• Outlets at the Start of the Year:  80
• Outlets at the End of the Year:  94
• Net Change:  +14

2020

• Outlets at the Start of the Year:  94
• Outlets at the End of the Year:  96
• Net Change:  +2

2021

• Outlets at the Start of the Year:  96
• Outlets at the End of the Year:  100
• Net Change:  +4

Company-Owned

2019

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

2020

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

2021

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

Section IV – Background Information on the GarageExperts Franchise

9 Things You Need to Know About the GarageExperts Franchise

Opens New Location in Arkansas

1.  In early January 2021, GarageExperts opened a new location in Central Arkansas. The franchise is owned and operated by Mark Powers and Travis Parsley. Powers said, “We are a franchise new to Arkansas. Even though the corporate company has been around for 30 years, there were no epoxy experts in our community, or even central Arkansas. After doing considerable homework, and obtaining the multiple certifications, we opened our doors to the community.”

2.  According to Powers and Parsley, “We wanted to open and operate a business that supports their local community and is supported by the local community. Our goal is to not only grow our business, but more importantly, grow, develop and give back to our local community. As local owners of the business, you will never have to call an 800 number for service. You will always be working with someone who lives around the corner and genuinely wants to help.”

North Carolina Franchisee Set to Provide Services Through Autolite Sweepstakes

3.  In early March 2022, Autolite announced that Sharon Ashmore from Stanley, N.C. is the grand prize winner in its Home Garage Makeover Sweepstakes. Over the course of the following month, Ashmore would receive a garage renovation project worth over $10,000. Selected in a random drawing, Ashmore was one of hundreds of Autolite fans who submitted entries during the Autolite Home Garage Makeover Sweepstakes in 2021.

4.  Carl Weber, senior marketing director for First Brands Group, said, “The garage often gets overlooked, but anyone who’s into automotive maintenance or DIY projects of any kind truly appreciates the possibilities of this space. Because of our love for garages and all they represent, we’re excited to give Sharon Ashmore one she’ll be proud to call her own.”

5.  The contractor selected to complete the renovation, GarageExperts of Charlotte, would install new flooring, cabinets, and three slat walls in Ashmore’s home garage. This project also included a new air compressor, Autolite stools, and a lit-up vintage Autolite sign.

Reasons to Own a GarageExperts Franchise

6.  GarageExperts has a core business model that focuses on the successes of its franchisee network. Some of the reasons why potential franchisees should invest in the business are:

• Proven Marketing Tools – GarageExperts says its industry-leading consumer-based marketing provides its franchisees with an unparalleled competitive edge.

• Warranty – GarageExperts claims it’s the only garage services franchise that offers a product line so superior that it’s backed by the power of a Lifetime Warranty.

• Steady Growth – GarageExperts is the dominant company in the garage renovation industry and part of the $538 billion home improvement market that is expected to reach more than $620 billion by 2025.

• No Inventory to Stock – Unlike other franchise systems, GarageExperts doesn’t require franchisees to purchase a minimum inventory. This allows franchisees greater cash flow to invest in their business growth.

• Proprietary Software – GarageExperts’ proprietary 3-D rendering software is designed specifically for WOW-ing customers and standing out from the competition.

• Training/Support – GarageExperts trains each franchisee on its system and products as well as offers additional training and support on a regular basis.

• Low Royalties – GarageExperts’ royalties start at a fixed rate of only $500, allowing new franchisees the cash flow needed to quickly ramp up their new business.

• Made in America – GarageExperts’ coatings and cabinets are sourced and manufactured by hard-working American workers, exclusively in the USA.

Company History

7.  GarageExperts was founded in 2008 by Mike Meursing in Orange County, California. Although it was a very risky time to start a new business due to the financial crisis, Meursing wanted to start his own company and provide jobs for people looking for work. Additionally, Meursing wanted GarageExperts to be a low-cost franchise that specialized in the installation of garage floor coatings, garage storage cabinets, garage ceiling racks, and garage slat-wall.

8.  Meursing spent the next few years slowly growing GarageExperts and making sure that everything was running smoothly. Around 2018, Meursing decided he was ready to start franchising GarageExperts. Today, there are GarageExperts locations across more than 32 states.

Entrepreneur’s Franchise 500

9.  GarageExperts did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the GarageExperts Franchise (Item 19, 2022 FDD)

Part 1 – 2021 Average Annual Gross Sales for Single-Territory Owners

• In Part 1, GarageExperts sets forth 2021 data for Annual Gross Sales for its 66 single-unit franchise owners who operated a single territory for the entirety of 2021. As of December 31, 2021, GarageExperts had 66 single-territory owners of which 66 met the criteria for inclusion in the data below:

• Average Annual Gross Sales:  $541,769
• Average Gross Profit After Labor and Cost of Goods Sold:  $219,526
• Median Annual Gross Sales:  $499,396
• Highest Annual Gross Sales:  $344,054
• Lowest Annual Gross Sales:  $117,000
• Number of Outlets That Attained or Surpassed the Average Annual Gross Sales:  28
• Percentage of Outlets That Attained or Surpassed the Average Annual Gross Sales:  42%

Top 5 Outlets (Annual Gross Sales)

Outlet 1

• Annual Gross Sales:  $1,344,054
• Gross Profit After Labor and COGS:  $362,313
• Gross Profit as a Percent of Gross Sales:  27%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  1
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  2%

Outlet 2

• Annual Gross Sales:  $1,264,000
• Gross Profit After Labor and COGS:  $294,000
• Gross Profit as a Percent of Gross Sales:  23%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  2
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  3%

Outlet 3

• Annual Gross Sales:  $1,216,099
• Gross Profit After Labor and COGS:  $618,548
• Gross Profit as a Percent of Gross Sales:  51%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  3
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  5%

Outlet 4

• Annual Gross Sales:  $1,132,000
• Gross Profit After Labor and COGS:  $534,000
• Gross Profit as a Percent of Gross Sales:  47%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  4
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  6%

Outlet 5

• Annual Gross Sales:  $1,105,474
• Gross Profit After Labor and COGS:  $591,259
• Gross Profit as a Percent of Gross Sales:  53%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  5
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  8%

Bottom 5 Outlets (Annual Gross Sales)

Outlet 62

• Annual Gross Sales:  $228,000
• Gross Profit After Labor and COGS:  $64,369
• Gross Profit as a Percent of Gross Sales:  28%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  62
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  94%

Outlet 63

• Annual Gross Sales:  $207,176
• Gross Profit After Labor and COGS:  $19,854
• Gross Profit as a Percent of Gross Sales:  10%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  63
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  96%

Outlet 64

• Annual Gross Sales:  $198,298
• Gross Profit After Labor and COGS:  $14,965
• Gross Profit as a Percent of Gross Sales:  8%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  64
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  97%

Outlet 65

• Annual Gross Sales:  $193,203
• Gross Profit After Labor and COGS:  $69,648
• Gross Profit as a Percent of Gross Sales:  36%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  65
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  98%

Outlet 66

• Annual Gross Sales:  $117,000
• Gross Profit After Labor and COGS:  $21,962
• Gross Profit as a Percent of Gross Sales:  19%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  66
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  100%

Part 2 – 2021 Average Annual Gross Sales for Multi-Territory Owners

• In Part 2, GarageExperts sets forth 2021 data for Annual Gross Sales for its 12 multi-territory franchise owners who operated two or more territories for the entirety of 2021. As of December 31, 2021, GarageExperts had 12 multi-territory owners of which 12 met the criteria for inclusion in the data below:

• Average Annual Gross Sales:  $1,120,162
• Average Gross Profit After Labor and Cost of Goods Sold:  $426,363
• Median Annual Gross Sales:  $1,174,527
• Highest Annual Gross Sales:  $2,167,000
• Lowest Annual Gross Sales:  $543,972
• Number of Outlets That Attained or Surpassed the Average Annual Gross Sales:  6
• Percentage of Outlets That Attained or Surpassed the Average Annual Gross Sales:  50%

Individual Results for Each of the 12 Multi-Territory Owners

Outlet 1

• Number of Territories Owned:  2
• Annual Gross Sales:  $2,167,000
• Gross Profit After Labor and COGS:  $916,370
• Gross Profit as a Percent of Gross Sales:  42%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  1
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  8%

Outlet 2

• Number of Territories Owned:  3
• Annual Gross Sales:  $1,540,595
• Gross Profit After Labor and COGS:  $683,906
• Gross Profit as a Percent of Gross Sales:  44%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  2
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  17%

Outlet 3

• Number of Territories Owned:  2
• Annual Gross Sales:  $1,553,829
• Gross Profit After Labor and COGS:  $624,395
• Gross Profit as a Percent of Gross Sales:  40%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  3
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  25%

Outlet 4

• Number of Territories Owned:  2
• Annual Gross Sales:  $1,363,000
• Gross Profit After Labor and COGS:  $579,510
• Gross Profit as a Percent of Gross Sales:  43%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  4
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  33%

Outlet 5

• Number of Territories Owned:  3
• Annual Gross Sales:  $1,961,059
• Gross Profit After Labor and COGS:  $562,512
• Gross Profit as a Percent of Gross Sales:  29%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  5
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  42%

Outlet 6

• Number of Territories Owned:  2
• Annual Gross Sales:  $1,005,000
• Gross Profit After Labor and COGS:  $466,628
• Gross Profit as a Percent of Gross Sales:  46%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  6
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  50%

Outlet 7

• Number of Territories Owned:  2
• Annual Gross Sales:  $1,344,054
• Gross Profit After Labor and COGS:  $1,362,313
• Gross Profit as a Percent of Gross Sales:  27%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  7
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  58%

Outlet 8

• Number of Territories Owned:  2
• Annual Gross Sales:  $519,000
• Gross Profit After Labor and COGS:  $243,000
• Gross Profit as a Percent of Gross Sales:  47%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  8
• Percent of Outlets That Attained or Surpassed the Annual Gross Sales:  67%

Outlet 9

• Number of Territories Owned:  2
• Annual Gross Sales:  $430,625
• Gross Profit After Labor and COGS:  $189,975
• Gross Profit as a Percent of Gross Sales:  44%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  9
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  75%

Outlet 10

• Number of Territories Owned:  2
• Annual Gross Sales:  $383,198
• Gross Profit After Labor and COGS:  $114,139
• Gross Profit as a Percent of Gross Sales:  30%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  10
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  83%

Outlet 11

• Number of Territories Owned:  2
• Annual Gross Sales:  $630,617
• Gross Profit After Labor and COGS:  $71,836
• Gross Profit as a Percent of Gross Sales:  11%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  11
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  92%

Outlet 12

• Number of Territories Owned:  2
• Annual Gross Sales:  $543,972
• Gross Profit After Labor and COGS:  $301,766
• Gross Profit as a Percent of Gross Sales:  55%
• Number of Outlets That Attained or Surpassed the Annual Gross Sales:  12
• Percentage of Outlets That Attained or Surpassed the Annual Gross Sales:  100%

• “Gross Sales” means the total of all revenues received or receivable by the franchisee as payment, whether in cash, by debit card, or for credit or barter or other means of exchange (and, if for credit or barter, whether or not payment is received therefor), on account of any and all goods, merchandise, services, and supplies sold by the Franchised Business, or which are promoted or sold by the franchisee under any of the Marks, whether or not GarageExperts offers such services or products in its other locations, including:

• (a) revenues from sales of any nature or kind whatsoever, derived by the franchisee or by any other person or Business Entity (including the franchisee’s affiliate(s)) from the Franchised Business;

• (b) sales of Authorized Products and Services in contravention of the Franchise Agreement from businesses other than the Franchised Business;

• (c) the proceeds of any business interruption insurance, after the satisfaction of any applicable deductible;

• (d) mail or telephone orders received or filled in or from the Franchised Business; and

• (e) orders taken in or from the Franchised Business although filled or performed elsewhere.

• Notwithstanding the foregoing, “Gross Sales” shall exclude the following:

• (i) sums representing sales taxes collected directly from customers by the franchisee in the operation of the Franchised Business, and any sales, value added or other tax, excise, or duty charged to customers which is levied or assessed against the franchisee by any Federal, state, municipal, or local authority, based on sales of specific goods, merchandise, services, and supplies sold at, from, or in connection with the Franchised Business, provided that such taxes are actually transmitted to the appropriate Governmental Authority;

• (ii) sums representing tips, gratuities, or service charges paid directly by customers to employees of the franchisee or paid to the franchisee and promptly and to the extent turned over to such employees by the franchisee in lieu of direct tips or gratuities; and

• (iii) proceeds from isolated sales of equipment and trade fixtures not constituting any part of the franchisee’s products and services offered in connection with the Franchised Business nor having any material effect upon the ongoing operation of the Franchised Business required under the Franchise Agreement.

• “Gross Profit After Labor and Cost of Goods Sold” means Annual Gross Sales less any labor costs and material costs such as liquid coatings, cabinets, storage products, and sundry items.

• “Gross Profit as a Percentage of Gross Sales” was calculated by dividing Annual Gross Sales into Gross Profit After Labor and Cost of Goods Sold.

• Please keep in mind that the information GarageExperts presents is based upon reports from franchisees and GarageExperts has not audited or in any way verified this information.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

Section VI – GarageExperts Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️