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

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

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

• Section III – Number of franchised and company-owned Garage Force 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 Garage Force franchise opportunity, including relevant news updates

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

• 2021 actual and average annual gross revenue, annual product cost (including consumables and equipment), annual invoices, average invoice, and average profit per invoice for the 21 single-unit existing franchised Garage Force businesses that had been open and continuously operating in the U.S. on a full-time basis for at least one full calendar year as of December 31, 2021

• 2021 actual annual gross revenue, annual product cost (including consumables and equipment), annual invoices, and average invoice for the single company-owned Garage Force business that was open and operated for the full 2021 calendar year

• 2021 actual product cost, labor, continuing fee, local advertising, fuel expense, consumables, equipment maintenance, branding fee, insurance, and total expense as a percentage of annual gross revenue for the single company-owned Garage Force business that was open and operated for the full 2021 calendar year

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

Section I – Garage Force Franchise Costs

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

• Initial Fee:  $49,500
• Initial Equipment Package:  $60,000
• Initial Coating Products:  $10,000
• Wages, Travel, and Living Expenses for You and Your General Manager During Initial Training Program:  $1,000 to $5,000
• Computer Hardware and Software:  $600 to $5,000
• Office and Storage Space (3 Months):  $0 to $3,000
• Vehicle:  $1,500 to $41,500
• Office Furniture, Supplies, and Equipment:  $0 to $2,500
• Insurance (3 Months):  $300 to $2,100
• Professional Services (Legal, Accounting, Payroll Services, etc.):  $900 to $1,900
• Opening Assistance and Travel Expenses:  $0 to $2,500
• Grand Opening Advertising:  $500
• Additional Funds (3 Months):  $3,600 to $12,100
• Total Estimated Garage Force Franchise Costs:  $127,900 to $195,600

Section II – Garage Force’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

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

• Initial Fee:  $49,500
• Continuing Fee:  5% of Gross Revenues
• Branding Fees:  1% of Gross Revenues
• Digital Marketing Fees:  currently, a total of $1,000 each month

Section III – Number of Franchised and Company-Owned Garage Force Outlets

Franchised

2019

• Outlets at the Start of the Year:  56
• Outlets at the End of the Year:  59
• Net Change:  +3

2020

• Outlets at the Start of the Year:  59
• Outlets at the End of the Year:  80
• Net Change:  +21

2021

• Outlets at the Start of the Year:  80
• Outlets at the End of the Year:  133
• Net Change:  +53

Company-Owned

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – Background Information on the Garage Force Franchise

14 Things You Need to Know About the Garage Force Franchise

Uses Floor Coating That’s Stronger Than Traditional Epoxy

1.  Instead of using epoxy like most garage floor coating companies, Garage Force uses polyurea coatings. Historically, epoxy has been at the leading edge of garage floor coatings, but that is no longer the case. Nowadays, polyurea coatings are a much better option. Garage Force says that its patented polyurea garage floor coatings are about 20 times stronger than epoxy coatings.

2.  Some of the other benefits of polyurea coating include:

• Garage Force’s floor coatings are resistant to damage from ultraviolet light. In contrast, epoxy coatings will yellow and fade after consistent exposure to sunlight.
• With the company’s garage floor coatings, a second layer is applied that resists moisture from getting into your concrete and causing damage.
• Polyurea cures at an extremely fast rate, leaving less time for bubbles to form when the material hardens (a problem extremely common to epoxy coatings).
• Garage Force’s coatings provide a great-looking finish that also resists stains. In general, the material is also resistant to scrapes, extreme temperatures, and many forms of chemical corrosion.

3.  In addition to the above benefits, polyurea coatings have a much quicker installation time, making the process much easier on clients. This is because Garage Force’s coatings cure (harden) extremely fast, and are complete within a span of 24 hours. In contrast, an epoxy garage floor coating generally takes three to four days to install.

4.  Additionally, Garage Force coatings can be installed in temperatures anywhere between -30 degrees to 140 degrees Fahrenheit. That means except in extreme environments, clients can have Garage Force coatings installed any time of the year. Epoxy, on the other hand, only has a very narrow temperature window that it can be installed in, making installation impossible except in spring and fall in many states.

Offers a Wide Variety of Coating Styles

5.  Garage Force has five different coating systems: Full Chip/Decorative Chip System, Medici System, Metallic System, Quartz System, and Solid Color System. Each system has a number of benefits and styles.

6.  The Full Chip system is Garage Force’s most popular concrete coating system. This three-layer system is easy to install and cure times range from as little as one to three hours. The first layer is a primer or basecoat using Garage Force’s unique polyurea concrete coating. The second layer is made up of decorative chip, which comes in a wide variety of colors. Then, a clear topcoat is added to seal everything in for ultimate durability and a high-gloss shine. Anti-slip additives can be applied to give this textured system even more slip resistant properties. Installation is done in one day and can handle vehicle traffic 24 hours later. Additionally, the Full Chip System can withstand salt, oil, gas, and grease, making it ideal for both inside and outside.

7.  The Medici Polyurea Color Coating System by Garage Force creates a variety of decorative finishes that will outlast any other acrylic or acid stain system on the market. The base layer is a tinted primer or basecoat. The next layer is the Medici decorative floor coating that is available in a variety of stunning colors and looks. Then a clear polyaspartic topcoat is added to seal everything in for ultimate durability and a beautiful finish. Installation is completed in a single day and is vehicle traffic ready 24 hours later. The Medici System can withstand pressure, weight, and heavy traffic without chipping, fading, or becoming dull.

8.  The pearlescent Metallic Coating System is a durable, high-end flooring system that uses metallic powder tints to create a flowing, metallic look. The process begins with the PolyCuramine clear basecoat. PolyCuramine is an odor-free, flexible coating system that is extremely resistant to chemicals and wear. Metallic tints create a pearlescent finish to provide a luxurious finish anywhere. An optional topcoat provides a clear high-gloss finish for ultimate durability.

9.  The Quartz Concrete Coating System by Garage Force is a super durable concrete coating that offers extreme abrasion resistance and a rough texture that conforms to all Occupational Safety and Health Administration (OSHA) slip requirements. This makes it the ideal concrete coating system for restaurants, gyms, and auto shops. The quartz system is a triple-layer system that begins with the color basecoat – choose from 11 great options – of Garage Force’s polyurea coating. Colored quartz granules are added to provide texture and extreme durability. Finally, an anti-slip clear topcoat is added to seal the granules in and provide a surface that requires little maintenance. The quartz system is resistant to wear by chemicals and heavy traffic.

10.  The Solid Color Concrete Coating System by Garage Force is an incredibly durable flooring option that provides rich, vibrant colors. This direct-to-concrete coating system is made of SLE-100 cyclo-aliphatic hybrid properties. The makeup of this coating system allows it to be applied in a single coat that cures in less than a day. The self-leveling properties make this the perfect flooring option for heavily damaged floors, allowing it to fill in gaps caused by concrete cracking, spalling, or flaking.

Company History

11.  Garage Force traces its history to 2012 when Patrick Ilfrey, founder and CEO of Citadel Floors, invented and patented the floor coating products used by Garage Force. That year, Ilfrey and Mike Paterson, who was doing marketing work for Citadel Floors, developed the concept for Garage Force. Ilfrey and Paterson implemented a franchising system from the start.

12.  Paterson completely took over Garage Force in 2013. By the end of that year, two test locations were opened in La Crosse, Wisconson and Waco, Texas. The locations were successful and in 2014, the first official franchised Garage Force was signed. The La Crosse and Waco locations were eventually converted to franchises.

13.  To initially fuel growth, Garage Force focused on selling franchises to military veterans and blue collar workers. By the end of 2018, there were 54 Garage Force franchises across 27 states. Since then, Garage Force has expanded its franchisee candidates and there are now locations around the United States.

Entrepreneur’s Franchise 500

14.  Garage Force did not rank on Entrepreneur’s 2022 Franchise 500 list.

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

• Garage Force has included below financial performance representations setting forth historical information on Gross Revenue and Product Costs (defined below) based upon the 21 single-unit existing franchised Garage Force Businesses that had been open and continuously operating in the U.S. on a full-time basis for at least one full calendar year as of December 31, 2021 (the “Qualifying Businesses”).

• Garage Force previously offered and sold Garage Force Businesses that operated on different business models, specifically, on a seasonal, part-time, or absentee basis. Garage Force currently no longer offers that business model, and Garage Force currently only offers and sells Garage Force Businesses that operate full-time. Therefore, the below financial performance representations include the 21 Qualifying Businesses that are substantially similar to the franchised business being offered and sold under the disclosure document.

• This Item 19 excludes 112 Garage Force Businesses because: (i) 53 Garage Force Businesses had not been operating for at least one full year as of December 31, 2021, and (ii) 59 operate on a seasonal, part-time, or absentee basis, and/or have purchased multiple territories and are operating larger than Garage Force’s standard single-unit territories, and as such, are not substantially similar to the franchised business being offered under the disclosure document.

Part 1 – All Qualifying Businesses During the 2021 Calendar Year

• Part 1 discloses historical financial performance representations for each of the 21 Qualifying Businesses.

Franchisee 1

• Annual Gross Revenue:  $635,503
• Annual Product Cost (including consumables and equipment):  $209,715
• Annual Invoices:  133
• Average Invoice:  $4,216
• Average Profit Per Invoice:  $3,211

Franchisee 2

• Annual Gross Revenue:  $631,702
• Annual Product Cost (including consumables and equipment):  $238,821
• Annual Invoices:  157
• Average Invoice:  $4,023
• Average Profit Per Invoice:  $2,502

Franchisee 3

• Annual Gross Revenue:  $618,587
• Annual Product Cost (including consumables and equipment):  $221,425
• Annual Invoices:  220
• Average Invoice:  $2,811
• Average Profit Per Invoice:  $1,805

Franchisee 4

• Annual Gross Revenue:  $603,966
• Annual Product Cost (including consumables and equipment):  $169,218
• Annual Invoices:  164
• Average Invoice:  $3,683
• Average Profit Per Invoice:  $2,650

Franchisee 5

• Annual Gross Revenue:  $574,530
• Annual Product Cost (including consumables and equipment):  $82,954
• Annual Invoices:  133
• Average Invoice:  $4,319
• Average Profit Per Invoice:  $2,944

Franchisee 6

• Annual Gross Revenue:  $494,682
• Annual Product Cost (including consumables and equipment):  $189,898
• Annual Invoices:  210
• Average Invoice:  $2,355
• Average Profit Per Invoice:  $1,451

Franchisee 7

• Annual Gross Revenue:  $478,158
• Annual Product Cost (including consumables and equipment):  $139,694
• Annual Invoices:  105
• Average Invoice:  $4,553
• Average Profit Per Invoice:  $3,223

Franchisee 8

• Annual Gross Revenue:  $471,642
• Annual Product Cost (including consumables and equipment):  $189,174
• Annual Invoices:  155
• Average Invoice:  $3,042
• Average Profit Per Invoice:  $1,822

Franchisee 9

• Annual Gross Revenue:  $438,075
• Annual Product Cost (including consumables and equipment):  $132,885
• Annual Invoices:  98
• Average Invoice:  $4,470
• Average Profit Per Invoice:  $3,114

Franchisee 10

• Annual Gross Revenue:  $434,178
• Annual Product Cost (including consumables and equipment):  $144,806
• Annual Invoices:  107
• Average Invoice:  $4,057
• Average Profit Per Invoice:  $274

Franchisee 11

• Annual Gross Revenue:  $423,765
• Annual Product Cost (including consumables and equipment):  $183,584
• Annual Invoices:  156
• Average Invoice:  $2,716
• Average Profit Per Invoice:  $1,539

Franchisee 12

• Annual Gross Revenue:  $412,339
• Annual Product Cost (including consumables and equipment):  $125,585
• Annual Invoices:  74
• Average Invoice:  $5,572
• Average Profit Per Invoice:  $3,875

Franchisee 13

• Annual Gross Revenue:  $409,947
• Annual Product Cost (including consumables and equipment):  $125,585
• Annual Invoices:  153
• Average Invoice:  $2,679
• Average Profit Per Invoice:  $1,727

Franchisee 14

• Annual Gross Revenue:  $389,741
• Annual Product Cost (including consumables and equipment):  $121,298
• Annual Invoices:  86
• Average Invoice:  $4,531
• Average Profit Per Invoice:  $3,121

Franchisee 15

• Annual Gross Revenue:  $380,605
• Annual Product Cost (including consumables and equipment):  $136,415
• Annual Invoices:  99
• Average Invoice:  $3,844
• Average Profit Per Invoice:  $2,466

Franchisee 16

• Annual Gross Revenue:  $357,423
• Annual Product Cost (including consumables and equipment):  $128,814
• Annual Invoices:  81
• Average Invoice:  $4,412
• Average Profit Per Invoice:  $2,822

Franchisee 17

• Annual Gross Revenue:  $337,418
• Annual Product Cost (including consumables and equipment):  $118,483
• Annual Invoices:  60
• Average Invoice:  $5,623
• Average Profit Per Invoice:  $3,648

Franchisee 18

• Annual Gross Revenue:  $325,452
• Annual Product Cost (including consumables and equipment):  $117,884
• Annual Invoices:  69
• Average Invoice:  $4,716
• Average Profit Per Invoice:  $3,008

Franchisee 19

• Annual Gross Revenue:  $309,892
• Annual Product Cost (including consumables and equipment):  $94,316
• Annual Invoices:  80
• Average Invoice:  $3,873
• Average Profit Per Invoice:  $2,694

Franchisee 20

• Annual Gross Revenue:  $297,319
• Annual Product Cost (including consumables and equipment):  $90,037
• Annual Invoices:  91
• Average Invoice:  $3,267
• Average Profit Per Invoice:  $2,277

Franchisee 21

• Annual Gross Revenue:  $282,689
• Annual Product Cost (including consumables and equipment):  $91,138
• Annual Invoices:  79
• Average Invoice:  $3,578
• Average Profit Per Invoice:  $2,424

Average

• Annual Gross Revenue:  $443,220
• Annual Product Cost (including consumables and equipment):  $151,039
• Annual Invoices:  120
• Average Invoice:  $3,948
• Average Profit Per Invoice:  $2,620

Highest

• Annual Gross Revenue:  $635,503
• Annual Product Cost (including consumables and equipment):  $283,821
• Annual Invoices:  210
• Average Invoice:  $5,623
• Average Profit Per Invoice:  $3,648

Lowest

• Annual Gross Revenue:  $282,689
• Annual Product Cost (including consumables and equipment):  $90,037
• Annual Invoices:  74
• Average Invoice:  $2,355
• Average Profit Per Invoice:  $1,451

Median

• Annual Gross Revenue:  $423,765
• Annual Product Cost (including consumables and equipment):  $139,694
• Annual Invoices:  105
• Average Invoice:  $4,023
• Average Profit Per Invoice:  $2,694

Part 2 – Company-Owned Garage Force Business During the 2021 Calendar Year

• Part 2 discloses historical financial performance representations for the single company-owned Garage Force Business that was open and operated for the full 2021 calendar year.

Company-Owned Location

• Annual Gross Revenue:  $395,482
• Annual Product Cost (including consumables and equipment):  $119,499
• Annual Invoices:  92
• Average Invoice:  $4,298

• “Annual Gross Revenue” means all income of the reported Qualifying Businesses from the sale of all services and products by the Qualifying Businesses during the 2021 calendar year. Gross Revenue does not include any sales, use, or gross receipts taxes if the amount of the tax was added to the selling price, charged to the customer, and paid to the appropriate taxing authority.

• “Product Costs” means only those products and supplies that the Qualifying Businesses purchased from Garage Force or its affiliates during the 2021 calendar year because Garage Force or its affiliates are the exclusive suppliers of such products and supplies. Product Costs excludes salaries, utilities, taxes, equipment purchased from other suppliers, office or storage space, Continuing Fees, Branding Fees, advertising expenses, start-up costs, insurance, professional services fees such as legal and accounting, depreciation/amortization, and other miscellaneous operating costs.

• “Annual Invoices” means the number of invoices that the Qualifying Franchisee issued to customers during the 2021 calendar year.

• “Average Invoice” means the Annual Gross Revenue divided by the Annual Invoices.

• “Average Profit per Invoice” means the Annual Gross Revenue less the Continuing Fees, Branding Fees, and costs of products purchased from Garage Force in the 2021 calendar year. Garage Force did not disclose an Average Profit per Invoice for the company-owned Garage Force Business because it does not pay a Continuing Fee or Branding Fee.

• The Qualifying Businesses are located throughout the country, are single outlets, and do not have multiple territories.

Part 3 – Expenses as a Percent of Annual Gross Revenue for the Company-Owned Business During the 2021 Calendar Year

• Part 3 shows certain expenses as a percent of the annual Gross Revenue for the company-owned Garage Force Business for the 2021 calendar year.

• Product Cost:  30.5% of gross revenue
• Labor:  15% of gross revenue
• Continuing Fee:  5% of gross revenue
• Local Advertising:  3% of gross revenue
• Fuel Expense:  2% of gross revenue
• Consumables:  1% of gross revenue
• Equipment Maintenance:  1% of gross revenue
• Branding Fee:  1% of gross revenue
• Insurance:  1.5% of gross revenue
• Total Expense:  60% of gross revenue

• This Part 3 only reflects those nine expenses that are explicitly noted in the chart for the single company-owned Garage Force Business as a percent of its 2021 annual Gross Revenue, and it excludes professional service fees, insurance, licensing costs, rent, utilities, depreciation/amortization, and other miscellaneous operating costs.

• “Product Costs” means only those products and supplies that the company-owned Garage Force Businesses purchased from Garage Force or its affiliates during the 2021 calendar year because Garage Force and its affiliates are the exclusive suppliers of such products and supplies. Product Costs excludes salaries, utilities, taxes, equipment purchased from other suppliers, office or storage space, Continuing Fees, Branding Fees, advertising expenses, start-up costs, insurance, professional services fees such as legal and accounting, depreciation/amortization, and other miscellaneous operating costs.

• “Labor” includes part-time labor for an assistant, and excludes the owner’s salary.

• The Continuing Fee reflects the percent of the Gross Revenue that the company-owned Garage Force Business would have paid to Garage Force had it been a franchisee and be subject to the 5% Continuing Fee as required under the current form of franchise agreement.

• “Consumables” means those items and supplies that were used up, and new or replacement equipment pieces, that were purchased from Garage Force or its affiliates throughout the 2021 calendar year, which may include, without limitation: Rollers, Squeegees, Rags, Roller Covers, Chip Brushes, Grinder Blades, Shot, Grinders, Drills, Cleaning Supplies, Solvent, Mixing Buckets, Paint Trays, Rugs, Tarps, Canvas, Equipment Fuel.

• The Branding Fee reflects the percent of the Gross Revenue that the company-owned Garage Force Business would have paid to Garage Force had it been a franchisee and be subject to the 1% Branding Fee as required under the current form of franchise agreement.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

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