Garage Force Franchise: Average Sales ($406K) vs. Cost ($127K-$195K)

In this exclusive Franchise Chatter 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 2023 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 2023 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 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Garage Force franchise opportunity

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 2023 FDD, including information on the:

• 2022 actual and average annual gross revenue, annual product cost (including consumables and equipment), annual invoices, average invoice, and average profit per invoice for the 36 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, 2022

• 2022 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 2022 calendar year

• 2022 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 2022 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 2023 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 2023 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

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

2022

• Outlets at the Start of the Year:  133
• Outlets at the End of the Year:  164
• Net Change:  +31

Company-Owned

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

2022

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

Section IV – News Updates on the Garage Force Franchise

• Garage Force Did Not Rank on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Garage Force Franchise (Item 19, 2023 FDD)

• Garage Force has included below financial performance representations setting forth historical information on Gross Revenue and Product Costs (defined below) based upon the 36 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, 2022 (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 36 Qualifying Businesses that are substantially similar to the franchised business being offered and sold under the disclosure document.

• This Item 19 excludes 126 Garage Force Businesses because: (i) 32 Garage Force Businesses had not been operating for at least one full year as of December 31, 2022, and (ii) 96 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 2022 Calendar Year

• Part 1 discloses historical financial performance representations for each of the 36 Qualifying Businesses.

Franchisee 1

• Annual Gross Revenue:  $553,374
• Annual Product Cost (including consumables and equipment):  $191,448
• Annual Invoices:  92
• Average Invoice:  $6,014.93
• Average Profit Per Invoice:  $3,934

Franchisee 2

• Annual Gross Revenue:  $818,961
• Annual Product Cost (including consumables and equipment):  $282,775
• Annual Invoices:  179
• Average Invoice:  $4,575.20
• Average Profit Per Invoice:  $2,995

Franchisee 3

• Annual Gross Revenue:  $611,621
• Annual Product Cost (including consumables and equipment):  $269,631
• Annual Invoices:  193
• Average Invoice:  $3,169.02
• Average Profit Per Invoice:  $1,772

Franchisee 4

• Annual Gross Revenue:  $531,646
• Annual Product Cost (including consumables and equipment):  $194,378
• Annual Invoices:  129
• Average Invoice:  $4,121.29
• Average Profit Per Invoice:  $2,614

Franchisee 5

• Annual Gross Revenue:  $466,808
• Annual Product Cost (including consumables and equipment):  $169,929
• Annual Invoices:  100
• Average Invoice:  $4,668.08
• Average Profit Per Invoice:  $2,969

Franchisee 6

• Annual Gross Revenue:  $784,735
• Annual Product Cost (including consumables and equipment):  $258,088
• Annual Invoices:  295
• Average Invoice:  $2,660.12
• Average Profit Per Invoice:  $1,785

Franchisee 7

• Annual Gross Revenue:  $265,186
• Annual Product Cost (including consumables and equipment):  $86,138
• Annual Invoices:  82
• Average Invoice:  $3,233.98
• Average Profit Per Invoice:  $2,184

Franchisee 8

• Annual Gross Revenue:  $322,486
• Annual Product Cost (including consumables and equipment):  $99,924
• Annual Invoices:  117
• Average Invoice:  $2,756.29
• Average Profit Per Invoice:  $1,902

Franchisee 9

• Annual Gross Revenue:  $348,906
• Annual Product Cost (including consumables and equipment):  $92,079
• Annual Invoices:  85
• Average Invoice:  $4,104.78
• Average Profit Per Invoice:  $3,021

Franchisee 10

• Annual Gross Revenue:  $403,181
• Annual Product Cost (including consumables and equipment):  $120,644
• Annual Invoices:  85
• Average Invoice:  $4,743.31
• Average Profit Per Invoice:  $3,324

Franchisee 11

• Annual Gross Revenue:  $586,791
• Annual Product Cost (including consumables and equipment):  $270,817
• Annual Invoices:  170
• Average Invoice:  $3,451.71
• Average Profit Per Invoice:  $1,859

Franchisee 12

• Annual Gross Revenue:  $176,217
• Annual Product Cost (including consumables and equipment):  $38,532
• Annual Invoices:  38
• Average Invoice:  $4,637.29
• Average Profit Per Invoice:  $3,623

Franchisee 13

• Annual Gross Revenue:  $639,713
• Annual Product Cost (including consumables and equipment):  $212,940
• Annual Invoices:  218
• Average Invoice:  $2,934.46
• Average Profit Per Invoice:  $1,958

Franchisee 14

• Annual Gross Revenue:  $626,935
• Annual Product Cost (including consumables and equipment):  $210,143
• Annual Invoices:  120
• Average Invoice:  $5,224.46
• Average Profit Per Invoice:  $3,473

Franchisee 15

• Annual Gross Revenue:  $395,302
• Annual Product Cost (including consumables and equipment):  $157,269
• Annual Invoices:  74
• Average Invoice:  $5,341.92
• Average Profit Per Invoice:  $3,217

Franchisee 16

• Annual Gross Revenue:  $314,082
• Annual Product Cost (including consumables and equipment):  $119,555
• Annual Invoices:  53
• Average Invoice:  $5,926.08
• Average Profit Per Invoice:  $3,670

Franchisee 17

• Annual Gross Revenue:  $545,485
• Annual Product Cost (including consumables and equipment):  $294,882
• Annual Invoices:  60
• Average Invoice:  $9,091.42
• Average Profit Per Invoice:  $4,177

Franchisee 18

• Annual Gross Revenue:  $327,678
• Annual Product Cost (including consumables and equipment):  $108,858
• Annual Invoices:  73
• Average Invoice:  $4,488.74
• Average Profit Per Invoice:  $2,998

Franchisee 19

• Annual Gross Revenue:  $334,758
• Annual Product Cost (including consumables and equipment):  $114,525
• Annual Invoices:  76
• Average Invoice:  $4,404.71
• Average Profit Per Invoice:  $2,898

Franchisee 20

• Annual Gross Revenue:  $342,114
• Annual Product Cost (including consumables and equipment):  $149,777
• Annual Invoices:  96
• Average Invoice:  $3,563.69
• Average Profit Per Invoice:  $2,004

Franchisee 21

• Annual Gross Revenue:  $384,740
• Annual Product Cost (including consumables and equipment):  $111,045
• Annual Invoices:  105
• Average Invoice:  $3,664.19
• Average Profit Per Invoice:  $2,607

Franchisee 22

• Annual Gross Revenue:  $228,380
• Annual Product Cost (including consumables and equipment):  $99,846
• Annual Invoices:  63
• Average Invoice:  $3,625.08
• Average Profit Per Invoice:  $2,040

Franchisee 23

• Annual Gross Revenue:  $580,205
• Annual Product Cost (including consumables and equipment):  $227,541
• Annual Invoices:  132
• Average Invoice:  $4,395.49
• Average Profit Per Invoice:  $2,672

Franchisee 24

• Annual Gross Revenue:  $307,336
• Annual Product Cost (including consumables and equipment):  $118,545
• Annual Invoices:  84
• Average Invoice:  $3,658.76
• Average Profit Per Invoice:  $2,248

Franchisee 25

• Annual Gross Revenue:  $430,569
• Annual Product Cost (including consumables and equipment):  $171,513
• Annual Invoices:  95
• Average Invoice:  $4,532.31
• Average Profit Per Invoice:  $2,727

Franchisee 26

• Annual Gross Revenue:  $339,320
• Annual Product Cost (including consumables and equipment):  $193,610
• Annual Invoices:  97
• Average Invoice:  $3,498.14
• Average Profit Per Invoice:  $1,502

Franchisee 27

• Annual Gross Revenue:  $270,678
• Annual Product Cost (including consumables and equipment):  $83,662
• Annual Invoices:  87
• Average Invoice:  $3,111.24
• Average Profit Per Invoice:  $2,150

Franchisee 28

• Annual Gross Revenue:  $398,300
• Annual Product Cost (including consumables and equipment):  $88,248
• Annual Invoices:  96
• Average Invoice:  $4,148.96
• Average Profit Per Invoice:  $3,230

Franchisee 29

• Annual Gross Revenue:  $219,570
• Annual Product Cost (including consumables and equipment):  $46,077
• Annual Invoices:  31
• Average Invoice:  $7,082.90
• Average Profit Per Invoice:  $5,597

Franchisee 30

• Annual Gross Revenue:  $274,053
• Annual Product Cost (including consumables and equipment):  $111,790
• Annual Invoices:  64
• Average Invoice:  $4,282.08
• Average Profit Per Invoice:  $2,535

Franchisee 31

• Annual Gross Revenue:  $308,148
• Annual Product Cost (including consumables and equipment):  $123,310
• Annual Invoices:  70
• Average Invoice:  $4,402.11
• Average Profit Per Invoice:  $2,641

Franchisee 32

• Annual Gross Revenue:  $334,087
• Annual Product Cost (including consumables and equipment):  $146,444
• Annual Invoices:  77
• Average Invoice:  $4,338.79
• Average Profit Per Invoice:  $2,437

Franchisee 33

• Annual Gross Revenue:  $280,167
• Annual Product Cost (including consumables and equipment):  $126,909
• Annual Invoices:  66
• Average Invoice:  $4,244.95
• Average Profit Per Invoice:  $2,322

Franchisee 34

• Annual Gross Revenue:  $383,053
• Annual Product Cost (including consumables and equipment):  $123,008
• Annual Invoices:  86
• Average Invoice:  $4,454.10
• Average Profit Per Invoice:  $3,024

Franchisee 35

• Annual Gross Revenue:  $226,902
• Annual Product Cost (including consumables and equipment):  $75,409
• Annual Invoices:  73
• Average Invoice:  $3,108.25
• Average Profit Per Invoice:  $2,075

Franchisee 36

• Annual Gross Revenue:  $271,709
• Annual Product Cost (including consumables and equipment):  $103
• Annual Invoices:  96
• Average Invoice:  $2,830.30
• Average Profit Per Invoice:  $2,829

Average

• Annual Gross Revenue:  $406,478
• Annual Product Cost (including consumables and equipment):  $146,928
• Annual Invoices:  102
• Average Invoice:  $4,291
• Average Profit Per Invoice:  $2,750

Highest

• Annual Gross Revenue:  $818,961
• Annual Product Cost (including consumables and equipment):  $294,882
• Annual Invoices:  295
• Average Invoice:  $9,091
• Average Profit Per Invoice:  $5,597

Lowest

• Annual Gross Revenue:  $176,217
• Annual Product Cost (including consumables and equipment):  $103
• Annual Invoices:  31
• Average Invoice:  $2,660
• Average Profit Per Invoice:  $1,502

Median

• Annual Gross Revenue:  $345,510
• Annual Product Cost (including consumables and equipment):  $123,159
• Annual Invoices:  87
• Average Invoice:  $4,264
• Average Profit Per Invoice:  $2,656

Part 2 – Company-Owned Garage Force Business During the 2022 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 2022 calendar year.

Company-Owned Location

• Annual Gross Revenue:  $513,898
• Annual Product Cost (including consumables and equipment):  $215,761
• Annual Invoices:  115
• 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 2022 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 2022 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 2022 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 2022 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 2022 Calendar Year

• Part 3 shows certain expenses as a percent of the annual Gross Revenue for the company-owned Garage Force Business for the 2022 calendar year.

• Product Cost:  31% of gross revenue
• Labor:  18% of gross revenue
• Continuing Fee:  5% of gross revenue
• Local Advertising:  3% of gross revenue
• Fuel Expense:  3% of gross revenue
• Consumables:  0.5% of gross revenue
• Equipment Maintenance:  0.5% of gross revenue
• Branding Fee:  1% of gross revenue
• Insurance:  2% of gross revenue
• Total Expense:  64% 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 2022 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 Business purchased from Garage Force or its affiliates during the 2022 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 been 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 2022 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 been 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) ⬇️