Is A Car Wash Franchise A 'Cash Flow' Machine?

I guess the answer to the question above about a car wash franchise really depends on how much risk you like to take. Like any business, there's always going to risk involved, but car wash franchises do offer a unique opportunity for a proven cash business.

There are a few things you must consider before diving into the car wash franchise industry. The first decision is to decide what type of car wash franchise system you want to own. You have the option of a fully automated system that does all the work for you or you can choose to have a partially automated system that will require employees to finish the work. At first glance the fully automated one seems like the most logical choice but having more running equipment can mean more expensive things that break down and need fixing. Don't forget that if your machines are down, cars aren't getting washed and no money is coming in.

Choosing the right location for a car wash franchise is practically the most important thing you can do, and I'm talking more about cities than specific locations. Seattle rains about 300 days per year and people aren't really interested in washing their cars there. On the flip side, sunny southern california barely has rain and people in socal really want to keep their car looking clean.

When looking at the costs of a car wash franchise, one immediate hurdle is the initial franchise fee. These fees range anywhere from a couple of thousand dollars to $100,000 but most of them are in the $20,000 - $30,000 range. There are some franchise fees that are non-refundable even if you decide not to move forward with the business, so make sure you know everything about the initial costs before you get started.

Another major consideration of a car wash franchise is the royalty fees. They typically range from 3% - 6% and they are calculated on gross revenues and not net profits. Here's the kicker... Some franchises have minimum monthly revenues, or royalty fees, no matter what happens in your business. If you have a month where it rains every weekend and your sales are dismal or non-existent, it doesn't matter. You still have to pay the minimum fee.

There are other expenses associated with a car wash franchise that you have to consider. You have things like heavy equipment, signage, working capital, advertising, fixed costs, variable costs, employee wages, etc. Also, you're going to have inventory to worry about and there's protocols and rules to follow with holding chemicals at your locations.

Bottom line is owning a car wash franchise can be a great investment, especially for cash flow considerations, as long as you are 100% aware of all the good and bad stuff that comes along with running this type of operation.

For information on a franchise with NO royalties, NO territory restrictions, NO mandatory advertising fees, NO building or office required, NO credit check, NO minimum net worth & is 100% scalable, visit Best Franchise Opportunity, or contact Gerek Allen to get more information.