In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Tommy’s Express Car Wash franchise, based on Item 7 of the company’s 2024 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Tommy’s Express Car Wash franchise, based on Items 5 and 6 of the company’s 2024 FDD
Section III – 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 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD
Section IV – News updates on the Tommy’s Express Car Wash franchise opportunity
Section V – Presentation and analysis of Tommy’s Express Car Wash’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:
- 2023 average, median, highest, and lowest gross sales for the 44 first year Tommy’s Express Car Wash sites, 28 second year Tommy’s Express Car Wash sites, 25 third year Tommy’s Express Car Wash sites, 20 fourth year Tommy’s Express Car Wash sites, and 6 fifth year Tommy’s Express Car Wash sites that were open a full 12 months in 2023
- 2023 average cost of goods sold, repairs and maintenance, customer claims, labor, utilities, and other expenses for the 44 first year Tommy’s Express Car Wash sites, 28 second year Tommy’s Express Car Wash sites, 25 third year Tommy’s Express Car Wash sites, 20 fourth year Tommy’s Express Car Wash sites, and 6 fifth year Tommy’s Express Car Wash sites that were open a full 12 months in 2023
Section VI – Key ratios, comparables, computations, and analyses for the Tommy’s Express Car Wash franchise opportunity (exclusive content for Platinum subscribers)
Section I – Tommy’s Express Car Wash Franchise Costs
- Initial Franchise Fee: $50,000
- Soft Costs: $25,406 to $902,291
- Core Construction Costs: 90 foot: $3,263,605; 110 foot: $2,091,606 to $3,600,112; 130 foot: $2,242,750 to $4,163,301
- VQ, Inc. Scope of Work: 90 foot: $2,386,314 to $2,865,101; 110 foot: $2,514,764 to $3,173,457; 130 foot: $2,650,176 to $3,289,144
- Other Costs: $235,000 to $863,027
- Grand Total: 90 foot: $5,960,325 to $7,944,024; 110 foot: $4,916,776 to $8,588,887; 130 foot: $5,203,332 to $9,267,763
Section II – Tommy’s Express Car Wash’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Initial Franchise Fee: $50,000
- Royalty: 4% of Gross Sales
- Brand Development Fee: 1% of Gross Sales
- Local Marketing: 2% of Gross Sales
Section III – Number of Franchised and Company-Owned Tommy’s Express Car Wash Outlets
Franchised
2021
- Outlets at the Start of the Year: 53
- Outlets at the End of the Year: 79
- Net Change: +26
2022
- Outlets at the Start of the Year: 79
- Outlets at the End of the Year: 123
- Net Change: +44
2023
- Outlets at the Start of the Year: 123
- Outlets at the End of the Year: 166
- Net Change: +43
Company-Owned
2021
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 5
- Net Change: +2
2022
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 6
- Net Change: +1
2023
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 9
- Net Change: +3
Section IV – News Updates on the Tommy’s Express Car Wash Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Tommy’s Express Car Wash Franchise (Item 19, 2024 FDD)
- This Item 19 includes a historical financial performance representation of existing Tommy’s Express franchised outlets for the calendar year 2023.
- The sites are categorized by their duration of operation, as follows: (i) open for more than 12 months but less than 24 months; (ii) open for more than 24 months but less than 36 months; (iii) open more than 36 months but less than 48 months; (iv) open more than 48 months but less than 60 months; and (v) open more than 60 months.
- As of December 31, 2023, Tommy’s Express had a total of 175 outlets open, of which 166 are franchised outlets. Tommy’s Express has excluded the financial performance of 46 franchised outlets, as they had not been in operation for a full 12 months, along with the financial performance of the 8 corporate locations.
Part 1 – Tommy’s Express Car Wash Gross Sales (January 1 to December 31, 2023)
First Year Sites (Outlets open for more than 12 months but less than 24 months; must be open 12 full months in 2023)
- Number of Outlets: 44
- Average Gross Sales: $1,436,290
- Median Gross Sales: $1,287,195
- Lowest Performing: $347,674
- Highest Performing: $2,465,318
Second Year Sites (Outlets open for 24 months but less than 36 months; must be open 12 full months in 2023)
- Number of Outlets: 28
- Average Gross Sales: $1,777,872
- Median Gross Sales: $1,739,553
- Lowest Performing: $941,117
- Highest Performing: $3,045,737
Third Year Sites (Outlets open for 36 months but less than 48 months; must be open 12 full months in 2023)
- Number of Outlets: 25
- Average Gross Sales: $1,988,516
- Median Gross Sales: $1,799,024
- Lowest Performing: $971,753
- Highest Performing: $4,161,325
Fourth Year Sites (Outlets open for 48 months but less than 60 months; must be open 12 full months in 2023)
- Number of Outlets: 20
- Average Gross Sales: $2,007,204
- Median Gross Sales: $1,939,039
- Lowest Performing: $729,277
- Highest Performing: $4,102,349
Fifth Year Sites (Outlets open for 60 months or more; must be open 12 full months in 2023)
- Number of Outlets: 6
- Average Gross Sales: $2,796,939
- Median Gross Sales: $2,915,295
- Lowest Performing: $2,111,363
- Highest Performing: $3,595,417
- “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 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.
Part 2 – Cost of Goods Expenses for First Year Sites, Second Year Sites, Third Year Sites, and Fourth Year Sites
- With regards to costs and 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 corresponding costs of goods expenses for the first, second, third, fourth, and fifth year sites described above.
- Note: Utilities sub accounts are calculated based on historical average dispersion of the utilities account.
First Year Sites
Cost of Goods Sold – Detergents: $92,108.28 (6.76%)
Repairs and Maintenance: $82,649.79 (6.07%)
Customer Claims: $11,655.02 (0.86%)
Labor: $337,945.40 (24.80%)
Utilities: $163,238.73 (11.98%)
- Waste Removal: $4,882.60 (0.36%)
- Communications: $6,286.95 (0.46%)
- Gas: $25,614.43 (1.88%)
- Sewer: $15,627.67 (1.15%)
- Water: $58,048.22 (4.26%)
- Electric: $52,778.86 (3.87%)
Second Year Sites
Cost of Goods Sold – Detergents: $115,135.70 (6.48%)
Repairs and Maintenance: $110,147.56 (6.20%)
Customer Claims: $13,949.05 (0.78%)
Labor: $323,028.76 (18.17%)
Utilities: $198,220.32 (11.15%)
- Waste Removal: $4,600.10 (0.26%)
- Communications: $5,631.74 (0.32%)
- Gas: $28,926.46 (1.63%)
- Sewer: $31,928.83 (1.80%)
- Water: $76,439.82 (4.30%)
- Electric: $50,693.38 (2.85%)
Third Year Sites
Cost of Goods Sold – Detergents: $114,444.38 (5.76%)
Repairs and Maintenance: $135,372.89 (6.81%)
Customer Claims: $11,992.30 (0.60%)
Labor: $353,806.47 (17.79%)
Utilities: $171,107.99 (8.60%)
- Waste Removal: $3,990.32 (0.20%)
- Communications: $3,849.21 (0.19%)
- Gas: $18,850.29 (0.95%)
- Sewer: $15,745.68 (0.79%)
- Water: $58,259.29 (2.93%)
- Electric: $70,413.20 (3.54%)
Fourth Year Sites
Cost of Goods Sold – Detergents: $112,090.46 (5.58%)
Repairs and Maintenance: $136,367.41 (6.79%)
Customer Claims: $14,648.77 (0.73%)
Labor: $399,016.35 (19.88%)
Utilities: $252,321.93 (12.57%)
- Waste Removal: $6,206.04 (0.31%)
- Communications: $4,881.26 (0.24%)
- Gas: $22,979.85 (1.14%)
- Sewer: $32,088.05 (1.60%)
- Water: $71,743.99 (3.57%)
- Electric: $114,422.74 (5.70%)
Fifth Year Sites
Cost of Goods Sold – Detergents: $196,100.26 (7.01%)
Repairs and Maintenance: $104,013.91 (3.72%)
Customer Claims: $18,219.06 (0.65%)
Labor: $502,831.61 (17.98%)
Utilities: $206,199.02 (7.37%)
- Waste Removal: $8,343.03 (0.30%)
- Communications: $1,730.49 (0.06%)
- Gas: $19,202.57 (0.69%)
- Sewer: $2,026.88 (0.07%)
- Water: $93,010.89 (3.33%)
- Electric: $81,885.17 (2.93%)
Part 3 – Other Operational Expenses for First Year Sites, Second Year Sites, Third Year Sites, and Fourth Year Sites
- Other operational expenses include cost of merchandise, credit card charges, G&A expenses, property taxes, advertising, computer and technology costs, insurance, works compensation, health insurance costs, payroll taxes, supplies, bank charges, team member uniforms, hiring & recruiting costs, permits & licenses, training, transportation, royalty, and brand fund.
First Year Sites
Other Expenses
- Local Marketing: $38,618.37 (2.83%)
- Credit Card Fees: $31,456.14 (2.31%)
- Property Tax: $31,780.49 (2.33%)
- Property and Casualty Insurance: $16,759.55 (1.23%)
- Technology Costs: $5,259.89 (0.39%)
- Bank Charges: $3,199.85 (0.23%)
- Payroll Taxes: $30,555.09 (2.24%)
- Workers’ Compensation: $5,947.21 (0.44%)
- Health Insurance: $7,280.85 (0.53%)
- Team Member Uniforms: $3,445.90 (0.25%)
- Hiring and Recruiting: $948.46 (0.07%)
- General Administrative: $11,956.55 (0.88%)
- Office Supplies: $10,832.05 (0.79%)
- Merchandise: $19,973.72 (1.47%)
- Permits and Licenses: $338.38 (0.02%)
- Professional Fees: $4,525.08 (0.33%)
- Brand Fund: $13,626.38 (1.00%)
- Royalty: $54,505.51 (4.00%)
- Training: $10,594.07 (0.78%)
- Transportation: $4,511.72 (0.33%)
Second Year Sites
Other Expenses
- Local Marketing: $29,923.08 (1.68%)
- Credit Card Fees: $37,399.80 (2.10%)
- Property Tax: $34,443.81 (1.94%)
- Property and Casualty Insurance: $16,458.96 (0.93%)
- Technology Costs: $5,200.19 (0.29%)
- Bank Charges: $2,316.83 (0.13%)
- Payroll Taxes: $30,560.87 (1.72%)
- Workers’ Compensation: $6,973.30 (0.39%)
- Health Insurance: $9,465.87 (0.53%)
- Team Member Uniforms: $3,077.37 (0.17%)
- Hiring and Recruiting: $840.49 (0.05%)
- General Administrative: $23,208.27 (1.31%)
- Office Supplies: $8,513.89 (0.48%)
- Merchandise: $28,434.96 (1.60%)
- Permits and Licenses: $339.21 (0.02%)
- Professional Fees: $5,203.61 (0.29%)
- Brand Fund: $17,778.72 (1.00%)
- Royalty: $71,114.90 (4.00%)
- Training: $6,753.59 (0.38%)
- Transportation: $790.68 (0.04%)
Third Year Sites
Other Expenses
- Local Marketing: $38,319.29 (1.93%)
- Credit Card Fees: $44,234.30 (2.22%)
- Property Tax: $39,468.82 (1.98%)
- Property and Casualty Insurance: $20,192.31 (1.02%)
- Technology Costs: $5,294.60 (0.27%)
- Bank Charges: $737.18 (0.04%)
- Payroll Taxes: $25,795.81 (1.30%)
- Workers’ Compensation: $8,227.08 (0.41%)
- Health Insurance: $7,072.56 (0.36%)
- Team Member Uniforms: $2,648.71 (0.13%)
- Hiring and Recruiting: $1,332.77 (0.07%)
- General Administrative: $13,229.85 (0.67%)
- Office Supplies: $11,237.13 (0.57%)
- Merchandise: $17,733.84 (0.89%)
- Permits and Licenses: $1,987.74 (0.10%)
- Professional Fees: $8,400.71 (0.42%)
- Brand Fund: $19,885.16 (1.00%)
- Royalty: $79,540.62 (4.00%)
- Training: $7,050.41 (0.35%)
- Transportation: $8,320.21 (0.42%)
Fourth Year Sites
Other Expenses
- Local Marketing: $27,126.89 (1.35%)
- Credit Card Fees: $43,296.60 (2.16%)
- Property Tax: $29,248.85 (1.46%)
- Property and Casualty Insurance: $28,514.28 (1.42%)
- Technology Costs: $5,087.36 (0.25%)
- Bank Charges: $2,406.11 (0.12%)
- Payroll Taxes: $35,559.16 (1.77%)
- Workers’ Compensation: $7,216.71 (0.36%)
- Health Insurance: $13,205.97 (0.66%)
- Team Member Uniforms: $2,396.64 (0.12%)
- Hiring and Recruiting: $2,068,39 (0.10%)
- General Administrative: $12,181.64 (0.61%)
- Office Supplies: $12,185.86 (0.61%)
- Merchandise: $18,843.47 (0.94%)
- Permits and Licenses: $881.95 (0.04%)
- Professional Fees: $6,357.13 (0.32%)
- Brand Fund: $20,072.04 (1.00%)
- Royalty: $80,288.15 (4.00%)
- Training: $5,783.81 (0.29%)
- Transportation: $5,513.32 (0.27%)
Fifth Year Sites
Other Expenses
- Local Marketing: $28,588.29 (1.02%)
- Credit Card Fees: $66,447.78 (2.38%)
- Property Tax: $33,806.20 (1.21%)
- Property and Casualty Insurance: $15,772.05 (0.56%)
- Technology Costs: $10,494.89 (0.38%)
- Bank Charges: $455.88 (0.02%)
- Payroll Taxes: $29,383.53 (1.05%)
- Workers’ Compensation: $7,411.57 (0.26%)
- Health Insurance: $12,983.99 (0.46%)
- Team Member Uniforms: $3,767.62 (0.13%)
- Hiring and Recruiting: $718.12 (0.03%)
- General Administrative: $102,828.59 (3.68%)
- Office Supplies: $15,915.03 (0.57%)
- Merchandise: $46,768.76 (1.67%)
- Permits and Licenses: $165.63 (0.01%)
- Professional Fees: $5,477.87 (0.20%)
- Brand Fund: $27,969.39 (1.00%)
- Royalty: $111,877.54 (4.00%)
- Training: $5,854.46 (0.21%)
- Transportation: $5,826.66 (0.21%)
- Tommy’s Express offered the same services to the Franchised 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.
- Tommy’s Express Businesses report gross sales information to the franchisor based upon a uniform reporting system.
Section VI – Tommy’s Express Car Wash Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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