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

Section I – Estimated initial investment (franchise costs) for a Garage Kings franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Garage Kings franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Garage Kings 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 Garage Kings franchise opportunity

Section V – Presentation and analysis of Garage Kings’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average revenue, discounts, net revenue, disclosed expenses (materials and supplies, labor, commissions, auto and fuel, non-owner payroll, Royalties, Brand Development Fund, Tech/POS/Software, Call Center Fee, credit care fees, insurance) for the 5 affiliate-owned and 9 franchised Garage Kings locations that were open for the entire calendar year ending December 31, 2023 and timely submitted the required information

• 2023 average leads, appointments, invoices, lead conversion, and close ratio for the 5 affiliate-owned and 10 franchised Garage Kings locations that were open for the entire calendar year ending December 31, 2023

• 2023 average invoice for the 5 affiliate-owned and 10 franchised Garage Kings locations that were open for the entire calendar year ending December 31, 2023, and the 9 franchised Garage Kings locations that opened in 2023

• 2023 average number of locations, number of jobs, and average ticket for additional services (cabinets, slat walls, overhead storage, and garage doors) for franchised Garage Kings locations that participated in pilot programs for additional services

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

Section I – Garage Kings Franchise Costs

• Garage Kings franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Training Fee:  $7,500
• Additional Training Expenses:  $5,300 to $10,000
• Storage Space:  $0 to $500
• Initial Equipment Package:  $45,548
• Initial Product Order:  $25,000
• Work Vehicle/Storage Trailer:  $0 to $10,000
• Office Equipment, Fixtures, Décor, Supplies, and Furnishings:  $0 to $2,500
• Computer Hardware and Software:  $0 to $3,000
• Vehicle Signage:  $4,800 to $6,110
• Insurance:  $500 to $2,500
• Advertising and Marketing:  $30,000
• Business Licenses and Permits:  $0 to $7,500
• Professional Fees:  $250 to $2,500
• Additional Funds – 3 Months:  $10,595 to $25,595
• Total Estimated Garage Kings Franchise Costs:  $189,493 to $238,253

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

• Garage Kings’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $60,000
• Weekly Royalty:  6% of Weekly Gross Revenue
• Brand Development Fund:  initial payment of $1,000, and 2% of Weekly Revenue thereafter
• Local Marketing:  the greater of $48,000 annually or 5% of Gross Revenue. In addition, you must spend $30,000 prior to completing your first 3 months of operations.
• Regional Advertising Cooperative:  if established, 1% to 2% of Gross Revenues

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

Franchised

2021

• Outlets at the Start of the Year:  16
• Outlets at the End of the Year:  20
• Net Change:  +4

2022

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  20
• Net Change:  0

2023

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  27
• Net Change:  +7

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  5
• Net Change:  +2

2023

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  5
• Net Change:  0

Section IV – News Updates on the Garage Kings Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Garage Kings Franchise (Item 19, 2024 FDD)

• The first table below reflects information for the calendar year ending December 31, 2023 (the “Measurement Period”).

• Garage Kings requested financial statements from all locations. It received 14 submissions for Part 1. All other locations were excluded. Any franchise or affiliate owned location open for the entire Measurement Period and timely submitted the required information is included (each a “Qualifying” location).

• Each of the locations below are of the same model being offered pursuant to the disclosure document.

Part 1 – Average Revenue and Disclosed Expenses

Averages for 5 Affiliate-Owned Locations

Revenue:  $1,042,489 (100.0%)

Less: Discounts:  $181,182 (17.4%)

Net Revenue:  $861,307 (82.6%%)

Disclosed Expenses

• Materials and Supplies:  $244,489 (23.5%)
• Labor:  $179,044 (17.2%)
• Commissions:  $60,785 (5.8%)
• Auto and Fuel:  $19,890 (1.9%)
• Non-Owner Payroll:  $68,750 (6.6%)
• Royalties (calculated):  $51,678 (5.0%)
• Brand Development Fund (calculated):  $17,226 (1.7%)
• Tech/POS/Software (calculated):  $10,422 (1.0%)
• Call Center Fee (calculated):  $12,920 (1.2%)
• Credit Card Fees:  $16,499 (1.6%)
• Insurance:  $30,305 (2.9%)
• Total Disclosed Expenses:  $712,008 (68.3%)

Revenue Less Disclosed Expenses:  $149,297 (14.3%)

Averages for 9 Franchised Locations

Revenue:  $628,601 (100.0%)

Less: Discounts:  $53,892 (8.6%)

Net Revenue:  $574,710 (91.4%)

Disclosed Expenses

• Materials and Supplies:  $197,218 (31.4%)
• Labor:  $104,463 (16.6%)
• Commissions:  $14,392 (2.3%)
• Auto and Fuel:  $12,894 (2.1%)
• Non-Owner Payroll:  $6,570 (1.0%)
• Royalties (calculated):  $34,483 (5.5%)
• Brand Development Fund (calculated):  $11,494 (1.8%)
• Tech/POS/Software (calculated):  $10,422 (1.7%)
• Call Center Fee (calculated):  $8,621 (1.4%)
• Credit Card Fees:  $6,689 (1.1%)
• Insurance:  $16,461 (2.6%)
• Total Disclosed Expenses:  $423,707 (67.4%)

Revenue Less Disclosed Expenses:  $151,002 (24.0%)

• “Revenue” means all revenue generated by the Franchised Business.

• “Discounts” means expenses associated with seasonal incentives, promotions, and referral incentive payments.

• “Materials and Supplies” means the variable costs associated with general labor which is primarily epoxy but may include other supplies.

• “Labor” means all variable labor costs including wages, taxes, and insurance.

• “Commissions” means all wages paid a variable expense resulting from generating sales.

• “Non-Owner Payroll” means all other wages and payroll taxes except for Commissions and Labor.

• “Royalties” means the calculated Royalty Fees based on 6% of Revenue.

• “Brand Development Fund” means the actual (in the case of a franchisee) or the estimated (in the case of an affiliate) Fund expenditures.

• “Revenue Less Disclosed Expenses” means Revenue less all of the disclosed expenses. It does not consider any other expenses.

Part 2 – Average Leads, Appointments, Conversion Rates, Invoices, and Close Ratio

• The following table shows data for all Franchise and Affiliate locations who were open for the entire Measurement Period of the calendar year 2023.

• It excludes data from Garage King’s licensees. Garage King’s licensees were excluded on the basis that they do not utilize its point of sale system.

• This chart also exclude franchisees who opened during the Measurement Period.

Averages for 5 Affiliate-Owned Locations

• Average Leads:  817
• Average Appointments: 516
• Average Invoices:  196
• Average Lead Conversion:  65.86%
• Average Close Ratio:  38.18%

Averages for 10 Franchised Locations

• Average Leads:  472
• Average Appointments:  323
• Average Invoices:  168
• Average Lead Conversion:  64.15%
• Average Close Ratio:  55.65%

Part 3 – Invoices Data

• The following table shows data for all Franchise and Affiliate locations whose data Garage Kings had access to.

• It excludes data from Garage King’s licensees. Garage King’s licensees were excluded on the basis that they do not utilize its point of sale system.

Locations Open Prior to 1/1/23

• Average Invoice for 5 Affiliate-Owned Locations:  $4,204
• Average Invoice for 10 Franchised Locations:  $3,866

Locations Opened in 2023

• Average Invoice for 9 Franchised Locations:  $4,356

Part 4 – Average Ticket for Additional Services – Pilot Program

• In 2023, Garage Kings began piloting additional services among approved franchise locations. These programs were optional for existing franchisees.

• The pilot for Cabinets and Slat Walls began in July 2023. The pilot for Garage Doors and Garage Door Openers began with only 1 approved pilot location in October 2023. The pilot for overhead storage began in December 2023.

• The follow table provides information about the results of the Pilot Program.

Cabinets

• Number of Locations:  9
• Number of Jobs:  21
• Average Ticket:  $8,408

Slat Walls

• Number of Locations:  12
• Number of Jobs:  46
• Average Ticket:  $1,567

Overhead Storage

• Number of Locations:  2
• Number of Jobs:  5
• Average Ticket:  $846

Garage Doors

• Number of Locations:  1
• Number of Jobs:  9
• Average Ticket:  $5,972

Garage Door Openers

• Number of Locations:  1
• Number of Jobs:  1
• Average Ticket:  $3,827

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