Franchising a car wash is a major decision for operators. People readily recognize franchises like McDonalds, UPS Store, Meineke, Diet Center among others. There are thousands and thousands of franchises in the market today.

If you were to break it down fundamentally whether you should start a car wash business as a franchise or not, a good part of your decision will strictly be a financial decision based on return of investment. If a top franchise costs $1 and costs $1 a year in franchise fees, everybody would jump at the chance. If a top franchise costs $1,000,000 a year for a franchise fee and $1,000,000 a year in royalties, then hardly anybody would buy that franchise. So obviously, somewhere between $1 and $1,000,000 from a price point of view will be acceptable to most people. This obviously will depend on what sort of revenue the franchise is anticipated to generate. Because the investment is low than a non-franchise business, your Return On Investment (ROI) should be measurably higher.

Fundamentally the same issues will exist on whether one wants to franchise or not when it comes to purchasing or building a car wash. The advantages of franchising a car wash are pretty much the same as franchising any business.

It is highly advisable that you find other people that own this franchise across the country that would not be competitors and contact them about the pro’s and con’s of owning that particular franchise. They should give you a non-biased opinion of what they feel has been the good, the bad and the ugly.

The main reason why people buy a franchise is because of the brand recognition and the support that the franchise offers to the business owner. Many brands have an automatic feel of a successful business and people want to do with successful businesses.

One of the most attractive things about owning is a franchise is you are not re-inventing the wheel. You are using a tested method of success when it comes to running a franchise. The franchise will frequently do market research or a feasibility study to make sure the franchise will succeed at the site in question. In addition, the franchise will provide the training to help ensure your success and frequently co-op on advertising costs.

On the flip side, there are also disadvantages to owning a franchise, not the least of which can be a large initial franchise fee and the yearly royalties you pay to the franchise. Many things need to be cleared through the franchise when it comes to marketing that can be problematic. Some franchises exert more control regarding to marketing, management and financial issues compared to others.

Like all opportunities, you can not research this topic enough. There are many successful operators of car wash franchises in the country. At the end of the day, you simply have to decide if the advantages of owning a franchise outweigh the possible smaller Return On Investment (ROI) you may possibly have and whatever restrictions they might have.

Source by Harold Jaynes