How Much Does It Cost to Open Mr Clean Car Wash Franchise?

If you are looking towards opening a Mr. Clean Car Wash Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. Mr. Clean Car Wash was founded in 2008 and they began franchising in 2008, about 12 years ago. The current CEO is Jeff Wampler and they have their corporate head office at 2 Procter & Gamble Plaza, #TE-16 Cincinnati, OH 45202, USA.

Mr. Clean Carwash is operated by Agile Pursuits Franchising Inc., a wholly-owned subsidiary Procter and Gamble (P&G), which also franchises Tide Dry Cleaners. In addition to both interior and exterior wash services, some Mr. Clean Carwash facilities offer oil changes and other maintenance services.

Mr. Clean Car Wash delivers premium, all-in-one-place car washing and car care services. Services range from full-service interior and exterior car washing, to their express-detailing services, to exterior-only wash, to oil-changes, emissions testing and 30K/60K/90K preventive maintenance services. Every detail of Mr. Clean Car Wash was designed to differentiate itself and delight consumers. The pristine facility boasts of a comfortable lounge and patio, complete with coffee bar, flat screen TVs, and other amenities that create an unparalleled consumer experience. Plus, the facility is eco-friendly, with water-recycling technology and zero soap chemicals going to streams.

Here are areas where you are expected to spend money and the cost associated with it;

1. Initial Investment Range

   $237,900 to $3,219,500

2. Franchise Fee

   $35,000

3. Royalty Fee

   6 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution

   At least 1 percent per calendar year and the Due Date: for this is Monthly.

Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Mr. Clean Car Wash and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.

If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

5. Liquidated Damages Under Area Development Agreement

   This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.

6. Audit Costs

   All costs and expenses associated with the audit, reasonable accounting and legal costs.

7. Indemnity

   This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Mr. Clean Car Wash if it is held liable for claims arising out of your franchise operations.

8. Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
9. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date:  Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

10. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
11. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Mr. Clean Car Wash if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Mr. Clean Car Wash is required to defend your unsuccessful claim against it.

12. Veteran Incentives: This is open for negotiation with the company
13. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
14. Financial Assistance: Mr. Clean Car Wash has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

• Initial Investment: $2,417,500 – $3,271,000
• Net-worth Requirement: $2,500,000
• Liquid Cash Requirement: $700,000
• Ongoing Initial Franchise Fee: $35,000 – $35,000
• Ongoing Royalty Fee: 6%
• Ad Royalty Fee: 5%