Tommy's Express Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$50,000
Investment required
$4,589,000 - $7,897,000
Royalty fee
4.00%

Tommy's Express: Revolutionizing the Car Wash Industry

Founded in 1969 in Holland, Michigan, Tommy's Express Car Wash has grown from a single location into a leading national franchise. The company began franchising in 2016, rapidly expanding its footprint across the United States and internationally. Specializing in high-efficiency, automated car wash services, Tommy's Express offers a range of wash packages designed to cater to diverse customer needs.

What sets Tommy's Express apart is its commitment to innovation and customer convenience. The company utilizes proprietary technology, including app-based memberships and license plate recognition systems, to streamline the customer experience.

Their iconic building design, featuring a clear acrylic roof for daylight harvesting, not only enhances aesthetic appeal but also underscores their dedication to environmental sustainability. Additionally, Tommy's Express locations are equipped with advanced water reclamation systems, reducing fresh water usage by up to 60% compared to traditional home car washing methods.

By integrating cutting-edge technology with eco-friendly practices, Tommy's Express has distinguished itself in the car wash industry. Their focus on efficiency, customer satisfaction, and environmental responsibility continues to drive their success and expansion.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Tommy’s Express offers 3 types of franchises:

Type of Expenditure Amount
90-foot Tommy Scope of Work $4,589,208 to $7,432,912
110-foot Tommy Scope of Work $4,781,111 to $7,705,894
130-foot Tommy Scope of Work $4,953,684 to $7,896,861

We are summarizing below the main costs associated with opening a 90-foot Tommy Scope of Work franchise. For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fees $50,000
Soft Cost Total $75,750 – $913,000
Construction Costs $1,893,725 – $3,336,202
Architectural Services $48,000 – $80,000
Building Structure $707,200 – $784,700
Building Components $176,619 – $189,505
Lighting $51,790 – $51,790
Signage $82,810 – $117,669
Conveyor $137,350 – $138,130
Car Wash Equipment $196,660 – $215,211
Cloth $20,952 – $22,931
Drying System $128,556 – $139,889
Support Equipment $239,771 – $284,280
Guardian Wash Controls $134,376 – $161,068
Vacuum System $128,397 – $180,738
Point of Sale System $72,186 – $89,500
Accessories $27,718 – $118,985
Tommy’s Express Kit $29,790 – $31,285
Install $152,208 – $168,529
Insurance $12,000 – $36,000
Total $4,589,000 – $7,433,000

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Number of units

2023
Franchised units

53

79

123

Company-owned units

3

5

6

Total units

56

84

129

Franchise Disclosure Document

Training

The franchisor provides several types of training to franchisees, which include:

  1. Initial Training Program: This involves approximately 20 days of training at the franchisor's headquarters in Holland, Michigan, and at an operating Tommy’s Express business or an affiliate-owned car wash. The training topics cover various operational aspects, including equipment maintenance and repair, car wash operations, management, marketing, and pre-and post-opening support. Trainees are expected to cover all related expenses.
  2. On-the-Job and Classroom Training: Specific training programs are tailored to include hours of both classroom instruction and hands-on job training in key operational areas such as equipment maintenance, car wash operations, and management.
  3. Mandatory Training Sessions: Franchisees, along with their Onsite Manager and/or employees, may be required to attend mandatory training sessions at specified locations, including their own site, another franchise location, or the headquarters.
  4. Optional and Additional Training: The franchisor may offer optional training sessions, which attendees can choose to join at their own cost. Franchisees may also request additional on-site training, for which the franchisor charges a per diem fee and reimbursement of expenses.
  5. Refresher Courses and Seminars: These are provided periodically to update franchisees and their teams on operational best practices and new developments in the business.
  6. Owner Orientation: If the manager is not a controlling principal, a three-day owner orientation and training session is required for a controlling principal.
  7. Franchisee Meetings: Regional or franchise-wide meetings may be held periodically to provide further training and operational insights. Attendance is often mandatory for certain roles within the franchise.

Territory Protection

The franchisor provides a designated territory for each franchisee, the size of which is determined based on geographic analysis. However, this does not guarantee exclusivity, as franchisees may face competition from other franchisees, franchisor-owned outlets, or other distribution channels operated by the franchisor.

The territory specifics are included in an exhibit to the Franchise Agreement.

While the franchisor defines a territory, it reserves the right to approve new locations for additional franchisees or outlets within the same region. Franchisees are only authorized to operate their business from the approved location and are restricted from providing services elsewhere.

This arrangement highlights a balance between granting operational rights and preserving the franchisor’s flexibility to expand within overlapping areas.

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