Do you want to open a car wash business by buying Cactus Car Wash franchise? If YES, here is how much it cost to open Cactus Car Wash franchise successfully. If you are looking towards opening a Cactus Car Wash Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.

Cactus Car Wash LLC was founded in 1996 and they began franchising in 1998, about 22 years ago. The current CEO of the company is Frank Lynch and the company has her corporate head office at 2980 – A Piedmont Rd. Atlanta, GA 30080. Currently they have 7 franchise units in the United States of America.

Since 1996, Cactus Car Wash has created new standards of excellence in full service car washing. At their four locations in Atlanta and Charleston, they developed the unique “Cactus System” to combine automatic conveyor washing with exceptional quality, service, and customer satisfaction.

In 1996, Frank Lynch built the first Cactus Car Wash with a simple goal: provide an outstanding car wash experience for an outstanding value. At Cactus Car Wash, the customers relax in a comfortable lounge while the high-tech staff clean cars quickly and thoroughly. Before long, Cactus Car Wash became the most popular car wash in Charleston, SC.

Cactus Car Wash LLC expanded into the heart of Atlanta in 1998. Once again, Cactus Car Wash set new standards in customer care, quality, and service. Customers loved Cactus, and the new facility became one of the busiest washes in the southeastern United States.

Today, Cactus Car Wash LLC has four successful locations in Atlanta and Charleston. The newest facility, in the exclusive Buckhead neighborhood of Atlanta, opened in fall of 2003 and has already exceeded expectations. Cactus Car Wash LLC operates on a “flex-serve” model, offering customers traditional full-service car washing, exterior-only express car washing, and a variety of special detailing and restoration options.

They reinvented the car wash business with customer satisfaction as their number one goal. The unique “Cactus System” of location, design, and operation delivers an outstanding customer experience for an outstanding value. Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open Cactus Car Wash Franchise

1. Initial Investment Range: $2,370,000 – $3,805,000

2. Franchise Fee: $45,000

3. Royalty Fee: 5.5 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.

  1. 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 Cactus 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.

  1. 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.
  2. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  3. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

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

  1. Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
  2. 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.

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

Payable to Cactus 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 Cactus Car Wash is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: This is open for negotiation with the company.
  2. Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Cactus 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 franchise fee: $45,000
  • Ongoing Royalty: 5.5% of gross revenue
  • Expected startup costs: $2,370,000 – $3,805,000 (excluding real estate costs)
  • Liquid capital required: $600,000
  • Net worth required: $750,000
  • Protected territory: Exclusive territory granted to each franchisee
  • Multiple unit development: Available on a case-by-case basis
Joy Nwokoro