A look inside the franchise model and Its niche in the car wash industry.

A business strategy that hasn’t gotten a big hold in car washing yet, is franchising. Other industries capitalize on this idea and have been successful. So why not car washes, as well? What does it mean to be a franchise owner, what are the limitations and perks, and who do they attract?

“In general, franchising is a good business model for retail and service businesses,” said Alex Lemmen, CEO of Tommy Car Wash System and Tommy’s Express, which is probably the most well-known company to offer car wash franchises. They were recently named No. 1 in the Car Wash category in Entrepreneur Magazine’s Franchise 500® list and ranked #52 overall. They also just celebrated their 200th grand opening in July.

Offering a franchise program did not happen overnight. “We studied the concept for about 15 years, then decided in early 2017 that it was time to launch the program,” Lemmen said. Franchising offered the 50-year-old, family-owned business an opportunity for expansion, and it provided local entrepreneurs a chance to open their own business, with the support of a national company. “We like to say that our partners open their businesses for themselves, but they are not by themselves.”

One advantage to joining a franchise network is the membership program that allows Tommy’s Express members to use washes across the network. “The member can wash close to home or when traveling out-of-state on vacation or in a different area of the city when attending a sporting event,” Lemmen said. “This versatility adds extra value to the wash club membership.”
Franchise partners also have access to new technology, processes and benchmarking data to help them improve their operations, he added.

“Franchising is the great American hybrid business model that breaks down the barriers to owning your own business,” said Mike Layman, senior vice president, government relations and public affairs for the International Franchise Association. “We have franchisees that are mom-and-pop businesses with a single location and larger organizations with multiple locations and everything in between. One-third of our members say that they would not own their own business if they didn’t have a franchise,” he said.

“There are more than 800,000 franchise businesses in the United States owned by about 250,000 franchisees, and 80% of the franchises are single-location businesses owned and operated by families,” Layman said. 

While the most commonly recognized franchises are restaurants and quick-service food businesses, franchises are available in 300 different lines of business, Layman said. 

Support Offered by Franchisor

“Franchisors provide the overall, strategic marketing programs for all locations, but local partners can customize it to fit their community,” said Bob Klein, research director for the International Carwash Association, who previously worked at marketing agencies that handled the strategic marketing communications for brands that included Popeyes Louisiana Kitchen, McDonald’s and Audi. “We worked on a macro scale to build brand recognition globally so franchisees benefited from the name recognition, but they could focus their communication efforts on the local community,” he said. “Although franchisees could make adjustments — switching the promotion from a chicken sandwich to bone-in chicken based on their audience — they had to follow guidelines about the use of the name, logo and other national brand features.”

At Tommy’s, a marketing template is provided to partners to help with consistency, said Kristy Sherlund, vice president of marketing at Tommy’s Express. “Plus, we handle national advertising to create brand awareness. We also work closely with the partner for both a soft and grand opening of a new location that includes digital and direct mail advertising as well as site signage. The partners create their social media, but we review and approve it before it is posted,” Sherlund said.

Also, all new franchisees are required to attend Tommy’s Express University for two sessions that last up to three weeks to learn about the company’s policies, operations and machinery, Sherlund said. “In addition to classroom learning, they also work on-site several days at other locations to get the experience of working at a Tommy’s Express,” she said. “We also have Tommy’s business consultants visit the wash monthly to consult on operational and performance metrics.” Franchise partners also receive a weekly newsletter with trends, tips and ideas from other partners that can help improve operations.

Insights from Franchisees

“I was an investment portfolio manager and bond trader but always wanted a business of my own,” said Rob Worrell, a Tommy’s Express franchise partner with four car wash locations in Richmond, Va. “The car wash business caught my interest after visiting an impressive, newly-opened express car wash in Indianapolis. From there I did an extensive deep dive for approximately two years researching the industry. I talked with and visited several owner/operators of express car washes, and the more I researched the more conviction I had in opening my own. I even spent several days volunteering as free labor at several washes, just to ensure I knew the business well enough to make an informed decision.”

After his extensive research, Worrell decided to partner with Tommy’s Express, and his first location opened in March 2019. “Tommy’s Express was looking for franchisees and I was looking for someone to teach me the business,” he said. “Because I had no car wash experience, I knew I needed to partner with the best operator in the business and someone who would have a vested interest in my success.”

While having prior experience in the industry isn’t required, researching the business you want to buy is important, Worrell said. “You need to understand what you’re getting into, so talk to current operators, spend time on-site and be sure you understand the operational and financial aspects of the business,” he said. “I also decided to manage the first location for the first year to make sure I understood the business well before opening multiple locations.” 

In addition to the operational, financial and marketing support provided by Tommy’s Express, Worrell appreciates the company’s openness to feedback. “Services are consistent throughout the brand, but sometimes franchisees see a need in their area for a new product or service,” Worrell said. “The original mat washers only handled flat mats, but we started seeing more people with molded or contoured mats. After feedback, Tommy’s Express designed a new mat washer that handles molded mats.”  

Taylor Bencomo’s family is experienced with franchising because her family has had several Planet Fitness franchises since 2005. “My father and brother manage the fitness clubs, and I focus on the Tommy’s Express franchises that we first opened in 2021,” she said. “We currently have four car washes and will open a fifth location this year.”

Opening the first location is especially important in a market where the Tommy’s Express brand is not known, which was the case for Bencomo’s El Paso, Texas, location. “You are buying into a model, so you have to be 100% on point with your marketing and operations to establish the brand properly,” she said. “At the same time, you have to be community-focused and let people know that the business is locally owned and operated by a family in the community.”

“I also appreciate the training resources that help us prepare our team,” Bencomo said. However, deciding which franchise to buy requires more than knowing the financial commitment or the support provided by the franchisor, she said. Her father visited and researched Tommy’s Express when the family decided to diversify. “He liked the company and thought that it was a good fit for us,” she said. “It was not just a financial decision — you have to consider the company culture and business philosophy.”

Buying a Franchise

Researching franchise opportunities to identify the best opportunity for a new business includes the evaluation of all aspects of the business, the partnership relationship, the financial obligations and the contract.

Tommy’s Express receives about 2,000 applications annually and brings on about 25 franchise partners each year, some of which may build multiple locations, said Alex Lemmen, CEO of Tommy’s Express and Tommy Car Wash System. “The applications come from doctors, attorneys, development companies, existing franchisees and family businesses.”

“This is a great time to buy a franchise and the number of franchises is growing 3% year-over-year,” said Mike Layman, senior vice president, government relations and public affairs for the International Franchise Association. “It is, however, not the right choice for everyone,” he said. 

For example, full ownership of a Tommy’s Express franchise requires liquid capital of $2 million and a net worth of $5 million. Other costs associated with running a Tommy’s Express franchise include a $50,000 initial franchise fee, 4% royalty and 1% toward the national brand fund. Plus, there are limitations you need to consider before committing.

“You promise to uphold the brand standards, so you need to understand the restrictions and guidelines on the front end of the relationship,” said Layman. “Find a franchise attorney to review and explain the disclosures and agreement to you to make sure you understand them,” he said. The experience of attorneys who specialize in franchise agreements will help avoid misunderstandings later in the relationship, he said.