Business Growth and Financials
Growth & Profitability – Your Guide to Franchise Investment, Revenue, and Pricing Strategy.
Projected Sales Volume
We average the revenue at $115 per wheel. See the recommended pricing.
| Metric | Projected Value |
|---|---|
| Average Selling Price per Wheel | $115 |
| Daily Number of Wheels Sold | 12 |
| Weekly Number of Wheels Sold | 60 |
| Monthly Number of Wheels Sold | 240 |
| Monthly Revenue | $27,600 |
| Annual Revenue | $331,200 |
Operating a wheel repair and refinishing business involves the following cost considerations:
- Labor: Commissions or wages.
- Materials: 5-10% of sales.
- Overhead: This includes general liability insurance, auto insurance, vehicle maintenance, utilities, staff, attire and gas.
Wholesale Service Pricing Strategy
These are suggested wholesale prices, but they may vary from market to market.
Pre-Owned Department Pricing
- Spot Repairs (simple curb damage) $75 – $95
- Diamond Cut Wheel Repair $75 – $95
- Color Change Blackout (set) $500 – $600
- Wheel Straightening $100 – $115
Customer Pay – Service Department
- Cosmetic Painted Wheel Repair $125 – $135
- Diamond-Cut Repair $125 – $135
- Wheel Straightening $105 – $115
- Color Change (per set) $500 – $540
Collision Shops
- Cosmetic $125.00
- Straightening Repair $150.00
- Diamond Cut Repair $150.00
- Combo Repair (Cosmetic & Straightening) $200.00
Final pricing is determined by you and your customer, providing market flexibility and ensuring customer satisfaction.
Franchise Partnership Fee – U.S
STANDARD FRANCHISE MODEL
INITIAL INVESTMENT & FEES:
- Franchise Fee: $25,000 per territory.
- Territory Size: Population between 500,000 and 2 million people.
- Additional Territories: Franchisees have the option to expand into adjacent territories after one year of successful operation.
ONGOING FEES:
- Royalty Fee: 5% of gross sales, paid monthly.
- Marketing Fee: 2% of gross sales, paid monthly to contribute to national and local marketing efforts.
TERM & RENEWAL:
- Initial Term: 5 years, with an automatic renewal clause for another 5-year term upon meeting performance metrics and compliance standards.
TERRITORY EXCLUSIVITY:
Franchisees will be granted exclusivity in their assigned territory, with protected accounts that prevent overlap or competition with other Wheel Color It franchisees.
SUPPORT PROVIDED:
- Comprehensive Initial Training: Includes operations, product knowledge, marketing, and equipment handling.
ONGOING SUPPORT
- Van and Equipment Setup: Fully equipped van provided for mobile services.
- Marketing Assistance: Tools for local outreach, social media strategies, and inclusion in national campaigns.
- Bookkeeping Support: Access to cloud-based accounting software and regular financial reviews to ensure profitability.
Franchise Partnership Fee – International
FOREIGN MASTER LICENSE AND AREA DEVELOPER
INITIAL INVESTMENT & FEES:
- Franchise Fee: $50,000, granting the rights to operate and oversee multiple franchises in a larger territory (e.g., major cities).
- Territory Structure: Designed to cover areas that can support up to 10 mobile units and or 10 Direct-To-Metal (DTM) shop for in-house operations.
ROYALTY STRUCTURE:
- Royalty Fee: 7.5% of gross sales for area developers, with a breakdown of:
- Franchisee Royalty Split: 25% to Wheel Color It HQ I 75% to Area Developer
- Direct Sales Royalty: If the Area Developer makes direct sales, they pay 5% of those sales to Wheel Color It HQ.
TERM AND RENEWAL:
- Initial Term: 5 years, with the option to renew for an additional 5-year term.
FRANCHISE FEE SPLIT:
For each new franchise sale within the area developer’s territory, the franchise fee will be split:
- 25% to Wheel Color It HQ
- 75% to the Area Developer
ROLE OF AREA DEVELOPER:
- Area Developers have a more hands-on role in training, supporting, and managing franchisees within their territory, acting as a regional leader for Wheel Color It.
- They will have direct control over the development of new franchises and mobile units, ensuring quality and growth.
SUPPORT FOR AREA DEVELOPERS:
- Initial Training: Tailored for larger-scale operations, with a focus on managing multiple franchises and implementing strategic growth.
- Ongoing Support: Access to advanced marketing tools, leadership coaching, and higher-level business support.
Interested in becoming a Wheel Color It™ franchisee?
Download our Franchise eBook to discover how you can start a profitable wheel repair business with Wheel Color It™. Ready to take the next step? Contact us here.