Ziebart Franchise Cost, Profit & Failure Rate 2024

If you are interested in the automotive aftermarket or just automobiles and want to enter into the franchising world, you might have heard of Ziebart.

One of the biggest car care and aftermarket accessories brands, Ziebart, has been franchising for at least 60 years. This franchise is one of the 50 best franchises to own in 2024.

They are all around the world with hundreds of locations and a great opportunity for those interested.

Even though Ziebart is a lucrative business, owning a part of their branch is not as easy as just being interested in cars. It also requires many other things.

You need everything from business management to sales, and you might wonder if it’s worth all the effort and what exactly you need.

This article will discuss everything about the Ziebart franchise, such as its fees, history, competitors, requirements, and other details.

Ziebart Franchise
Ziebart Franchise

About Ziebart

Ziebart is an automotive aftermarket store with about 400 outlets in various countries, including the United States, their headquarters.

They specialize in providing almost all car care services and products across all of its locations.

Ziebart currently offers rustproofing, paint sealant, paint protection, detailing, window tinting, and various car aftermarket accessories.

Kurt Ziebart is the company’s founder, and in addition to founding Ziebart, he is also the inventor of rustproofing for automobiles.

The company reached $170 million in revenue in 2018, and the current CEO, Thomas A. Wolfe, is heading the company while trying to increase the number of franchise outlets.

Ziebart franchises through their own privately owned corporation called Ziebart International Corporation.


Ziebart History

Ziebart was founded in Detroit, Michigan, in 1959 and has been in operation ever since with excellent service.

Approximately 4 years later, in 1963, Ziebart decided to franchise the business. Since they started to franchise, they have grown quickly.

Now, they are operational in 39 countries with more than 400 outlets worldwide.

In the meantime, in 1989, they acquired Tidy Card, a sort of competitor, to increase their power and merge the brands together.

Throughout its history, it kept doing this, merging or doing co-branding agreements to increase its volume in stores.

This made Ziebart bigger in the number of outlets. It also increased its reach as it quickly increased its brand awareness through its new stores. It also helped its franchisees even more in making more revenue.


Franchise Model Table

Cost Or FeesAmount
Initial Investment$416,820-$566,100
Franchise YES
Franchising Since1963
Franchise-Fee$36,000
Royalty-Fee8%
Liquidity$150,000
Estimated Outlets400

How Much Does It Cost To Open a Ziebart Franchise?

How Much Does It Cost To Open a Ziebart Franchise

To open a Ziebart franchise, you need to consider many different fees, from the franchise fee, which is fixed, to variable fees that change from location to location.

On average, you can expect to spend somewhere between $416,000 to $566,000, everything included.

The only fixed fee is the franchise fee, which is $36,000. You pay this in a lump sum.

Other fees, such as the rent, equipment, marketing, and other virtual things, all depend on your branch’s needs.

According to Ziebart’s calculations, the average cost for rent is $75,000, and $150,000 for the equipment.

These could be higher or lower, but on average, this is the amount Ziebar excepts the franchisees to spend.


Ziebart Franchise Requirements

Ziebart chooses not to disclose the exact requirements you need to apply. You only know about them after you actually apply.

However, we are aware of the financial requirements to own a franchise, as you need a certain net worth and liquidity.

The other requirements, such as the experience needed or other similar ones, are not publicly available.

You need to have at least $150,000 in liquidity. Liquidity is the money you should have access to, either in cash or in assets that you can convert to cash easily.

On top of it, you need to have a net worth of $350,000, meaning the total money you have either in assets or in cash.


Ziebart Franchise Training and Support

To make sure that each Ziebart branch provides the same quality service to its customers, Ziebart gives you training before you start.

They have a special 8-week training program teaching instructional things such as technical skills, marketing, business management, and professional sales.

Ziebart also provides an in-store experience to put your information into practice and show the in-store life.

In addition to their training, Ziebart also supports you with their exclusive software to run a scalable Ziebart franchise.

You will also have direct contact with Ziebart’s professional team to get help with operations, account development, marketing, and technical support. You also get ongoing marketing support with your campaigns.


Ziebart Franchise Revenue & Profit

On average, Ziebart Franchise owners make $1,037,500 in revenue per year. This data is based on the performance of 4 outlets out of 92 outlets operating in 2021.

And we talk about the profitability of the Ziebart franchise; then, a Ziebart franchise owner makes $114,125 in profits per year in accordance with 11% profit margin.

This is how we calculated the profit of the Ziebart franchise:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1037500.00
Cost of Goods Sold (COGS)27.81%288554.69
Salaries22.25%230843.75
Labor (Variable)14.46%150048.44
Rent11.13%115421.88
Franchise Royalty Fees5.56%57710.94
Insurance5.56%57710.94
Utilities2.23%23084.38
Total Expenses89.00%923375.00
Net Profit11.00%114125.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Ziebart Franchise

With an investment of $566,100 and an estimated 11% profit margin, the yearly profit would be $114,125.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $566,100/ $114,125= 4.96 years

Based on these figures, it will take approximately 5 years to pay back the initial investment for Ziebart. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Ziebart Franchise

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20198082+2
20208281-1
20218181 0

For the Franchised outlets:

  • In 2019, the growth rate was (2)/80×100≈2.5%
  • In 2020, the failure rate was (1)/82×100≈1.21%
  • In 2021, the failure rate was (0)/81×100≈0.00%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191311-2
202011110
202111110

For the Company-Owned outlets:

  • In 2019, the failure rate was (2)/13×100≈15.38%
  • In 2020, the failure rate was (0)/11×100≈0.00%
  • In 2021, the failure rate was (0)/11×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201993930
20209392-1
202192920

For Total outlets:

  • In 2019, the failure rate was (0)/93×100≈0.00%
  • In 2020, the failure rate was (1)/93×100≈1.07%
  • In 2021, the failure rate was (0)/92×100≈0.00%

According to the above-mentioned data, we can see that the franchised outlets for Ziebart grew only in the year 2019, showing a growth rate of 2.5%. Then it declined in the following years showing a failure rate between 1.21% and 0.00%.

On the other hand, for company-owned outlets, the failure rate of Ziebart was lying in the range between 15.38% and 0% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Ziebart franchise has declined in the years 2019-2021 showing a total failure rate was 0.00%.


Ziebart Franchise Terms of Agreement & Renewal

The initial franchise agreement you are going to make with Ziebart will be for ten years. This is the timeframe that most franchise businesses use with their franchisees.

At the end of these ten years, you can renew this contract for another ten years and use Ziebart’s name.

However, if Ziebart is unhappy with you and you don’t follow the protocols or rules, they might refuse to renew your contract.

This is a very slight chance, but there is a potential like this during your renewal process.


Ziebart Franchise Obligations and Restrictions

When you buy a Ziebart franchise, you have to follow certain obligations and restrictions, but Ziebart’s conditions are not as heavy as other businesses.

You are not required to manage your franchise personally when you have a Ziebart franchise.

You only need one person who is Ziebart trained and certified in the franchise during business hours of your branch. This person could be anyone and doesn’t have to be the owner.

If the owner is a legal entity, there has to be one person who has to pass the training, but that person still doesn’t have to spend all their time in the franchise.

As a Ziebart franchisee, you are only allowed to sell services and products that Ziebart approves or specifies in the franchisee manual.

As the franchisee, you can’t use the designated area for the franchise for any other purposes but the Ziebart franchise.


Ziebart Franchise Financial Assistance

Ziebart offers financing options through their own corporation and also works with third-party financing companies.

Ziebart Corporation, the in-house financing team, offers financial assistance to qualified candidates.

Ziebart’s own financial assistance only covers start-up and expansion costs for your franchise.

Their third-party financing partner, FrandFund, helps Ziebart to help franchises through different financing options.

They directly work with them, and they will help you to choose the best-customized solution based on the rate of the loan and the conditions.

This financing also covers equipment, start-up costs, inventory, and so on.


Ziebart Comparison

CompanyFranchise FeeRoyalty FeeInitial Investment
Detail Garage$30,0004%$138,500-$178,500
TINT World$49,9506%$259,500-$399,500
Ziebart$36,0008%$416,820-$566,100

Conclusion

Ziebart is undoubtedly one of the most lucrative and known franchise businesses in its industry.

It serves in 39 countries with over 400 outlets with extreme success, and its entry barrier, the initial investment, is relatively low compared to other types of franchises.

This makes Ziebart a great option to consider if you are into the automotive industry and want to own a business.

However, if you do not have experience in the field, it might be hard to keep the branch alive.

Whether you need experience in the field or not is not disclosed to the public to be approved for the franchise, but for your success, it’s ideal to have a certain amount of experience.


FAQ

Who is the CEO of Ziebart?

The current CEO of Ziebart is Thomas A. Wolfe, and he’s been holding that spot since March 2022.

Is Ziebart the only profitable franchise in the automotive care industry?

No, there are many other franchises in the same industry that could provide you with great profit.

However, it could be slightly easier with Ziebart as they are one of the most known brands in its industry.

Is there a chance of failing with a Ziebart franchise?

Yes, just like any other business, your Ziebart franchise branch could also fail.

Ziebart could provide you with support and its brand name, but it’s up to you to manage the business and succeed with it.

Who founded Ziebart?

Kurt Ziebart founded the company in 1959 with two other investors and opened the first shop bearing the proprietor name Ziebart.

Where is Ziebart headquartered?

Ziebart is headquartered in Troy, Michigan, United States.

How many locations does Ziebart has?

Ziebart operates in more than 400 locations in 26 countries.

Sources

https://www.ziebart.com/franchise-opportunities

https://www.ziebart.com/franchise-opportunities/pricing-model

https://www.ziebart.com/franchise-opportunities/why-ziebart

https://en.wikipedia.org/wiki/Ziebart

Leave a Comment