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 2023.
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.
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
| Initial Investment | $416,820-$566,100 |
| Franchise | YES |
| Franchising Since | 1963 |
| Franchise-Fee | $36,000 |
| Royalty-Fee | 8% |
| Liquidity | $150,000 |
| Estimated Outlets | 400 |
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 $110,000 in profits per year in accordance with 11% profit margin.
| Profit and loss | Amount | % revenue | Source |
|---|---|---|---|
| Revenue | $1,037,500 | 100% | as per FDD |
| COGS | $(481,058) | 46% | as per FDD |
| Gross Profit | $556,441 | 54% | as per FDD |
| Owner’s compensation | $(75,000) | 7% | assumption |
| Operating costs | $(235,359) | 23% | as per FDD |
| Royalties | $(83,000) | 8% | as per FDD |
| Marketing fee | $(51,875) | 5% | as per FDD |
| EBITDA | $111,207 | 11% |
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
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Detail Garage | $30,000 | 4% | $138,500-$178,500 |
| TINT World | $49,950 | 6% | $259,500-$399,500 |
| Ziebart | $36,000 | 8% | $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.
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
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.