Ziebart

The franchise fee is $45,000 for a new franchisee. Veterans receive a remarkable benefit: the IFF is waived entirely and replaced with a $20,000 deposit credited toward the required startup order. No other upfront franchise fee discount comes close to this in the automotive category.

Total investment of $450,100–$924,000 is driven by equipment and infrastructure. The Equipment Package is the largest variable at $100,000–$180,000 — Ziebart's service menu (rustproofing, undercoating, paint protection film, window tint, audio installation) requires a diverse set of specialized tools and bay equipment. Leasehold improvements add $80,000–$300,000 depending on the facility condition. The Exterior/Interior Decor Package (including signage) runs $30,000–$100,000. Opening inventory and supplies are $32,000–$50,000.

Additional funds (working capital) of $100,000–$150,000 are required — one of the larger working capital requirements in the automotive category, reflecting the extended ramp-up period typical of service businesses building a customer base.

The royalty structure is Ziebart's most notable risk factor: 8% on most products, and 5% on specified lower-royalty items (Z-Liner spray-on liner, auto glass, electronics, and a few others). The 8% rate is the highest in the automotive franchise category. A royalty minimum of $650/week begins at the Year 4 anniversary, pegged to 50% of the prior fiscal year average weekly sales of all U.S. franchisees. The advertising fund is 2% of gross sales, capped at $30,000/year.

Ziebart discloses Item 19 data for 82 qualifying stores (of 91 total — excludes 1 under 2 years, 8 limited-service locations).

FY2024 all 82 qualifying stores: - Average gross revenue: $1,345,813 - Median gross revenue: $1,014,711 - 29–35% of stores met or exceeded the average (specific figure unclear in source)

The mean/median gap is substantial: average of $1.35M versus median of $1.01M means the top performers are pulling the average up significantly. This is confirmed by the quartile breakdown:

Top 50% (41 stores): - Average revenue: $2,086,555 - Range: $1,015,266–$4,977,161

Bottom 50% (41 stores): - Average revenue: $605,072 - Range: $252,820–$1,014,156

The bottom 50% averaging $605K is the critical number. At 8% royalty on $605K revenue, you're paying $48,400 in royalties alone. Add 2% ad fund ($12,100), mandatory product purchases (10% of gross = $60,500), and the fixed operating costs of a 4-bay automotive service facility, and the economics for a median-or-below location are genuinely challenging.

New store ramp data is encouraging: FY2022 openings averaged $351K in Year 1, $988K in Year 2, $1.16M in Year 3 — demonstrating that new locations can reach system-average performance by Year 3. The stores in the Item 19 sample averaged 26 years of operation, suggesting the surviving system is mature and established.

Ziebart's system is effectively flat. Franchised locations went from 81 (start 2022) to 86 (end 2022) to 85 (end 2023) to 85 (end 2024). Zero net change in 2024; -1 in 2023; +5 in 2022. With 11 company-owned locations stable throughout, the total system of 96 units has barely changed in three years.

The average store age of 26 years in the Item 19 sample signals a mature, established operator base — but it also raises a succession question. Older multi-decade owners approaching retirement create resale and transfer activity, but also risk of store closures when owners exit without qualified buyers. Transfers were modest: 1 in 2022, 5 in 2023, 1 in 2024.

Ziebart's brand is strongest in the Rust Belt and Great Lakes region, where vehicle underbody protection has a decades-long customer tradition. In Sun Belt and coastal markets, the rustproofing value proposition is weaker and the brand's awareness lower. Market selection is particularly important for this franchise.

The 8% royalty on most products is the single biggest financial flag. In the automotive services category where margins on labor and materials are typically 40–60% gross margin, an 8% royalty means approximately 13–20% of your gross profit goes to Ziebart before paying any other overhead. This is materially higher than Valvoline (6%), Tint World (6%), or most other automotive franchises.

The mandatory minimum product purchase requirement — 10% of annual gross sales from specified Ziebart-supplied products — is a captive supply obligation. This limits your ability to reduce input costs when Ziebart raises prices or if better products become available. Supplier or product approval for alternatives costs $2,000–$10,000, creating a meaningful barrier to any competitive sourcing.

The royalty minimum structure after Year 4 — $650/week pegged to 50% of system average weekly sales — creates a floor that protects the franchisor but not you. If your location is underperforming in Years 4+, you're still paying a minimum regardless of actual revenue.

The renewal fee is set at 15% of the then-current franchise fee being charged to new franchisees at the time of renewal. If Ziebart raises its IFF (currently $45,000), your renewal fee rises proportionally — creating renewal cost uncertainty over a 10-year term.