About Detail Garage Franchise
Detail Garage is an auto detailing franchise backed by CHE Holdings I LP that offers professional car cleaning, paint correction, ceramic coating, and interior restoration services.
The brand has been franchising since 2016, building a network of detailing studios that cater to car enthusiasts and everyday vehicle owners who want their cars looking their best.
The franchise fee is $30,000.
Detail Garage Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, 3% of Gross Sales | National brand fund |
| Total Investment Range | $160,975 – $270,450 | Includes build-out, inventory, working capital |
The investment range of $161K–$270K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (Currently, 3% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Travel and Living Expenses While Training | $1,000 | $2,500 |
| Real Estate/Lease | $6,000 | $10,000 |
| Leasehold Improvements | $10,000 | $50,000 |
| Opening Inventory of Products | $50,000 | $70,000 |
| Signage | $5,000 | $10,000 |
| Furniture, Fixtures, and Supplies Package | $25,000 | $35,000 |
| Insurance | $875 | $1,000 |
| Utility Deposits | $0 | $1,000 |
| Business Licenses and Permits | $1,000 | $2,500 |
| Professional Fees/ Services | $5,000 | $7,000 |
| Office Equipment & Supplies | $500 | $1,000 |
| Computer/POS System | $6,500 | $8,050 |
| Music/Entertainment System | $500 | $1,000 |
| Uniforms | $100 | $1,400 |
| Grand Opening Expenses | $1,500 | $5,000 |
| Additional Funds – 3 months | $18,000 | $35,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Renewal Fee | $5,000 |
| Technology Fee | Lightspeed POS Software Fee: $238.25 per month; Kangaroo Software Fee: $249 per month; Cayan Software Fee: Varies per your plan and usage. |
| Audit Fee | Cost of Audit |
| Local Marketing/Advertising Expenses | 2% of Gross Sales Quarterly |
| Additional Training at SDU | $1,900 per trainee |
| Ongoing/Refresher Training | $500 to $1,500 per day |
| Late Fees | The lesser of 1.5% per month or the highest rate of interest allowed by law (10% annually in CA). Plus $250 administrative fee per month. |
| Uniforms – Logo Shirts | $10 per T-Shirt or $35 per Button-Up Shirt |
| CHEMICAL GUYS and SMART WAX Brand Products | $5,000 to $15,000 monthly |
| Insurance Reimbursement | Amount of unpaid premium (estimated $875-$1,000 for 3 mos. of minimum required insurance) |
| Cost of Enforcement or Defense | All costs including attorneys’ fees |
| Indemnification | All costs including attorneys’ fees |
| Store Upgrades and Ongoing Maintenance Costs | $500 - $10,000 |
| Alternative Supplier Approval | Our incurred costs, plus 15% to cover administrative overhead. |
| Support Fee | $750 per day |
| Product Order Support Services (Optional) | $200 per month |
| Liquidated Damages for violating the “No Disparagement” provision | $10,000 for each violation |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 2 weeks |
| Classroom Training | 68 hours |
| On-the-Job Training | 40 hours |
| Training Location | our training facility, Smart Detailing University (“SDU”), which is located at our headquarters in Torrance, California, or at a Store owned by our affiliate or at another training facility that we designate. |
| Additional Training | From time to time, we may offer system-wide ongoing or refresher training to the Detail Garage Franchisees for a reasonable fee or at no charge, such training may include updates on new products, courses, meetings, seminars and conventions. Currently, we offer additional training online through screen-share technology at no cost to you. We currently charge $500 to $1,500 per day for ongoing or refresher training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | up to 5 miles around the Authorized Location or less than 1 mile in dense urban environments |
| Description | So long as you are in good standing, you may receive a non-exclusive protected radius around your Store’s Authorized Location. Depending on a number of factors, the protected radius may be up to 5 miles around the Authorized Location, unless the Store is located in a densely populated urban environment, such as a downtown metropolitan area, and, in such case, the protected radius will be less than 1 mile from the primary customer entrance of the Store. We will analyze a market or territory using SCOUT, an analytics mapping software by Buxton, and evaluate factors including population density, income, traffic patterns, number of residences versus businesses, and will determine with you, prior to executing the Franchise Agreement, the protected radius you will receive. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | two (2) consecutive additional five (5) year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | You have complied with all of the Franchise Agreement provisions; you are not in default of the Franchise Agreement; you have brought the Store into compliance with our current standards; you have given us notice of renewal; you have signed a then-current form of Franchise Agreement; and you have signed a general release in substantially the form of Exhibit F to this Disclosure Document. You must give us notice of your intent to renew no less than 90 days or more than 180 days before the Franchise Agreement expires. The new Franchise Agreement may contain terms and conditions that are materially different from your original Franchise Agreement. |
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Transfer Conditions | You must be in compliance with all agreements, the Manual, all contracts with any party, and transferee must assume all obligations under these agreements; transferee meet our then-current requirements and complete or agree to complete our training program for new franchisees; all sums due must be paid; Franchisee must pay us a transfer fee and sign a general release (which shall be substantially similar to the form of General Release attached as Exhibit F); all obligations to third parties must be satisfied; the Store must be in full compliance with the Manual and standards and specifications for new Detail Garage Stores; the transferee must satisfactorily complete training. |
| Termination for Cause | We may terminate the Franchise Agreement upon delivery of notice to you if you default under the terms of the Franchise Agreement. Curable defaults include failure to comply with Performance Standards, refusal to make payments due (10 business days to cure), or failure to comply with other provisions (10 or 30 calendar days to cure). Non-curable defaults include material misrepresentation, felony conviction, unauthorized disclosure of confidential information, abandonment of business for 2 consecutive days, unauthorized transfer, bankruptcy, misuse of Marks, repeated payment failures (3 times in 12 months), health/safety violations, or operating a competing business. |
| Non-Compete Period | 2 years |
| Non-Compete Details | You must not have any interest in any competitive business specializing, in whole or in part, in the sale of franchises or products that are the same as or similar to any product or service provided through the Store. This applies during the term of the franchise and for 2 years after termination/expiration within a 5-mile radius of the closed Store or any existing Detail Garage Store. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You are required to personally manage the Store during the first 6 months of operation. After the first 6 months, we do not require, but do strongly recommend, that you (or the Designated Operator) personally supervise the Store. You may designate a Store Manager who has successfully completed our training program and meets our then-current standards to assist in the direct, day-to-day supervision of the operations of the Store, or to be the on-premises supervisor if you choose not to personally supervise the Store. |
| Required Suppliers | You must purchase the CHEMICAL GUYS, SMART WAX and other affiliate-owned auto-detailing brand products that we require you to sell in the Store from our affiliate, Smart, LLC, who is currently the only Approved Supplier of these products to Detail Garage Franchisees. You must purchase your furniture, fixtures, and supplies that we require you to use in designing the Store from us. We are currently the only Approved Supplier of the Furniture, Fixtures and Supplies Package. We have designated an Approved Suppler for Store Design that you must hire and use in designing the Store and putting together your Furniture, Fixtures, and Supplies Package. |
| Supply Restrictions | Currently, we require you to hold at least $40,000 in inventory each month. You must replenish sold out inventory promptly. Up to 10% of the total catalog of inventory offered to our franchisees by Smart, LLC may not be available at any given time due to shortages as a course of normal business. This does not apply to supply chain interruptions due to circumstances outside of Smart, LLC’s control, such as, manufacturing bottlenecks, supplier delays, natural disasters, pandemics, quarantine restrictions, etc. Under such circumstances, your inventory orders may be delayed or unfulfilled for an indefinite period of time. |
| Franchisor Revenue from Suppliers | During our fiscal year ended December 31, 2022, our revenues from required purchases by Detail Garage franchisees of furniture, fixtures, and supplies from us were $660,835, or 20% of our total revenue of $3,246,102. For the fiscal year ended December 31, 2022, our affiliate Smart, LLC received $15,806,156 in revenue from required purchases by Detail Garage franchisees of CHEMICAL GUYS and SMART WAX products and employee uniforms. |
Detail Garage Franchise Earnings — Item 19
Detail Garage does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Detail Garage Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Detail Garage System Growth
Detail Garage currently operates 59 franchised locations and 33 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 10 | 6 | 63 |
| 2021 | 16 | 6 | 77 |
| 2022 | 18 | 8 | 92 |
Transfers: 5 | Closures: 8
State Registrations
Registered in 21 states: CA, CT, FL, HI, IL, IN, IA, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Independent Auditors for year ending December 31.
Detail Garage Franchise — FAQ
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