You’ve probably heard of Mister Car Wash. With over 400 locations all over the United States, it’s hard to miss them. They’re known as the largest conveyor car wash company in the country and if you’re looking to franchise with them, I can certainly understand why. These facilities are well branded, widely recognized, and continue to grow across 21 states.
Unfortunatley, you can’t franchise a Mister Car Wash at this time. All locations are owned and operated by the publicly traded company Mister Car Wash, LLC. With that fact in mind there some ways to invest in and profit from the company if you like the longterm prospects of this fast-growing concept.
To better understand the financial opportunities in the car wash industry, check out the details below. Click here to take our quiz and get matched with a business concept this is accepting franchisees at this time.
Financial Requirements and Fees
Seeing as Mister Car Wash does franchise at the moment, there is no way for us to know how much their franchise fees would be. But we can evaluate how much it would cost to open a similar car wash business to estimate the financial requirements and fees associated with running a similar franchise.
Let us take for example the Mr. Clean Car Wash franchise. Mr. Clean Car Wash is a well-known brand owned by Procter and Gamble (P&G). They started as a popular cleaning agent and then branched out to car wash services.
The financial requirements to franchise Mr. Clean Car Wash starts with a minimum liquid capital of $700,000. The Net worth required is $2,500,000 to $3,500,000. You can expect investments to reach $2,417,500 to $3,271,000 and the initial franchise fee is $35,000.
Keep in mind that these fees are just an estimate so you can get an idea how much it would be to franchise a car wash. There will also be royalty fees to expect (Mr. Clean charges 6% of royalty fees), ad royalty fees and more.
Average Sales / Revenue per Year
According to Macro Trends, Mister Car Wash has reached $758 million in revenue in 2021. This number has increased from their revenue in 2020 which was $575 million. This is an impressive 31% gross revenue increase in only a year. No doubt, all of the acquisitions supported this revenue increase.
Mister Car Wash Franchise Facts
||Mister Car Wash
||Does Not Allow Franchising
||Car Wash Services
The first Mister Car Wash opened in 1969 in Houston, Texas. Aside from the car wash concept, Mister Car Wash did business by acquiring several other car wash stores and turning them into a Mister Car Wash. By 1998, Car Wash Partners Inc. acquired the Mister Car Wash of Houston.
In 2003, we saw the birth of Mister Car Wash’s Unlimited Wash Club, a monthly subscription program for those interested in getting their car washed at any Mister Car Wash location at any time. The program has no contract and can be cancelled at any time. The program has become a hit that in 2020
it was recorded that there were one million active subscribers who joined the Unlimited Wash Club.
Entering a Mister Car Wash location.
Aside from the club, Mister Car Wash’s services include interior and exterior cleaning, Fleet Accounts, and Wash Passes. The Fleet Accounts are for small business owners, large corporations, and government agencies wherein they can get their cars washed and their employees don’t need to carry cash or credit cards. Mister Car Wash will just send you a monthly invoice and detailed reports directly to the business owners.
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The chemicals that Mister Car Wash uses to clean vehicles are Carnauba wax, T3 conditioner, Repel Shield, Wheel Polish, Tire Shine, Wheel Cleaner, and many more.
At present, Mister Car Wash is not open for franchising. However, you can do business with them by getting in touch with their Acquisitions and Real Estate Development Team. What you can do for them are the following:
- Sell your existing car wash business
- Sell and lease your land
- Become their development partner
To sell your existing car wash business, complete the form here and submit it. Afterward, Mister Car Wash will get in touch with you to discuss the necessary requirements and whether or not they are able to purchase your car wash.
To sell or lease your land, Mister Car Wash is looking for areas that are outside a 3-mile radius of competitors. They are also looking for areas that have a residential community, retail outlets, and roads that see 30,000 or more vehicles that pass through daily since this is ideal for their car wash. They mostly prefer to purchase land but they would also be interested to lease.
Vacuuming my vehicle after a wash.
If you are also in the business of real estate developments, you can partner with Mister Car Wash by becoming their development partner. You can send in your portfolio and proposal as to why you could be a one of their partners when it comes to putting up a Mister Car Wash unit.
In addition, you can also do business with Mister Car Wash by buying stock in the company. To buy stocks, make sure you have a brokerage account and look up their ticker symbol which is MCW. At the time of this writing, Mister Car Wash’s stock last closed at $9.74.
Being an employee at Mister Car Wash can also help you purchase stocks. With their Employee Stock Purchase Plan (ESPP), eligible employees can buy stocks at a discounted price of 15% than the general public. These stock purchases are automatically withdrawn from each employees paycheck that chooses to participate. Full-time and part-time employees are eligible.
At present, Mister Car Wash is owned by Leonard Green & Partners (LGP). The Chief Executive Officer and Chairman of the Board of Directors of Mister Car Wash is John Lai. According to Benzinga, his estimated net worth is $71.04 million. Mister Car Wash’s headquarters can be found in Tucson, Arizona.
How Much Does Mister Car Wash Make in Profit?
According to Macro Trends, Mister Car Wash’s gross profit in 2021 is $493 million. Their gross profit increased from their 2020 data which is $381 million.
Advantages of a Mister Car Wash Franchise
Doing business with Mister Car Wash could deliver many benefits if it were an option.
Mister Car Wash is the leading conveyor car wash in the United States with over 400 stores. They’ve also been around for 50 years providing simple car wash services. On top of it all, there are over a million subscribers on their Unlimited Wash Club program. That’s how strong Mister Car Wash is.
You may not be able to franchise a Mister Car Wash. But if you do decide on doing business with them, you can feel confident they understand the car wash industry with decades of experience.
Mister Car Wash follows sustainable practices when it comes to reducing energy and water consumption. They make sure that the water that’s used after cleaning cars does not harm the local wastewater systems.
Is a car wash service a profitable business? According my research, the car wash industry can be profitable. Car wash owners can see numbers as high as $500,000 annually. Though you may not be able to own a Mister Car Wash franchise, the company keeps on expanding. So if you’re into real estate or looking to invest in the stock market, it’s an opportunity worth evaluating.
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Great Work Environment
Mister Car Wash was awarded the Great Place to Work Certification in 2022. The award is based on what employees say about their experience working for the company and how they rate the work environment. 82% of the employees at Mister Car Wash claim it’s a great place to work.
Challenges of a Mister Car Wash Franchise
Sign outside carwash.
Every business will have its set of challenges. Here are a few to prepare for when you do business with Mister Car Wash:
Though Mister Car Wash has over 400 locations , they all seem to be located in just the United States. A brand this big might be able to do even better if they expand to more countries outside America.
Mister Car Wash has a lot of competitors in the car wash business. There’s Mr. Clean Car Wash, Tommy’s Express Car Wash, Green Shine and more. Though they have the advantage of having the largest number of stores, they must be able to keep it up and continue expanding.
We are in the midst of a national labor shortage. According to the U.S. Chamber of Commerce, there are more than 10 million job openings in the United States. In some regions, the competition for entry-level workers is extremely tight. Mister Car Wash needs to find a way to stand out from other employers by offering better benefits, wages, or workplace. environment.
Is the Mister Car Wash Franchise Right For You?
Mister Car Wash isn’t open for franchising but they do seem like an ideal car wash franchise for everyone. In the meantime, you still have a few options in doing business with them whether that’s investing in stocks, selling or leasing land or become a development partner.
What is an alternative car wash service franchise?
Mr. Clean Car Wash is one franchise you can check out. They do interior and exterior wash services and some automotive maintenance and repairs such as oil changes.
To franchise Mr. Clean Car Wash, expect the investments to be around $2,417,500 to $3,271,000 with the franchise fee to be $35,000.
The car wash market is expected to grow at 3.1% from 2022 to 2030. It’s also a billion dollar industry. I hope this guide was able to help you decide whether or not to franchise a car wash service or invest in one.