Bandag Franchise Costs, Fees & Owner Salary (2023)

Bandag is a well-established franchise that has made a significant impact in the automotive industry by specializing in retreaded tires and tire management solutions. Founded in 1957, Bandag has its headquarters in Muscatine, Iowa, and has grown to become a global leader in tire retreading technology. The franchise initiated its franchising program early on, offering entrepreneurs the opportunity to be part of a brand known for its innovation in tire maintenance and sustainability.

At Bandag, clients can benefit from a range of tire-related services, with a primary focus on retreading commercial truck tires to extend their lifespan and reduce the environmental impact. What sets Bandag apart from its competitors is its pioneering retread process, designed to deliver cost-effective and eco-friendly tire solutions without compromising on safety and performance. Bandag has built a reputation for quality, reliability, and a commitment to sustainable practices in the tire industry.

Initial Franchise Fee

This fee is payable upon execution of the agreement. It amounts to $2,500 for purchasing a new franchise and $1,000 for renewing an existing franchise. This fee is non-refundable under any circumstances.

Royalty Fee

The document does not explicitly mention a 'Royalty Fee'. It's possible that this fee may not be applicable, or it might be referred to under a different term within the franchise agreement.

Advertising Fee

The franchisees are not required to participate in or contribute to a Bandag System marketing or sales promotion program or advertising cooperative. Franchisees may develop their own advertising materials at their own expense, subject to Bandag’s consent.

Technology Fee

The document includes fees related to the BASys Fleet Analyzer (BFA) and BASys Manufacturing Software. The BASys Fleet Analyzer license fee support and maintenance is currently up to $1,000 per location, subject to change upon 30 days' notice. The BASys Manufacturing Software support is $425 per month, including help desk, troubleshooting, and training. There is also a BASys Manufacturing ASP Subscription and Software Service Fee of $700 per month for a retread plant with 7 checkpoints or more.

The training offered by Bandag to its franchisees includes the following components:

1. Pre-Opening Training: Before opening the dealership, Bandag provides education in the major aspects of establishing and operating the dealership. This includes Certified Retread Technician Training available throughout the year and other training as needed, such as for equipment installation. The Bridgestone Commercial Training Group coordinates these training programs at the BCS Education Center in LaVergne, Tennessee, and also offers online training on the Bridgestone and Firestone Education Network. The training encompasses e-learning, videos, instructor-led courses, and mentoring materials for Retread Plant Management.
2. Mandatory Training for Plant Personnel: All plant personnel of each Retread Facility must complete mandatory training programs to the satisfaction of Bridgestone Commercial Solutions before the dealership begins production. This training includes becoming a Certified Retread Technician, with a requirement for a Certified Retreading Technician to be available at all times during production. Additionally, all repair technicians must complete Certified Repair Training. This training is essential and must be completed before the Production Facility opens for business.
3. Ongoing and Supplemental Training: Bandag provides ongoing support to keep processes competitive, including advanced training programs. These may include optional supplemental training, recertification training for Certified Retreading Technician status, and other retraining as required. The length and specific content of supplemental training, recertification training, or other retraining varies depending on the subject matter. Bandag may charge a fee for these programs.

Bandag offers its franchisees territory protection, granting them exclusive operational rights within a specified area. This ensures that no other Bandag franchises will compete in that region, allowing franchisees to concentrate on expanding their customer base and growing their business without facing competition from other Bandag locations. The specifics of these territorial protections, including the boundaries and terms, are detailed in the franchise agreement and can differ based on the negotiated terms between the franchisee and Bandag.

Bandag requires franchisees to actively participate in managing and operating their franchise. This means the Bandag franchise cannot be operated as a purely passive investment.

Franchisees must engage directly in the business, including completing necessary training programs. Passive ownership, where the franchise is managed independently or by a third party without the franchisee's active involvement, is not in line with Bandag's franchising model.