Bandag Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$357,000

-

$6,524,000

LOCATIONS

181

Adam

Updated

April 11, 2024

Is

Bandag

a franchise?

Yes,
Bandag
currently
accepts
franchise
applications

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.

How many

Bandag

franchises

are there?

In 2022, there were
181
outlets in
the United
States, of which
179
are franchises, and
2
are corporate-owned.

What are the

Bandag

franchise

fees?

Advertising fee

n.a

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.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Bandag

franchise?

It costs between
$357,000
and
$6,524,000
to start a
Bandag
franchise.
Item Amount
Initial Franchise Fee $2,500
Real Estate1 Varies
Equipment, including Trucks, Fixtures, Furnishings, and Signage2 $83,500 to $1,873,000
Additional Equipment Necessary for Participation in Optional Programs3 $1,500 and $1,050,000
Opening Inventory4 $32,000 to $665,700
Insurance5 $125,000 to $630,000
Additional Funds (for three months’ operations)6 $112,000 to $2,303,000
Total $356,500 to $6,524,2007, 8

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Bandag

provide

training

to its

franchisees?

Yes,
Bandag
provides
training

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.

Does

Bandag

provides

territory

protection?

Franchisees are required to actively participate in the operation of their franchise business. This means the Bandag franchise cannot be run purely as a passive investment. Franchisees or their designated managers must be actively involved in the management and daily operations of the franchise.

Can a

Bandag

franchise

be run as

a passive

investment?

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.

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