GoMobile Tires Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$127,000

-

$228,000

LOCATIONS

6

Adam

Updated

April 11, 2024

Is

GoMobile Tires

a franchise?

Yes,
GoMobile Tires
currently
accepts
franchise
applications

GoMobile Tires, headquartered in Portland, Oregon, is a distinguished chain of full-service mobile tire shops. It specializes in a wide array of tire-related services, including tire purchases, installations, TPMS, flat repairs, and tire rotations. Clients can conveniently access these services at their homes, workplaces, or recreational spots.

The inception of GoMobile Tires dates back to 2018, with the initiation of franchising operations in 2019. As of 2022, it had expanded its presence to encompass over 25 locations across the United States and is actively planning to further augment its fleet of mobile vans.

The GoMobile Tires franchise emerges as an appealing business venture, offering entrepreneurs flexible and customer-centric opportunities in the tire industry. With a contemporary approach to tire services, it positions itself as a formidable player in the multi-billion-dollar tire sector.

How many

GoMobile Tires

franchises

are there?

In 2022, there were
6
outlets in
the United
States, of which
3
are franchises, and
3
are corporate-owned.

What are the

GoMobile Tires

franchise

fees?

Advertising fee

2.50%

Initial Franchise Fee for GoMobile Tires

The Initial Franchise Fee for the GoMobile Tires franchise is set at $35,000. This fee is a prerequisite for starting the franchise and covers various administrative and startup costs.

For the GoMobile Detail franchise, the Initial Franchise Fee is significantly lower, at $10,000. This fee is similarly required to begin operations and covers initial setup and administrative expenses.

Monthly Royalty Fee

Franchisees are required to pay a Monthly Royalty Fee, which amounts to 5% of the Gross Revenue for each preceding month. This fee is a continuous obligation for the duration of the franchise operation.

Initial Advertising Fee for GoMobile Tires

GoMobile Tires franchisees must pay an Initial Advertising Fee of $25,000. This fee is for the initial marketing and advertising efforts in the franchisee’s market area during the first three months of business. For GoMobile Detail franchisees, the Initial Advertising Fee is $10,000. This amount is used for marketing and advertising in the local market area during the approximately first three months of operation.

Monthly Local Advertising Expenditure

In addition to the Initial Advertising Fee, franchisees are required to spend at least 2.5% of their Gross Revenue on local advertising and promotion each month, starting from the fourth month after the commencement of operations.

Monthly Software Fee

The Monthly Software Fee is $350 per vehicle. This fee covers the cost of software necessary for the franchise’s operations, including scheduling and e-commerce platforms. 

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

GoMobile Tires

franchise?

It costs between
$127,000
and
$228,000
to start a
GoMobile Tires
franchise.
Type of Expenditure Amount
Initial Franchise Fee $35,000
Initial Advertising Fee $25,000
Branded Vehicle and Certain Initial Equipment and Supplies $135,000 to $150,000
Vehicle Delivery $2,000 to $3,000
Payroll – 3 months $9,000 to $12,000
Travel and Living Expenses During Training $1,000 to $5,000
Utility Deposits $100 to $500
Business Licenses and Permits $1,000 to $2,500
Professional Fees/Services $5,000 to $7,000
Office Equipment & Supplies $500 to $2,000
Additional Funds – 3 months $25,000 to $50,000
Total Estimated Initial Investment $221,600 to $257,600

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

GoMobile Tires

provide

training

to its

franchisees?

Yes,
GoMobile Tires
provides
training

The GoMobile Tires franchise offers a comprehensive training program, which includes:

  1. Mandatory Initial Training: A mix of online and onsite training covering franchise operations, financial controls, marketing, and service methods. This program is mandatory for franchisees, their managers, and technicians.
  2. Additional Training for Deficiencies: If franchisees fail to meet operational standards, additional training may be required, conducted either at the franchisor's headquarters or the franchisee's location.
  3. Training for New Technicians: New technicians hired by franchisees must complete the franchisor's training program before starting customer service.
  4. Refresher Training Programs and Seminars: Franchisees and their staff may be required to attend periodic refresher training programs or seminars, held at designated locations.

Does

GoMobile Tires

provides

territory

protection?

The GoMobile Tires franchise provides franchisees with a protected, but not exclusive, territory known as the "Franchise Territory." This territory is determined based on factors like local vehicle registrations, population demographics, and geographic features. While franchisees have certain territorial protections, they may still face competition from other franchisees, outlets owned by the franchisor, or other brands controlled by the franchisor.

The franchisor agrees not to establish or permit others to service customers within a franchisee's territory with the same franchise type, provided the franchisee is not in default under the Franchise Agreement​​​​​​.

Can a

GoMobile Tires

franchise

be run as

a passive

investment?

Franchisees are not required to participate directly in the day-to-day operation of the franchise, but it must be under their general supervision. Franchisees may designate one or more employees to assume responsibility for day-to-day operations, and any managers and technicians employed to operate the franchise must complete the mandatory training program.

This suggests that while direct day-to-day involvement is not mandatory, the franchisee must maintain general oversight and ensure compliance with the Franchise Agreement​​.

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