Spiffy Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$91,000

-

$149,000

LOCATIONS

48

Adam

Updated

April 11, 2024

Is

Spiffy

a franchise?

Yes,
Spiffy
currently
accepts
franchise
applications

Spiffy, headquartered in Durham, North Carolina, operates as a technology-driven services franchise accessible through a user-friendly mobile app. This innovative platform delivers comprehensive car care services that are not only convenient but also prioritize safety with a 100% zero-contact approach. The gamut of offerings includes oil changes, disinfection, hand car washing, tire repair and replacement, as well as preventative maintenance services.

The genesis of Spiffy dates back to 2014 when founders Scot Wingo and Karl Murphy envisioned a new era of eco-friendly and convenient car care, both for individuals and fleets. The franchise venture commenced in 2020, and in a short span, it burgeoned into 13 thriving franchises with 35 company-owned locations across the US by 2022.

Spiffy distinguishes itself as an eco-friendly services franchise, underpinned by cutting-edge technology. Its platform empowers both franchise owners and customers, allowing them to effortlessly schedule, track, and complete payments for cleaning and maintenance services. The Spiffy experience is accessible through their website or user-friendly Android and iPhone apps.

The Spiffy franchise represents a compelling investment opportunity, especially for franchisees who share a passion for redefining the car care industry. With a focus on environmental consciousness and innovation, it operates in a market valued at over $14 billion.

How many

Spiffy

franchises

are there?

In 2022, there were
48
outlets in
the United
States, of which
13
are franchises, and
35
are corporate-owned.

What are the

Spiffy

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

The Initial Franchise Fee for starting a Spiffy franchise is set at $10,000 for the first business under the Area Development Agreement. This fee represents the initial investment and commitment to the franchise system. Similar fees apply for subsequent businesses under the same agreement, reflecting the cost of accessing the franchisor's brand, system, and support.

Standard Royalty

Spiffy franchises must pay a Standard Royalty fee, which amounts to 7% of their Gross Revenues. This monthly fee is a typical ongoing payment in franchising, representing a portion of the operational success shared with the franchisor.

Technology Fee

The monthly Spiffy Technology Fee is $500. This fee is allocated for the development and maintenance of software and mobile applications, vital for the efficient operation of the franchise. It highlights the role of technology in modern franchise management.

Advertising and Marketing Expenses

Spiffy franchisees are expected to invest between $2,000 to $3,500 in marketing and advertising around the time of the business launch. This critical investment is essential for establishing a market presence and attracting the initial customer base, forming a significant part of the early operational expenses.

Transfer Fee and Renewal Fee

This is $10,000 for transfer and $5,000 for renewal, applicable upon transfer application or franchise agreement renewal.

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

Spiffy

franchise?

It costs between
$91,000
and
$149,000
to start a
Spiffy
franchise.
Expenditure Estimated Amount or Estimated Low-High Range
Initial Franchise Fee $40,000
Software Set Up Fee $2,000
Initial Supplies, Equipment, and Inventory $21,500 - $27,500
Management Training Fee $5,000
Initial Advertising Expense $2,000 - $3,500
Spiffy Technology Fee $500 per month
Brand Fund 2% of Gross Revenues
Additional Funds – 3 months $20,300 - $43,650
Total Estimated Initial Investment $91,300 - $149,150

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

Spiffy

provide

training

to its

franchisees?

Yes,
Spiffy
provides
training

The training provided by the franchisor to Spiffy franchisees includes several key components:

  1. Initial Training Program: This program is designed for the Operations Manager and up to two other people selected by the franchisee and approved by the franchisor. The training covers pre-opening essentials and operational procedures. Franchisees are responsible for all related expenses, including travel, lodging, meals, and wages.
  2. Additional or Supplemental Training: At the franchisee's request or the franchisor's discretion, additional training may be offered. This can include advice and information on methods and procedures associated with the system, including marketing, advertising, management, and administration. Costs related to this additional training are borne by the franchisee.
  3. Conferences and Conventions: The franchisor may offer conferences and training courses related to the industry and the operation of the franchised business. Attendance at these events may be mandatory, and franchisees are typically responsible for associated costs.
  4. Ongoing Support and Evaluation: The franchisor provides periodic supervision, inspections, and evaluations of the franchisee's operations. This includes communication of new developments, techniques, and improvements in management, employee training, marketing, sales, and customer service.

Does

Spiffy

provides

territory

protection?

Spiffy franchisor provides territory protection for its franchisees. Franchisees receive a specific territory where the franchisor won't operate or license others to operate a competing Spiffy-branded business, except under certain programs like National Accounts.

The size of this territory is typically determined by population or geographic radius. Franchisees are restricted from operating outside their designated territory without franchisor's permission, ensuring exclusivity within their area.

Can a

Spiffy

franchise

be run as

a passive

investment?

The franchisor does not explicitly accommodate passive investment. The agreement focuses on the active participation and direct involvement of franchisees in the day-to-day operations of their businesses.

Franchisees must personally devote their full time and best efforts to managing and operating the franchise, ensuring high service standards and proper employee supervision. Franchisees handle the day-to-day operations, including staff management, service quality, and customer interactions.

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