Risk Score
Pending analysis
Investment Range
$356,500 - $6,524,200
Franchise Fee
$2,500
Total US Locations
162
Business Summary
Bandag franchisees operate full-service tire support businesses that primarily serve commercial fleet customers. Bandag dealerships sell new and retreaded tires, which are retreaded using Bandag's proprietary methods and materials. They also provide related maintenance and support services.
Corporate History
The Bandag franchise system began offering retreading tire franchises in 1957 under the name Bandag, Incorporated. In 2007, Bandag, Incorporated merged with Bridgestone Americas, Inc. and converted into an Iowa limited liability company, adopting the name Bridgestone Bandag, LLC. As of 2008, Bridgestone Bandag, LLC became a direct subsidiary of Bridgestone Americas Tire Operations, LLC (BATO). Bridgestone Bandag, LLC continues to do business as Bandag, maintaining its legacy in tire retreading.
Financial Overview
Investment Range
$356,500 - $6,524,200
Franchise Fee (Low)
$2,500
Franchise Fee (High)
$2,500
Equipment Costs (Low)
$85,000
Equipment Costs (High)
$2,923,000
Working Capital
$1,207,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Maryland Addendum notes that the estimated initial investment for a Bandag franchisee, which can range up to $6,524,200, exceeds the guarantor's (Bridgestone Bandag Franchising, LLC) member's equity of $5,545,051 as of December 31, 2024. Due to the guarantor's financial condition, the Maryland Securities Commissioner has required a financial assurance, and initial fees and payments from franchisees will be deferred until Bandag completes its pre-opening obligations.
Financing Details
Bandag does not offer any direct or indirect financing to its franchisees. Additionally, Bandag does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
162
Franchised Units
160
Corporate Units
2
Avg Square Footage
12,000
Franchising Since
1957
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Bandag has no litigation history to report.
Bankruptcy History
Bandag has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Bandag franchise, franchisees must sign Bandag's then-current franchise agreement, which may have different terms, and pay a $1,000 renewal fee. Bandag may also require franchisees to renovate and upgrade their dealership, including all production and sales facilities, to meet the current operating standards.
Training & Support Program
Franchisor Assistance
Bandag provides comprehensive assistance to its franchisees. Before opening, Bandag offers education on establishing and operating the dealership, including mandatory training for plant personnel to become Certified Retread Technicians and Certified Repair Technicians. They also provide their proprietary System Manual and Product Specifications and Manufacturing Requirements Manual electronically, assist with the delivery and installation of Bandag-purchased equipment, and help contractors with equipment setup. After opening, Bandag continuously works to update and improve its retreading process, supports the franchise system through research and marketing, and offers advanced training and communication. Franchisees can receive optional supplemental and recertification training for Certified Retreading Technician status. Bandag also provides opportunities to participate in programs like the National Account Program, where franchisees can subcontract services to fleet operators, and offers information management systems through the BASys Suite. Additionally, Bandag offers programs such as Q-Fund and the Bandag Smart Resource Program, which provide credits for tread rubber purchases that can be used for capital improvements, IT systems, local marketing, or casing purchases. Bandag offers advice on dealership management, equipment operation, product production, customer service, advertising, sales, local marketing, and cost control techniques. Additionally, Bandag fosters communication and strategy development through the Bandag Alliance Council, comprised of both Bandag and franchisee representatives.
Initial Training Hours
48
Training Location
BCS Education Center in Muscatine, IA, and online
Ongoing Support
Bandag provides its franchisees with continuous support to keep the retreading process competitive, including research, marketing, and advanced training. Franchisees can receive optional supplemental and recertification training for Certified Retreading Technician status. Bandag also offers various programs, such as the National Account Program for subcontracting services to fleet operators, the BASys Suite for information management, and incentive programs like Q-Fund and the Bandag Smart Resource Program which provide credits for tread rubber purchases that can be used for capital improvements, IT systems, local marketing, or casing purchases. Bandag offers advice on dealership management, equipment operation, product production, customer service, advertising, sales, local marketing, and cost control techniques. Additionally, Bandag fosters communication and strategy development through the Bandag Alliance Council, comprised of both Bandag and franchisee representatives.
Franchise Requirements
Ideal Candidate Profile
Bandag seeks individuals who are committed to managing a full-service tire support dealership business on a continuous, full-time basis, either personally or through a qualified manager. The ideal candidate would serve commercial fleet customers by selling new and retreaded tires and providing related maintenance and support services. The manager must successfully complete Bandag's training programs.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Bandag franchise territories are typically defined as a minimum of one county, but can include multiple counties. The territory is usually specified by county name or names.
Staffing Notes
Bandag requires that all plant personnel at each Retread Facility successfully complete mandatory training programs before the dealership begins production. A Certified Retreading Technician must be present during all production hours, and all repair technicians must complete Certified Repair Training. The franchisee or their designated manager must dedicate full-time attention to managing the dealership.