Risk Score
Pending analysis
Investment Range
$228,200 - $2,913,450
Franchise Fee
$13,950
Total US Locations
107
Business Summary
Brake Masters operates brake repair and service stores that also offer lube, oil, and filter services. These stores provide complete repair, replacement, and maintenance of automotive brake systems, along with other automotive repair services if approved by Brake Masters.
Corporate History
Brake Masters Systems, Inc. was incorporated in Arizona in December 1990 and began operations in December 1991. The Brake Masters brand itself started earlier, with an affiliate, Auto Brakes, Inc., opening the first Brake Masters store in 1983. Brake Masters Systems, Inc. started offering Brake Masters franchises in 1991 and has focused solely on this business. Although Brake Masters Systems, Inc. has never operated its own repair store, its affiliates have opened numerous locations. One former affiliate, Brake Warehouse, LLC, which sold products to franchisees, closed in 2016, and another affiliate, Heights Properties, LLP, leases real estate to some franchisees.
Financial Overview
Investment Range
$228,200 - $2,913,450
Franchise Fee (Low)
$13,950
Franchise Fee (High)
$22,950
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$80,000
Equipment Costs (High)
$200,000
Working Capital
$50,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Brake Masters has received an unqualified audit opinion for its financial statements, indicating no significant concerns about its overall financial position. The company maintains substantial cash balances, although a portion of these are uninsured. Additionally, a significant amount of restricted cash is held for advertising and support activities for the franchise system.
Financing Details
Brake Masters does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
107
Franchised Units
27
Corporate Units
80
Avg Square Footage
3,750
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Brake Masters has no litigation, arbitration, or administrative proceedings to disclose.
Bankruptcy History
Brake Masters has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Brake Masters does not offer an automatic right or obligation to renew a franchise agreement. If both Brake Masters and a franchisee agree to a renewal at the end of the initial term, the franchisee may be required to sign a new franchise agreement with terms and conditions that could be significantly different from their original agreement.
Training & Support Program
Franchisor Assistance
Brake Masters provides comprehensive assistance to its franchisees, starting before the store opens. This includes designating site selection boundaries, reviewing proposed sites, and offering guidelines for store design, layout, equipment, tools, and supplies. Brake Masters also reviews construction plans, inspects the business, provides initial training, and loans operations manuals. The franchisor sets up and installs its proprietary software and offers initial training on its use. After opening, Brake Masters provides one week of on-site assistance within the first two months, ongoing updates to the manuals, and telephone advice for operational issues. It administers advertising funds, offers software support, and reviews franchisee advertising. Brake Masters also provides initial training for new store managers and inspects stores, operations, and records to ensure compliance with brand standards. For multi-unit developers, initial training is free only for the first store.
Initial Training Hours
400
Training Location
Tucson, Arizona; Albuquerque, New Mexico; Sacramento, California; or Los Angeles County, California
Ongoing Support
Brake Masters provides ongoing support to its franchisees after opening, including one week of on-site assistance within the first two months of operation. Franchisees receive updates to the operations manuals, software support, and telephone advice for operational issues at no charge. Brake Masters also administers advertising funds and reviews franchisee-submitted advertising. Additionally, Brake Masters may offer future mandatory or optional training programs on automotive technology, customer service, and sales, which may be held up to twice a year in Tucson, Arizona or Los Angeles County, California, for which tuition may be charged.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staff Count
5
Territory Size Requirements
Brake Masters franchisees must select a site within a designated geographic area, typically at least 3 square miles, delineated by political boundaries, streets, or highways, considering population and traffic patterns. Once a site is approved, Brake Masters generally prohibits other Brake Masters stores within 3 miles of the franchisee's location. If the county population is less than 30,000, the prohibition extends county-wide until the population reaches that threshold. County population is determined by the 'Business Control Atlas'.
Staffing Notes
Brake Masters recommends that franchisees are personally and actively involved in the day-to-day operations. If not, the business must be directly supervised by a designated operations manager who has successfully completed the Brake Masters training program and signed confidentiality and non-competition agreements. This manager does not need an ownership interest. Franchisees are responsible for ensuring a sufficient number of competent and trained employees are always on staff, dressed according to brand standards. Initial training for the first store's manager is provided free, but additional managers require a $1,000 fee for training. Typical operations budgets include salaries for at least four employees, not including the owner or manager's salary.