Risk Score
Pending analysis
Investment Range
$93,600 - $226,000
Franchise Fee
$31,500
Total US Locations
104
Business Summary
GarageExperts operates a primarily mobile business offering customized residential garage floor coating and storage solutions. The brand also provides industrial floor coatings for retail stores and commercial buildings, all delivered using the GarageExperts system and standards.
Corporate History
GarageExperts International LLC was originally formed as a California limited liability company on September 22, 2008, before converting to a Delaware limited liability company on March 31, 2023. GarageExperts has been offering franchises since December 12, 2008, and has not operated any company-owned locations or offered franchises in other lines of business. The company does not have any predecessors.
Financial Overview
Investment Range
$93,600 - $226,000
Franchise Fee (Low)
$31,500
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
1.5%
Equipment Costs (Low)
$30,000
Equipment Costs (High)
$35,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
GarageExperts' financial statements show unqualified audit opinions for 2024, 2023, and 2022, indicating good financial health. In its notes, GarageExperts mentions that for franchise agreements dated prior to April 2021, a "Royalty Holiday" condition exists where no royalty fee would be charged if certain sales thresholds are not met in the first three years, provided the franchisee is compliant. However, GarageExperts believes it is unlikely that this Royalty Holiday will occur for any current franchisees. Additionally, GarageExperts may face ordinary course litigation, but management does not expect it to materially affect the company's financial position or results.
Financing Details
GarageExperts does not offer any direct financing to its franchisees and does not guarantee any notes, leases, or obligations. However, GarageExperts can refer franchisees to Guidant Financial for financing options. Guidant Financial offers financing for real estate, construction, equipment, inventory, working capital, and debt refinancing through Rollover For Business Start-Up and SBA loans. Down payments vary from 0% for Rollover For Business Start-Up to 10-30% for SBA loans. Loan amounts can be unlimited for Rollover For Business Start-Up or up to $5M-$10M for SBA loans. Interest rates and repayment periods (10-25 years for SBA) vary. Guidant Financial pays GarageExperts a $1,000 referral fee for successful referrals.
Performance Metrics
Total US Locations
104
Franchised Units
104
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
GarageExperts has one disclosed litigation case. A lawsuit was filed on December 27, 2024, in a Texas District Court, against GarageExperts International LLC, a former franchisee, and other individuals. The plaintiff, a former member of a former GarageExperts franchisee, alleges violations of the Texas Business Organization Code, common law fraud, conversion, tortious interference with business relationships, breach of contract, unjust enrichment, and civil conspiracy. The plaintiff is seeking unspecified damages, exemplary damages, and attorneys' fees. As of the FDD's issuance date, GarageExperts had not yet been served with the lawsuit.
Bankruptcy History
GarageExperts has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Conditions
To renew their GarageExperts franchise agreement, franchisees must notify GarageExperts in writing between 9 and 12 months before their current agreement expires. They must have fully complied with all obligations under their initial franchise agreement, the manuals, and all other agreements with GarageExperts or its affiliates and suppliers. Franchisees must also meet GarageExperts' then-current qualification and training requirements and not have committed two or more material breaches in any 12-month period. Additionally, they are required to sign a general release, sign a new franchise agreement which may have materially different terms and conditions, and pay a renewal fee.
Training & Support Program
Franchisor Assistance
GarageExperts provides extensive support both before and after a franchisee opens their business. Before opening, GarageExperts offers an operations manual, guidelines for vehicles, design assistance for vehicle wraps, and initial training. They also provide criteria for site selection and must approve the franchisee's chosen office location. After opening, GarageExperts offers ongoing advice and assistance from its headquarters staff, business coaches, and training staff for technical and sales support, accessible via phone, email, Zoom, or Teams. Franchisees receive a listing on the GarageExperts website, access to customer management and marketing software, Office 365, trackable phone numbers, and an intranet site called "Franchise Central" for technical information and support. GarageExperts also sells branded marketing materials, designates authorized products and services, reviews and approves local advertising, and may assist with pricing strategies.
Initial Training Hours
62
Training Location
Corporate headquarters in Grapevine, Texas
Ongoing Support
After opening, GarageExperts franchisees receive ongoing advice and assistance from headquarters staff, business coaches, and training staff for technical and sales support, available via Zoom, Teams, telephone, and email. GarageExperts periodically designates authorized products and services and maintains an intranet site, "Franchise Central," for technical information and support. They also review and approve local advertising and may offer assistance with pricing. Franchisees can attend refresher training at no additional charge and may be required to attend additional mandatory training programs or an annual convention.
Franchise Requirements
Ideal Candidate Profile
GarageExperts seeks franchisees or designated General Managers who are committed to full-time operation of their business, dedicating their best efforts solely to the GarageExperts franchise. Ideal candidates must meet GarageExperts' educational, experience, financial, and other reasonable criteria, and successfully complete the initial training program. The company also highlights that successful franchisees often hire a full-time salesperson between 6 and 9 months of operation, indicating a focus on sales-driven growth.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
GarageExperts defines its franchise territories based on the number of "Qualified Households," which are "Owner Occupied Units" according to U.S. Census Bureau data or other reliable sources. A Standard Territory typically contains approximately 75,000 to 100,000 Qualified Households, while a Micro-Territory contains about 25,000 to 74,999 Qualified Households. The exact geographic boundaries are determined by GarageExperts and may be defined by streets, natural boundaries, zip codes, or specific cities, counties, or states.
Staffing Notes
GarageExperts requires franchisees to employ and train the necessary number of employees and installers to adequately operate the business, ensuring all staff are trained to GarageExperts' satisfaction according to the operations manuals. The Operations Manual also recommends, as a best practice, hiring a full-time salesperson between 6 and 9 months of operation to maintain a full installation pipeline.