Risk Score
Pending analysis
Investment Range
$189,493 - $238,253
Franchise Fee
$35,000
Min Cash Required
$10,595
Total US Locations
32
Business Summary
Garage Kings operates businesses specializing in the professional installation of garage floor coating, concrete resurfacing, commercial epoxy coating, and decorative epoxy flooring. These businesses also offer and sell related services such as garage storage solutions, including cabinets, slatwall, and overhead storage, as well as maintenance, repair, and replacement of garage door systems. Garage Kings businesses primarily serve residential homeowners. Franchisees typically operate from an approved office location, which can be a personal residence or commercial space, and conduct most of their work using a specially equipped truck and/or trailer to transport materials and equipment to customer sites.
Corporate History
Garage Kings' foundational system was started in October 2013 by its predecessor, Beautiful Surfaces Inc., a Canadian corporation, which was legally formed in June 2015. Beautiful Surfaces began offering licenses for its concrete floor coating systems in the United States in May 2017. In January 2019, Garagekings.com Inc. was formed to specifically offer franchises in the United States, taking over from Beautiful Surfaces. In July 2020, GK USA Parent LLC acquired the assets, including intellectual property and existing agreements, from these predecessors. The current franchisor entity, GK USA Franchise, LLC, was formed in Delaware in January 2021 and began offering franchises in July 2020.
Financial Overview
Investment Range
$189,493 - $238,253
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Minimum Cash Required
$10,595
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$45,548
Equipment Costs (High)
$55,548
Working Capital
$18,095
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Garage Kings show that the company has incurred net losses in recent years: $984,968 in 2023, $1,461,427 in 2022, and $235,378 in 2021. Additionally, as of December 31, 2023, Garage Kings had a working capital deficit of $1,592,330. This financial condition raises questions about Garage Kings' ability to provide services and support to its franchisees. Management, however, believes the company can continue operations through April 2025 due to historical financial support and pledges from its member to provide necessary working capital.
Financing Details
Garage Kings does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of the franchisee.
Performance Metrics
Total US Locations
32
Franchised Units
27
Corporate Units
5
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
Garage Kings' predecessors were involved in two administrative actions. In June 2019, the Minnesota Department of Commerce issued a Consent Order because Beautiful Surfaces, a predecessor, offered and sold a license in Minnesota without registering the offer. Beautiful Surfaces paid a $1,000 penalty. Similarly, in September 2019, the Washington Department of Financial Institutions Securities Division issued a Consent Order for Beautiful Surfaces' unregistered offer and sale of a license in Washington, resulting in a $2,281.25 penalty. In both cases, the predecessors neither admitted nor denied the violations. Garage Kings has no other litigation to report.
Bankruptcy History
Garage Kings has no bankruptcy information to report for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their agreement, Garage Kings franchisees must be in good standing, having complied with all obligations and terms of their franchise agreement and other agreements with the franchisor or its affiliates. They must also be current on all financial payments. Franchisees need to update their vehicle wraps for the GK Work Vehicle and GK Storage Trailer to meet current standards, if required by Garage Kings. A renewal fee, equal to 10% of the then-current initial franchise fee, must be paid. Franchisees or their designated Operating Principal, GK Business Manager, and other designated staff must attend and successfully complete any required training. Additionally, they must be able to renew their lease for their office location, work vehicle, or storage trailer, or secure an approved substitute location/vehicle without business interruption, and sign a general release of claims against Garage Kings and its affiliates. The new renewal franchise agreement may have materially different terms and conditions, though the designated territory boundaries will remain the same, and the royalty fee will not exceed the rate for similarly situated renewing franchisees.
Training & Support Program
Franchisor Assistance
Garage Kings provides various forms of assistance to its franchisees. Before opening, Garage Kings helps with territory designation, initial training, and setting up electronic accounting and management information systems. They provide access to an electronic confidential operating manual, furnish specifications for required products and services, and sell proprietary products and equipment. Garage Kings also approves or disapproves proposed advertising materials and may prescribe retail prices for products and services. Once open, ongoing support includes advice and written materials (such as manual updates), optional additional on-site training (for a fee), and mandatory training programs, seminars, and franchisee meetings. Garage Kings administers a Brand Development Fund for advertising, indemnifies franchisees against certain trademark claims, and controls all social media initiatives, sometimes conducting national campaigns on behalf of franchisees. They may also offer field support services through on-site visits, remote sessions, and telephonic or electronic communication, with franchisees able to contact headquarters for consultation.
Initial Training Hours
139
Training Location
Hybrid: Online and in-person at New Carlisle, OH and Winston-Salem, NC
Ongoing Support
After opening, Garage Kings provides ongoing support through advice and written materials, including updates to their operating manual, concerning business management and operations, new developments, and product installations. Franchisees are required to attend periodic or annual training programs, seminars, and meetings, which can be mandatory for the franchisee, operating principal, GK Business Manager, and other personnel, and may incur fees plus travel expenses. Garage Kings also administers the Brand Development Fund, which is used for advertising and marketing activities to benefit the entire system. Field support services are offered through on-site visits, off-site sessions, and various communication modes. Franchisees can also contact headquarters for consultation and guidance on business operations.
Franchise Requirements
Ideal Candidate Profile
Garage Kings seeks individuals or entities to serve as franchisees. For entity franchisees, an Operating Principal must be designated, who either holds a majority interest or is otherwise approved by Garage Kings, and will possess complete decision-making authority and act on the franchisee's behalf. All franchisees, or their Operating Principal, must personally supervise the business operations and dedicate the necessary time and best efforts for effective management. If an individual franchisee, they may also serve as the GK Business Manager. If a separate GK Business Manager is hired, they must be approved by Garage Kings, demonstrate an aptitude for the business, and meet educational, managerial, and business standards. All key personnel, including the franchisee (if an individual), Operating Principal, GK Business Manager, and installers, must successfully complete Garage Kings' initial training program. Candidates should also be financially responsible, as personal guarantees are required from all owners and, notably, their spouses, highlighting the commitment to financial obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
6
Territory Size Requirements
Garage Kings territories are defined by zip codes and typically include approximately 100,000 single-family owner-occupied homes. If a franchisee purchases multiple contiguous territories, each will generally have a similar number of single-family owner-occupied homes.
Staffing Notes
Garage Kings requires the franchisee (or their Operating Principal, if a business entity) to personally supervise the business and devote necessary time and best efforts for its effective operation. An Operating Principal is designated to have complete decision-making authority. The franchisee must also designate a GK Business Manager responsible for day-to-day management and on-premises supervision. Initial training is provided for the franchisee (or Operating Principal), GK Business Manager, salespeople, and installers, implying these roles are essential to the business structure. If a GK Business Manager or installer needs replacement, the new personnel must attend and complete the initial training program successfully. Garage Kings provides assistance in employee recruiting for the initial setup, but does not directly contribute to hiring.