Tommy's Express Car Wash logo

Tommy's Express Car Wash Franchise

Audited Financials
AutomotiveEst. 2015Holland, MI
www.tommys-express.com

Risk Score

Pending analysis

Investment Range

$4,976,759 - $8,612,378

Franchise Fee

$30,000

Min Cash Required

$100,000

Total US Locations

216

Business Summary

Tommy's Express operates ultra-modern car washes under the brand name "Tommy's Express", offering car cleaning, waxing, polishing, and detailing services. The car washes feature a distinctive building design with an acrylic roof and unique entrance, along with innovative automated wash systems, conveyor belts, and specialized control centers designed to reduce labor needs. Tommy's Express locations also provide interior vacuum areas and sell interior detailing kits and other related products.

Corporate History

Tommy's Express LLC was formed in Michigan on September 16, 2015, building on the car wash systems experience of its affiliate, VQ, Inc. dba Tommy Car Wash Systems, which was established in 1997. Tommy's Express LLC began offering franchises in September 2016. In May 2024, Tommy Enterprises, Inc., another Michigan corporation, was formed as the parent company of Tommy's Express LLC.

Financial Overview

Investment Range

$4,976,759 - $8,612,378

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$50,000

Minimum Cash Required

$100,000

Royalty %

4%

Marketing %

1%

Equipment Costs (Low)

$4,666,546

Equipment Costs (High)

$7,224,878

Working Capital

$300,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Tommy's Express LLC demonstrates strong financial health with positive and increasing net income in both 2023 and 2024. The company maintains healthy working capital, with current assets exceeding current liabilities. An independent auditor has issued an unqualified opinion on its financial statements, indicating that they are presented fairly in all material respects. No concerns regarding the company's ability to continue as a going concern were noted by the auditors.

Financing Details

Tommy's Express LLC does not offer any direct or indirect financing arrangements to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for its franchisees.

Performance Metrics

Total US Locations

216

Franchised Units

206

Corporate Units

10

Franchising Since

2016

Agreement Terms

Initial Term

20 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise agreement, Tommy's Express LLC franchisees must provide written notice between six and nine months before the current term expires. They must be in good standing, current on all payments, and, if required by the franchisor, renovate or upgrade their Tommy's Business to meet current brand standards. Franchisees are also required to sign a general release of claims and execute the franchisor's then-current franchise agreement, in addition to paying a renewal fee.

Training & Support Program

Franchisor Assistance

Tommy's Express LLC provides comprehensive support to its franchisees. Before opening, the franchisor assists with site selection and approval, provides design and equipment packages (which include architectural drawings and construction management services from an affiliate), and furnishes lists of approved suppliers and proprietary cleaning solutions. Franchisees also receive access to the Franchise Operations Manual and mandatory initial training for up to three individuals at the corporate headquarters and an operating location. Ongoing assistance includes guidance on operations, pricing, administration, and problem-solving through various communications like correspondence, field visits, and telephone calls. The franchisor continuously updates System standards and manages a Brand Development Fund for regional and national advertising. Additional on-site training and participation in mandatory franchisee meetings are also offered, though some may incur extra fees. The franchisor also indemnifies franchisees for proper use of its proprietary marks.

Initial Training Hours

240

Training Location

Corporate headquarters in Holland, MI and at an operating Tommy's Express business

Ongoing Support

Tommy's Express LLC provides continuous operational guidance and assistance to its franchisees through periodic correspondence, field visits, and telephone communications. This support covers various topics such as product and service offerings, operational improvements, pricing strategies, and administrative procedures. The franchisor regularly issues, modifies, and supplements System standards to maintain uniformity. Franchisees contribute to and benefit from a Brand Development Fund for regional and national marketing. Additionally, Tommy's Express LLC offers optional on-site training and conducts mandatory refresher training programs, seminars, and franchisee meetings, which the Onsite Manager or a Controlling Principal must attend.

Franchise Requirements

Ideal Candidate Profile

Tommy's Express LLC looks for franchisees who can either directly manage their car wash business full-time or employ a fully trained onsite manager. If the owner is not the onsite manager, a controlling principal must attend a three-day owner orientation. Candidates must demonstrate the financial capacity to make a substantial investment. The franchisor expects high standards of honesty, integrity, fair dealing, and ethical conduct, and requires compliance with all laws and regulations. Franchisees or their managers must satisfactorily complete the mandatory training program.

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

Territory Size Requirements

Tommy's Express LLC grants franchisees a designated territory whose size is determined by a radius from the approved business location. The specific radius is not fixed in the FDD but is dependent on the franchisor's analysis of the geographic region. Details will be outlined in an exhibit to the Franchise Agreement.

Staffing Notes

Tommy's Express Car Wash locations must always be under the direct, on-premises supervision of an Onsite Manager who has satisfactorily completed Tommy's training program. Franchisees must maintain a competent, conscientious, trained staff, including a fully trained manager. Tommy's imposes no limitations as to who a franchisee may hire as the manager, except that the franchisee must comply with all applicable laws and must not harm the goodwill associated with the System and the Proprietary Marks. If the franchisee will not act as the manager, they must still attend an abbreviated training program and ensure the Tommy's Express location is operated according to Tommy's requirements and specifications. Tommy's has the right to approve the manager after training. The manager and other key employees may be required to sign a Confidentiality and Non-Competition Agreement. Franchisees are solely responsible for hiring and training all employees, their employment terms, compensation, and proper training. Franchisees must ensure each employee signs Tommy's Confidentiality and Non-Competition Agreement. For a period of three years after termination or expiration of the Franchise Agreement, or transfer, franchisees or transferring owners cannot recruit, solicit, or hire any person who is, or was within the previous six months, employed by Tommy's Express or another franchisee without prior written consent. For Tommy's Express employees, consent is at Tommy's sole discretion and contingent on payment equal to six to thirty-six months of the employee's wages. If the franchisee is a multi-unit developer, Tommy's may require them to employ an area manager to supervise all Tommy's Express locations, in addition to individual managers for each location.