Fix Auto
Fix Auto offers collision repair services specializing in auto body work. Known for quick repairs and customer satisfaction, Fix Auto operates nationwide with over 1,000 locations focusing on efficient damage restoration.
About Fix Auto
Fix Auto franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a conversion FIX AUTO ® collision repair shop ranges from $55,100 to $850,000. For a new (ground-up) collision repair shop, the range is from $169,700 to $3,090,000 [p.1].
What is the initial franchise fee?
The initial franchise fee is $10,000 [p.109]. This fee is fully earned by Franchisor upon the execution and delivery of the Agreement and is non-refundable [p.313].
What are the ongoing royalty and advertising fees?
The franchisee must make minimum royalty payments regardless of sales levels, as specified in [p.4]. For advertising fees, unless the fee remains unchanged from the prior year, the franchisor will annually notify the franchisee of the exact percentage of monthly Gross Sales to be paid as an Advertising Fee, which cannot exceed three quarters of one percent (0.75%) of Gross Sales or a maximum of Nine Hundred Fifty Dollars ($950) per month, unless a majority of franchisees in the DMA agree to a higher amount, according to [p.127].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement lasts for five (5) years [p.107]. You may have the option to renew this agreement for additional five-year terms, but this depends on several conditions including your compliance with the franchise agreement and any other agreements with the franchisor or its affiliates [p.107-108].
Can I sell or transfer my franchise, and what does that require?
You cannot sell or transfer your franchise without the franchisor's prior written approval [p.135]. The franchisor may place reasonable conditions on this approval and can refuse to approve a transfer for good cause, such as if it jeopardizes the economic viability of the franchise [p.137]. This includes transfers within an immediate family [p.135], but the franchisor may waive certain fees in such cases [p.135].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so. [p.5(c)]
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisee needs to ensure that at least one Guarantor satisfies the 'Guarantor Net Worth Threshold,' which is defined as the minimum net worth required by the franchisor, periodically modified by them. This requirement involves providing financial statements annually and allowing the franchisor to examine business records. However, specific liquid capital requirements are not detailed in these excerpts. [p.331]
Do I get an exclusive or protected territory?
No, you do not get an exclusive territory under the Development Agreement [p.62]. You will face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them. Additionally, your territorial rights are limited to a one-mile radius around the Approved Premises and do not provide exclusivity [p.105].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs for new franchisees [p.136]. Additionally, at its sole expense, the franchisee must conduct ongoing training programs for employees [p.117]. The franchisor also provides required support and services to franchisees under a management agreement with Driven Brands [p.51, p.19], though it may delegate some responsibilities to affiliates like Driven Brands Shared Services [p.51] while remaining accountable for fulfilling its obligations [p.19].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the disclosure document [p.84]. However, other than the specified financial performance representation, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to do so either orally or in writing [p.89].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain products; however, you must provide information about each site to the franchisor for assessment. Regarding supplies, while you may have to purchase or lease items from the franchisor or a limited group of suppliers designated by them, this is not mandatory and there's no explicit restriction on buying from other sources [p.3, p.48].