Ziebart
Ziebart offers vehicle appearance and protection services including coatings, detailing, window treatments, and accessory installations. Known for enhancing car aesthetics and protecting vehicles from damage, Ziebart operates in the automotive detailing and protection services industry.
About Ziebart
Ziebart International Corporation is a privately owned corporation based in Troy, Michigan, and is the worldwide franchisor of the Ziebart brand of automotive aftermarket stores.
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Ziebart franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment for opening a Ziebart® franchise ranges from $209,000 to $379,000. This amount includes various startup expenses and funds for additional inventory but excludes costs associated with opening additional locations under a Development Agreement [p.1].
What is the initial franchise fee?
The initial franchise fee is $45,000 and must be paid in full before attending any training. It is a one-time payment made to Ziebart at the time of signing the franchise agreement [p.14]. This fee is uniformly charged to all new ZIEBART® franchisees and is deemed fully earned and non-refundable upon signing the agreement [p.26].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 8% of gross sales [p.142]. The advertising fee is part of the total royalties and advertising fees charged by the company [p.252], but specific details about its amount are not provided in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 10 years, with an option to renew or transfer the franchise agreement to a new or existing franchisee [p.249]. You have the option to renew your agreement upon its expiration, but this renewal is subject to certain conditions and requirements as outlined in the FDD [p.198].
Can I sell or transfer my franchise, and what does that require?
The FDD indicates that you cannot sell products or services from a location other than your Ziebart® franchise without approval [p.55]. Additionally, the franchisor can refuse to permit a transfer of ownership of the franchise except for good cause, which is defined to include various factors but is not limited to those explicitly stated [p.158, p.g].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific requirements for a franchisee’s net worth or liquid capital needed to qualify as a franchisee. However, it does mention that if the franchisor's financial statements are un-audited and show a net worth of less than $100,000.00, the franchisee may request certain protections [p.6].
Do I get an exclusive or protected territory?
No exclusive territory is provided; however, new franchisees receive a ten-mile radius protected area for three years from the date of the Agreement. Multi-unit franchisees may have protected areas during their development period, but these are subject to meeting certain conditions and can vary based on various factors. [p.81, p.37, p.46, p.130]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training on the System, System guidelines, and operational and brand standards [p.42]. Prior to opening, they also offer a training program covering product/service characteristics, sales techniques, and business operations at no additional cost, though you must cover travel, food, and lodging expenses for your team during this period [p.93]. For independent contractors, the franchisor does not provide specific training or assistance; it is the franchisee's responsibility to train their own staff in day-to-day operations [p.42, p.93].
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 shares historical average and median gross sales along with certain key performance indicators for specific franchised stores that meet certain criteria [p.63]. However, they do not make representations about a franchisee's future financial performance or past performance of company-owned or franchised stores, except when providing records of an existing store being considered for purchase [p.65].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale only the services and products approved by the franchisor in the Manual and Addenda B(1) and B(2). You may not offer any other services or products without written approval. As for supplies, you may have to purchase items from the franchisor or a limited group of suppliers they designate, which could be more expensive than purchasing them independently [p.3]. Additionally, you must acquire all inventory items mandated as part of the Start-up Package before commencing operations and pay for these purchases and shipping costs [p.82].