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Tread Connection is a leading car franchise in the wheel and tire service industry. This car franchise prides itself on unmatched customer service and convenience. As an innovative franchise within the industry, Tread Connection has completely changed the way customers shop for tires. Via their mobile app, customers can easily choose between hundreds of tire combinations from the comfort of their own home. A Tread Connection van will then drive out in a timely manner to provide the tire-change service on site.
In the four years that the Tread Connection franchise has been in service, countless entrepreneurs have signed on to join the team. There are currently over 500 Tread Connection franchisees operating their own vans across the U.S. with more on the way. Learn more about this mobile car franchise and why entrepreneurs believe Tread Connection is a solid bet and disruptor in an already established industry.
The Tread Connection Franchise Story
Two brothers from Charlotte, Paul and Alex Hosage, founded Tread Connection in 2016. Before coming up with the idea of the first Tread Connection franchise, Paul had already spent years working in the automotive industry, all the while obtaining an expert level of knowledge for all things automotive. Paul held multiple positions at a large-scale car franchise before rising to the position of area manager in the Charlotte, NC region. It was in these formative years when Paul managed 25 car franchises, that he saw a way to innovate the industry.
Paul Hosage realized that customers largely hated going to the auto repair shop, regardless of how nice the waiting areas were. Although many car franchises had sunk millions into redecorating their shops, adding free television, snacks, and coffee, the average Joe would much rather be at home or at work. This discontent with waiting at the shop largely came from the typical two hour time period it takes to service one car.
Furthermore, Hosage realized that by using a mobile-service format, a car franchise could save millions on overhead costs including rent and property taxes. Paul and Alex founded the first Tread Connection franchise in 2016 after overwhelming demand from customers for a convenient, affordable, and completely mobile auto repair franchise.
From motorcycles to tractor trailers, Tread Connection franchises will service just about every motor vehicle in existence. Tread Connection technicians are also equipped to service RVs and boating trailers as well. Unlike other car franchises, Tread Connection is available to service corporate delivery vehicles as well to ensure your business runs as smoothly as possible. All Tread Connection franchisees are trained to inspect all aspects of the tire with the Grove Glove, a laser tread measurement device that gives the most accurate tread reading.
Why Do Automotive Entrepreneurs Flock To the Tread Connection Franchise?
There are many reasons why car enthusiasts with a desire to open a car franchise are beginning to view Tread Connection as a viable option. Here are the top five.
1. A Truly Mobile Business
As a mobile franchise, Tread Connection franchisees save literal thousands on overhead costs. Unlike more traditional car franchises that require a large shop, monitors, a waiting area, and heavy-duty equipment, Tread Connection franchisees simply need a few select pieces of equipment and a van. As such, the cost to open a Tread Connection franchise is significantly less than most other car franchises.
2. Expert Support
Although Tread Connection has only been around for four years, the managerial team has decades worth of experience within the industry. The Hosage brothers and their executive team have combined for decades worth of valuable experience. Franchisees can rest assured knowing they are supported by industry veterans.
3. A Never-Ending Customer Base
According to Statista, there are over 270 million cars on the road in the U.S. With the average car lasting an average of 12 years on the road, auto repairs are in high demand. Car franchises, especially a mobile car franchise like Tread Connection, are essentially recession proof. Regardless of economic conditions, customers still need to drive. The large customer-base in the auto repair industry means that Tread Connection franchisees can constantly rely on healthy revenue.
4. A Winning Formula
While Tread Connection is one of many competitors in the car franchise industry, this . car franchise boasts great growth numbers that all prospective franchisees will find interesting. In just 4 years, Tread Connection has grown to 500 mobile franchisees. Tread Connection’s relatively low initial franchise fee and low startup costs mean that franchisees do not need a high net worth to own this car franchise.
5. Valuable Brand Recognition
One of the greatest benefits to owning a franchise is the built-in brand recognition. Although Tread Connection has been around for 4 years, the franchise has already seen amazing growth within the car franchise industry. Tread Connection provides a viable alternative to customers who do not want to wait in a garage all day. As one of the first mobile repair shops, Tread Connection has already established itself as a major player.
Initial Franchise Fee: $37,500
Upon execution of the franchise agreement, Tread Connection franchisees are required to pay the full initial franchise fee of $37,500. This fee is relatively low when compared to more established car franchises like Midas and Meineke.
Royalty Fee: 6% of Gross Revenue
Franchisees are required to pay a royalty of 6% of gross revenue. The royalty payment is required every Monday and is based on the last week’s sales. Gross revenue is derived from all sales and services provided by the Tread Connection franchisee excluding federal and state taxes.
Estimated Initial Investment Costs: $164,200 – $203,400
|Name of Fee||Low||High|
|Initial Franchise Fee/Development Fee||$37,500||$37,500|
|Ford Transit Van and Equipment Package||$115,000||$135,000|
|Computer Hardware and Software||$1,500||$3,000|
|Licensing, Accounting, & Legal Fees||$2,000||$3,000|
|Grand Opening Advertising||$1,000||$5,000|
Average Revenue Per Location: $192,072 – $495,312
The revenue range varies for each Tread Connection franchise location. Compared to its startup cost and initial franchise fee, owning a Tread Connection franchise can be a great investment. Be sure to analyze their FDD with a legal professional before making your decision.
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The Tread Connection franchise is an innovator within the car franchise space. Only four years old, Tread Connection has already enjoyed untapped success. Franchisees will especially love that this successful car franchise is relatively inexpensive due to low overhead costs. If you are considering opening up a car franchise, it may be time to research this mobile repair franchise and find out why it has grown so fast over the last four years.