Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$46K - $77K
- Units as of 2021
Here’s what you need to know if you’re interested in opening a Smart Tires franchise.
Smart Tires was born out of the idea that people should not break the bank to buy new tires. Smart Tires was started in 2018 and began franchising in 2020. Appealing to online shoppers, at Smart Tires, customers can shop online and pay with their preferred payment method. Once an order is placed, Smart Tires sets up a time for installation with a local tire shop.
Why You May Want To Start a Smart Tires Franchise
Smart Tires is looking for franchisees that have experience in management and/or customer service. Franchisees should be results-oriented and have previous sales or marketing experience. However, everyone is welcome to see if they are a fit for the Smart Tires franchise.
Smart Tires franchisees may be given the opportunity to run the business as a part-time business, home-based unit, or even as an absentee owner. This may give you multiple roads to take on your way to becoming a Smart Tires franchisee.
Opening a Smart Tires franchise may offer a more predictable outcome than investing in a completely new brand that could struggle to thrive in an already crowded and competitive industry.
What Might Make a Smart Tires Franchise a Good Choice?
Smart Tires was started so that customers could buy tires without risking financial difficulties. The company offers customers payment structures so they can pay for their tires over time. This may allow customers to get the tires they need without sacrificing safety or their bank account taking a large hit. Since Smart Tires operates online, franchisees do not need a brick-and-mortar store to operate. Franchisees may then choose to work from home or a mobile office.
To be part of the Smart Tires team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Smart Tires Franchise
As you decide if opening a Smart Tires franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Smart Tires franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Before making any financial commitment or signing an agreement with Smart Tires, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Smart Tires franchising team questions.
If awarded a franchise, franchisees receive a great deal of support from the Smart Tires brand throughout the franchising process. In addition to pre-opening training, franchisees receive support through brand awareness, marketing, and research. Smart Tires franchisees may also receive hands-on training and continued support after their franchise location has opened.
About Smart Tires
- Franchising Since
- 2020 (2 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 3 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Smart Tires franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $46,450 - $77,400
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 20 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Smart Tires has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- As needed
- Ongoing Support
Online SupportField OperationsProprietary Software
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Smart Tires? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse more franchises that are similar to Smart Tires.
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