Caliber Car Wash Surpasses 50 Locations

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Caliber Car Wash Surpasses 50 Locations (Read More)

MR MIYAGI: Caliber Car Wash Surpasses 50 Locations, Driven by Strong Customer Value Proposition

• Strategic Focus: Caliber's growth is fueled by its unlimited wash membership program and regional density-focused greenfield development strategy.

• Percheron Partnership: Backed by Percheron Capital, Caliber has tripled its open locations, strengthened its membership program, and expanded into high-quality markets.

• Commitment to Service: Caliber attributes its success to its dedicated team members who prioritize exceptional service, outstanding quality, and customer convenience.

• Industry-Leading Expansion: With a substantial greenfield development pipeline, Caliber aims to extend its carwash experience to even more customers.

Top 50 Car Wash Operators in the US List 

🧠 EDITOR’S THOUGHTS

Car Wash Craze: As many of you in the industry know, the express car wash market has been wild af in recent years. Here’s why:

• Profitability - Express car washes boast notably higher profit margins compared to other business models. They often yield profit margins ranging from 40 percent to an impressive 60 percent.

• Subscription Models - Weather and seasonality pose significant risks for car wash owners, influencing consumer behavior. Monthly subscription models mitigate these risks by offering customers unlimited washes, allowing them to clean their vehicles at their convenience, regardless of weather conditions.

• Sale Leasebacks - Among the attractive elements drawing equity groups to invest in express car wash businesses are sale-leaseback transactions. Substantial car wash operators capitalize on their strong corporate guarantee, recovering a considerable portion of their business investment by executing long-term leases and subsequently selling the real estate to private investors. This strategy enables these operators to leverage their robust corporate backing and extract value from their real estate assets.

• Lease Structures - They typically secure terms of 15 to 20 years, coupled with annual rent increments, offering a safeguard against inflation. Often, these car washes are priced below the costs required to replace both the building and the business. Express wash development typically incurs expenses ranging from $3 million to $5 million.

• Tax Benefits - The Tax Cuts and Jobs Act, particularly Section 179, grants car wash proprietors the ability to deduct all initial-year expenses for new equipment. Section 179 also accelerates depreciation over a 15-year period, a significant reduction from the previous 30-year timeframe. The only other net lease properties rivaling this depreciation advantage are convenience stores with attached gas stations.

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NET LEASE NUGGIES

• Big Dan's Car Wash opens first location in Orlando market with the grand opening on Dec. 14. Located at 6107 S. Orange Blossom Trail, Big Dan's plans to open two more sites in Orlando in 2024 and five sites in 2025. The car wash provides numerous amenities, such as air fresheners, vacuums, and mat washing stations. (Read More)

• Mammoth Holdings Acquires Today's Car Wash in Texas Mammoth Holdings LLC has announced the acquisition of Today's Car Wash, a developer and operator of express conveyor car washes in Killeen, Texas. This acquisition is part of Mammoth's "drive-to-five" strategy to reach 500 sites across the US, with plans for further growth in the Texas market. Mammoth CEO Dave Hoffmann expressed excitement about the valuable expertise brought in by Tyler and Lisa Furney, the owners of Today's Car Wash, and the potential for significant investment in new stores. (Read More)

• Pep Boys transitions to automotive services in Puerto Rico, leasing retail locations to AutoZone. Pep Boys CEO, Scott Collette, states that this move solidifies their position as a leading auto repair provider. The conversion allows for investment in customer needs on the island and potential job opportunities for retail team members at AutoZone. AutoZone's CEO, Bill Rhodes, expresses excitement about expanding their presence in Puerto Rico and prioritizing customer satisfaction. AutoZone, with over 7,000 locations, offers commercial sales programs and sells automotive products and accessories. (Read More)

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