Extramile is a convenience store franchise offering a wide range of products such as snacks, drinks, and lottery tickets. The franchise is known for its customer service and competitive pricing.
Key Insights
- Extramile began as a small operation focused on providing convenient and high-quality car maintenance services to a local community, steadily growing its footprint through a commitment to customer satisfaction and reliable solutions. The business has since evolved into a recognized name in the automotive service sector, expanding its reach and service offerings.
- The franchise operates a network of automotive service centers that offer a comprehensive range of maintenance and repair solutions for vehicles. These centers are designed for efficiency and customer convenience, providing services from routine oil changes to more complex mechanical work, all delivered by trained professionals.
- The automotive aftermarket industry is characterized by consistent demand driven by the large number of vehicles in circulation. This sector encompasses repair, maintenance, parts, and accessories, providing a stable environment for businesses offering essential vehicle care and extending the lifespan of automobiles.
Franchise Fee and Costs to Open
Exploring the financial picture of Extramile gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $215,375 - $4,210,600, along with a franchise fee of $15,000 - $15,000.
Financial Performance and Revenue
Yearly gross sales of $851,076 and estimated earnings of $59,576 - $85,108 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 31.1-33.1 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Extramile provides comprehensive initial training for new franchisees. This training, lasting two weeks, is conducted at Extramile's headquarters. Extramile offers a detailed operational manual and ongoing support. The franchisor also recommends a network of approved suppliers for optimal business setup. Resources are provided to assist franchisees in establishing their new Extramile location.
Legal Considerations
Legal considerations for a Extramile franchisee are defined by the Franchise Disclosure Document (FDD) and the Franchise Agreement. This franchise does not disclose lawsuits or bankruptcy information in its FDD, but prospective franchisees should still review all terms thoroughly. Consultation with a qualified attorney is essential before making commitments.
Challenges and Risks
Franchisees might encounter considerations regarding local market saturation with existing automotive and boat service providers, necessitating differentiation. The operational complexity of managing diverse service offerings and inventory demands careful resource allocation. Additionally, reliance on specific component suppliers for both vehicle and marine equipment could impact turnaround times and customer satisfaction.
Franchise Datasheet
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