The typical franchisee invests $735,797 – $1,672,575MM in a new location including working capital.
Please review the table for investment ranges found in our current Franchise Disclosure Document (FDD) below.
Some of the items below have been combined by category.
The following will provide you a complete description of Item 7 Fees:
Type of Expenditure
Method of Payment
To Whom Payment is to be Made
Initial Franchise Fee (1)
When Franchise Agreement Signed
Location Study/ Demographic Analysis (1)
$500 First Location
When Franchise Agreement Signed
Rent – 3 Months (2)
$15,000 to $33,000
Security Deposits (3)
$1,000 to $13,600
Landlord, Utility Companies
Leasehold Improvements (4)
$60,000 to $350,000
Shop Equipment (5)
$7,000 to $150,000
Furniture, Fixtures and Décor (6)
$10,000 to $50,000
Vehicle – 3 months (7)
$2,100 to $2,500
Computer Hardware and Software (8)
$4,322 to $24,000
Initial Inventory (9)
$75,000 to $100,000
Blue Prints, Licenses and Permits (10)
$5,000 to $50,000
Architect, Government Agencies
$15,000 to $50,000
Insurance – Annual Premium (12)
$15,000 to $25,000
Grand Opening Advertising (13)
$33,000 to $102,000
Change Fund (14)
Professional Fees (15)
$1,500 to $3,500
Attorney / Accountant
Travel Expenses for Training (16)
$5,000 to $10,000
Airlines, Hotels, Restaurants
Salaries for Training and Pre- Opening (16)
$15,000 to $20,000
Tire Industry Association (TIA) Membership (17)
Association of Progressive Rental Organization (APRO) (17)
Additional Funds – (3 months) (18)
$300,000 to $500,000
$610,297 to $1,547,075
In general, none of the expenses listed in the above chart are refundable, except any security deposits you must make may be refundable and the initial franchise fee is partially refundable in certain circumstances. We do not finance any portion of your initial investment.
Initial Franchise Fee. The initial franchise fee is discussed in Item 5.
Rent. If you do not own adequate or appropriate space, you must build or lease the space for your RNR Tire Express Store. The figures in the chart assume that you will lease the space for your Store and are based on our estimate of the cost of your lease or sublease for the leasehold premises. The typical space for an RNR Tire Express Store contains between 4,000 and 6,000 square feet. Rents will vary depending upon factors including size, conditions, location of the leased premises, the local real estate market conditions and competition for the leasable space. The figures in the chart include the first three months of rent at an estimated cost of $12 to $18 per square foot. In addition, some landlords may require additional security deposits or rental payments when you sign a lease. You should carefully investigate and evaluate all of the potential costs associated with a particular franchise location. The estimates provided in the chart do not include construction costs. An RNR Tire Express Store is typically located in a free standing building or a shopping center.Landlords may vary the base rental rate and charge rent based on a percentage of gross revenues. In addition to base rent, the lease may require you to pay common area maintenance charges (“CAM Charges”), your pro rata share of the real estate taxes and insurance, and your pro rata share of other charges. The actual amount you pay under the lease will vary depending on the size of the Store, the types of charges that are allocated to tenants under the lease, your ability to negotiate with landlords and the prevailing rental rates in the geographic region.
If you choose to purchase real property on which to build your Store, your initial investment will probably be higher than what we estimate above. If you purchase real property, we cannot estimate how this purchase will affect your total initial investment.
Security Deposits. We expect that you will need to pay deposits for your local utilities, such as telephone, electricity and gas, and your landlord may require you to pay a security deposit. The amount of your deposits will depend, in part, on your credit rating and the policies of the individual utility companies.
Leasehold Improvements. The cost of leasehold improvements will vary depending on numerous factors, including: (i) the size and configuration of the premises; (ii) pre-construction costs (such as demolition of existing walls and removal of existing improvements and fixtures); and (iii) cost of materials and labor, which may vary based on geography and location. These amounts are based on the cost of adapting our prototypical architectural and design plans to remodel and finish-out the Store and the cost of leasehold improvements. These amounts may vary substantially based on local conditions, including the availability and prices of labor and materials. These costs may also vary depending on whether certain of these costs will be incurred by the landlord.
Shop Equipment. Our estimate includes a tire balancer, tire changer, lifts, tools, compressor, flange kit and nitrogen inflation system. The low end of our estimate assumes that you will lease the equipment and represents your first three months of lease payments, and the high end of our estimate assumes that you will purchase the equipment.
Furniture, Fixtures and Décor. This estimate includes the cost of purchasing the basic furnishings necessary to operate the RNR Tire Express Store. Furnishings include desks, chairs, display racks and décor items. The low end of our estimate assumes that you will lease the furniture, fixtures and décor and represents your first three months of lease payments, and the high end of our estimate assumes that you will purchase the furniture, fixtures and décor.
Vehicle. You must have the vehicle we specify or approve for your Store. We reserve the right to designate the make and model of the vehicle you must purchase. Our estimate assumes that you will lease the vehicle.
Computer Hardware and Software. You must purchase or lease the required computer system. The low end of our estimate assumes that you will lease the computer system and represents your first three months of lease payments, and the high end of our estimate assumes that you will purchase the computer system.
Initial Inventory. Before your Store opens, you must stock the Store with an initial inventory of products, accessories, equipment, inventory and supplies designated by us in the Confidential Operations Manual or otherwise in writing.
Blue Prints, Permits and Licenses. You must hire an architect to adapt our template plans to suite the size and dimensions of your Store. We must approve of your plans before you may begin construction. Our review is only meant to determine that the plans comply with our specifications regarding trade dress and presentation of the Proprietary Marks. Our review is not intended to verify that the plans comply with any applicable law or building code.
Our estimate includes the cost of obtaining local business licenses which typically remain in effect for one year. The cost of these permits and licenses may vary substantially depending on the location of the Store. We strongly recommend that you verify the cost for all licenses and permits required in your jurisdiction before signing the Franchise Agreement.
Signage. These figures are the estimated cost of the interior and exterior signage that you will need. You must have signs in prominent locations at the RNR Tire Express Store in accordance with our specifications or as otherwise approved in writing by us, if applicable laws or regulations or the terms of your lease prohibit our approved signage. Signage may have to comply with the terms of your lease, local and state ordinances and zoning requirements. You must use your best efforts to obtain all permits or variances required to allow installation and maintenance of signs meeting our specifications. The cost of signage may vary depending on the size and location of your RNR Tire Express Store.
Insurance. Our estimates reflect the full year of premium costs for the insurance you must have for your Store.
Grand Opening Advertising. You must conduct a grand opening advertising campaign to promote the opening of your Store, and you must use the supplier we designate to assist you in preparing and conducting the grand opening advertising campaign. We must approve of your proposed grand opening advertising program before it is conducted. We expect that your grand opening advertising campaign will be conducted through your first six months of operation.
Change Fund. This represents the money for your cash drawer.
Professional Fees. We strongly recommend that you hire an attorney and an accountant to advise you on your purchase of an RNR Tire Express franchise. You may also need to hire an attorney to negotiate the terms of your lease or to establish a corporate entity to purchase the franchise.
Travel for Training; Salaries. The figures in the chart estimate the costs for moderately priced lodging accommodations, food costs, and automobile mileage expense for the minimum required four initial trainees to attend our standard initial training program. Your actual costs may vary depending on the number of people attending our initial training program, how far you must travel, and the type of accommodations you choose. Our estimates also include the salaries you will pay for your initial staff to attend our training program and before your Store opens for business.
Additional Funds. This estimates the additional funds you may need for an initial three month period. These expenses include payroll costs, additional inventory and other typical operating costs during your first three months of operation and do not include any sales during this period that your Store may make. These figures are estimates and we cannot guaranty that you will not have additional expenses starting your RNR Tire Express Store. Your costs will depend on factors including your success implementing our methods and procedures; your management skill, experience and business acumen; local economic conditions; the local market for products and services provided; the prevailing wage rate; competition; and the sales level reached during the initial three month period. These are only estimates and your costs may vary based on actual rental prices in your area, and other site-specific requirements or regulations. The costs outlined in this Item 7 are not intended to be a forecast of the actual cost to you or to any particular franchisee.
Total. We have estimated these expenses based upon our experience in franchising RNR Tire Express Stores since 2002. You should review these carefully with your business advisors before making any decision to purchase the RNR Tire Express Store franchise. Neither we nor any of our affiliates provide financing arrangements for you. If you obtain financing from others to pay for some of the expenditures necessary to establish and operate the RNR Tire Express Store, the cost of financing will depend on many factors, including your creditworthiness, collateral, lending policies, financial condition of the lender and regulatory environment.
How much money can I make?
RNR Tire Express franchisees earn a solid return on their time, money, and energy.
In 2022 the average location generated $1.75M* in sales and showed an operating income of $252K*, a 14.4% net profit*.
Our top 20 highest volume stores generated $2.91M in sales and $630K in operating income for a 21.7% net profit.
To put this in better perspective, according to research site Macrotrends, in 2020 quick-service restaurant chains, many nationally recognized household names earned an average profit 10.4% of sales.
High volumes and high margins not only create better returns, but also allow franchisees greater access to lending institutions for expansion capital and less capital necessary to inject into a new location, allowing franchisees to scale more quickly and dominate markets.
*The figures above reflect averages for the 20 top revenue stores (19%) of the 95 stores reporting that opened in 2018 or prior and have been open at least 24 months. These averages are based on a 52-week annual period from January 1, 2020 through December 31, 2020. Of these 20 stores, 9 (45%) had higher total revenue and 9 (45%) had higher operating income. Of these 20 stores, 10 (50%) surpassed the Median numbers. Please see our Franchise Disclosure Document to review the entire Item 19 financial disclosures.
Other than the preceding financial performance representation, SPF Mgt. Co., LLC does not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management by contacting Vince Ficarrotta at 13922 Monroes Business Park Tampa, FL 33635, (813) 977-9800, the Federal Trade Commission, and the appropriate state regulatory agencies.
Auto Tire Industry at a Glance
It is estimated that Americans spend over $40 billion annually on tires
Of that, over $28 billion was spent on passenger tires and over $12 billion was spent on truck tires
Consumers spend an estimated $4 billion on aftermarket wheels
Currently, the U.S. has both the largest and oldest fleet of cars in its history. People are keeping cars longer, making the automotive aftermarket industry highly profitable and sustainable
According to the U.S. Dept. of Transportation, the average person drives 13,500 miles per year, meaning they will need to replace their tires every few years. Additionally, the average household owns 2 cars, creating opportunities for strong repeat business.
There are 39,000 companies offering tire replacement services, but almost none offer lease purchase payment options in-house.
The Investigation Process
We encourage you to investigate RNR Tire Express to see how this business may help you achieve your objectives. Additionally, we will work to make sure you fit the RNR Tire Express culture and will be a valuable addition to our team.
Our initial process is as follows:
Step One: Self-directed research
Download our free Franchise Information eBook. Spend time reading the information on this website and make an initial determination if this business may fit what you are looking for. If so, let’s have a preliminary discussion.
Step Two: Business Interview and Business Overview
Tell us about you and what you are looking to achieve. We will tell you about RNR Tire Express and what it takes to win as a franchisee. We will answer each other’s questions to determine the potential for a mutual match. If we both see the potential, we move forward in our investigation, if not, we discontinue.
Step Three: Submit Qualifications
You submit your financial qualifications, and we ensure you will be capitalized properly to meet your objectives. There is no cost, risk, or obligation at this point.
Step Four: Review the Franchise Disclosure Document (FDD)
We review the roles and responsibilities of both the franchisee (you) and the franchisor (us). We determine if we are willing to live up to our obligations to each other. Again, there is no cost, risk, or obligations at this point.
Step Five: Franchisee Validation and Due Diligence
We will put you in contact with RNR Tire Express franchisees so they can answer any questions you have about what it will be like as a franchisee of this system. At this stage, you will apply for financing and complete your financial models and projections.
Step Six: Discovery Day
You will meet RNR Tire Express leadership and ask the questions you need to help you determine if this business is right for you. By the end of this one day meeting you will feel armed with the necessary information to make a decision about becoming a franchisee.
Step Seven: Make a Decision
We will each decide if it is in our best combined interest to do business together.