How Much Does a The Driveway Company Franchise Cost?
Data from the 2022 Franchise Disclosure Document
Investment Summary
Total Investment
$89K – $169K
Franchise Fee
$60K
Royalty
Greater of (a) 7% of Gross Sales or (b) the minimum royalty fee
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for The Driveway Company is $60K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a The Driveway Company franchise requires a total investment of $89K – $169K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $11K to $21K.
Ongoing Costs
Beyond the initial investment, The Driveway Company franchisees pay ongoing fees. The royalty structure is: Greater of (a) 7% of Gross Sales or (b) the minimum royalty fee. The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $450.
Net Worth & Liquid Capital Requirements
The Driveway Company requires working capital of $11K – $21K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to The Driveway Company's Item 19 financial performance representation:
Median gross sales: $205K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View The Driveway Company?
SBA Loans Issued
7
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. The Driveway Company has 7 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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