Ideal Automotive franchise
2024 filing · June 28, 2024Growing
Ideal Automotive at a glance
An automobile brokerage helping consumers buy new and used cars. At the end of 2023 there were 7 Ideal Automotive locations in the US, 1 franchised and 6 company-owned, so most are run by the company itself.
The business
- Industry
- Business services
- Franchisor
- Ideal Automotive Broker Franchising, LLC
- The company that sells the franchises
- Franchising since
- 2021
- 3 years of selling franchises
- Franchisor based in
- College Point, New York
- Typical size
- 750–1,800 sq ft
What you pay
- Cost to open
- $164K–$405K
- Fee, build-out and opening working capital
- Franchise fee
- $45,000
- Paid once, when you sign
- Royalty
- 5% of gross profit
- 5% of gross profits, kept from each transaction, plus 2% to the marketing fund and local advertising of at least $1,000 or 1% a month
- Brand fund
- Yes
- 2% of gross profits, paid monthly
- Renewal fee
- See terms
- Fifty (50%) percent of our then current Franchise Fee
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 7
- Franchised and company-owned
- Franchised
- 1
- Company-owned
- 6
- Change in 3 years
- +1
- Franchised locations, 2021–2023
- States
- 1
- Most in New York
From Ideal Automotive Broker Franchising, LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Ideal Automotive among all franchises with the same figure.
| Figure | Ideal Automotive | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $284,594 | Costs less than 58% of franchises |
| Franchise feePaid once, when you sign | $45,000 | Higher than 55% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 7 | Fewer than 66% of franchises |
How much a Ideal Automotive franchise costs
Opening one Ideal Automotive costs an estimated $164,139 to $405,049. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Ideal Automotive Broker Franchising, LLC, 2024 filing, page 26
Ideal Automotive franchise fee
The franchise fee is $45,000. You pay it when you sign the franchise agreement.
Source: Ideal Automotive Broker Franchising, LLC, 2024 filing, page 13
Royalty and ongoing fees
| Royalty | 5% of gross profits, kept from each transaction, plus 2% to the marketing fund and local advertising of at least $1,000 or 1% a month. |
|---|---|
| Brand or marketing fund | 2% of gross profits, paid monthly. |
| Renewal Fee | Fifty (50%) percent of our then current Franchise Fee |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Ideal Automotive Broker Franchising, LLC, 2024 filing, page 16
Other fees as filed, from page 17. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Ideal Automotive does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Ideal Automotive Broker Franchising, LLC, 2024 filing, page 76
How Ideal Automotive compares
Of the 324 business services franchises on this site, Ideal Automotive is the 270th cheapest to open and the 212th largest by number of locations.
| Figure | Ideal Automotive | Typical business services brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $164K | $77K | $222K |
| Cost to open, high end | $405K | $136K | $477K |
| Franchise fee | $45K | $45K | $40K |
| Royalty | 5% | 7% | 6% |
| US locations | 7 | 32 | 21 |
| Shares earnings figures | No | 187 of 324 | 2,147 of 3,352 |
Typical is the median across the 324 brands in business services franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 7 | 0 | 0 |
| 2022 | 0 (0) | 7 | 0 | 0 |
| 2023 | 1 (+1) | 6 | +1 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Ideal Automotive Broker Franchising, LLC, 2024 filing, page 77
Where Ideal Automotive locations are
At the end of 2023, Ideal Automotive had locations in 1 state. The most are in New York.
- New York7
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New York | 1 | 6 | 7 |
Source: Ideal Automotive Broker Franchising, LLC, 2024 filing, page 77
Who owns Ideal Automotive?
Ideal Automotive franchises are sold by Ideal Automotive Broker Franchising, LLC.
From Ideal Automotive Broker Franchising, LLC’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Ideal Automotive Broker Franchising, LLC, 2024 filing, litigation on page 13, bankruptcy on page 13
Ideal Automotive filings
The figures on this page come from Ideal Automotive Broker Franchising, LLC’s 2024 filing, issued June 28, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | June 28, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
