Ziebart Franchisees Find Advantages in Real Estate Leasing and Purchasing
Choosing to franchise with Ziebart is a solid investment. After all, the company is a worldwide leader in automotive appearance and protection services with more than 400 locations and 1,300 service centers in 37 countries. But the growing brand also offers franchise investors the added advantage to maximize their dollars through strategies such as purchasing or leasing the property where they build their Ziebart location. Both approaches can offer sound business strategies.
“There are two ways our franchisees can make their investment in Ziebart even better,” said Mike Riley, Senior Vice President of Ziebart. “There are times when leasing the property makes sense and there are times when buying makes sense. It’s just one more opportunity for franchisees to increase their ROI when operating a Ziebart location.”
Some Ziebart franchisees choose to go with leasing. It’s a great option if you prioritize flexibility, want to avoid tying up your capital, seek tax deductions, prefer not to handle property maintenance, or need to operate in a prime but expensive location.
Leasing commercial real estate generally requires less cash up front and offers predictable monthly expenses without worrying about unexpected repair costs. Qualifying for leasing is generally easier, allows the freedom to move without selling, and provides certain tax breaks for items such as deductible lease payments, property insurance, taxes, utilities, and maintenance costs.
Franchisees who lease must be aware they are giving up the chance to build equity, have limited control over the property, and are subject to lease terms and conditions.
Other Ziebart operators choose to purchase their property. This works out best when you have sufficient cash for down payment, plan to generate rental income, want to build equity, need control over the space, and are prepared for property-related responsibilities.
Purchasing commercial real estate allows franchisees to build equity, have control over the property, and use the equity to add more locations. Tax advantages when buying real estate include deductible interest and depreciation on the property.
However, buying real estate requires more cash up front, loan qualification can be challenging, and capital is tied up in the property.
Regardless of whether you choose to lease or purchase property to open a Ziebart location, you are still starting a business with a company that has a proven track record and strong brand recognition; offers exceptional training and support that begins before you open and continues as you build your business; and offers a broad range of services and products that allow for multiple diverse streams of revenue.
Ziebart is looking for entrepreneurs interested in building their own future with a proven business model backed by decades of success. You can find out more about how to drive success with Ziebart by visiting ziebart.com/franchise-opportunities or calling 248-837-3960 for more information.
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