Jacksonville Auto Repair Franchise - Branded Service Unit

$1.1M

Revenue

$633K

SDE

2.8x

Multiple

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Full Editorial Writeup

This is an established automotive repair franchise in Jacksonville, FL, operating since 1998 out of a leased 4,000 sqft freestanding building with retail frontage on a high-traffic main road. The unit generates $1.13M in revenue and $633K in EBITDA, a 56% margin that is exceptional for the auto repair category and points to either a high-mix of profitable service work or strong franchise-level operating discipline. The location sees over 20,000 vehicles daily and sits in a trade area with above-average household income, supporting both customer acquisition and a reported 70%+ repeat customer rate.

The business runs on a recognized national franchise brand that claims one of the largest market shares in the industry and brand recognition among 7 of 10 Americans. Operations are described as simple and repeatable with low and predictable capex, and the franchisor provides training and ongoing support focused on store-level management and multi-unit expansion. With 11 employees and a store manager structure, the current owner runs this as a passive investment rather than an owner-operator role.

What makes this notable is the combination of recurring demand auto repair, a defensible franchise brand, and a margin profile well above category norms. The 2.84x EBITDA multiple is reasonable on paper, but the absentee structure and the gap between the 56% reported EBITDA margin and typical auto repair economics are the two things a buyer needs to fully understand before writing a check.

Why we like it

Auto repair is about as recession-resistant as service businesses get. People defer new car purchases in downturns and keep older vehicles on the road longer, which actually increases demand for maintenance and repair. The 70%+ repeat customer rate here means the revenue base is sticky rather than dependent on constant new customer acquisition.
The margin profile is the standout. A 56% EBITDA margin on $1.13M of revenue is far above typical independent auto shop economics, which usually land in the 15-25% range. If verifiable, this points to a franchise model with premium pricing power, high-margin service mix, or a brand that drives volume without the discounting pressure independents face.
The franchise brand provides a real moat. With one of the largest market shares in the category and recognition among 7 of 10 Americans, this unit benefits from national marketing, customer trust, and operating systems that an independent shop cannot replicate. That brand pull is what supports the repeat rate and the prime corner location with 20,000+ daily traffic.
The business is already manager-run with 11 employees and a store-level management structure. For an operator who wants to add a cash-flowing asset without buying a job, the infrastructure to run it semi-passively is already in place, and the franchisor explicitly supports multi-unit expansion for capitalized owners.

How to improve it

Audit the service mix and pricing within the first 90 days to confirm whether the high margin is sustainable or a one-time anomaly. Identify which service categories drive the most profit and whether the store is leaving money on the table by under-attaching higher-margin work like brakes, fluids, or diagnostics on each visit.
Install or upgrade a CRM and automated re-engagement system to monetize the 70% repeat rate more aggressively. Service reminders, mileage-based outreach, and loyalty offers can lift visit frequency and average ticket, which flows almost entirely to the bottom line given the fixed-cost structure.
Negotiate the lease terms before close and lock in a long runway. Since the real estate is leased on a prime high-traffic corner, the lease is the single biggest risk to enterprise value. A short or expiring lease with a landlord who knows your margins is a threat, so secure a long-term lease with capped escalations.
Pursue multi-unit expansion using the franchisor's support program. The franchisor explicitly wants well-capitalized owners to build portfolios, and a buyer who proves out unit-level operations can compound by adding two or three more locations in the fragmented Jacksonville market rather than relying on single-store growth.
Reduce key-person and manager dependency. Since this is absentee-owned, the entire P&L likely rests on one or two store managers. Document SOPs, build a bench, and tie manager compensation to performance so the business does not crater if a key employee leaves post-sale.
Layer in fleet and commercial accounts to smooth revenue. Retail walk-in traffic is strong here, but signing local fleet, rideshare, and small business accounts adds predictable volume and higher utilization during slower retail periods, improving bay efficiency.

Diligence notes

Scrutinize the 56% EBITDA margin against franchise-system benchmarks and the company's own tax returns. This margin is dramatically above auto repair norms, so confirm it with three years of P&Ls and bank statements, and clarify whether franchise royalties, marketing fees, and rent are fully reflected in the reported EBITDA.
The listing notes SDE is not disclosed while EBITDA is $633K. Reconcile what is and is not included in that EBITDA figure, specifically owner compensation, franchise fees, and any addbacks. The 2.84x multiple looks attractive but only if the earnings number survives scrutiny.
Review the franchise agreement in full, including remaining term, renewal options, royalty and marketing fee structure, transfer fees, and territory protections. The brand is the moat, so understand exactly what obligations transfer to you and what the franchisor can change unilaterally.
Verify the lease in detail given the leased prime location. Confirm remaining term, renewal options, rent escalations, and whether the landlord has any relationship to the seller. A premium corner location with a weak lease is a value trap.
Confirm the reason for sale and the degree of true absentee operation. The owner is described as retiring from an investment, so understand who actually runs daily operations, whether key managers are staying post-close, and how the business performs without the current owner's involvement.
Examine customer concentration and the durability of the 70% repeat rate. Pull the actual customer transaction data to confirm the repeat figure, check for any concentration in fleet or commercial accounts, and validate that walk-in traffic is as strong as the 20,000 daily vehicle count suggests.

Source

Originally listed on BizBuySell. View original listing →