One of the most trusted brands in road tires and employing more than 65,000 people globally.
Key Takeaways:
-
🛞 Inventory Costs: Goodyear dealers must maintain large, varied tire inventories, often worth hundreds of thousands.
-
💸 Franchise Investment: Startup costs can exceed $1 million, with franchise fees ranging from $20K to $100K and ongoing royalties.
-
🏦 Loan Options: Financing products include Merchant Cash Advances, Equipment Financing, Working Capital Loans, Lines of Credit, and SBA Loans.
-
⚡ Fast Funding: Most loans can be approved and funded within 2–3 business days with minimal documentation.
-
✅ Loan Benefits: Access capital, leverage Goodyear’s brand, and support business growth through tailored loan solutions.
-
⚠️ Loan Drawbacks: Loans require repayment, may need collateral, and carry financial risk, especially in slow markets.
-
📈 Build Credit: On-time payments improve your business credit and future loan terms.
-
🚫 If Declined: UCS may suggest alternate products or credit-building strategies to help you qualify later.
As a Goodyear dealership, it is necessary to maintain minimum stock levels of inventory for various cars, trucks, and tractors. Depending on geographic location, stock levels vary. Dealerships in mountainous snow regions such as Colorado and Montana stock more heavy-duty tires than the dry climate and flat terrain cities in California and Florida with denser urban populations.
Added to the cost for dealerships stocking Goodyear tires, many often stock different tires, including Michelin, Pirelli, and Firestone. Dealers can be holding hundreds of thousands of dollars of tire inventory. Added to dealer stock minimums required by tire manufacturers is the cost of maintaining a team of trained mechanics and capital equipment to service vehicles. Tire dealers also spend money on local television and newspaper ads when the weather changes, as drivers’ awareness of road safety increases when winter approaches.
United Capital Source has provided small business loans for Goodyear tire dealers and auto dealerships. The funding process can be a minimum of 2 days and requires the dealership to provide our specialist small business finance team with no more than 3 months of bank statements.
How do you get a Goodyear Franchise?
Goodyear is one of the world’s largest tire companies, founded in 1898 and headquartered in Akron, Ohio. With a rich history of innovation, Goodyear has been at the forefront of tire technology, even being the first tire used on the moon. Approximately 87.1% of Goodyear’s sales were for new tires in 2008, reflecting its strong market presence.
Operating under the brands Goodyear, Dunlop, Kelly, Fulda, Debica, and Sava, the company offers a diverse range of products and services. Goodyear has plans to expand its services in Australia, demonstrating its commitment to global growth.
Goodyear’s franchise system was launched as a ‘One Stop Shop’ for tire and automotive services, providing franchisees with a comprehensive business model. Franchising offers ownership of a business combined with the support of an established brand. Franchisees may benefit from the accumulated experience and resources of a large and successful company when operating a franchise.
Goodyear is committed to delivering high-quality products and services, ensuring that its network offers exceptional value and customer experiences.
How Much Does a Goodyear Franchise Cost?
Investing in a franchise involves various costs, including initial fees, equipment, real estate, and ongoing expenses. Franchise fees typically range from $20,000 to over $100,000 and grant access to proprietary business systems. Depending on the franchise concept, the total investment costs to start a franchise can exceed $1 million.
Goodyear has launched its Autocare franchise system as a one-stop shop for tire and automotive services. This model provides franchisees with a comprehensive platform to offer a range of services under a trusted brand.
Ongoing fees for franchises usually range from 4-8% of gross sales and support brand marketing and operational assistance. These fees contribute to the franchisor’s continuous development and support.
What Business Loans are available for Goodyear Franchise Financing?
United Capital Source offers various financing options through its extensive lender network to support Goodyear franchisees. Whether you’re looking to purchase equipment, manage working capital, or expand your operations, we provide tailored solutions to meet your business needs.
Merchant Cash Advances
A Merchant Cash Advance provides immediate capital based on future credit card sales. This option is ideal for franchisees needing quick access to funds without the constraints of traditional loans.
Equipment Financing
Equipment Financing lets you acquire the necessary machinery and tools for your Goodyear franchise. This financing option ensures you have the equipment needed to provide top-notch services.
Business Line of Credit
A Business Line of Credit offers flexible funding, enabling you to draw funds as needed for various expenses. This revolving credit line is perfect for managing cash flow and unexpected costs.
Working Capital Loans
Working Capital Loans provide the necessary funds to cover daily operational expenses, ensuring your franchise runs smoothly. This loan type helps maintain business stability during fluctuating market conditions.
SBA Loans
Consider SBA loans if you’re an established business owner with excellent credit. SBA 7(a) loans can be used to source working capital, expand operations, or buy another business. Loan amounts for SBA 7(a) loans typically begin at $5,000 and can go up to $5 million. An SBA 7(a) loan can provide long-term financing for buying a truck, with terms of up to 25 years. SBA loans for the logistics industry average around $110,000 and have many potential uses.
Most SBA 7(a) lenders prefer borrowers to have at least a credit score of 640 for better financing terms. Collateral requirements for SBA loans are typically required for longer-term financing. The maximum repayment term for equipment loans with SBA 7(a) loans is 25 years, while working capital loans have a maximum of 7 years. To apply for an SBA 7(a) loan, businesses must provide specific documentation as outlined by the SBA.
What Are the Advantages of Goodyear Franchise Business Loans?
Securing a business loan for your Goodyear franchise offers several important benefits. One of the most significant advantages is access to capital, which allows franchisees to invest in essential business needs such as equipment, inventory, and real estate. Additionally, Goodyear franchisees can benefit from flexible financing options, with a range of loan types available to suit specific goals and operational requirements.
Financing also enables business owners to align themselves with an established brand, leveraging Goodyear’s trusted name and proven business model to build credibility and customer loyalty. Loans can support growth initiatives, allowing franchisees to expand services, hire staff, or open new locations. Lastly, business loans help maintain consistent cash flow, ensuring steady operations and the ability to handle day-to-day expenses or unexpected financial challenges more effectively.
What Are the Disadvantages of Goodyear Franchise Business Loans?
While business loans offer valuable support, there are some drawbacks that Goodyear franchisees should consider. Taking on a loan creates a debt obligation, meaning regular repayments with interest that can impact long-term financial stability. Many loans also require collateral, which could put business or personal assets at risk if repayment terms are not met. Furthermore, qualifying for financing can be difficult for some applicants due to strict credit score and documentation requirements.
Franchise ownership includes ongoing fees, such as royalties and marketing contributions, that can reduce overall profitability. Additionally, external factors like market fluctuations or economic downturns can affect sales performance, making it harder to meet loan obligations during slower periods.
Goodyear Franchise Business Loan Pros & Cons
Pros:
-
Access to small business loans tailored for Goodyear franchisees.
-
Opportunity to buy into an established brand with a strong market presence.
-
Support from the franchisor in terms of training and development.
-
Potential for high sales and profit margins in the tire industry.
-
Availability of various financing options to suit different business needs.
Cons:
-
Significant initial investment required, including franchise fees and equipment purchase.
-
Ongoing payment obligations, such as royalties and marketing fees.
-
Strict adherence to the franchisor’s operational guidelines may limit flexibility.
-
Market competition and economic downturns can affect sales and profitability.
-
Collateral may be required for certain financing options, posing a risk to personal assets.
How To Apply For Goodyear Franchise Business Loans:
The amount of paperwork required depends on the product you choose. Funds can be approved and distributed for most products within 1-3 business days. Here’s how to apply:
Step 1: Choose the Right Product
The first step is choosing the most sensible solution to the problem at hand. This should require some research, as each product is designed for different types of expenses and cash flow cycles. Are you looking to cover a short-term or long-term expense? Is demand expected to increase or decrease in the coming months?
Considering the funds’ purpose will also help us determine the correct borrowing and terms for your needs.
Step 2: Gather Your Documents
Here are the documents and information required for Franchise Financing Loans:
-
Driver’s license
-
Voided business check
-
Bank statements from the past three months
-
Invoice for equipment (for Equipment Financing)
-
Credit card processing statements from the past three months (for Merchant Cash Advance)
SBA loans require additional documents and information, such as financial statements. To learn what’s needed for the SBA-backed loans, visit our SBA loan page.
Step 3: Fill Out Application
You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.
Step 4: Speak to a Representative
Once you apply, a representative will contact you to explain the repayment structure, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees during repayment.
Step 5: Receive Approval
If you’re approved, we’ll contact you within 24 hours. After closing, funds for most business financing products should appear in your bank account within 24 hours to one week.
Your Franchise Financing Business Loan Gets Set Up – Now What?
Your business loan isn’t just a way to get financing for your business. It’s also an excellent opportunity to start building (or improving) your credit.
Regardless of the type of business loan you get, make all your required payments on time and in full. If you get a business credit line or another form of revolving credit, keep your balance below the credit limit.
Consistently making your business financing payments on time and in full will positively impact your credit. And that means preferred rates and terms when you next need business financing.
What If I’m Declined For a Franchise Business Loan?
If your application is declined, it’s possible that you applied for the wrong product to meet your cash flow needs. In this case, we would likely recommend a different product with a less hazardous repayment structure.
Your application might also be declined if it is determined that you cannot afford to take on more debt at this time.
If your credit score is holding you back from accessing financing, consider working with a reputable credit repair service to raise your scores.
