A black car being polished as a part of the car detailing job inside a detailing studio

Calculating ROI for a car detailing business franchise

In today’s world, the importance of car detailing cannot be overstated. With car ownership on the rise, our roads are teeming with vehicles, each one a testament to its owner’s personality and style. As people hold onto their cars for longer periods, they are investing more in maintenance, including car detailing business services. One key service that is gaining popularity is car paint protection services in India. This service not only enhances the vehicle’s aesthetic appeal but also preserves its quality, thereby contributing to the vehicle’s longevity.

So, if you’re contemplating entering this lucrative market, understanding how to calculate your Return on Investment (ROI) is crucial. This will provide you with a clear picture of your business’s profitability and help you make informed decisions. Let’s delve into how you can calculate ROI for your car detailing business and unlock its full potential.

Table of contents

Car detailing industry in India right now

The Car Detailing Industry in India is currently experiencing a significant boom. With approximately 3,000 detailing studios across the country, industry projections indicate that this number could skyrocket to 10,000 detailing studios within the next five years. This rapid growth is a testament to the increasing demand for car detailing franchise services, driven by rising car ownership and consumers’ growing awareness of the benefits of regular vehicle maintenance.

A man using a detailing brush to clean the AC vent of a car
Detailing and car cleansing are two things poles apart

The industry’s worth is estimated to be a staggering Rs.30,000 crores, reflecting its vast potential. This potential is further amplified by the introduction of innovative services such as graphene ceramic coating service, which not only enhance a vehicle’s aesthetic appeal but also contribute to its longevity.

As such, investing in a car detailing franchise in India can be a lucrative venture. However, understanding how to calculate your Return on Investment (ROI) is crucial to gauge your business’s profitability accurately.

How to calculate ROI for a car detailing franchise

Calculating the Return on Investment (ROI) for a car detailing business involves several steps:

Calculate the Initial Investment Costs and Franchise Fees

The first step is to calculate the initial investment costs. These include the franchise fees paid to the franchisor brand to acquire a franchise licence, followed by the cost of procuring a prime location for the business, setting up the studio from scratch, the cost of equipment, supplies, detailing and paint protection products. Another important investment is the hiring of staff to work at the studios.

Notably, CarzSpa Detailing Studio stands out, as it does not charge any royalty or franchise fee from its 90+ detailing studios all over the country.

Estimate the Monthly Revenue

Next, estimate your monthly revenue. This will depend on factors such as the number of cars you service, the types of car detailing services you offer and your pricing.

Calculate the Monthly Expenses

Subtract your monthly expenses from your revenue to determine your net profit. Expenses include rent, salaries, utilities and supplies. Expenses also involve spending on marketing and promotions, like digital marketing, lead generation, influencer marketing, shoots, etc.

A car gearbox being cleaned with micro brush as a part of intensive interior cleaning
Detailing is making your car look brand new in and out

Determine the Net Profit Earned

If your revenue exceeds your expenses, you’re making a profit. If not, you’ll need to find ways to increase revenue or decrease expenses that may not be a huge priority for the business. In scenarios like the latter, CarzSpa’s business success program comes into play for its franchisees, where they are given guidance by their regional managers and mentors on how to increase their revenue and cut down on unnecessary spending.

Calculate Your ROI

Calculate your ROI by dividing your net profit by your total investment and multiplying by 100 to get a percentage. For example, if your initial investment was Rs.20 lakhs and you’re making a net profit of Rs.2 lakh per month, your ROI would be (2 lakh/10 lakhs)X100 = 10% per month.

A successful business is not just about high ROI, but also about consistent growth and customer satisfaction.

Factors that can affect your ROI

Several factors can affect the ROI of your car detailing business. Here are some key considerations:

Franchise Brand and Goodwill

The reputation of the franchise brand is a significant factor. A well-established brand like CarzSpa, with over 17 years of industry presence, brings with it a certain level of trust and recognition. Led by Mr. Anckur Sama, a pioneer in car detailing and paint protection in India, CarzSpa has built substantial goodwill in the market. This goodwill can be a powerful tool in attracting customers and building a loyal client base.

Initial Investment and Rentals or Capex and Opex

The initial investment costs depend on whether you choose a greenfield or a brownfield project for your car detailing studio. A greenfield project means building your studio on vacant land, while a brownfield project means renting an existing space. The choice depends on your investment ability, the rentals in your city, the availability of land, etc.

A greenfield project has higher capital expenditure (capex) as you have to construct the studio from scratch, but lower operating costs (opex), as you don’t pay rent. A brownfield project has lower capex as you only have to renovate the rented space but higher opex as you have to pay a monthly rent. You need to compare the costs and benefits of both options and see which one gives you a better ROI. You can also consult with the franchisor brand for guidance and support.


The location of your franchise can greatly impact your revenue. A prime location with high visibility and traffic can attract more customers. It’s important to conduct thorough market research to identify locations with high potential for your car detailing franchise.


Understanding your competition is crucial. If there are other car detailing businesses in your area, you’ll need to find ways to differentiate your services and offer unique value propositions to your customers.

Ceramic coating being applied to a maroon-coloured car inside a ceramic coating bay need the attached premium image below.
Ceramic coating takes car care service to a notch above and stands out from the competition

Marketing and Advertising

Effective marketing and advertising strategies are key to increasing your customer base. This could involve leveraging social media, local advertising, or even hosting community events to raise awareness about your services, such as the best ceramic coating for cars.

Customer Service

This goes without saying! Providing excellent customer service will always lead to repeat business and positive word-of-mouth referrals. Training the staff to provide top-notch service and handle customer inquiries effectively can significantly enhance customer satisfaction and loyalty.

Each of these factors plays a crucial role in determining your ROI. By understanding and addressing these factors, you can maximise your ROI and ensure the success of your car detailing business.

Starting your detailing business with CarzSpa is profitable

Starting your detailing business with CarzSpa can be a profitable venture. With over 90+ CarzSpa studios across the country and 17+ years of experience, CarzSpa is a brand with a strong recall value. Their continuous R&D efforts ensure that they stay at the forefront of the industry, offering services like graphene ceramic coating service, Coloured PPFs and Window Films.

When you choose a CarzSpa franchise, you receive comprehensive guidance from experienced mentors. This includes assistance in finalising a prime location, setting up the perfect infrastructure, identifying talent and regular supply of essentials.

The cost of a CarzSpa franchise is quite reasonable, especially considering that there is no franchise fee and it’s a one-time investment. There are no hidden costs – no royalties or revenue-sharing schemes. Most franchises generate around Rs.4-5 lakhs in monthly revenue and CarzSpa predicts a 12-15 month return on investment period.

Some concluding thoughts…

Running a detailing studio is much more profitable than having a business providing just car washing services or car interior cleaning services in India. This makes starting your detailing business with CarzSpa not just an exciting opportunity, but also a profitable one. You can reach out to us at franchise@carzspa.in to know more about opening a car detailing studio with us in your city.

Frequently Asked Questions about Car Detailing Franchises

1. Is the car detailing business profitable?
Yes, the car detailing business can be very profitable, especially with the rise in demand for premium paint protection services like ceramic coatings. The ceramic coating car costs have a very good margin for car detailing franchises and generate significant revenue from their loyal customers.

2. How to open a car detailing shop?
To open a car detailing studio, you will need to choose a location with proximity to your target market, set up the studio, invest in equipment and supplies, hire skilled staff and get them trained too. Further one has to develop and execute a fool-proof marketing plan for the market, on how would people know that you offer the best paint protection film in India for car lovers. All these could be very tough to manage alone, which is why it is advised to go franchised in the detailing business, under brands like CarzSpa.

3. How can I increase my chances of success and achieve a high ROI with my car detailing franchise?
There are several things you can do to increase your chances of success and achieve a high ROI with your car detailing franchise. These include doing your research and choosing a franchise brand with a proven track record of success in providing services like ceramic coating and the best paint protection film in India. Develop a clear business plan that outlines your goals, target market and marketing strategy. Invest in marketing and advertising to reach your target market and generate leads. Provide excellent customer service to build customer loyalty and repeat business. Properly manage your expenses to keep your costs under control.


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Sonika M

Sonika is the Franchise Development Manager at CarzSpa.

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