Should I open or buy a ModWash franchise in 2027?
Direct Answer
Probably not — unless you already own an operating express tunnel car wash that ModWash will acquire from you, or unless you have $4M-$6M liquid and want to build a comparable express tunnel under a brand that actually franchises (Tommy's Express, Take 5, WhiteWater). ModWash does not sell franchises in 2027. The Hutton Company owns 75% of ModWash and grows the chain through corporate development and acquisition only — they buy your wash, they don't license you to build one.
If your goal is "I want a ModWash on my corner," the only realistic paths are (1) sell ModWash your existing tunnel (they're actively acquiring), or (2) franchise with Tommy's Express at $4.97M-$8.52M all-in, Year-1 cash flow $400K-$900K, breakeven 4-6 years, stabilization year 3.
The Real Numbers
ModWash is not a franchise system. There is no Item 7, no Item 19, no FDD on file with the FTC or any state registrar because the company does not offer franchises. Hutton (the construction/real-estate parent) owns the land and buildings and leases to ModWash as a single corporate operating entity.
Per Hutton's own disclosures, each new ModWash site costs $3.5M-$4.0M to build with ~14 months from permit to open, and ModWash had ~78 operating + 54 under construction as of December 2025, with new sites opening weekly through 2026.
Because there is no ModWash franchise to buy, the table below shows the closest comparable express tunnel franchises you can actually buy in 2027 — Tommy's Express, Take 5 Car Wash, and Mr. Clean Car Wash — plus the independent express tunnel benchmark from IBISWorld and ICA data.
| Line item | Tommy's Express (2026 FDD) | Take 5 Car Wash | Mr. Clean Car Wash | Independent express tunnel |
|---|---|---|---|---|
| Initial franchise fee | $50,000 | ~$35,000-$50,000 | Up to $35,000 | $0 |
| Total initial investment | $4,977,000-$8,522,000 | $670K-$878K (site lease) / $3M+ (full build) | $237,900-$3,219,500 | $3.5M-$5.0M all-in build |
| Royalty | 4% of gross | ~5% | ~6% | 0% |
| National brand fund | 1% | ~1% | ~1-2% | 0% |
| Liquid capital required | $1M (full) / $500K (site lease) | $500K+ | $250K+ | $750K-$1.5M |
| Net worth required | $2M (full) / $1M (site lease) | $1M+ | $500K+ | $1.5M+ |
| Site footprint | 1.0-1.5 acres | 0.75-1.25 acres | 1.0-1.5 acres | 1.0-1.5 acres |
| Year-1 revenue (express tunnel benchmark) | $900K-$1.5M (60-70% of stabilized) | $700K-$1.2M | $700K-$1.1M | $800K-$1.3M |
| Stabilized Year-3 revenue | $1.8M-$3.0M | $1.4M-$2.4M | $1.3M-$2.2M | $1.5M-$2.5M |
| EBITDA margin (mature express) | 35-45% | 30-40% | 30-40% | 35-50% |
| Stabilized members per site | 2,500-3,000 | 2,200-2,800 | 2,000-2,600 | 2,500-3,200 |
| Breakeven | 4-6 years | 4-5 years | 4-6 years | 4-7 years |
| Pre-opening training | 20 days Holland, MI | 3 weeks Charlotte, NC | 2-3 weeks | None |
Industry baseline: IBISWorld puts the US car-wash + auto-detailing market at $18.7B for 2026, with express tunnels capturing share from in-bay automatics and self-serve. ICA membership data shows ~10% YoY membership revenue growth and 7-8% churn in 2025, with 15-20% subscription adoption growth forecast for 2026.
Who Wins With This Business
The express tunnel model rewards three operator profiles, and none of them are first-time-franchisee passive investors.
- The existing tunnel operator selling to ModWash. If you already own a clean, well-located express tunnel with 2,000+ members and EBITDA above $400K, ModWash will buy you at 6-9x EBITDA depending on real estate. This is the only "ModWash franchise" that exists.
- The multi-unit developer with $5M+ liquid. Tommy's Express, Take 5, and WhiteWater Express all reward operators who commit to 3-5 units in a defined territory. Real-estate control is the moat — the best corners in growth suburbs get bought up by 2028.
- The construction-savvy real-estate investor. Express tunnel economics are half real estate, half operations. Operators who own the dirt (or partner with a triple-net REIT like B+E or Realty Income) add 200-400bps to project IRR.
- The data-driven membership marketer. Stabilized economics live or die on the subscription program. Operators who hit 2,500+ active members at $25-$45/month by month 18 print money; operators stuck at 1,200 members at month 30 close.
- The Sunbelt / Texas / Florida operator. 70% of new express tunnels in 2026 opened in TX, FL, GA, NC, SC, TN, AZ — where car ownership per capita is highest, weather is favorable year-round, and zoning is permissive.
Who Loses With This Business
- Anyone who Googled "ModWash franchise" and expected to sign a $50K check. You cannot buy a ModWash franchise in 2027, full stop. Brokers who tell you otherwise are confusing ModWash with Tommy's or selling you a real-estate referral.
- First-time operators with under $750K liquid. The express tunnel is not a $250K starter business. Tommy's Express requires $1M liquid / $2M net worth for full ownership. Underfunded operators run out of working capital in the 8-14 month ramp before membership stabilizes.
- Operators who pick a bad corner. Site selection is 80% of outcome. A wash on the wrong side of a divided highway loses 30-40% of stabilized volume. The cheap dirt is cheap for a reason.
- Markets already saturated. Houston, Dallas, Phoenix, Tampa, Charlotte, Atlanta have express tunnel density above 1 per 8,000 households as of 2026 — new entrants in these MSAs face 18-30 months to stabilize instead of 12.
- Operators who skip the unlimited program. Cash washes alone yield $800K-$1.1M revenue with thin margins; the membership flywheel is what gets you to $1.8M-$3M stabilized. Operators who refuse to discount memberships die slow.
2027 Market Conditions
Consolidation is accelerating. Private equity rolled up the sector hard between 2021 and 2025 — Freeman Spogli into WhiteWater, Driven Brands' Take 5 Car Wash buildout, Mister Car Wash IPO, Tommy's growth via Tommy Car Wash Systems. ModWash + Hutton remain one of the few large-format chains still aggressively buying in 2026-2027, which is why selling to ModWash is a real exit even if franchising with them isn't real.
Cap rates compressed then re-expanded. Triple-net car-wash real estate traded at 5.0-5.5% caps in 2021-2022, blew out to 6.5-7.5% caps in 2024, and sit at 6.0-6.75% in 2027 per B+E and Trade Net Lease comps. Sale-leaseback financing is back as a viable capital stack for new builds.
Membership adoption is the only growth story that matters. ICA data shows membership revenue growing 10% YoY in 2025, with unlimited programs now 55-70% of revenue at mature express tunnels. The 2027 winner builds $30-$45/month tiered memberships with vacuum-included top tiers and annual prepay discounts.
Construction cost inflation cooled but stayed elevated. Build cost per tunnel ran $3.5M-$4.0M for ModWash in 2026 — roughly flat YoY but up 35-45% from 2020. Equipment lead times normalized to 14-20 weeks for Sonny's, Tommy, and PECO systems.
Labor stays tight but manageable. Express tunnel labor is 5-9 employees per site at peak. Operators in TX/FL/GA report $13-$17/hour starting wages, with 20-30% annual turnover at the bottom of the wage band.
The 90-Day Decision Tree
- Day 1-7: Define your real goal. If you want passive triple-net income, buy a single-tenant car-wash NNN at a 6.5% cap — don't operate. If you want operating income at scale, target Tommy's Express or Take 5 with a 3-5 unit commitment.
- Day 8-21: Pull the real Item 7 and Item 19. Get the 2026 FDD from Tommy's Express, Take 5, and WhiteWater directly (free from the franchisor after a qualification call). Don't trust third-party summary sites for the actual numbers.
- Day 22-35: Validate site availability. Engage B+E, Trade Net Lease, or a regional car-wash broker in your target MSA. Confirm 2-3 viable corners with traffic counts above 25,000 ADT and household income above $75K within 3 miles.
- Day 36-50: Interview 8-12 existing operators. Tommy's, Take 5, and WhiteWater all publish franchisee contacts in Item 20 of their FDD. Call operators in year 2, year 4, and year 7 of operation. Ask specifically about Year-1 cash burn and membership ramp.
- Day 51-65: Stress-test the model at 70% of franchisor projections. Build a 5-year P&L assuming $1.1M Year-1 revenue, $1.6M Year-2, $2.1M Year-3, 35% mature EBITDA margin. If the deal still pencils, it's real.
- Day 66-80: Decide on capital stack. Option A: SBA 7(a) loan for up to $5M with 10-25% equity down. Option B: Sale-leaseback after construction at a 6.0-6.75% cap. Option C: Partner with a real-estate equity sponsor for 70/30 LP/GP split.
- Day 81-90: Sign the franchise agreement or walk. If site, capital, and operator references all check out, submit your franchise application. If any of the three is shaky, walk now — express tunnel mistakes cost $500K to unwind.
Alternative Plays
- Sell your existing express tunnel to ModWash. If you already own and operate, email acquisitions@modwash.com with your member count, EBITDA, and real estate disposition. Expect 6-9x trailing EBITDA for a clean asset.
- Franchise with Tommy's Express. The largest US express tunnel franchise with the deepest training and equipment ecosystem. $4.97M-$8.52M all-in, 20-day training in Holland, MI, proven 4% royalty + 1% brand fund.
- Develop a Take 5 Car Wash. Backed by Driven Brands, faster ramp due to existing oil-change cross-traffic at colocated sites. $670K-$3M+ depending on land position.
- Build a single-unit independent express tunnel. $3.5M-$5M all-in, no royalty, full equity in real estate and operating company. Requires construction PM expertise and an experienced GM hire.
- Buy an existing operating express tunnel. CarWashAdvisory.com and B+E broker 30-50 deals/year. Mature tunnels trade at 5-8x EBITDA; distressed ramps at 3-5x.
- Pass entirely; invest passively. Buy Mister Car Wash (MCW) public equity, Driven Brands (DRVN), or a Realty Income (O) / NETSTREIT (NTST) car-wash NNN position. Zero operating risk, 4-6% real yield.
FAQ
Can I buy a ModWash franchise in 2027?
No. ModWash does not offer franchises and has never filed a Franchise Disclosure Document with the FTC or any state franchise registrar. The Hutton Company owns 75% of ModWash and grows the chain through corporate development and acquisition of existing washes. The only way to "join" ModWash is to sell your existing operating tunnel to them via their acquisitions team.
Any broker claiming to sell you a ModWash franchise is misinformed or misrepresenting the opportunity.
How much does it cost to build a ModWash-comparable express tunnel?
$3.5M-$5.0M all-in for a single express tunnel on owned land in 2027, per Hutton's own development disclosures and B+E net-lease comps. Land $750K-$1.5M, building shell $1.2M-$1.8M, tunnel equipment $900K-$1.4M, working capital $300K-$500K. Sale-leaseback at a 6.0-6.75% cap can recover 80-90% of build cost post-construction, leaving you with operating-company equity only.
What is ModWash's actual revenue per location?
ModWash does not publicly disclose per-site revenue. Industry benchmarks for stabilized express tunnels in growth Sunbelt markets are $1.8M-$3.0M annual revenue at year 3, with 2,500-3,000 unlimited members at $25-$45/month. ModWash sites in Tennessee, Georgia, Florida, and New Jersey likely hit the upper half of that range given site selection and Hutton's real-estate quality.
Independent IBISWorld and ICA data support the range.
Is it better to buy an existing express tunnel or build new?
Buy existing if you can find one in a strong MSA at 5-7x EBITDA — you skip the 14-month build and 12-month membership ramp. Build new if no quality assets are available in your target market and you have construction-management experience. New builds carry 18-24 months of negative or break-even cash flow; existing assets cash flow from day one but trade at a premium and may have hidden equipment deferred-maintenance.
Who are the real ModWash competitors I should compare against?
The express tunnel category in 2027 is dominated by Mister Car Wash (~470+ corporate units, public), Take 5 Car Wash (~400 units, Driven Brands), Tommy's Express (~200 franchised units), WhiteWater Express (~130 units, Freeman Spogli PE), Quick Quack (~250 units, west), Club Car Wash (~180 units, midwest), and ModWash itself (~130 units after 2026 builds).
Only Tommy's franchises at scale; the rest are corporate or PE-owned.
Bottom Line
You cannot open or buy a ModWash franchise in 2027 — the company doesn't sell them. If you want to "be ModWash," franchise Tommy's Express at $5M-$8.5M all-in or build an independent express tunnel at $3.5M-$5M. If you already own a tunnel, sell to ModWash at 6-9x EBITDA. If you want car-wash exposure without operating, buy MCW or DRVN equity or a single-tenant car-wash NNN at a 6.5% cap. Anyone telling you they can sell you a ModWash franchise is selling fiction.
Sources
- ModWash Acquisitions page — https://www.modwash.com/acquisitions/
- HUTTON Launches New Venture Called ModWash — https://hutton.build/hutton-launches-new-venture-called-modwash/
- Professional Carwashing & Detailing on ModWash growth — https://www.carwash.com/new-company-modwash-plans-become-one-nations-largest-carwash-companies/
- Tommy's Express 2026 FDD summary, FranchisePayback — https://www.franchisepayback.com/franchise/tommys-express
- Tommy's Express Franchise Review 2026, Franchise Chatter — https://www.franchisechatter.com/2026/04/15/tommys-express-car-wash-franchise-review-2026-costs-fees-news-average-revenues-and-or-profits/
- Take 5 Car Wash brand profile, Franchise Flippers — https://franchiseflippers.com/buying-a-franchise/brands/take-5-car-wash/
- IBISWorld Car Wash & Auto Detailing in the US 2026 — https://www.ibisworld.com/united-states/industry/car-wash-auto-detailing/1695/
- International Carwash Association industry data — https://www.carwash.org/industry-information
- B+E Net Lease ModWash profile — https://tradenetlease.com/modwash/
- Freeman Spogli acquires WhiteWater Express — https://www.carwashadvisory.com/car-wash-acquisitions/freeman-spogli-co-acquires-white-water-car-wash
- 2026 Express Carwash Trends, Professional Carwashing & Detailing — https://www.carwash.com/2026-express-carwash-trends/
- Car Wash Investment in 2026, NCS National Carwash Solutions — https://ncswash.com/why-the-smart-money-still-likes-carwash-investing-in-2026/
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