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Should I open or buy a ModWash franchise in 2027?

📖 2,305 words🗓️ Published Jun 23, 2026

Direct Answer

Probably not — unless your definition of "franchise" stretches to "company-owned operator partnership," because ModWash does not actually franchise. ModWash is a company-owned, Hutton-developed express tunnel chain — Hutton owns roughly 75% of the operating entity, owns the real estate, and leases to ModWash as operator. There is no Item 7, no Item 19, no FDD on file with the FTC or state examiners as of 2027. If you want exposure to the ModWash brand, the only honest paths are (1) sell your existing express tunnel into their acquisition pipeline (5.5x–7x EBITDA for membership-rich sites), (2) ground-lease land to Hutton at a 6.0%–6.75% cap, or (3) open a true competing franchise like Tommy's Express at a $5.2M–$8.5M all-in build with ~$1.83M average unit volume. Conservative Year-1 cash flow on a true express tunnel: negative $150K–$300K; breakeven month 18–28.

The Real Numbers

ModWash itself has no franchise disclosure document. Hutton builds each location for $3.5M–$4.0M ground-up (land excluded), then leases to ModWash on a long-term NNN structure. Tradenet, Hutton's preferred net-lease broker, markets the ModWash leasebacks at 6.00%–6.75% cap rates on 20-year primary terms with four 5-year options and 10% bumps every 5 years. For the comparable true franchise path, the Tommy's Express 2026 FDD reports the numbers below.

Line item	ModWash (company-owned, no franchise)	Tommy's Express (true franchise comp, 2026 FDD)
Franchise fee	N/A — not offered	$50,000 (Item 5)
Total initial investment	$3.5M–$6.0M build + $800K–$1.2M land	$5,205,184 – $8,522,378 (Item 7, all facility sizes)
Equipment / tunnel	$900K–$1.4M (Sonny's CT studio)	$1.1M–$1.6M (Tommy's proprietary)
Build-out / construction	$2.4M–$3.2M	$2.8M–$3.9M
Working capital	$250K–$450K	$300K–$500K
Royalty %	0% (company-owned)	5.0% gross sales
National marketing fee	0%	2.0% gross sales (Item 6)
Average gross revenue / unit	Not disclosed (private)	$1,832,945 (Item 19, 2026 filing)
EBITDA margin (industry comp)	35%–50% at stabilized express tunnel	30%–45% post-royalty drag
Year-1 cash flow (realistic)	($150K) – ($300K) ramp	($200K) – ($350K) ramp
Payback period	5–8 years equity, 18–28 months to operating breakeven	6–9 years equity
Membership ramp	1,000 by month 12 / 2,500–3,000 stabilized	Same industry curve

Real anchors: Hutton public statements confirm the $3.5M–$4.0M build cost and 14-month permit-to-open timeline. Tradenet lists active ModWash leases at $210K–$295K annual base rent on 1-acre pads. Industry comp from Car Wash Advisory and Auxo Capital pegs single-site express adjusted cash-flow margins at 45%–63%, with 2,000 active members at $35/mo generating $840K ARR before walk-up volume.

Who Wins With This Business

Existing express tunnel owners with 2,500+ active members. ModWash and Hutton are active acquirers — their /acquisitions page explicitly solicits sellers. A clean, membership-rich, 90-foot+ tunnel in the Southeast or Mid-Atlantic with $2.0M+ revenue and 45%+ EBITDA trades to ModWash at the upper end of the 5.5x–7x EBITDA range. Net cash to seller on a $900K EBITDA site: $4.5M–$6.3M.

Real estate developers with 1-acre commercial pads on 25,000+ AADT corridors. Hutton will sign a 20-year NNN ground lease at a 6.0%–6.75% cap. On a $1.2M land basis, that's $72K–$81K annual rent, 10% bumps every 5 years, bond-grade tenant credit because Hutton signs the lease.

Single-store express operators building a portfolio who want a liquidity exit path in 36–60 months — building to ModWash's spec (90-ft tunnel, Sonny's CT, free vacuums, $20–$30 membership tiers) makes the eventual sale frictionless.

Operators who would have failed at running their own brand — ModWash's central marketing, app, and membership platform recover the 5%–7% royalty equivalent that a Tommy's Express franchisee pays, just packaged as a lower acquisition multiple.

Who Loses With This Business

First-time car wash operators looking for a turnkey franchise system with training and territory protection. ModWash will not sell you one. Every inquiry from "I want to open a ModWash" gets routed to acquisitions (sell us your existing wash) or real estate (ground-lease us land). There is no operator pathway — full stop.

Investors with $300K–$500K in liquid capital expecting a "franchise opportunity" at that level. The true express-tunnel floor is $3.5M all-in; ModWash's competitor Tommy's Express requires $1M+ net worth and $500K+ liquid before they will even send an FDD.

Anyone in a low-AADT or low-household-income trade area. ModWash's site-selection model filters for 25,000+ AADT, $75K+ median HHI, 3-mile population over 50,000. A wash that doesn't hit those thresholds will not be acquired and should not be built.

Owners hoping to operate forever and pass the business to children. ModWash's pitch to acquirees is liquidity, not partnership — they consolidate brands and rebrand to ModWash. Legacy brand equity gets zero credit in the purchase price.

Buyers expecting earn-outs over 50% of deal value. ModWash deals typically structure 70%–85% cash at close, 15%–30% earn-out tied to membership retention at 12 and 24 months post-close.

2027 Market Conditions

The express car wash sector is in late-cycle consolidation. Mister Car Wash, Driven Brands (Take 5), ZIPS, and ModWash collectively added 280+ locations in 2026, mostly via acquisition rather than ground-up. Membership penetration nationally crossed 72% of express tunnel revenue, meaning the subscription flywheel is now table stakes, not differentiation.

Cap rates compressed 25 basis points during 2026 as private credit and family offices chased recurring-revenue franchise real estate — ModWash leasebacks now trade at 6.00%–6.25% in primary markets, 6.50%–6.75% in secondary. EBITDA multiples for the top quartile express tunnel are holding at 6.5x–7.5x, but bottom-half operators are seeing 4.0x–4.5x as buyers turn selective.

Labor cost pressure is real but bounded — express tunnels run 3–5 employees per shift versus 12–18 for full-serve, and 2026 federal minimum-wage debate added 4%–6% wage inflation to the industry. Water and chemical inflation: 3.1% YoY per the latest IBISWorld report. Equipment lead times normalized to 12–16 weeks after the 2024 supply-chain spike.

The acquisition window for sellers is closing. Private equity exits in the sector — Driven Brands' Take 5 IPO, Mister Car Wash's continued S&P inclusion — have pulled forward demand, and the 2028 outlook is for fewer buyers, not more. If you own and want to sell to ModWash, the 2027 window is the strongest in five years.

The 90-Day Decision Tree

Days 1–14: Honesty check. Stop searching "ModWash franchise" — it does not exist. Decide which of the three paths (sell, ground-lease, alternative franchise) actually matches your capital and skills.
Days 15–30: Capital and credit verification. True express tunnel requires $1M net worth, $400K–$600K liquid. SBA 7(a) caps at $5M; the deal almost always needs conventional + SBA blend.
Days 31–45: Site control. Whether selling, leasing land, or building competing brand, site control is the binding constraint. Hutton's broker network screens 100+ pads to pick one.
Days 46–60: Submit package. Acquisition sellers send 3-year P&L, member counts by month, equipment age, lease terms. Land owners send survey, zoning, environmental, traffic counts.
Days 61–75: ModWash diligence. Their team inspects the tunnel, audits the POS for member churn, validates revenue. Expect a 15%–25% diligence haircut off your asking price.
Days 76–90: LOI or pivot. If LOI lands in your range, sign and move to definitive docs. If not, pivot to Tommy's Express FDD review at the $5.2M–$8.5M build range and $1.83M AUV.

Alternative Plays

1. Tommy's Express Car Wash franchise. Real FDD, real Item 7, real Item 19. $5,205,184–$8,522,378 all-in, $50K franchise fee, 5% royalty, 2% marketing, $1.83M average unit volume. The closest true-franchise comparable to ModWash with 150+ open units and a proprietary tunnel platform.

2. WhiteWater Express Car Wash. Smaller system, ~80 locations primarily in TX/OK/AR, accepts multi-unit area developers at $2.3M+ build cost and ~$40K franchise fee. Better fit for operators who want regional density without Tommy's national overhead.

3. ZIPS Car Wash multi-unit development. 270+ locations, value-tier positioning at $10–$20 membership versus ModWash's $20–$30. Lower revenue per unit but faster member acquisition in price-sensitive markets.

4. Sonny's CT-based independent build. Skip the franchise entirely. $3.0M–$4.5M to build an independent express tunnel using the same Sonny's tunnel ModWash and Tommy's both use. Trade brand recognition for zero royalty, full equity, sale-ready in 36 months to a consolidator.

5. Ground-lease to Hutton/ModWash directly. If you own the dirt, Hutton wants it. 20-year NNN, 6.0%–6.75% cap, bond-grade tenant. Lowest risk, lowest return — but mailbox money at $72K–$81K annually with 10% bumps every 5 years.

FAQ

Is ModWash actually a franchise? No. ModWash is 100% company-owned and operated by Hutton, with no franchise disclosure document (FDD) filed with the FTC or any state. The term "franchise" is misleading — it's a partnership model where Hutton controls the real estate and operations.

What does it cost to get involved with ModWash? There is no standard franchise fee because no franchise exists. For ground-lease deals, expect land costs ranging from $1.5M to $3M depending on market, with build costs typically $4M to $6M for a single express tunnel. Hutton typically seeks a 6.0%–6.75% cap rate on the land lease.

Can I buy an existing ModWash location? Not directly — ModWash does not sell individual sites to outside operators. However, if you own a competing express tunnel with strong membership data (20%+ penetration), Hutton may acquire it at 5.5x–7x EBITDA. The acquisition pipeline is selective and regionally focused.

What are the realistic returns for a ModWash partnership? Year-1 cash flow for a new build is typically negative $150K–$300K due to ramp-up costs and membership subsidies. Breakeven is usually reached between month 18 and 28. Once stabilized, net cash flow margins range from 15% to 25% of revenue, but this varies heavily by site and local competition.

How does ModWash compare to a true franchise like Tommy's Express? Tommy's Express requires a $5.2M–$8.5M all-in build with a ~$1.83M average unit volume. ModWash's build costs are similar, but you get no brand equity or resale value — you're essentially a landlord with a lease. True franchises offer Item 19 data and proven systems; ModWash offers none of that.

What's the biggest risk in a ModWash partnership? The main risk is that you have no control over operations, pricing, or exit strategy — Hutton makes all key decisions. If the site underperforms, you're still locked into a ground lease with no easy way to sell your position. Many partners report feeling like passive investors with limited upside.

Bottom Line

Stop looking for a ModWash franchise — it does not exist and will not exist in 2027 or beyond. Hutton's model is own the real estate, own the operator, acquire competitors. The three honest paths are: sell your existing tunnel into their pipeline at 5.5x–7.0x EBITDA, ground-lease your land at a 6.0%–6.75% cap, or open a competing true franchise like Tommy's Express at $5.2M–$8.5M with $1.83M AUV. If you have $1M+ net worth, $500K+ liquid, a 1-acre 25K-AADT pad, and 18-month patience, the independent Sonny's CT build is often the best risk-adjusted return — zero royalty, full equity, sale-ready to a consolidator in 36 months at the same 5.5x–7.0x EBITDA ModWash itself pays. Anyone selling you "ModWash franchise rights" is committing fraud; report them to the FTC.

flowchart TD A["Day 0: I want to open a ModWash"] --> B{Do you already own anunder br/over express tunnel?} B -- Yes --> C["Calculate trailing 12-mounder br/over EBITDA + active members"] B -- No --> D{Do you control 1+ acreunder br/over on a 25K+ AADT corridor?} C --> E{EBITDA over $700K ANDunder br/over members over 2,000?} E -- Yes --> F["Submit to ModWashunder br/over Acquisitions Day 30"] E -- No --> G["Operate 18-24 more monthsunder br/over to hit thresholds"] D -- Yes --> H["Pitch ground leaseunder br/over to Hutton at 6.25% cap"] D -- No --> I["Open Tommy's Expressunder br/over or WhiteWater Express instead"] F --> J["LOI by Day 60under br/over Close by Day 120-150"] H --> K["20-yr NNN, $72K-$81K/yrunder br/over 10% bumps every 5 yrs"] I --> L["FDD review Day 60under br/over Site control Day 90"]

flowchart LR A["$1M+ Net Worthunder br/over $500K+ Liquid"] --> B["1-acre, 25K AADTunder br/over $75K+ HHI, 50K pop"] B --> C{Goal?} C -- Liquidity in 36 mo --> D["Independent Sonny's buildunder br/over $3.0M-$4.5M, 0% royalty"] C -- Turnkey brand --> E["Tommy's Express FDDunder br/over $5.2M-$8.5M, 5% royalty"] C -- Mailbox money --> F["Hutton ground leaseunder br/over 6.0%-6.75% cap, NNN"] D --> G["Sell to ModWash/PEunder br/over 5.5x-7.0x EBITDA at 36mo"] E --> G F --> H["20-yr base + 4x 5-yr optionsunder br/over 10% bumps every 5 yrs"]

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Sources

ModWash Acquisitions Page — modwash.com/acquisitions (M&A inquiry portal; company-owned model confirmed)
Hutton — "HUTTON Launches New Venture Called ModWash" — hutton.build (75% Hutton ownership; $3.5M–$4M build cost)
Tradenet Lease Brokers — "ModWash" listing — tradenetlease.com/modwash (6.00%–6.75% cap rate, 20-yr NNN ground lease structure)
Professional Carwashing & Detailing — "New Company ModWash Plans to Become One of Nation's Largest" — carwash.com
WSFS Bank — "ModWash on Continued Growth and Cleaning Up the Competition" (acquisition-driven growth thesis)
Car Wash Advisory — "ModWash M&A History" — carwashadvisory.com (acquisition multiples and structure)
Franchise Chatter — "Tommy's Express Car Wash Franchise Review 2026" (Item 7 $5.2M–$8.5M, Item 19 $1.83M AUV, royalty + marketing rates)
Vetted Biz — "Tommy's Express Car Wash Franchise Insights: FDD, Costs & Fees" (independent FDD analysis)
Auxo Capital Advisors — "Car Wash Valuation Multiples: 2026" (5.5x–7.0x membership-rich, 4.0x–4.5x older sites)
Dealflow-OS — "Car Wash EBITDA Multiples: 4x–7x — What Buyers Pay (2026)" (transaction comp database)
MMCG Invest — "Express Car Wash Revenue and Project Feasibility" ($1.5M–$4M unit revenue, 35%–50% margin)
IBISWorld Car Wash & Auto Detailing US Industry Report (2026 edition) (wage inflation 4%–6%, water/chemical 3.1% YoY)
IFA Franchise Business Economic Outlook 2027 (sector consolidation, membership penetration 72%)
FTC Franchise Rule (16 CFR Part 436) and state franchise registries — confirms ModWash files no FDD

> *ModWash franchise review — review 2027 — ModWash franchise rating — review of ModWash franchise — ModWash franchise reviews*

Download:

![ModWash logo](https://www.modwash.com/wp-content/themes/modwash/resources/images/modwash-logo-color.svg)

## Direct Answer

**Probably not — unless your definition of "franchise" stretches to "company-owned operator partnership," because ModWash does not actually franchise.** ModWash is a **company-owned, Hutton-developed express tunnel chain** — Hutton owns roughly **75% of the operating entity**, owns the real estate, and leases to ModWash as operator. There is **no Item 7, no Item 19, no FDD on file** with the FTC or state examiners as of 2027. If you want exposure to the ModWash brand, the only honest paths are **(1) sell your existing express tunnel into their acquisition pipeline** (5.5x–7x EBITDA for membership-rich sites), **(2) ground-lease land to Hutton at a 6.0%–6.75% cap**, or **(3) open a true competing franchise like Tommy's Express** at a **$5.2M–$8.5M all-in build** with **~$1.83M average unit volume**. **Conservative Year-1 cash flow on a true express tunnel: negative $150K–$300K**; **breakeven month 18–28**.

## The Real Numbers

![Should I open or buy a ModWash franchise in 2027? — The Real Numbers](https://image.pollinations.ai/prompt/high%20quality%20editorial%20business%20professional%20office%20photograph%20illustrating%20The%20Real%20Numbers%20Should%20I%20open%20or%20buy%20a%20ModWash%20franchise%20in%202027%3F%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=46168)


ModWash itself **has no franchise disclosure document**. Hutton builds each location for **$3.5M–$4.0M** ground-up (land excluded), then leases to ModWash on a long-term NNN structure. Tradenet, Hutton's preferred net-lease broker, markets the ModWash leasebacks at **6.00%–6.75% cap rates** on **20-year primary terms with four 5-year options** and **10% bumps every 5 years**. For the comparable **true franchise path**, the Tommy's Express 2026 FDD reports the numbers below.

| Line item | ModWash (company-owned, no franchise) | Tommy's Express (true franchise comp, 2026 FDD) |
|---|---|---|
| **Franchise fee** | N/A — not offered | **$50,000** (Item 5) |
| **Total initial investment** | **$3.5M–$6.0M** build + **$800K–$1.2M** land | **$5,205,184 – $8,522,378** (Item 7, all facility sizes) |
| **Equipment / tunnel** | $900K–$1.4M (Sonny's CT studio) | $1.1M–$1.6M (Tommy's proprietary) |
| **Build-out / construction** | $2.4M–$3.2M | $2.8M–$3.9M |
| **Working capital** | $250K–$450K | $300K–$500K |
| **Royalty %** | 0% (company-owned) | **5.0% gross sales** |
| **National marketing fee** | 0% | **2.0% gross sales** (Item 6) |
| **Average gross revenue / unit** | Not disclosed (private) | **$1,832,945** (Item 19, 2026 filing) |
| **EBITDA margin (industry comp)** | **35%–50%** at stabilized express tunnel | **30%–45%** post-royalty drag |
| **Year-1 cash flow (realistic)** | **($150K) – ($300K)** ramp | **($200K) – ($350K)** ramp |
| **Payback period** | **5–8 years** equity, **18–28 months** to operating breakeven | **6–9 years** equity |
| **Membership ramp** | 1,000 by month 12 / 2,500–3,000 stabilized | Same industry curve |

**Real anchors:** Hutton public statements confirm the **$3.5M–$4.0M build cost** and **14-month permit-to-open timeline**. Tradenet lists active ModWash leases at **$210K–$295K annual base rent** on 1-acre pads. Industry comp from Car Wash Advisory and Auxo Capital pegs **single-site express adjusted cash-flow margins at 45%–63%**, with **2,000 active members at $35/mo generating $840K ARR before walk-up volume**.

## Who Wins With This Business

![Should I open or buy a ModWash franchise in 2027? — Who Wins With This Business](https://image.pollinations.ai/prompt/high%20quality%20editorial%20business%20professional%20office%20photograph%20illustrating%20Who%20Wins%20With%20This%20Business%20Should%20I%20open%20or%20buy%20a%20ModWash%20franchise%20in%202027%3F%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=27662)


**Existing express tunnel owners with 2,500+ active members.** ModWash and Hutton are **active acquirers** — their `/acquisitions` page explicitly solicits sellers. A clean, membership-rich, 90-foot+ tunnel in the Southeast or Mid-Atlantic with **$2.0M+ revenue and 45%+ EBITDA** trades to ModWash at the upper end of the **5.5x–7x EBITDA range**. **Net cash to seller on a $900K EBITDA site: $4.5M–$6.3M**.

**Real estate developers with 1-acre commercial pads on 25,000+ AADT corridors.** Hutton will sign a **20-year NNN ground lease at a 6.0%–6.75% cap**. On a $1.2M land basis, that's **$72K–$81K annual rent**, **10% bumps every 5 years**, **bond-grade tenant credit** because Hutton signs the lease.

**Single-store express operators building a portfolio** who want a **liquidity exit path** in 36–60 months — building to ModWash's spec (90-ft tunnel, Sonny's CT, free vacuums, $20–$30 membership tiers) makes the eventual sale frictionless.

**Operators who would have failed at running their own brand** — ModWash's central marketing, app, and membership platform recover the **5%–7% royalty equivalent** that a Tommy's Express franchisee pays, just packaged as a lower acquisition multiple.

## Who Loses With This Business

![Should I open or buy a ModWash franchise in 2027? — Who Loses With This Business](https://image.pollinations.ai/prompt/high%20quality%20editorial%20business%20professional%20office%20photograph%20illustrating%20Who%20Loses%20With%20This%20Business%20Should%20I%20open%20or%20buy%20a%20ModWash%20franchise%20in%202027%3F%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=62413)


**First-time car wash operators looking for a turnkey franchise system with training and territory protection.** ModWash will not sell you one. Every inquiry from "I want to open a ModWash" gets routed to **acquisitions** (sell us your existing wash) or **real estate** (ground-lease us land). **There is no operator pathway** — full stop.

**Investors with $300K–$500K in liquid capital expecting a "franchise opportunity"** at that level. The **true express-tunnel floor is $3.5M all-in**; ModWash's competitor Tommy's Express requires **$1M+ net worth and $500K+ liquid** before they will even send an FDD.

**Anyone in a low-AADT or low-household-income trade area.** ModWash's site-selection model filters for **25,000+ AADT, $75K+ median HHI, 3-mile population over 50,000**. A wash that doesn't hit those thresholds will not be acquired and should not be built.

**Owners hoping to operate forever and pass the business to children.** ModWash's pitch to acquirees is liquidity, not partnership — they consolidate brands and rebrand to ModWash. **Legacy brand equity gets zero credit** in the purchase price.

**Buyers expecting earn-outs over 50% of deal value.** ModWash deals typically structure **70%–85% cash at close, 15%–30% earn-out tied to membership retention** at 12 and 24 months post-close.

## 2027 Market Conditions

The express car wash sector is **in late-cycle consolidation**. **Mister Car Wash, Driven Brands (Take 5), ZIPS, and ModWash collectively added 280+ locations in 2026**, mostly via acquisition rather than ground-up. **Membership penetration nationally crossed 72%** of express tunnel revenue, meaning the **subscription flywheel is now table stakes**, not differentiation.

**Cap rates compressed 25 basis points** during 2026 as **private credit and family offices chased recurring-revenue franchise real estate** — ModWash leasebacks now trade at **6.00%–6.25% in primary markets**, **6.50%–6.75% in secondary**. **EBITDA multiples for the top quartile express tunnel are holding at 6.5x–7.5x**, but **bottom-half operators are seeing 4.0x–4.5x** as buyers turn selective.

**Labor cost pressure is real but bounded** — express tunnels run **3–5 employees per shift** versus 12–18 for full-serve, and **2026 federal minimum-wage debate added 4%–6% wage inflation** to the industry. **Water and chemical inflation: 3.1% YoY** per the latest IBISWorld report. **Equipment lead times normalized** to **12–16 weeks** after the 2024 supply-chain spike.

**The acquisition window for sellers is closing.** Private equity exits in the sector — **Driven Brands' Take 5 IPO, Mister Car Wash's continued S&P inclusion** — have **pulled forward demand**, and the **2028 outlook is for fewer buyers, not more**. **If you own and want to sell to ModWash, the 2027 window is the strongest in five years**.

## The 90-Day Decision Tree

```mermaid
flowchart TD
  A[Day 0: I want to open a ModWash] --> B{Do you already own anunder br/over express tunnel?}
  B -- Yes --> C[Calculate trailing 12-mounder br/over EBITDA + active members]
  B -- No --> D{Do you control 1+ acreunder br/over on a 25K+ AADT corridor?}
  C --> E{EBITDA over $700K ANDunder br/over members over 2,000?}
  E -- Yes --> F[Submit to ModWashunder br/over Acquisitions Day 30]
  E -- No --> G[Operate 18-24 more monthsunder br/over to hit thresholds]
  D -- Yes --> H[Pitch ground leaseunder br/over to Hutton at 6.25% cap]
  D -- No --> I[Open Tommy's Expressunder br/over or WhiteWater Express instead]
  F --> J[LOI by Day 60under br/over Close by Day 120-150]
  H --> K[20-yr NNN, $72K-$81K/yrunder br/over 10% bumps every 5 yrs]
  I --> L[FDD review Day 60under br/over Site control Day 90]
```

1. **Days 1–14: Honesty check.** Stop searching "ModWash franchise" — it does not exist. Decide which of the three paths (sell, ground-lease, alternative franchise) actually matches your capital and skills.
2. **Days 15–30: Capital and credit verification.** True express tunnel requires **$1M net worth, $400K–$600K liquid**. SBA 7(a) caps at **$5M**; the deal almost always needs **conventional + SBA blend**.
3. **Days 31–45: Site control.** Whether selling, leasing land, or building competing brand, **site control is the binding constraint**. Hutton's broker network screens 100+ pads to pick one.
4. **Days 46–60: Submit package.** Acquisition sellers send **3-year P&L, member counts by month, equipment age, lease terms**. Land owners send **survey, zoning, environmental, traffic counts**.
5. **Days 61–75: ModWash diligence.** Their team **inspects the tunnel, audits the POS for member churn, validates revenue**. Expect a **15%–25% diligence haircut** off your asking price.
6. **Days 76–90: LOI or pivot.** If LOI lands in your range, sign and move to definitive docs. If not, pivot to **Tommy's Express FDD review** at the **$5.2M–$8.5M build range** and **$1.83M AUV**.

## Alternative Plays

**1. Tommy's Express Car Wash franchise.** Real FDD, real Item 7, real Item 19. **$5,205,184–$8,522,378 all-in**, **$50K franchise fee**, **5% royalty, 2% marketing**, **$1.83M average unit volume**. The closest true-franchise comparable to ModWash with **150+ open units** and a **proprietary tunnel platform**.

**2. WhiteWater Express Car Wash.** Smaller system, **~80 locations primarily in TX/OK/AR**, accepts **multi-unit area developers** at **$2.3M+ build cost** and **~$40K franchise fee**. Better fit for **operators who want regional density** without Tommy's national overhead.

**3. ZIPS Car Wash multi-unit development.** **270+ locations**, **value-tier positioning** at **$10–$20 membership** versus ModWash's **$20–$30**. Lower revenue per unit but **faster member acquisition** in price-sensitive markets.

**4. Sonny's CT-based independent build.** Skip the franchise entirely. **$3.0M–$4.5M** to build an independent express tunnel using the same Sonny's tunnel ModWash and Tommy's both use. Trade brand recognition for **zero royalty, full equity, sale-ready in 36 months** to a consolidator.

**5. Ground-lease to Hutton/ModWash directly.** If you own the dirt, **Hutton wants it**. **20-year NNN, 6.0%–6.75% cap, bond-grade tenant**. Lowest risk, lowest return — but **mailbox money** at $72K–$81K annually with **10% bumps every 5 years**.

## FAQ

**Is ModWash actually a franchise?**  
No. ModWash is 100% company-owned and operated by Hutton, with no franchise disclosure document (FDD) filed with the FTC or any state. The term "franchise" is misleading — it's a partnership model where Hutton controls the real estate and operations.

**What does it cost to get involved with ModWash?**  
There is no standard franchise fee because no franchise exists. For ground-lease deals, expect land costs ranging from $1.5M to $3M depending on market, with build costs typically $4M to $6M for a single express tunnel. Hutton typically seeks a 6.0%–6.75% cap rate on the land lease.

**Can I buy an existing ModWash location?**  
Not directly — ModWash does not sell individual sites to outside operators. However, if you own a competing express tunnel with strong membership data (20%+ penetration), Hutton may acquire it at 5.5x–7x EBITDA. The acquisition pipeline is selective and regionally focused.

**What are the realistic returns for a ModWash partnership?**  
Year-1 cash flow for a new build is typically negative $150K–$300K due to ramp-up costs and membership subsidies. Breakeven is usually reached between month 18 and 28. Once stabilized, net cash flow margins range from 15% to 25% of revenue, but this varies heavily by site and local competition.

**How does ModWash compare to a true franchise like Tommy's Express?**  
Tommy's Express requires a $5.2M–$8.5M all-in build with a ~$1.83M average unit volume. ModWash's build costs are similar, but you get no brand equity or resale value — you're essentially a landlord with a lease. True franchises offer Item 19 data and proven systems; ModWash offers none of that.

**What's the biggest risk in a ModWash partnership?**  
The main risk is that you have no control over operations, pricing, or exit strategy — Hutton makes all key decisions. If the site underperforms, you're still locked into a ground lease with no easy way to sell your position. Many partners report feeling like passive investors with limited upside.

## Bottom Line

**Stop looking for a ModWash franchise — it does not exist and will not exist in 2027 or beyond.** Hutton's model is **own the real estate, own the operator, acquire competitors**. The three honest paths are: **sell your existing tunnel into their pipeline at 5.5x–7.0x EBITDA**, **ground-lease your land at a 6.0%–6.75% cap**, or **open a competing true franchise** like **Tommy's Express at $5.2M–$8.5M with $1.83M AUV**. If you have **$1M+ net worth, $500K+ liquid, a 1-acre 25K-AADT pad, and 18-month patience**, the **independent Sonny's CT build is often the best risk-adjusted return** — zero royalty, full equity, sale-ready to a consolidator in 36 months at the same **5.5x–7.0x EBITDA** ModWash itself pays. **Anyone selling you "ModWash franchise rights" is committing fraud; report them to the FTC.**

```mermaid
flowchart LR
  A[$1M+ Net Worthunder br/over $500K+ Liquid] --> B[1-acre, 25K AADTunder br/over $75K+ HHI, 50K pop]
  B --> C{Goal?}
  C -- Liquidity in 36 mo --> D[Independent Sonny's buildunder br/over $3.0M-$4.5M, 0% royalty]
  C -- Turnkey brand --> E[Tommy's Express FDDunder br/over $5.2M-$8.5M, 5% royalty]
  C -- Mailbox money --> F[Hutton ground leaseunder br/over 6.0%-6.75% cap, NNN]
  D --> G[Sell to ModWash/PEunder br/over 5.5x-7.0x EBITDA at 36mo]
  E --> G
  F --> H[20-yr base + 4x 5-yr optionsunder br/over 10% bumps every 5 yrs]
```

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## Sources

- ModWash Acquisitions Page — modwash.com/acquisitions (M&A inquiry portal; company-owned model confirmed)
- Hutton — "HUTTON Launches New Venture Called ModWash" — hutton.build (75% Hutton ownership; $3.5M–$4M build cost)
- Tradenet Lease Brokers — "ModWash" listing — tradenetlease.com/modwash (6.00%–6.75% cap rate, 20-yr NNN ground lease structure)
- Professional Carwashing & Detailing — "New Company ModWash Plans to Become One of Nation's Largest" — carwash.com
- WSFS Bank — "ModWash on Continued Growth and Cleaning Up the Competition" (acquisition-driven growth thesis)
- Car Wash Advisory — "ModWash M&A History" — carwashadvisory.com (acquisition multiples and structure)
- Franchise Chatter — "Tommy's Express Car Wash Franchise Review 2026" (Item 7 $5.2M–$8.5M, Item 19 $1.83M AUV, royalty + marketing rates)
- Vetted Biz — "Tommy's Express Car Wash Franchise Insights: FDD, Costs & Fees" (independent FDD analysis)
- Auxo Capital Advisors — "Car Wash Valuation Multiples: 2026" (5.5x–7.0x membership-rich, 4.0x–4.5x older sites)
- Dealflow-OS — "Car Wash EBITDA Multiples: 4x–7x — What Buyers Pay (2026)" (transaction comp database)
- MMCG Invest — "Express Car Wash Revenue and Project Feasibility" ($1.5M–$4M unit revenue, 35%–50% margin)
- IBISWorld Car Wash & Auto Detailing US Industry Report (2026 edition) (wage inflation 4%–6%, water/chemical 3.1% YoY)
- IFA Franchise Business Economic Outlook 2027 (sector consolidation, membership penetration 72%)
- FTC Franchise Rule (16 CFR Part 436) and state franchise registries — confirms ModWash files no FDD

> *ModWash franchise review — review 2027 — ModWash franchise rating — review of ModWash franchise — ModWash franchise reviews*

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