Application_Form_-_Non_Disclosure_Docs.pdf
Financing an 082CARWASH™?
We regret that due to past experiences regarding confidentiality, we do not issue business plans. Hence we only deal with financed (cash OR bank financed) buyers only.
Why Invest in 082CARWASH™?
- Huge gap in the car wash market
- A new and unique concept in the car wash industry
- Customer focused operation
- Rapidly expanding car wash franchise
- Expert franchise team
- Strong branding of our Trade Marks
- Professional image and staff
- Superior marketing effort
- Value for money car wash franchise
- Sustainable car wash business in the short & long term
- Profitable! Profitable!
What Costs are involved?
Estimated turnkey cost: R800,000 – R1,200,000 Vat Excl.
Scenario 1 – R800 000 Vat Excl.(includes the Start Up Franchise fee of R157,000 Vat excl.). This includes a full turnkey 082 CAR WASH™ operation.
The car wash site will have existing paving and building / structures that can be converted to 082 CAR WASH ™ operating standards.
This is for a full turnkey 082 CAR WASH™ operation.
Scenario 2 – R1 200 000 Vat Excl. (includes the Start Up Franchise fee of R157,000 Vat Excl.). This includes a full turnkey 082 CAR WASH™ operation.
Earmarked car wash site will have no existing paving or building / structures. Why such a huge price difference you ask???
I.e. Existing paving or tarred surface can save you up to R300,000.
What do you get in return?
- A 082CARWASH ™ full turnkey operation
- Franchisor support in site identification
- Lease & rental negotiation support
- CARWASH Café™ and all other necessary facilities (Total = +/-60 m2)
- 2 - 3 x Wash bays (72 m2 steel structure)
- 8-10 Drying Bays (Shade cloth)
- All signage
- All Equipment and furniture
- Recruited and trained staff
- Launch marketing effort & communication
- Ongoing marketing
- Weekly operations support from franchise office Ops Manager
- Dedicated Customer Care Line
- R40,000 – R50,000 Net Profit (Owner Operator)
How Long does the process take?
Should a car wash site not be available: Approx. 3-6 months depending on the area in question
Should the car wash site be available, then negotiating, draughting and signing of lease: Approx. 3-4 Weeks Once lease is signed?
- Drawing up of plans = 2-3 week
- Landlord approving of final plans = 2-3 week
- Submission / approval of car wash plans by municipality = 4-8 weeks (can be longer)
- Once car wash plans are approved = 8-10 weeks (assuming weather is kind)
During the final building stage all staff recruitment and training will take place simultaneously.
Note: The above are all worst case estimates.
Assessing the franchisor (See answers in blue)
When choosing a franchise, most of the information you gather will come from the franchisor. You will require extensive details on the franchise to make an informed decision. Think carefully about the questions you will need to ask. Here are a few to get you started:
- How long has your business been franchising? 12 Years
- What are your plans for the years ahead? 30 More franchises in operation within 5 years
- How many franchised outlets do you have? 15
- How many of them opened last year? 2
- How many do you plan to launch this year? 4
- How many closed last year and why? 0
- What percentage of franchises ended the relationship voluntarily last year and why? 0
- May I have a list of your franchisees, including those who closed their businesses in the last three years? See Branches Tab. (No closures since opening).
- May I see audited financial statements of these franchisees? Yes - Once the NDA's have been signed you may approach the franchisees individually.
- How much money do I need to buy the franchise? Worst case R900 000.00 Vat Excl. (Best case R400 000.00 - R600 000.00 Vat Excl.)
- How much working capital will I need to cover the first year? To be safe we suggest having R50,000 available - Only 3 months of working capital is required as the business shows a profit after that.
- Are there any other costs? No
- Do you expect a deposit at any stage of the negotiations? If so, is this refundable? Yes, once the lease is ready to be signed a 50% deposit of Total Estimated Cost will be required. Only refundable should a new franchisee be recruited.
- What royalties will I have to pay? The amount is a fixed amount of 4% paid in advance. A further 1% marketing fee is levied totalling 5%, (other franchises ask for 8-10%).
- By what method do you calculate the royalties? % of Gross T/O
- Are there any other fees or costs for which I will be liable? No
- Will you help me to find a suitable location for the franchise? Yes, however new sites are in short supply. Prospective franchisees are encouraged to seek their own sites as this speeds up the process considerably.
- Will you design and outfit the premises? Yes, the franchise office will purchase all equipment / signage / fittings etc. We install and test as well.
- What training will I receive? Minimum 10 days (ideally 14 days) on site training at our Edenglen franchise site.
- Will you also train my staff? We recruit and train staff at the earmarked site property.
- How much time will be spent on training? Owners/Managers 10 days and regular staff 3 days before opening.
- Do you guarantee my own and my staffs’ readiness after the training has been completed? The franchisor will personally support the franchisee for as many days as is necessary.
- What sort of continuing support will I receive once I have started the business? Weekly visit by a trained operations manager, during which a comprehensive Advice Document will be completed and handed to the franchisee (NO OTHER FRANCHISE OFFERS THIS AMOUNT OF SUPPORT!!!)
- What advertising and marketing support will I receive? The current marketing budget allocated and set aside a month is around R1500-00 Vat Excl. We have appointed an advertising agency to carry out all marketing on our behalf.
- After I sign the franchise agreement, how long will it be before I can open the doors for business? 8-10 weeks after building plans have been approved (This can take 4-8 weeks depending on municipality)
- How long will it take before I make a profit? 8-12 Weeks (No, this is not a printing error!!!)
- Give me an idea of the average profit margins of existing franchisees. 31% G.P and 45% G.M. (Around R40 000-00 to R50 000-00 Nett profit as an owner operator)
- May I have a copy of the franchise agreement to show to my attorney? Yes this is possible as long as you have completed our Non-Disclosure & Confidentiality document. NB: Our agreement was put together by the legal advisor for F.A.S.A. (Eugene Honey – Bowman Gilfillan Assoc.) who serves on their committee.