Precision Tune Auto Care Franchise Cost & Fees

Description

Top Rated Automotive Franchise – Servicing More Than 2 Million Customers Per Year

Precision Tune Auto Care has been in the automotive aftermarket business for more than 40 years. We know the industry and we make it easy for you to open and operate a successful auto repair franchise by giving you the tools you need. The automotive aftermarket service and repair industry is a growing business with enormous potential.

Automotive Industry Facts:

  • The “specialty” automotive aftermarket is the fastest growing franchise category, with a 2-5% growth per year.
  • In 2015, the US motor vehicle aftermarket expanded 4.4% to $342.5 billion.
  • There are 260 million serviceable vehicles on the U.S. roadways today.
  • Every year, $60+ billion in vehicle maintenance goes unperformed.
  • The average consumer spends $400 per year on automotive diagnostics, scheduled maintenance and repair.
  • The average age of vehicles continues to increase, with passenger cars increasing from 8.9 years (1998) to 11.5 years (2015). Light Trucks increased from 7.4 years to 11.5 years in the same time period.
  • The DIFM (Do It For Me) market continues to grow; automotive service facilities are capturing $8 out of every $10 being spent on auto care.
  • 89% of female motorists are involved in the decision to purchase maintenance and repairs; more than 2/3 take the vehicle in for service themselves.

Sources: 1AAIA Aftermarket Fact Book 2012; 2Packaged Facts (1999), a publication of Kalorama Information, LLC;3ACA The 2017 Digital Factbook(2016); 4AAIA Female Motorist Study (2004); 5AAIA Aftermarket Fact Book 2010

Precision Tune Auto Care began as a small tune up shop in Beaumont, TX in 1976 and has grown to more than 340 service centers operating in eight countries. We are a recognized world leader in the automotive service industry and have been a top rated franchise 500 company for more than 30 years! Our service centers provide total car care, performing diagnostics, scheduled maintenance and auto repairs. We offer the full range of services, from oil changes to engine replacement. Our culture is focused on integrity, vehicle safety and customer care.

Helping our franchisees to operate successfully and meet the challenges of today’s marketplace is the top priority for the Precision Tune Auto Care system. We provide them with a proven operating system. As a result, our franchisees have played a major role in the success of Precision Tune Auto Care.

 

Year Business Began: 1976

Franchising Since: 1978

Headquarters: Leesburg, VirginiaEstimated

Number of Units: 320Franchise

 

Description: Precision Franchising LLC is the franchisor. The franchisee will operate a Precision Tune Auto Care center, a full-service garage offering automotive products and services (including engine maintenance, lubrication, oil change, and brake products and services) to the public. Required services currently include: (1) brakes & traction control; (2) cooling system; (3) diagnostic discovery services; (4) heating & air conditioning; (5) instrument panel gauges & warning lights; (6) lighting & light bulbs; (7) maintenance; (8) powertrain management; (9) relays & modules; (10) steering & suspension; (11) tire rotation & balance; and (12) wiper & washer systems. Optional services currently include: (1) accessories & optional equipment; (2) cruise control systems (3) engine replacement; (4) exhaust systems; (5) horns; (6) tires & tire replacement; (7) restraint systems’ (8) transmission control systems; (9) transmission & drivetrain; (10) windows & glass; (11) alignment services; and (12) state inspections.Training Overview: If the Center is newly-built, franchisees must successfully complete initial training at least nine weeks before franchisees begin to operate their Center. Training will last for one week, for 8-10 hours per day, and training will be held Monday through Friday of each week for a total of 46.5 hours of classroom instruction. The franchisor will held initial gaining at its national training center, currently in Leesburg, Virginia. In addition to initial training, before franchisees begin operating the Center, they or their employee must successfully complete engine performance (Level 1) course, which is one week long. Within one year after franchisees open their Center, they must attain and maintain full technical certification of the Center. Franchisees or their principal or employee must successfully complete courses on five subjects to attain full technical certification. Each level consists of 40 hours each of classroom and hands-on training. The franchisor also offers optional training on brakes, air-conditioning, and preventative maintenance. Technical training is also available at field locations that the franchisor designates, on a periodic basis. In some circumstances, the franchisor may provide the initial training session in the field. The franchisor does provide ongoing/continuous and advanced training.Territory Granted: Subject to the Franchise Agreement, the franchisor grants to franchisees the license, and they undertake the obligation, to operate a full-service Precision Tune Auto Care automotive service business using the marks and system solely at and from the accepted location. Unless otherwise agreed in writing, neither the franchisor nor any of its affiliates will establish or license another individual or entity to operate a Center within the smallest radius (not to exceed five miles) from the location containing a population of 50,000 population, based on the most recent decennial census (Assigned Area). The Assigned Area is not conditional on sales volume, market penetration, or any other circumstances. Before the franchisor conducts or authorizes any other person or entity to operate a full-service Center or other similar automotive service facility in any Reserved Area located within the franchisee’s Assigned Area, it will offer the right to sell those products and services in the Reserved Area.Obligations and Restrictions: Unless the franchisor permits otherwise in writing, franchisees must devote full time, energy, and best efforts to the management and operation of their Center. Franchisees must successfully complete the initial training program. Franchisees must offer all Precision Tune Auto Care products and services required. Franchisees must use the Center solely for the operation of the franchised business, must keep the Center open and in normal operation for the minimum hours and days specified or approved in writing, and must refrain from using or permitting the use of the Center for any other purpose or activity at any time without prior written consent.Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. If requirements are met, renewal terms are for consecutive and successive terms of five years each.Financial Assistance: For development of Centers in certain areas, the franchisor may allow a new franchisee to pay $10,000 of the initial franchise fee upon signing the Franchise Agreement, and finance the balance. The franchisor also participates in the SBA Franchise Registry Program and VetFran. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $2,000 $25,000 Construction/Site Acquisition $5,000 $7,000 Deposits, Including Rent and Utilities $6,000 $10,000 Interior & Exterior Signs $5,500 $15,000 Equipment, Fixtures, Furniture and Technical Manuals $59,500 $95,000 Installation of Signs and Compressors $10,000 $25,000 Initial Inventory $5,000 $7,500 Insurance (Workman’s Compensation Insurance and other prepaid insurance costs) $2,000 $6,500 Initial Training $0 $2,500 New Center Marketing $3,000 $3,000 Miscellaneous $1,000 $10,000 Computer Software Support $0 $600 Computer Software $500 $2,000 Computer Hardware – Lease $200 $700 Computer Hardware – Purchase $2,500 $4,500 Additional Funds – 3 months $25,000 $40,000 ESTIMATED TOTAL $127,000 $253,600 Other Fees Type of Fee Amount Operating Fee 6% – 7.5% of Gross Sales, subject to $300/week minimum. National Marketing Fund 1.5% of Gross Sales. Local/Co-Operative Marketing Up to 7.5% of Gross Sales. New Center Marketing $3,000 On-Site and Local Area Training Currently $500 per day, per trainer, plus travel, lodging and meal expenses. Equipment, Supply or Supplier Testing or Inspecting Fee not to exceed the actual costs of inspecting and testing. Ongoing Training Manuals $10 to $245, depending on the manual. Transfer (a) $2,000 if transferred to an experienced manager or Precision Tune Auto Care franchisee; (b) $10,000, if transferred to any other person. Renewal $2,000 Audit Cost of audit (estimated $6,000 to $10,000) Late Reporting Fees $100 per week until you submit the weekly sales report. Late Payment Fees 18% per year, or highest rate of interest allowed by law; bank service charges; administrative fees. Attorneys’ Fees and Costs Will vary under the circumstances. Indemnification Will vary under the circumstances. Site Evaluation First site evaluation free; for all others, reimbursement of our expenses ($500 minimum) Securities Offering $5,000 Future Lost Profits Number of weeks remaining under the Franchise Agreement multiplied by the greater of $300 or 7.5% of average Gross Sales for the preceding 26 weeks of reported gross sales. POS Hardware and Software Depends upon vendor and products purchased. Sublease Mark-Up Depends upon lease terms

Disclaimer:The above information has been taken from the FDD of Precision Tune Auto Care. Year of FDD: 2018 

 

Other Fees
Type of Fee Amount
Operating Fee 6% – 7.5% of Gross Sales, subject to $300/week minimum.
National Marketing Fund 1.5% of Gross Sales.
Local/Co-Operative Marketing Up to 7.5% of Gross Sales.
New Center Marketing $3,000
On-Site and Local Area Training Currently $500 per day, per trainer, plus travel, lodging and meal expenses.
Equipment, Supply or Supplier Testing or Inspecting Fee not to exceed the actual costs of inspecting and testing.
Ongoing Training Manuals $10 to $245, depending on the manual.
Transfer (a) $2,000 if transferred to an experienced manager or Precision Tune Auto Care franchisee; (b) $10,000, if transferred to any other person.
Renewal $2,000
Audit Cost of audit (estimated $6,000 to $10,000)
Late Reporting Fees $100 per week until you submit the weekly sales report.
Late Payment Fees 18% per year, or highest rate of interest allowed by law; bank service charges; administrative fees.
Attorneys’ Fees and Costs Will vary under the circumstances.
Indemnification Will vary under the circumstances.
Site Evaluation First site evaluation free; for all others, reimbursement of our expenses ($500 minimum)
Securities Offering $5,000
Future Lost Profits Number of weeks remaining under the Franchise Agreement multiplied by the greater of $300 or 7.5% of average Gross Sales for the preceding 26 weeks of reported gross sales.
POS Hardware and Software Depends upon vendor and products purchased.
Sublease Mark-Up Depends upon lease terms