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A
Great Way To Clean Up!
®
The following questions and answers are designed to help
you accurately assess our franchise and to make a fully
informed decision concerning our business opportunity. We
have outlined your cost and responsibilities as a Spot-Not
Car Wash Owner, as well as several of the support systems
we provide.
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1. |
Q. |
What
type of franchise is available?
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A. |
The
individual franchise for a new location, and the development
agreement for opening multiple locations in a designated territory.
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2. |
Q. |
What
will the franchise cost?
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A. |
The
initial franchise fee for an individual unit is $25,000 with
50% payable at the time the Franchise Agreement is signed. The
fee for multiple locations is discounted according to the following
schedule:
| First Spot-Not Car Wash Facility |
$25,000 |
| Second Facility |
$20,000 |
| Third Facility |
$15,000 |
| Fourth and each additional Facility |
$10,000 |
Owners of currently operating car wash businesses who wish to
convert their businesses to Spot-Not Car Wash facilities may
qualify as affiliate franchise owners. The fee for each affiliate
franchise is $7,500.
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3. |
Q. |
What
are the initial costs?
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A. |
There
is a wide range, depending on cost of real estate and many other
factors. The approximate estimated cost of owning an average-sized
individual Spot-Not franchise breaks down as follows:
| Franchise Fee |
$ 25,000 |
| Real Estate (lease or purchase) |
6,000 - 350,000 |
| Architectural Drawings |
6,000 - 12,000 |
| Insurance (annual premium) |
2,500 - 7,500 |
| Facility & Site Improvements |
250,000 - 400,000 |
| Equipment |
277,100 - 375,000 |
| Signs |
16,000 - 18,000 |
| Utility Security Deposits |
2,000 - 8,000 |
| Fixtures, Operational Supplies & Tools |
8,200 - 12,000 |
| Training (food, travel & lodging) |
3,200 - 5,100 |
| Grand Opening Advertising |
*2,500 |
| Working Capital (minimum) |
27,000 - 81,000
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| TOTAL |
$ 625,500 - 1,296,100 |
* Franchisor will match this figure by spending an additional
$2,500 on advertising in your market for Grand Opening.
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4. |
Q. |
Does
Franchisor offer finance programs?
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A. |
Yes.
A major lending corporation has joined with the Franchisor to
provide a source of financing for franchise owners through the
SBA Guaranteed Loan Program. Equipment leasing is an option
available through a national franchise finance company.
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5. |
Q. |
Are
equipment and supplies competitively priced?
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A. |
Yes.
All equipment and supplies have been specially selected and
developed to be compatible with the Spot-Not Car Wash concept.
At the same time, we are concerned about maintaining low prices
so as to allow as many people as possible the opportunity to
afford their own Spot-Not Car Wash business.
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6. |
Q. |
Must
I buy my equipment and supplies from you?
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A. |
Our
exclusive car-washing and No-Spot® Rinse equipment are essential
to the Spot-Not concept and must be purchased from us. Signage
must be purchased from franchisor approved sources. Items necessary
for the operation of your business may be purchased from individual
dealers, distributors, and/or manufacturers as long as specifications
meet franchisor standards. However, in most cases our purchasing
power can provide you with the most favorable pricing on products
compatible with our concept.
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7. |
Q. |
What
is the charge for continuing service and royalty?
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A. |
Continuing
service and royalty fees are calculated and remitted weekly
on total gross receipts exclusive of sales tax.
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Percentage
From All Spot-Not
Facilities
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| One Spot-Not Car Wash Unit |
5%
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| Two Spot-Not Car Wash Units |
4.75%
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| Three Spot-Not Car Wash Units |
4.5%
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| Four Spot-Not Car Wash Units |
4.25%
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| Five and More |
4%
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For affiliates, the royalty is charged according to the following
schedule:
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Percentage
From All Spot-Not
Facilities
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First year as a
Spot-Not Car Wash |
2%
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Second year as a
Spot-Not Car Wash |
3%
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Third year as a
Spot-Not Car Wash |
4%
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| Fourth year and thereafter |
5%
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8.
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Q.
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What
about advertising?
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A. |
Building
recognition of the Spot-Not Car Wash name and reputation is
an essential ongoing objective that benefits everyone. For this
purpose, each franchise owner contributes 1 % of gross receipts
into the Advertising and Development Fund. In addition, franchise
owners will be required to spend not less than 3% of gross receipts
on local advertising, with franchisor's guidance.
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9.
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Q.
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Where
may l locate my Spot-Not Car Wash?
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A. |
You
may designate where you wish to locate, so long as it does not
infringe upon any other Spot-Not Car Wash. Naturally, the more
flexible you are, the quicker a location can be found.
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10. |
Q. |
May
I find my own location?
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A. |
Yes,
subject to franchisor's approval. We are obligated to undertake
site selection activities on your behalf and within 120 days
shall submit in writing to you for consideration two or more
sites acceptable to us.
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11. |
Q. |
Will
my territory be protected?
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A. |
Yes,
each franchise owner is allotted an area in which no other franchise
is awarded.
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12. |
Q. |
Do
I receive training by Franchisor?
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A. |
Initial
training consists of three phases. In the first phase, prior
to opening of the car wash, franchisor will provide ten days
of on-the-job training at a designated training location. The
second phase consists of three and one-half days of management
training at the franchisor's corporate office prior to your
car wash opening. The third phase is a three and one-half day
technical training course held at the corporate office approximately
three to six months after your Spot-Not Car Wash opens for business.
You and/or your designated manager or employee must successfully
complete the three phase training. Although franchisor will
not charge specific tuition or training fee, you are responsible
for the salary, travel and living expenses incurred by the attendees.
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13. |
Q. |
Do
I receive assistance in opening my business?
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A. |
Yes.
In addition to your initial training period, a field consultant
will work with you in your market for five days during your
first month of operation.
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14. |
Q. |
What
form of continuing operational guidance will l receive?
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A. |
First
of all, you will receive the Spot-Not Car Washes Operations
Manual which covers many important facets of your business.
As the manuals are updated, revisions are made available to
you. Periodically, you will receive company newsletters containing
useful management information and bulletins which spotlight
important happenings. You will also receive periodic visits
by a field consultant who will consult with you and offer useful
advise and counsel on such system elements as identity, quality,
customer convenience, product information, advertising, recordkeeping,
training, communication and incentives.
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15. |
Q. |
Do
I receive guidance on the purchase of inventory and supplies?
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A. |
Yes.
Our Operations Department evaluates suppliers based on their
ability to provide products that equal or exceed our specifications
and high quality standards, in sufficient volume and at the
lowest competitive prices and recommends these sources for your
use.
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16. |
Q. |
Does
Franchisor have forms and business aids I can use?
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A. |
Yes.
We have designed a complete variety of forms for inventory control,
daily and weekly sales, payroll registers, and other business
aids vital to the correct and efficient operation of your unit.
You'll also receive ads, flyers, and other marketing materials
which have been professionally prepared to promote your business.
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17. |
Q. |
Who
decides what prices I will charge for services?
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A. |
You
do; however, we will provide you will guidance which will help
you with suggestions in this area.
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18. |
Q. |
Can
I sell my Spot-Not Car Wash franchise?
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A. |
Yes.
Your business can be sold to any buyer approved by the company.
There is a transfer fee for administration, legal, and training
expenses to effect the transfer and, if requested, we will offer
your business for sale for a sales commission.
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19. |
Q. |
What
is the term of my franchise agreement?
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A. |
The
basic term is 10 years. You may renew for two additional 5-year
terms at the then-current agreement terms with no additional
franchise fee.
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20. |
Q. |
How
long before I get my Spot-Not Car Wash business started?
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A. |
That
depends on a number of variables, including selecting a desirable
location, zoning issues and the number of prospective franchises
on our waiting list. We estimate that it will take 12 months
after acquisition of the property.
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21. |
Q. |
I
would like to study your Franchise Agreement. Will you send
me one?
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A. |
Our
Franchise Agreement was developed by attorneys and specialists
in franchising and is a valued document which we do not indiscriminately
distribute. Following the procedure outlined in Question 22,
we will be happy to provide you with a copy of the Uniform Franchise
Offering Circular (UFOC) which includes a copy of the Franchise
Agreement.
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22. |
Q. |
How
do I get started?
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A. |
First,
fill out the Franchise Evaluation Form and submit to us. Upon
receipt of the application, we will provide you with a copy
of the Uniform Franchise Offering Circular (UFOC) and contact
you to set up a personal meeting with a franchise sales consultant.
After we have had an opportunity to meet each other and the
necessary disclosure requirements have been met, the Franchise
Agreement may be executed.
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We
have attempted to answer the commonly asked questions about
Spot-Not Car Washes. We are sure you must have a few we haven't
covered, so please feel free to ask our representative any questions
at all. Thanks for your interest. You may reach us by calling
(417) 831-1515 or (800) 682-7629.
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