All Tune and Lube
Date of Incorporation: September 23,1985
Franchising Since: July 1986
Address: Maryland
Description: The All Tune and Lube (ALT) are into the business of automotive repairs. ATL has three types of franchise offers and the franchisee may purchase one or more of these franchises to be operated at a single location.
Franchise Offer: ATL is offering three separate franchise options;
i)The All Tune and Lube® will perform general automotive repairs, excluding engine replacements/exchanges and transmission exchanges/rebuilds/clutch replacements.
ii) The ATL Motor Mate® will perform automotive engine replacements/exchanges.
iii) The All Tune Transmissions® will perform transmission exchanges/rebuilds and clutch replacements.
Financial Assistance: Although ATL generally does not offer financing to its franchisees, it may assist the franchisee in obtaining financing from other sources. ATL offers financing for part of the balance of the franchise license fee.
Training and Assistance: Training consists of the initial training which is offered at the franchise school at the Maryland headquarters and the in-Center training at the centre of the franchisee. The Initial Training consists of approximately 9-12 days. The in-Center training is conducted by an ATL employee in the franchised Center just before Center opens and during the course of center's opening.
Territory: Although the franchisee is not granted any exclusive territory, the franchisee has territorial rights in that, as long as the franchisee is not in default under the franchise agreement, ATL will not establish or grant a franchisee the right to establish more than one Center operating each and every franchise, the franchisee has purchased for each 40,000 motor vehicles in the immediate area in which the franchised Center is located.
Term of Agreement and Renewal: The term of the franchise agreement is 15 years. If the franchisee is in good standing then they can renew for three additional terms of 5 years each as long as renewal requirements are met.
Obligations and Restrictions: The franchisee may employ a manager, who has successfully completed the ATL training program for managers, to supervise the franchised business on the Center premises. Whether a manager is employed or not, the franchisee must devote a minimum of 30 hours per week or more, as necessary, to the management of the franchised business. ATL requires the franchisee to offer and sell only those goods and services that the franchisor has approved for a particular franchise or for a combination of franchises, if applicable. The franchisee is also prohibited from using the premises for any purpose other than the required goods and services.
Total Number of Units: 211 franchised outlets at the end of the year 2007
Financial Statements: Net income of $11,378 for the year ended 2007
Investment Table:
i) Estimated Initial Investment
| Name of Fee |
Low |
High |
|---|---|---|
| Franchise license fee |
$25,000 |
$25,000 |
| Travel and living expenses while training |
$300 |
$3500 |
| Equipment |
$30,700 |
$54,000 |
| Computer Hardware and Software |
$2,500 |
$3,500 |
| Initial inventory {replacement parts and oil) |
$6,500 |
$10,500 |
| Promotional material, business supplies, stationery forms, sequentially numbered ATL customer receipts |
$1,500 |
$2,000 |
| Signs (interior and exterior) plus estimated installation |
$1,500 |
$37,000 |
| Miscellaneous opening costs (estimated) |
$6,000 |
$312,000 |
| Initial Advertising Fee |
$6,000 |
$6,000 |
| Additional Funds - 3 months |
$20,000 |
$330,000 |
| Totals |
$100,000 |
$783,500 |
ii) Ongoing Costs
| Name of Fee |
Amount |
|---|---|
| Weekly Royalty Fee |
Seven percent (7%) of weekly gross sales for general repair and 3% for tires/batteries (weekly $395 minimum) for All Tune and Lube;® five percent (5%) of weekly gross sales (weekly $395 minimum) for ATL Motor Mate® and/or All Tune Transmissions® |
| Weekly Advertising Contribution |
For All Tune and Lube® stand¬alone, All Tune Transmissions® stand-alone, or any combina¬tion of two or more franchises: $595 per week; For ATL Motor Mate® stand-alone: $500 per week |
| Supplemental Advertising Contribution |
$60 per month |
| Transfer Fee |
$7,500 |
| Audit |
Cost of inspection or audit |
| Interest | Wall Street Journal prime rate plus 1% |
| Late Fees |
1 % of gross sales for the week for which payment was late |
| Costs/Attorney Fees |
Will vary under circumstances |
| Indemnification |
Will vary under circumstances |
| Warranty Obligations |
Will vary under circumstances |
The above information has been taken from the UFOC/FDD of The All Tune and Lube.
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