One Stop Undercar
Date of Incorporation: September 20, 1993
Franchising Since: 1993
Address: California
Description: One Stop Undercar affiliates opened the first One Stop Undercar Outlet during 1989 in southern California. At December 31, 2007, 20 Outlets were open and operating. Each Outlet distributes automobile parts, accessories and equipment to automobile repair and maintenance shops. Each Outlet offers a limited range of products and services and uses prescribed sales techniques and presentations, discount arrangements with suppliers, well developed advertising materials, an outlet manual and other established business techniques.
Franchise Offer: Each franchise being offered by One Stop Undercar is for an outlet similar to the existing outlets. Unless the franchisee is converting an existing similar business, the franchisee must pay One Stop Undercar an initial license fee of between $40,000 to $80,000, depending upon the size and population of the Territory.
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: One Stop Undercar training program consists of 4 weeks of classroom and on the job training. The training covers such topics as product knowledge, sales training, computer orientation and administration.
Territory: The franchisee will have a designated geographic area as their exclusive territory. One Stop Undercar and the franchisee must agree upon the location and size of the territory based on population and other demographics. Each territory generally includes a present or anticipated customer base of 200 auto repair shops. One Stop Undercar will not solicit or authorize anyone else to solicit customers as an outlet within the franchisee’s territory except as may be required by law and otherwise provided in the License Agreement. The franchisee may not solicit customers outside of their Territory.
Term of Agreement and Renewal: The initial term of a License Agreement is 20 years, and the franchisee may renew the license for an additional 20 year term, subject to certain conditions. The renewal fee is 25% of the then current initial franchise fee.
Obligations and Restrictions: One Stop Undercar does not require that the franchisee personally supervise the licensed Outlet. A full-time Operator who has successfully completed One Stop Undercar’s training program and been approved by One Stop Undercar can directly supervise the Outlet. The franchisee may offer and sell only those products and services that One Stop Undercar has approved.
Total Number of Units: The number of franchised units for 2007: 12
Investment Table:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial License Fee | $40,000 | $80,000 |
| Travel and Living Expenses while Training | None | $5,000 |
| Lease Deposit | $3,000 | $5,000 |
| Computer and Software | $10,000 | $12,500 |
| Delivery Vehicle | $10,000 | $15,000 |
| Equipment and Furniture | $14,000 | $18,500 |
| Signs | $5,000 | $10,000 |
| Miscellaneous Opening Costs | $5,000 | $10,000 |
| Opening Inventory | $425,000 | $650,000 |
| Rent for First 3 Months | $9,000 | $15,000 |
| License and Advertising Fees-Three Months | $8,000 | $20,000 |
| Additional Funds-3 Months | $45,000 | $80,000 |
| Total | $574,000 | $871,000 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Monthly License Fee | Greater of (a) 5% of initial license fee or (b) 5% of each month's Gross Sales |
| Local Advertising Fees and Marketing Fund Fee (when established) | Up to 3% of monthly Gross Sales |
| Required Materials | Reasonable Cost |
| Additional Training | Tuition-free |
| Late Fees | $25.00 plus interest on late amounts at 18% or highest legal rate |
| Attorney Fees | Reasonable amount to prevailing party in any legal proceeding |
| Transfer Fee | Estimated Actual up to 10% of the License Fee at that time |
| Renewal Fee | 20% of the Initial License Fee at that time |
| Audit | Reasonable Accounting and Legal Fees |
The above information has been taken from the UFOC/FDD of One Stop Undercar Inc.
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