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1-800-Radiator & A/C Franchise Costs & Fees

Date of Incorporation: 1985
Franchising Since: 2001
Headquarters: Benicia, California

Business Description: 1-800-Radiator Franchisor SPV LLC is the franchisor. The franchise is for the operation of a distribution warehouse(s) using the name “1-800-RADIATOR & A/C,” which will sell radiators, condensers, air conditioning compressors, fan assemblies, and other automotive parts to automobile repair shops, fleets, chain accounts and retail consumers. Additional automotive parts are currently being developed and tested and may be added to the System. They include fuel pumps, exterior body parts, starters and alternators.

Franchise Offer: The franchisor offers franchises to qualified individuals and entities to develop and operate a business that offers primarily wholesale distribution of radiators and certain other automotive parts it specifies from a warehouse location operated in accordance with its specifications to manage inventory, delivery and services which are provided to automotive repair, parts stores, body shops, and other repair shops located within an exclusive geographical area.

Financial Assistance: Although the franchisor does not offer any financing, its affiliates, in their sole discretion, may finance a portion of the initial costs and fees related to your purchase of the 1-800-RADIATOR & A/C franchise if franchisees meet certain credit requirements. This financing is provided in conjunction with or in lieu of SBA financing or other conventional financing that franchisees obtain in connection with their 1-800-RADIATOR & A/C franchise purchase. 1-800-RADIATOR & A/C franchisees are eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program.

Training and Assistance: The training program consists of 1 week of training at company headquarters in Benicia, California for franchisees. The franchisor requires that franchisees and all administrative and sales personnel personally attend refresher training courses covering operations and new product or procedure introductions. The franchisor may hold periodic national or regional conferences, including an annual conference, to discuss various business issues and operational and general business concerns affecting 1-800-RADIATOR & A/C Warehouses. Attendance at these conferences is mandatory for franchisees and other employees that the franchisor designates.

Territory: The franchisor will designate a geographic area as the exclusive territory, which will be mutually approved by franchisees and the franchisor and specified in the Franchise Agreement (the territory). During the term of the Franchise Agreement, the franchisor will not establish either a company-owned or franchised 1-800-RADIATOR & A/C Warehouse selling the same or similar goods or services under either the same or similar trademarks or service marks. Also, the franchisor will not solicit customers or accept orders for 1-800-RADIATOR & A/C authorized parts from customers located within the territory, through a 1-800-RADIATOR & A/C Warehouse within the territory, nor will the franchisor authorize anyone else to do so, except for referrals of potential 1-800-RADIATOR & A/C customers and sales to Chain Accounts. Each territory generally includes a present or anticipated customer base between 500 and 3,000 Shops, but is sometimes lower or higher.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. Franchisees may renew the franchise for an additional 20-year term, if certain conditions are met.

Obligations and Restrictions: Unless franchisees obtain the franchisor’s prior written consent, the franchisor require that franchisees personally attend its training courses and supervise the Warehouse on a full-time basis. If franchisees are a legal entity such as a corporation, partnership or limited liability company, one of the owners must be approved by the franchisor to be the full-time representative. Franchisees may offer and sell only those products and services that the franchisor has approved. Franchisees must offer all products and services that the franchisor designates as required for all franchisees. Franchisees may renew the franchise for an additional 20-year term if certain conditions are met.

Estimated Number of Units: 200

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $45,000 $45,000
Warehouse Equipment Package $30,000 $30,000
Opening Marketing Package $30,000 $30,000
Travel and Living Expenses While Training $2,500 $5,000
Lease Deposits $2,000 $5,000
Delivery Vehicle $5,000 $12,000
Miscellaneous Opening Costs $25,000 $75,000
Opening Inventory $150,000 $300,000
Rent for First 3 Months $6,000 $39,000
Additional Funds (3 months) $50,000 $150,000
ESTIMATED TOTAL (excluding real estate purchase costs) $345,500 $691,000
Other Fees
Type of Fee Amount
Ongoing Franchise Fee 8% of Gross Sales.
Local Marketing Fee 0.5% of Gross Sales.
System Marketing Fee 1.5% of Gross Sales.
Monthly Mailers $0.65 per mailer, but could increase if the franchisor’s costs increase.
Inventory Purchases Varies, depending on the franchisee’s inventory orders.
Call Center Fees As determined by the franchisor (currently $1 to $2 per call, depending on whether the calls are received during regular business hours, after regular business hours or during peak volume times).
Collections Fee/Credit Card Processing Fee Currently 3% of amount collected on the franchisee’s behalf for Chain Accounts.
Referral Fee for Chain Accounts Not currently charged.
Inventory (Private Label Products) The current pricing as ordered by franchisees (If franchisees qualify for participation in the program).
Initial Training Tuition-free.
Additional Training Tuition-free.
Conferences Not currently charged.
Network Support Fees Currently the Network Support Fees cover software and e-mail access (currently these fees are $145 - $165 per year per user account for software, plus $4 per month per e-mail address). The franchisor may increase these fees upon notice to franchisees.
Personal Sales Visit Reimbursement The franchisor’s actual expenses.
Administrative Fee $150 plus interest on late amounts at 18% or highest legal rate.
Late Payment Penalty $500
Audit Reasonable accounting and legal fees.
Renewal Fee $10,000
Transfer Fee $15,000
Acquisition Costs Based on inventory and additional sales.
Attorneys’ Fees Reasonable amount.
Default Costs Will vary.
Insurance Premiums Amount of premium, plus 10% processing fee.

The above information has been taken from the FDD of 1-800-Radiator & A/C. Year of FDD: 2016

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