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All Tune and Lube Franchise Costs & Fees

Date of Incorporation: 1985
Franchising Since: 1986
Headquarters: Millersville, Maryland

Business Description: ATL International, Inc. (ATL) is the franchisor. The franchisor franchises a system (the “All Tune and Lube System”) for providing general automotive repairs, including engine performance services and other under-the-hood and under-car maintenance, repairs, servicing, and replacements, and other services only as ATL designates. The franchisor also franchises a system (the “ATL Motor Mate System”) for providing automotive engine replacements/exchanges and other services only as ATL designates.

Franchise Offer: The All Tune and Lube franchisee will perform general automotive repairs, excluding engine replacements/exchanges and transmission exchanges/rebuilds/clutch replacements.

Financial Assistance: Although ATL does not offer financing to its franchisees, it may assist franchisees in obtaining financing from other sources. Except as described, ATL does not offer direct or indirect financing, nor guarantee franchisees’ note, lease or other obligation. ATL does not sell or assign its rights under any notes or financing agreements or arrangements, but reserves the right to do so.

Training and Assistance: The Initial Training school is mandatory for all new franchisees and must be completed to ATL's satisfaction. The first part of the Initial Training consists of approximately one week of franchise school at ATL headquarters in Maryland. On-the-job training occurs just before and during the opening of the Center. Actual number of hours may vary at ATL's discretion. Franchisees must also satisfactorily complete additional training programs which may include sales meetings, operations meetings, and conventions as ATL may reasonably require.

Territory: Franchisees and ATL agree on a metropolitan or other extended market area, referred to as the Designated Market in their franchise agreement. The Designated Market varies in size – it typically consists of a town or city, a county or counties, or a metropolitan area, depending on the market(s) in which franchisees are interested in opening their Center. As long as franchisees are 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 Center is located.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If franchisees are in good standing, they can renew for 3 additional terms of 5 years each as long as renewal requirements are met.

Obligations and Restrictions: If franchisees are an individual, they must either (i) directly supervise the franchised business on the Center premises or (ii) 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, franchisees must devote a minimum of 30 hours per week or more, as necessary, to the management of the franchised business. ATL requires franchisees to offer and sell only those goods and services that the franchisor has approved for franchisees’ particular franchise or combination of franchises, if applicable. Franchisees are also prohibited from using the premises for any purpose other than the required goods and services.

Estimated Number of Units: 65

Investment Tables:
Initial Investment
Name of Fee Low High
Franchise License Fee $25,000 $25,000
Travel and Living Expenses While Training $300 $500
Real Estate and Improvements Varies
Equipment $30,700 $40,000
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 $5,000
Miscellaneous Opening Costs (estimated) $6,000 $12,000
Initial Advertising Fee $6,000 $6,000
Additional Funds (3 months) $30,000 $40,000
Insurance Varies
ESTIMATED TOTAL $110,000 $144,500
Other Fees
Type of Fee Amount
Weekly Royalty Fee 7% of weekly gross sales for general repair and 3% for tires/batteries (weekly $395 minimum) for All Tune and Lube; 5% of weekly gross sales (weekly $395 minimum) for All Tune Transmissions.
Weekly Advertising Contribution For All Tune and Lube stand-alone, All Tune Transmissions standalone, or any combination of two or more franchises: $595 per week.
Graphic Design/Media Fee $60 per month.
Additional Training No additional charge.
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 FDD of All Tune and Lube. Year of FDD: 2015

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