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Precision Tune Auto Care Franchise Cost & Fees

Date of Incorporation: 1976
Franchising Since: 1978
Headquarters: Leesburg, Virginia

Business Description: Precision Franchising LLC is the franchisor. Required services currently include: (1) brakes & traction control; (2) cooling system; (3) diagnostic discovery services; (4) heating & air conditioning; (5) instrument panel gauges & warning lights; (6) lighting & light bulbs; (7) maintenance; (8) powertrain management; (9) relays & modules; (10) steering & suspension; (11) tire rotation & balance; and (12) wiper & washer systems. Optional services currently include: (1) accessories & optional equipment; (2) cruise control systems (3) engine replacement; (4) exhaust systems; (5) horns; (6) tires & tire replacement; (7) restraint systems' (8) transmission control systems; (9) transmission & drivetrain; (10) windows & glass; (11) alignment services; and (12) state inspections.

Franchise Offer: The franchisee will operate a Precision Tune Auto Care center, a full-service garage offering automotive products and services (including engine maintenance, lubrication, oil change, and brake products and services) to the public.

Financial Assistance: For development of Centers in certain areas, the franchisor may allow a new franchisee to pay $10,000 of the initial franchise fee upon signing the Franchise Agreement, and finance the balance. The franchisor also participates in the SBA Franchise Registry Program and VetFran.

Training and Assistance: If the Center is newly-built, franchisees must successfully complete initial training at least 9 weeks before franchisees begin to operate their Center. Training will last for one week, for 8-10 hours per day, and training will be held Monday through Friday of each week for a total of 45.5 hours of classroom instruction. In addition to initial training, before franchisees begin operating the Center, they or their employee must successfully complete engine performance (Level 1) course, which is one week long. Within one year after franchisees open their Center, they must attain and maintain full technical certification of the Center. Franchisees or their principal or employee must successfully complete courses on five subjects to attain full technical certification. In some circumstances, the franchisor may provide the initial training session in the field. The franchisor does provide ongoing/continuous and advanced training.

Territory: The franchisee must operate the franchised business only from the location described by the franchisor in the franchise agreement. Unless otherwise agreed in writing, neither the franchisor nor any of its affiliates will establish or license another individual or entity to operate a Center within the smallest radius (not to exceed five miles) from the location containing a population of 50,000 population, based on the most recent decennial census (Assigned Area). The Assigned Area is not conditional on sales volume, market penetration, or any other circumstances. Before the franchisor conducts or authorizes any other person or entity to operate a full-service Center or other similar automotive service facility in any Reserved Area located within the franchisee’s Assigned Area, it will offer the right to sell those products and services in the Reserved Area.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the franchise agreement is signed. If requirements are met, renewal terms are for consecutive and successive terms of 5 years each.

Obligations and Restrictions: Unless the franchisor permits otherwise in writing, franchisees must devote full time, energy, and best efforts to the management and operation of their Center. Franchisees must successfully complete the initial training program. Franchisees must offer all Precision Tune Auto Care products and services required. Franchisees must use the Center solely for the operation of the franchised business, must keep the Center open and in normal operation for the minimum hours and days specified or approved in writing, and must refrain from using or permitting the use of the Center for any other purpose or activity at any time without prior written consent.

Estimated Number of Units: 325

Investment Tables:
Initial Investment for New Centers
Name of Fee Low High
Initial Franchise Fee $2,000 $25,000
Construction/Site Acquisition $5,000 $7,000
Deposits, Including Rent and Utilities $6,000 $10,000
Interior & Exterior Signs $5,500 $15,000
Equipment, Fixtures, Furniture and Technical Manuals $59,500 $95,000
Installation of Signs and Compressors $10,000 $25,000
Initial Inventory $5,000 $7,500
Insurance (Workman’s Compensation Insurance and other prepaid insurance costs) $2,000 $6,500
Initial Training $0 $2,500
New Center Marketing $3,000 $3,000
Miscellaneous $1,000 $10,000
Computer Software Support $0 $600
Computer Software $500 $2,000
Computer Hardware - Lease $200 $700
Computer Hardware - Purchase $2,500 $4,500
Additional Funds - 3 months $25,000 $40,000
ESTIMATED TOTAL $127,000 $253,600
Other Fees
Type of Fee Amount
Operating Fee 6% - 7.5% of Gross Sales, subject to $300/week minimum.
National Marketing Fund 1.5% of Gross Sales.
Local/Co-Operative Marketing Up to 7.5% of Gross Sales.
New Center Marketing $3,000
On-Site and Local Area Training Currently $500 per day, per trainer, plus travel, lodging and meal expenses.
Equipment, Supply or Supplier Testing or Inspecting Fee not to exceed the actual costs of inspecting and testing.
Ongoing Training Manuals $10 to $245, depending on the manual.
Transfer (a) $2,000 if transferred to an experienced manager or Precision Tune Auto Care franchisee; (b) $10,000, if transferred to any other person.
Renewal $2,000
Audit Cost of audit (estimated $6,000 to $10,000)
Late Reporting Fees $100 per week until you submit the weekly sales report.
Late Payment Fees 18% per year, or highest rate of interest allowed by law; bank service charges; administrative fees.
Attorneys’ Fees and Costs Will vary under the circumstances.
Indemnification Will vary under the circumstances.
Site Evaluation First site evaluation free; for all others, reimbursement of our expenses ($500 minimum)
Securities Offering $5,000
Future Lost Profits Number of weeks remaining under the Franchise Agreement multiplied by the greater of $300 or 7.5% of average Gross Sales for the preceding 26 weeks of reported gross sales.
POS Hardware and Software Depends upon vendor and products purchased.

The above information has been taken from the FDD of Precision Tune Auto Care. Year of FDD: 2015

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