Precision Tune Auto Care Franchise Information, Costs & Fees Precision Tune Auto Care FDD

Precision Tune Auto Care

Date of Incorporation: 1976

Franchising Since: 1978

Headquarters: Leesburg, Virginia

Country: USA

Description: Precision Franchising LLC is a Virginia limited liability company. They have acquired and further developed a system for the retail sale of automotive products and services, and for assisting franchisees in selling those products and services. The franchisee will operate a Precision Tune Auto Care® center that offers to the public automotive products and services.

Franchise Offer: The franchisee will operate a Precision Tune Auto Care center, a full-service garage offering automotive products and services to the public. The franchisee must sign a franchise agreement and related agreements, and must operate the franchised business according to the standards and specifications in those agreements and the Center Policies and Procedures Manual and other manuals and directives that may be issued from time to time. The franchisor grants the license, and the franchisee undertakes the obligation, to operate a full-service Precision Tune Auto Care automotive service business solely at and from an accepted location.

Financial Assistance: The franchisor has been approved for participation in the Small Business Administration Franchise Registry. Loan approval is conditioned upon the franchisee’s credit worthiness. The franchisor does not guarantee that a bank will approve his/her loan application. If the franchisee is a U. S. veteran, and qualify for the Veterans Transition Franchise Initiative program, he/she will pay a lowered initial franchise fee of $10,000 on signing the franchise agreement. In addition, he/she will pay an operating fee of 3.75% of gross weekly sales (minimum of $150/week) for the first 52 weeks.

Training and Assistance: The franchisor provides the following: Initial training, assistance in opening the Center, P&P Manual and any other manuals, catalogs, and materials that the franchisor may select.

Territory: The franchisee must operate only from an accepted location. Neither the franchisor nor any of the franchisor’s 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, based on the most recent decennial census
Nothing prohibits the franchisor, their affiliates, and any other franchisee, or authorized person from selling products or services in the general retail market or through third parties' retail establishments, within or outside of the assigned area

Term of Agreement and Renewal: The length of the term of the franchise is 10 years from the date of signing the Franchise Agreement. The term may be renewed or extended for 2 consecutive terms of 5 years each, only with compliance with the franchise agreement and 90-180 days notice, and if all other qualifications are met.

Obligations and Restrictions: The franchisee must devote full time, energy, and best efforts to the management and operation of his/her Center. The franchisee must successfully complete the initial training program. In addition, if the franchisee is a business entity, a trained manager, who the franchisee designates and the franchisor approves, must personally manage the Center at all times. The initial and any replacement manager must successfully complete initial training and any other seminars, refresher courses, or training programs required.

Total Number of Units: Total number ofunits is 380.

Investment Tables:

Initial Investment:

Name of Fee	Low	High
Initial Franchise Fee	$2,000	$25,000
Land/Building 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	$3,000	$4,000
Initial Inventory	$5,000	$7,500
Insurance	$2,000	$6,500
Initial Training	$0	$2,500
New Center Marketing	$3,000	$3,000
Miscellaneous	$1,000	$3,000
Computer Software Support	$0	$600
Computer Hardware	Purchase — $ 2,500 Lease – $200	$ 4,500 $700
Computer Software	$500	$2,000
Additional Funds (3 months)	$25,000	$40,000
Estimated Initial Investment	$120,000	$225,575

Ongoing Fees:

Name of Fee	Amount
Operating fee	6.0%-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 the franchisee 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 circumstances
Indemnification	Will vary under circumstances
Site Evaluation	First site evaluation free; for all others, reimbursement of our expenses ($500 minimum)
Securities Offering	$5,000

Date of FDD: 2009

The above information has been taken from the UFOC/FDD and online sources of Precision Tune Auto Care.
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