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ProntoWash Franchise Cost & Fees

Date of Incorporation: February 22, 2002

Franchising Since: 2004

Address: Florida

Description: ProntoWash operates a unique car wash and detailing service ("Point of Service") via Mobile Detailing Units ("MDUs") and Detail Centers at designated locations.

Franchise Offer: ProntoWash offers two types of franchises— Retail Mall Facility and Corporate/other franchises. ProntoWash also develops Washing units for leasing to other companies, produce private labeled Karts for sales by other entities and are developing consumer direct cleaning products. ProntoWash enters agreements with malls, corporate facilities and parking lots to operate or let others operate mobile car wash and detail centers. ProntoWash expects most available corporate or mall locations for franchise will be contracted via national or regional agreements. Franchisee uses ProntoWash system to provide car wash/detailing services delivered in a mobile setting or via stationary Detail Centers that serve as a hub for operations.

Financial Assistance: The franchisor does not offer any other direct or indirect financing. However, if requested, the franchisor can refer the franchisee to third party lenders to provide financing. The franchisor does not finance any debt to a third party; guarantee note, lease or obligation. On a case by case basis, the franchisor may permit the franchisee to pay for equipment and other products purchased from him over time (i.e. over 90 days). The accounting manager makes a determination regarding the amount and the term of the financing and monthly payment.

Training and Assistance: The initial training will take 6 days for Retail Mall and Office Building/Other locations. For a conversion location, the initial training will consist of between 1 and 2 days of classroom training and between 1 and 2 days of training at the location. The fees for additional training beyond the initial training will range from $50 to $500 a day according to unit size and complexity.

Territory: The franchisee is granted a limited exclusive territory. While in full compliance with the agreements, the franchisor will not establish or let anyone else operate a ProntoWash Point of Service in the location or defined geographic area comprising Service Zone.

Term of Agreement and Renewal: The length of the franchise agreement is five years. Renewal or extension of the term is for an additional 5 years if the franchisee meets all conditions.

Obligations and Restrictions: The franchisee need not personally supervise the franchised business. If the franchisee decides not to manage the Point of Service on a full time basis, then a designated manager should perform the day-to-day on-premises management. The Manager must devote full time to manage the Point of Service, including being physically present during the days and hours.

Total Number of Units: 51 franchised outlets at the end of the year 2007.

Investment Table:

Initial Investment:

Name of Fee
Low
High
Initial Franchise Fee
$25,000
$25,000
Location Fee
$0
$25,000
Equipment (MDUs and accessories)
$4,000
$10,000
Operations Set Up $0
$5,000
Shipping, Handling and Transportation Costs
$125
$52,500
Retail Build Out
$5,000
$25,000
Uniforms and accessories
$570
$1,070
Opening Inventory
$3,000
$54,500
Permit and Contract Administrative Fee
$2,500
$5,000
Travel and Living Expenses while Training
$1,340
$4,020
Rent (for 3 months) including utility deposit and fees
$0
$4,500
Lease Brokerage/Administrative Fees
$0
$1,500
Grand Opening staff Support & Promotion
$1,000
$9,450
Licenses and Permits
$250
$1,275
Signage
$2,000
$6,000
Building improvements
$0
$10,000
Fixtures
$250
$1,000
Recruiting
$0
$2,000
Employee wages
$9,600
$30,000
Travel and Living Expense Reimbursement for Pre-Launch Consultation
$0
$1,025
Golf Carts (optional)
$0
$3,000
Optional Inventory
$0 $3,000
Insurance
$3,000
$6,000
Financing Fees   
$0
$6,000
Additional Funds – First  three months   
$4,500
$10,500
Professional Advisor
$1,000
$6,000
PDA based POS system Software and Hardware   
$2,000
$3,900
Total
$65,135
$312,240

Ongoing Fees:

Type of Fee Amount
Royalty    The greater 5% of Gross Sales or the following amounts per Detail Center-Hub per month: Retail Malls: First Hub $1,000
Second Hub: $500 Third+ Hubs: $250
Office Building/Other: Each Hub: $500
Advertising Fee The greater of 1/2% of Gross Sales or $150 per POS per month.
Advertising Cooperative Fee $200 per POS location per month.
Additional Training Fee $50 per hour per Franchisor staff member
PDA based POS Software monthly fee $36 per month for primary HUB and $18 per month for each additional Hub at POS.
Rent Actual rent amount
Transfer Fee 50% of then current Initial Franchise Fee
Payments for equipment, supplies or inventory Varies
Additional MDUs $2,000 per MDU.
Renewal Fee One month royalty based on average monthly royalty paid (or should have been paid) in the 12 calendar months immediately preceding the anticipated renewal date with a minimum of $1,000.
Management Fee $200 per day plus our travel, lodging, personnel compensation
Fee for Use of Non-Approved Suppliers or Products and/or Non-Compliance with Standards $100
Cure of Breach Actual expenses
Audit Fee Costs and expense of audit plus interest.
Costs of Enforcement Our actual expenses and costs.
Interest 1.5% per month (18% annually)
Insurance Varies
Indemnification Actual costs and expenses.
Expenses Caused by Breach Actual expenses multiplied by factor of 1.5
Reimbursement for Rent Actual rent paid multiplied by factor of 1.5

 

The above information has been taken from the UFOC/FDD of ProntoWash USA LLC.

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