Honest-1 Auto Care Franchise Costs, Fees & FDD

Year Business Began: 2003

Franchising Since: 2003

Headquarters: St. Petersburg, Florida

Estimated Number of Units: 65

Franchise Description: H-1 Auto Care, LLC is the franchisor. The franchisor has developed a system and grants franchises for the retail sale of automotive repair and various automotive tune-up and brake services, lubrication, oil changes, the sale of tires and rims and other related automotive services to the general public and for assisting franchise owners in selling those products and services.
Training Overview: The training will last for approximately four weeks, for up to 40 to 50 hours per week, and training will be held on Monday through Friday of each week for a total of approximately 127.5 hours of classroom and on-site instruction along with approximately 67 hours of self-paced, online training through the franchisor’s Roadworthy University. This initial training will serve as a follow-up and emphasis of the franchisees’ review of the manuals and various meetings/discussions to be held with the instruction team immediately following the signing of the Franchise Agreement. The franchisor will give the initial classroom training at its corporate headquarters or at a location it designates. The on-site training will be continued within an automotive center at the franchisor’s headquarters or at a location it designates. Although there is no fee to attend any training program at the location designated, franchisees must pay for their and/or their employees' transportation, lodging and meal expenses, wages and employee benefits, and materials fees, including the cost of the applicable training manuals while in training programs (excluding the initial store operational training program). Franchisees must pay the franchisor for three weeks of on-site coaching. Franchisees may need to attend additional training programs as directed by the franchisor.

Territory Granted: Franchisees are granted the right, and undertake the obligation, to operate an “Honest-1” center at a site the franchisor approves. The franchisor will not establish another “Honest-1” center, franchised or company-owned, within a specified territory surrounding the center location as set forth in the Franchise Agreement. The standard territory is a three-mile radius of the center location as set forth in the Franchise Agreement, but the franchisor reserves the right to adjust the territory to a smaller radius and/or to an irregular market area (not a radius) defined by streets or other geographic features depending on several factors. The Franchise Agreement does not prohibit franchisees, the franchisor or other franchisees from servicing customers who reside outside their protected territory, but they are prohibited from actively soliciting outside of the protected territory.

Obligations and Restrictions: If franchisees are a corporation or other form of legal entity, they must appoint a designated representative for the entity. The franchisor recommends that the designated representative hold an ownership interest in the entity, but the franchisor does not require it. The designated representative must successfully complete the initial training, devote his or her full time, energy and best efforts to the management and operation of the “Honest-1” center and is subject to the franchisor’s approval. The franchisor also recommends that franchisees have at least one manager as an on-premises supervisor in addition to the designated representative. Franchisees must offer all required “Honest-1” products and services. Required “Honest-1” services include: various automotive tune-up and brake services, lubrication, oil changes and other related automotive services. 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 the franchisor specifies or approve in writing, and must refrain from using or permitting the use of the center for any other purpose or activity at any time without the franchisor’s prior written consent.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. Renewal is for one additional 10-year term, if the franchisee is in good standing, is approved by the franchisor and signs the current form of the Franchise Agreement.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$75,000	$75,000
Leasehold Improvements	$0	$450,000
Equipment Package	$25,000	$250,000
Signage	$10,000	$60,000
Rent Expense (deposits, rent, utilities, CAM, sales tax, etc.)	$0	$135,000
Opening Inventory and Supplies	$5,000	$15,000
Grand Opening Advertising and Initial Marketing	$48,000	$72,000
Training Expenses	$5,000	$5,000
Miscellaneous Pre-Opening Costs	$3,000	$10,000
Insurance	$4,000	$7,000
Office Supplies, Furniture, Fixtures, Computers & Software	$10,000	$65,000
Business Coach – 3 Weeks	$17,500	$20,000
Accounting Service – First 3 months	$2,250	$2,250
Technology Fee	$1,000	$1,000
Additional Funds - 3 months	$50,000	$75,000
ESTIMATED TOTAL	$255,750	$1,242,250

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of weekly gross sales.
Franchisor’s Travel Expenses and Costs to Monitor Site Construction or Improvements	Reasonable expenses.
Advertising Fee	Currently, 2% of weekly gross sales.
Local Advertising – Franchise Agreement	$4,000 a month minimum, recommended is $8,000 to $12,000 a month for the first six months and $6,000 to $8,000 a month after the first six months.
Customer Survey Programs, Database Marketing, Local Advertising Programs and Costs	Actual costs associated with surveying customers and costs for the production and mailing of database marketing materials, and other local marketing expenses.
Technology Fee	The then current fee plus any data overages costs. Currently $1,000 a month plus any data overage costs.
Unauthorized Marketing Fee	$500 per occurrence; may be continued monthly.
Advertising Cooperative	At least 3% of gross sales. Not currently assessed.
Extension Fee	$5,000
Transfer Fees	$27,000 ($2,000 application fee; $25,000 transfer fee).
Transaction Services Fee	The greater of 5% of the gross value of the business or $35,000.
Refresher Training (Franchise Agreement)	No charge.
Reimbursement of Expenses for Inspection	Actual costs.
Additional Training	May range from $250 - $5,000.
Conference or Meeting Fee	Then current fee for a required conference or meeting, estimated to range from $0 to $750 per attendee.
Alternative Supplier Inspection and Testing	Reasonable costs of inspection and testing.
Renewal (Franchise Agreement)	25% of the then-current initial franchise fee.
Audit	Cost of inspection or audit plus any deficiencies found.
Late Fees	$10 per day for unpaid royalty fees or overdue reports.
Interest	Lesser of 18% or highest contract rate of interest allowed by law.
Costs and Attorneys' Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Relocation Expenses	Costs of relocation.
Income Taxes	In addition to monthly royalty fees, the franchisor has the right to collect from franchisees the cost of all income taxes, sales taxes and other taxes arising as a result of the licensing of intellectual property to the franchisee in the state where the franchise is located, as well as any assessment on the royalty fees, advertising contributions and any other income the franchisor receives from the franchisee.
Liquidated Damages	See FDD.

The above information has been compiled from the FDD of Honest-1 Auto Care. Year of FDD: 2024.

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