In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the Honest-1 Auto Care franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an Honest-1 Auto Care franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of Honest-1 Auto Care’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average, median, high, and low annual and monthly sales for the 37 Honest-1 Auto Care centers that have been operating continuously for at least 2 years as of December 31, 2015 under the same owner
- 2014 average, median, high, and low annual and monthly sales for the 30 Honest-1 Auto Care centers that have been operating continuously for at least 2 years as of December 31, 2014 under the same owner
- 2013 average, median, high, and low annual and monthly sales for the 21 Honest-1 Auto Care centers that have been operating continuously for at least 2 years as of December 31, 2013 under the same owner
Section I – Background Information
First Eco-Friendly Automotive Repair Company in the U.S.
Honest-1 Auto Care was founded in Scottsdale, Arizona in 2003. The company offers a full range of automotive repair services on any vehicle. Honest-1 is the only auto repair company in the United States that is Eco-Friendly Certified by the Ecological Society of America.
Today, there are over 60 locations across the United States. In the coming years, Honest-1 hopes to continue growing by opening locations in new markets.
At the end of 2016, Honest-1 opened its first Orlando, Florida location, with two additional Orlando locations in development. There are already five other Honest-1 locations in Florida. Around this same time, Honest-1 opened its first Wisconsin location. Honest-1 is pushing heavy expansion in Texas and the company announced plans to open 30 locations in the Houston area by the end of 2020.
Finding Success by Targeting Women and Millennials
Honest-1 has set itself apart from its competitors by targeting demographics that other auto repair companies tend to ignore. The company boasts being transparent with all of its customers. Each Honest-1 location takes the time to show its customers exactly what repairs are needed.
Tom Miller, Director of Franchise Development, says that about 70% of Honest-1’s clientele is women. Miller says that the company has a reputation among women for being truthful. In addition to being truthful, each Honest-1 location has a comfortable waiting room equipped with free Wi-Fi and a children’s play area.
Miller also says that Honest-1’s transparency appeals to Millennials who may not necessarily have the most extensive automotive knowledge.
Female-Friendly Car Service Attracts Female Entrepreneurs
Honest-1’s friendly service has not only attracted loyal female customers, it has also landed several female entrepreneurs. The first Wisconsin location was opened by Stacie Krajcir who says she was attracted to the company because of its commitment to being transparent to all its customers, including women.
Two friends in Texas, Robin Mainer and Kimera Shepler, who were already looking for a franchise to invest in, decided to open an Honest-1 location after feeling bullied by a mechanic at another auto repair shop. After Mainer’s bad experience, her brother told her about Honest-1 Auto Care. After doing research on the company, Mainer felt that Honest-1 was the perfect fit for her goal of opening an auto repair shop that would be friendly and comfortable for women.
Ranked One in Its Category on Entrepreneur’s Franchise 500
Since first appearing on Entrepreneur’s Franchise 500 list in 2014, Honest-1 Auto Care has consistently earned a spot on the annual list. This year (2017) marks Honest-1’s highest rank on the list at No. 241. In addition to ranking in the top 300, Honest-1 has earned the No. 1 spot in the auto repair and maintenance category.
Honest-1 Auto Care earned its lowest rank last year at No. 359.
Section II – Estimated Costs
- Please click here for detailed estimates of Honest-1 Auto Care franchise costs, based on Item 7 of the company’s 2016 FDD (updated).
Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis
To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.
Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.
{ 0 comments… add one now }