Detailed Estimates of Precision Tune Auto Care Franchise Costs Based on Item 7 (Estimated Initial Investment) of Precision Tune Auto Care’s 2017 Franchise Disclosure Document
- The estimate below assumes you will lease the land and building from your landlord. If you construct the building or purchase the land, your initial investment will be higher.
1. Initial Franchise Fee: $2,000 to $25,000
- The fee for transferring your interest in the franchise is $2,000 if the transferee is an existing Precision Tune franchisee, center manager, or certified lead technician with at least 2 year’s experience; otherwise, the transfer fee is $10,000.
- If you qualify for Precision Tune’s VetFran program, the initial franchise fee will be $10,000.
- If you convert an existing, operational automotive repair facility to a Precision Tune Auto Care Center, at Precision Tune’s option, it may waive the initial franchise fee in whole or in part or it may reimburse certain costs associated with making the conversion.
- Precision Tune recommends that existing Centers (and requires newly built Centers) have at least 6 bays with the ability to have drive-throughs on at least one of those bays.
- You should base your investigation of the initial costs of a Center on the assumption that you must open a Center with at least 6 bays.
- You may expand your Center to 8 bays if your geographic location can support an 8-bay Center, and after obtaining Precision Tune’s approval.
- The numbers set forth in the chart reflect costs associated with the acquisition of a site by constructing a new facility to own or lease. You would normally develop a Center by leasing the land and building.
- Rental costs vary considerably depending on regional and local factors and the type of lease negotiated. Monthly base rents typically are $5,000 to $7,000, but may be higher or lower in some regions of the United States.
- You may purchase land and build a Center yourself. The cost of land will vary considerably depending on many factors, including the region of the United States. Typically, a Center requires 1/2 acre of land.
- If you choose to build the Center or have a lessor do so, construction costs generally will be $350,000 to $500,000 (based on an undeveloped land site). Land will cost approximately $14 to $18 per square foot.
- You may also anticipate site development costs of at least $2 per square foot, soft costs totaling 5% of the building costs, and land cost.
- A 6-bay Center requires about 3,000 square feet of building space, and each additional bay without a lower level requires about an additional 800 square feet; excavating a lower level increases the area to 1,600 square feet.
2. Construction/Site Acquisition: $5,000 to $7,000
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- The figures in this chart are based upon the monthly expense for acquiring a site and constructing a new facility on that site. If you purchase an existing building, your costs for leasehold improvements may be considerably higher.
3. Deposits, Including Rent and Utilities: $6,000 to $10,000
4. Interior and Exterior Signs: $5,300 to $15,000
- The cost of the sign structures, exterior sign faces, and interior signs will vary depending on the size, number, and type of signs you purchase.
5. Equipment, Fixtures, Furniture, and Technical Manuals: $59,500 to $95,000
- Under the Franchise Agreement, you may obtain all required equipment from sources of your choosing as long as each item of equipment meets Precision Tune’s specifications. In addition to the equipment, you must pay delivery and installation costs.
6. Installation of Signs and Compressors: $10,000 to $25,000
- An above-ground lift is necessary for brake work, and you may also use the lift for oil change and lubrication services. The cost of a lift is about $4,000, with installation costs of about $1,500.
- Precision Tune recommends above-ground lifts for oil change and lubrication work. Below-ground pits are optional.
- For each lube pit added to a Center, there will be construction work costs of about $15,000.
- If your location will not approve below-ground pits, you must add above-ground lifts.
- The cost for other oil change and lubrication equipment is about $4,000; however, if you enter into a supply contract, an oil company may loan this equipment (including a compressor and/or a lift) at no additional cost.
- “Other equipment” includes a compressor (about $1,600), air conditioning recharge/recycling equipment (about $3,800), radiator flush/fill equipment (about $400) or radiator recycler (about $3,200), wheel balancer (about $1,800), and starting/charging systems equipment (about $2,000).
- “Other equipment” does not include oil and lube equipment and inventory, which you may obtain directly from an oil company.
- Depending on local emission control and environmental regulations, you may need other specialty equipment if you offer certain services (e.g. BAR 90 emission inspection equipment).
- The installation costs for the signs, compressors, and other equipment will vary by region and location.
7. Initial Inventory: $5,000 to $7,500
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- Under the Franchise Agreement, you may obtain all required initial and continuing inventory from sources approved by Precision Tune. The estimated $5,000 to $7,500 inventory cost covers the entire menu of required services.
8. Insurance (Workman’s Compensation Insurance and Other Prepaid Insurance Costs): $2,000 to $6,500
9. Initial Training: $0 to $2,500
- You, your managers, and your technicians must successfully complete Precision Tune’s initial training program to achieve and maintain certification to offer required services. Note that the $2,500 figure in the chart reflects Precision Tune’s estimate of travel, lodging, and food costs to attend only the initial training program and that there will be additional costs associated with attending continuing training programs.
10. New Center Marketing: $3,000
- New Center Marketing expenses will vary by location depending on local media marketing rates, methods of marketing employed, and other factors.
- You must spend, in addition to amounts spent on normal marketing, a minimum of $3,000 for approved opening marketing within 4 weeks after the Center opens. Depending on a number of marketing factors, Precision Tune may recommend a higher minimum.
- This $3,000 expenditure is for “coming soon” and “now open” signs and grand opening marketing expenses.
11. Miscellaneous: $1,000 to $10,000
- You will incur additional costs for small band tools, shop supplies, and the like.
12. Computer Software Support: $0 to $600
13. Computer Hardware: Purchase – $2,500 to $3,800; Lease – $200 to $700
14. Computer Software: $500 to $2,000
- Precision Tune estimates the cost of the software to be $500 to $2,000 and the cost of the hardware to be $2,500 to $3,800 if you buy the hardware. If you lease the hardware, Precision Tune estimates that the monthly lease payments will be $200 to $700.
15. Additional Funds for 3 Months: $25,000 to $40,000
- Precision Tune recommends that you have a minimum of $25,000 to $40,000 in additional funds. These figures are based on current costs or reasonable estimates and are, unless indicated otherwise, for an initial period of three months from the time the Center opens for business.
16. Estimated Initial Investment: $127,000 to $253,600
- All estimates set forth in the chart are based upon Precision Tune’s experience and the experience of its affiliates and predecessors operating Centers and selling franchises over the past 35 years.