Master Franchise FAQ's
Q. What is a Master Franchise?
A. It is an instrument that grants the licensee the right (and the obligation) to develop the Speed Car Wash business within the territory of a certain country.
Q. Which services does Speed Car Wash International provide?
A. SCW provides, through its master franchise, the integral business system that includes:
- Car wash Technical training
- Commercial training for each Model
- Marketing advisory services (products, pricing, promotion, coverage, etc.) for different client levels (consumers, franchisee, etc.)
- Operation management training
- Assistance in the development of the franchise model
- Equipment (Washing and Detailing), Elements and Materials (Detergents, Waxes and Polishes etc. referred to as “Consumables”)
Q. Which are the costs of a Master Franchise?
A. There are 3 items in the master franchise:
- The Franchise Fee (goodwill): It is the initial investment necessary to enter the business, which gives you the right to run all the Speed Car Wash system. It is a one-time cost and it is not refundable.
- Equipment and Consumables Cost: Which will be based on the projections and to be procured every quarter beginning.
- Royalties: Speed Car Wash doesn’t charge any running royalties rather we charge a fixed amount per quarter which can be discussed subsequently on moving ahead with the Master Franchisee Business Plan.
Q. What is the contract duration? How do I renew the contract?
A. The master franchise duration is 5 (Five) years and it can be renewed automatically without paying the franchise fee. The automatic renewal is awarded provided that the master franchisee has no pending obligation with SCW or in his business.
Q. How do I acquire the equipment?
A. Speed Car Wash supplies all the equipment internationally; however, SCW encourages master franchisees procure the material depending upon the projections made at the beginning every quarter of the year. SCW shall supply the approved equipment in advance based on SCW’s regulations and standards.
Q. What kind of service do the Equipment require?
A. The service required by Equipment is basically preventive maintenance, and it is focused on the mechanical components of the equipment. On time Preventive maintenance of the equipment will ensure its useful life indefinitely, as its parts are extremely solid and durable.
Q. Do Speed Car Wash Gives technical training to Master Franchisees for equipment maintenance?
A. Yes, Speed Car Wash has developed a unique training program for Machine Maintenance staff and gives in-depth training on every technical aspect. Also various videos and written manual have been developed to help technician to understand the day to day maintenance of the equipment.
Q. What is the core role of Master Franchisee in a business?
A. The master franchisee makes agreements with real estate providers, parking lots of malls and petrol bunks, sells franchises and continuously provides services and counsel to improve the SCW franchising system. Also, the master franchisee must run an operation of its own to acquire some experience in the business and to have a demonstration site of its own. Depending on the country, regional franchises can be awarded to others who, in turn, will sell individual franchises.
Q. What is the distinctive advantage of the SCW Master Franchise?
A. Low initial investment, high development potential, virgin market, possibility to enter in an innovative and revolutionary business, good return on investment.
Q. What is the return of the investment period?
A. The return of the investment period depends directly on the master franchisee investment strategy as he can select to accelerate an earlier expansion and to harvest later or just the opposite. The projected standard return of the investment period ranges from 1 to 2 years.
Q. What is the business profitability?
A. As each country has its own mix of products, prices, costs (labor, elements and materials), operation type (own/franchise) and business model (car wash sale or washing karts), there is one business profitability estimation per country, thus there is not a standard business profitability estimation. But as an experience, 100% margin per service can be maintained.