FRANCHISE INFORMATION PACKAGE

FRANCHISE
INFORMATION
PACKAGE
Why our customers prefer
getting their vehicle inspections
done at InspectaCAR?
It’s simple, we’re
certified, experienced and
not a repair shop.
TABLE OF CONTENTS
04
ABOUT US
04
OUR MISSION
05
OUR HISTORY – InspectaCAR’S JOURNEY
06
IS InspectaCAR THE RIGHT BUSINESS FOR YOU?
07
FRANCHISEE TRAINING PROVIDED
08
CAPITAL REQUIREMENTS
09
INSPECTOR TRAINING PROVIDED
12
FRANCHISE PROCESS
13
FAQs
15
NEXT STEPS
ABOUT US
We aren’t new to the Canadian automotive service industry; in fact, InspectaCAR has been operating in Alberta since 2010, and our unique and
proven ‘No Repair Policy’ vehicle inspection business has saved thousands of customers from costly repairs that weren’t necessary, as well as
helped countless others avoid the pitfalls of purchasing a pre-owned vehicle that is a lemon.
OUR MISSION
Our mission is to establish InspectaCAR as Canada’s first independent vehicle inspection franchise and to become the leading authority in ‘unbiased vehicle inspections’ across the country.
4
OUR HISTORY
InspectaCAR first launched in Lethbridge, AB in May
of 2010. The following January we opened our second inspection facility in Calgary, AB. We knew we
were onto something special after both locations
broke even within the first three months of opening! Since that time our business has continued to
grow and interest in our franchise opportunities exploded after InspectaCAR was featured on Dragon’s
Den in late 2013 when we received an offer from
Jim Treliving (Mr.Lube) and Bruce Croxon (Lavalife).
Today, thanks to the Dragon’s Den, demand for our
business model now stretches across Canada. Since
airing on the show InspectaCAR has witnessed phenomenal growth in support and interest from fans
and prospective franchisees from coast-to-coast.
With our strong management team, and support
from the Dragon’s, InspectaCAR’s future now looks
brighter than ever.
5
Is InspectaCAR the Right Business for You?
Our goal is to establish InspectaCAR inspection facilities in every province across the country. Now we just
need enthusiastic entrepreneurs to join our franchise team to help us in our quest to establish InspectaCAR as
Canada’s leading authority on independent vehicle inspections.
That said, we aren’t willing to sacrifice quality for quantity; therefore, only those franchisees that meet our
strict selection criteria will be selected to join our team. We need to ensure that each of our franchisees possess the necessary skills and entrepreneurial drive that are required for both parties to succeed. To help you
decide if InspectaCAR is the right business for you please see our list of requirements below:
Franchisee Profile
6
Requirements
Exceptional ability to build and lead a team
Adhere to the InspectaCAR business system
A passion for delivering and maintaining superior customer service
Demonstrate unwavering commitment to providing outstanding service
Strong business acumen
Always be ready to roll up your sleeves and help out where necessary
Hands on commitment and superior work ethic
Be willing to share your success and failures with the InspectaCAR team
An entrepreneur with the drive to do “whatever it takes” to succeed
Give back to your local community
FRANCHISEE TRAINING PROVIDED
Our training program for a new owner is competency based and typically takes one month to complete. This
first phase of training is a one-week “on-boarding” program. During this module, each new franchisee will be
introduced to members of our different functional departments and will learn how each of these business
units will support each new franchise facility during start-up and subsequent day-to-day operations.
Our second module is a very comprehensive program that is comprised of web-based learning and hands-on
experience facilitated by instructors in our Lethbridge, Alberta headquarters. During this phase of our training program, new franchisees will learn the different programs associated with InspectaCAR. These programs
will help you successfully track and manage technician’s time, bookings, classifieds and report generating
with our own specialty software and website. You will also learn outside vendor’s software for proper inspection specifications, labor quotes along with receiving social networking advice.
In our third and final phase, we provide in-store practical training experience while one of our commercial account representatives works to promote your facility. By the end of this stage, franchisees will have acquired
all the necessary competencies required to successfully own and operate their own InspectaCAR facility.
Training includes:
•
Client intake and service management
•
Product knowledge and handling
•
InspectaCAR team training and customer service focus
•
Marketing and promotions
•
Purchasing and inventory control
•
Effective management practices
•
Staff development
7
CAPITAL REQUIREMENTS
Our franchisees have the opportunity to lease InspectaCAR facilities, as well as convert their existing repair
facility into an InspectaCAR inspection station. However, as we expand our operations across Canada it is paramount that each franchisee is matched with a suitable location. The specific cost of an InspectaCAR facility
will depend on the building size, required furnishings, equipment to be installed and location. Typically, the
turnkey cost of purchasing an InspectaCAR facility will be in the range of $225,000 to $350,000, however, the
actual cost may exceed $350,000 in certain locations due to higher development costs.
Included in the cost of the franchise is the following:
•
Assistance with site selection and lease negotiation
•
All equipment, furniture, display equipment and signage
•
Use of recognized and respected ‘InspectaCAR’ system and brand equity
•
1-week training program in our hands-on facility located in Lethbridge, AB •
Store-Opening Manager to assist in the opening of your InspectaCAR and training of your employees for 1 week
•
The use of all InspectaCAR Proprietary Manuals, Systems and Vendors
•
Right to use the Trademarks or Trade names
•
Comprehensive marketing and merchandising programs
•
Ongoing support from the Support Office and field personnel
Not included in the cost of the franchise:
• The building
• The property that the inspection facility is built on
The term of the license agreement is 10 years with an option to renew for a further 10 years.
8
Average outlay to establish a new InspectaCAR is outlined below:
ESTIMATED INITIAL INVESTMENT BY FRANCHISEE (NEW LOCATION)
Category
Investment
Franchise Fee
$25,000
Training Fee
$7,500
Training and Attendance fees
Insurance premiums during training
Vehicle Inspection Certification Program (cost per technician)
$2,000 - $10,000
$200 - $500
$500
Inspection Facility Development Costs
Construction of leasehold improvements, fit out, signage
$25,000 - $50,000
Equipment
$50,000 - $100,000
Project management fee
Legal and professional fees, including design and architect fees
Utilities deposits and hook-ups
$7,500
$20,000 - $25,000
$0 - $20,000
Permits and licenses
$3,000 - $5,000
Monthly rent
$4,000 - $10,000
Security deposit
$2,500 - $10,000
Point of Sale (POS) System initial cost
Inventory, office equipment and supplies
$500 - $1,000
$20,000 - $25,000
Opening advertising and promotion
$5,000 - $7,500
Insurance premium for first year
$3,000 - $4,000
Working capital
TOTAL
$50,000
$225,700 - $358,500
Ongoing Fees
Royalty Payments
National Marketing Fund
Local Marketing Fund
Rates
5%
1.5%
2%
(Actual costs can be above or below the above estimates depending on location site specifics, contractors, etc.)
9
INSPECTOR TRAINING PROVIDED
Vehicle Inspection Certification Program
This course is required for all journey person mechanics that will perform Motor Vehicle Inspections on behalf
of InspectaCAR. This 3-day course will include two days of theory and one day of practical.
Prerequisites include Certificate of Qualification (TQ#), or Red Seal status in Automotive Repair Trades.
Apprentices who have reached level four in any of the above trades can also participate in the course but will
not receive their Inspectors Certificate until they become certified mechanics.
Participants are eligible to receive Authorized Inspectors Certification upon successful completion of the
course.
Course Content
This course will cover the following content:
10
•
Classes of motor vehicles
•
Motor Vehicle Act and Regulations
•
Designated Inspection Facility Program
•
Preventative Maintenance Program
•
Inspector Qualifications and Responsibilities
•
Responsibilities of Facility Operators and Inspectors
•
Vehicle Inspection Manual
•
Procedures for forms completion and decal application
•
Vehicle Inspection e-forms general procedures and how to sign up
•
Preparation and administration of Authorized Inspectors examination
EXTENDED SUPPORT
InspectaCAR offers continued support through our proprietary business system to assist each Franchisee in
managing their day-to-day operations. Ensuring each Franchisee’s business is an ongoing success is our top
priority, which is why we are continually improving our business systems to serve our partners better.
We want to provide each one of our Franchisees with the most up-to-date and relevant tools, policies and
procedures and deliver them in a timely manner. At InspectaCAR we know that the business landscape is
constantly changing, which means our business has to adapt with it in order to achieve our corporate goals.
Our list of ongoing support includes:
MARKETING
We provide ongoing support with advertising, media, pricing, public relations, merchandising, local
marketing, national marketing and market research.
TRAINING
Additional training and information updates for
managers, support staff and technicians are provided on an ongoing basis when changes to our business systems or vehicle inspection protocols are
made.
FINANCE
Our financial assistance program includes the use of
our payroll systems, proprietary inspection performance tracking software, loyalty programs and custom web portal. In addition, we are able to provide
lower cost liability insurance and health premiums
through group coverage.
IT
Franchisees will also be provided access to our IT
specialists who are there to assist with issues relating to hardware, software, system administration
and other IT requests.
OPERATIONS
InspectaCAR manages their districts by offering the
time, knowledge and energy of a District Operations
Manager. Our District Managers are responsible for a
designated territory to ensure the utmost focus and
commitment to our Franchise Partners. In addition
to providing experienced and knowledgeable feedback and guidance, they also ensure that our standards of inspection quality, value, cleanliness and
customer service are consistently met in all locations
within their district.
PURCHASING
Franchisees will also be able to benefit from InspectaCAR’s group purchasing power which affords superior discounts on product pricing and services only
available to companies with the minimum required
economies of scale.
INSPECTACAR NETWORK
We consider our network to be one of our greatest
assets. That is because we believe networking to be
the most powerful marketing tactic available to any
individual or organization. Our franchisees will be
able to accelerate their success by having access to
our vast network of business professionals who are
willing to share information and their advice.
11
FRANCHISE PROCESS
Month 1
•
•
•
Prospective franchisee fills out the Franchise Inquiry Form found under the franchise tab on our
website (www.inspectacar.ca)
We will respond to the inquiry with information
on Franchise opportunities available in the area
of interest and to answer any additional questions posed in the inquiry. If both parties wish to
proceed, an application form will be emailed.
If the application is approved, a member of our
Franchise Team will contact the prospective
Franchisee to arrange a meeting
Months 2 - 3
•
•
12
Upon completing the 1st interview, if the prospective Franchisee is deemed to have met all
the InspectaCAR criteria the due diligence process commences
The prospective Franchisee will be asked to sign
a non-disclosure agreement and be given a copy
of the franchise agreement for their review
•
During this stage the prospective Franchisee will
be required to get an approval for any financing
they may require
•
Once financing is secure the Franchisee signs the
franchise agreement and pays the franchise fee
to InspectaCAR
Month 4 - 6
•
Members of our Franchise Team work with real
estate professionals and the Franchisee to locate
potential sites
•
Once approved, the site is secured, the lease is
signed, and the possession date is finalized
Month 6+
•
InspectaCAR training dates are set and build out
begins (6 – 12 weeks)
•
Training is completed
•
Inspection facility opens
FAQs
HOW MUCH CASH AM I GOING TO
NEED UPFRONT?
An initial cash investment of approximately $150,000
to $250,000 is required depending on the size of facility and location, plus $50,000 in working capital.
At least 50% of the franchise cost must be unencumbered (cash or liquid assets). The remaining amount
may be financed through the chartered banks, or by
way of the Canadian Small Business Loan program.
HOW MUCH CAPITAL NET WORTH IS
REQUIRED FOR A FRANCHISE PARTNER?
We require a minimum net worth of $500,000 and
unencumbered capital of a minimum of $150,000.
HOW MUCH CAN I EXPECT TO MAKE?
By law we are not able to provide earnings claims;
therefore, we cannot guarantee any financial results
or timing of said results. However, we are able to provide you with a financial modeling tool that you can
use to assist in calculating your own financial projections. We will make this tool available to you after we
receive your signed non-disclosure agreement.
AM I REQUIRED TO BE A FULL-TIME
OPERATOR?
At InspectaCAR we believe the best results are
achieved when the owner of a franchise is fully involved in the day-to-day operations of the business.
However, we do permit absentee investors provided
they have an operating partner who also invests his
or her own capital and has an equity interest in the
business.
WHAT ARE THE ONGOING FEES?
Ongoing Fees - Monthly
Rates
ROYALTY FEE (GROSS SALES)
5%
NATIONAL MARKETING FUND (GROSS SALES)
1.5%
LOCAL MARKETING FUND (GROSS SALES)
2%
DOES INSPECTACAR OFFER FINANCING?
No, InspectaCAR does not lend funds to finance
the cost of the franchise. However, InspectaCAR is
respected and recognized by all major Canadian
banks that offer the Canadian Small Business Loan.
Once you have been awarded a franchise with InspectaCAR, we will be happy to introduce you to our
banking contacts.
DO I HAVE TO BE A MECHANIC TO
OWN AN INSPECTACAR?
Despite our ‘No Repair Policy’, a certified journeyman
technician who is licensed by their province’s vehicle
inspection program must perform each inspection;
therefore, at least one equity partner (or operating
manager) must hold a valid journeyman technician
license and be certified to perform vehicle inspections.
HOW LONG DOES THE CONSTRUCTION PROCESS TAKE?
There are many stages to prepare for construction
including, but not limited to, planning, design, blue
prints, engineered drawings, landlord review, city
approval, and the tendering process. While the actual construction time of each franchise may vary
considerably, we estimate the construction time of
each facility to range between three and six months.
13
FAQs Contd...
CAN I RENT A SUITABLE LOCATION OR
DO I HAVE TO BUILD?
Yes, you can rent, however, building your own facility is also an option. The location would have to be
deemed suitable by the InspectaCAR team and may
be an acceptable alternative.
WHO DESIGNS THE FACILITY?
All designs are done in-house and with a design specialist. As a Franchise Partner, you will have limited
involvement in the design or layout of your facility.
WHO MANAGES THE CONSTRUCTION
PROCESS?
InspectaCAR’s Franchise Team assists you with the
construction process and works closely with the
general contractor that you, the Franchise Partner,
can select from an approved contractor list provided
by InspectaCAR.
WHAT ONGOING SUPPORT WILL I RECEIVE?
InspectaCAR manages their districts by offering the
time, knowledge and energy of a District Operations
Manager. Our District Managers are responsible for a
designated territory to ensure the utmost focus and
commitment to our Franchise Partners. In addition
to providing experienced and knowledgeable feedback and guidance, they also ensure that our standards of inspection quality, value, cleanliness and
customer service are consistently met in all locations
within their district.
14
NEXT STEPS
Still have questions? We would be happy to answer them. Just visit www.inspectacar.ca and
click on the Franchise tab. Additional questions can be posed by filling out the Franchise
Inquiry Form.
Thank you for your interest. We look forward
to receiving your application and working with
you during the next steps of our due diligence
process.
For Additional Information Please Contact:
Braden Chase
Director of Strategic Corporate Advancement
1-888-994-9550
[email protected]
15