Wednesday, June 18, 2008

Hand Car washes

"Hand Car Wash" is a specialty of the Full-Service and Detail car wash systems. The highly automated car wash gets a personal cleaning touch when employees take a professional hand to shine your car. This personal touch ensures that no part of your car goes unnoticed by the machines and that no tiny particle of dust or slime sticks on to your car. Your car will come out sleek and shiny. Hand washing is a highly specialized and exclusive service that caters to a customer’s personal preferences for a car wash.

Hanna’s Hand Wash system, for example, has employees lined up in the conveyor inside the wash tunnel. When the automobile enters the conveyor, employees use hand-held high pressure wands to prepare the car for the wash and then clean the top and sides of the car. Only the bottom of the car is cleaned by their automated Undercarriage Applicator.
The Ace Hand Car Wash of Huntington Park, California, provides a range of detailing services for specific vehicles and to suit the requirements of individual owners. Their specialized services are highly client oriented and include washing, waxing, buffering, tinting windows, removing stains, and vacuuming carpets.

Services of the Bubbles Car Wash includes their Carpet Shampoo, which airs out carpets and cleans them with special chemicals; Tar and Paint Over Spray Removal, which is a special service that cleans even minute foreign particles on the surface of your vehicles; and half a dozen other specialized services.

Lake Car Wash has four types of hand car wash services, each of which comes with specialized features. Their Deluxe Hand Car Wash, for example, offers vacuuming the interior and dressing tires in addition to hand washing and waxing of the surface and the windows, while their Turbo Hand Wash comes with two coats of waxing, air fresheners, and undercarriage cleaning.
The Westbury Personal Touch hand car wash also has different combinations of car wash services to suit unique customer requirements. Their services include undercarriage washing, hand washing, body glossing and leather conditioning. They charge an average of $15 to $50 per car wash.

What is the best product to use as a car wash? The correct answer is use what you like the best. There are some drawbacks to certain products and advantages to others. Dish detergents (Ivory Liquid, etc.) may be used, but realize that these products are designed to remove animal or vegetable fat from fired ceramic. They look at your nice coat of wax with the same hungry eyes. If you enjoy washing and rewaxing weekly, then dish detergent is for you. Wax retailers love people who use Ivory Liquid (they send the Ivory Company Christmas Cards every year).

If you prefer to have your wax last a lot longer, you may consider using a product that is specifically designed for automotive use. The quality products are based upon detergents instead of soaps. Most soaps are manufactured from rendered animal byproducts (the stuff the dog food people reject). They contain trace elements that can actually damage your paint. These trace elements are the same goodies that leave a ring in your bathtub. The exception is soaps manufactured from plant fats. (These leave mold in your tub - just Kidding)

Quality car washes/shampoos (same thing - most cars don't have hair) are usually pH controlled, contain gloss enhancers and some even have small amounts of water-soluble wax for good measure. Use only enough car wash to break the electrostatic/ionic bond between the dirt and your car. Start with a clean large bucket (preferably plastic - if you kick the metal bucket, Mr. Paint Chip rears his ugly head); add a small amount of the car wash and fill with cool water. Avoid hot water, as it will soften the wax. Read the directions on the car wash bottle and try reducing the recommended amount by half. I use less than a cap full in 5 gallons. The more car wash, the more wax you remove. Try to avoid powder car washes as the undissolved granules can lodge under your sponge or wash mitt and scratch the paint surface. Make sure that your car is in the shade and the paint surface is relatively cool. Rule of thumb #1: If you can comfortably hold your hand on the hood, you can wash/wax the car.

Spray the car with a gentle spray to thoroughly wet the surface. Don't use a 200 P.S.I. fire hydrant spray, it isn't needed and may grind the surface grime into the paint and cause scratches. Some of the concours purists will not use a nozzle on the hose at all. Start at the top of the car and work down. Rewet the top; gently wash the top and then rinse. Move onto another section, such as the trunk or hood. Rewet this area, wash and rinse. Continue on down the car, completing a section at a time. This way, the car wash does not dry on the paint.

Car Wash Industry

All industries have their dark side and the car wash industry is no different. On first glance one might consider the car wash industry a bright star and a shining example of a “clean” industry and for the most part they would be correct. There are over 30,000 carwashes in the United States and most operators are in fact ethical practitioners. The car wash industry is over 10 billion dollars a year in this nation and growing along with America’s love for their automobiles and SUVs. It stands to reason that with 16 million or more cars being sold each year in the United States alone that car washes is nothing a good business in a growth industry. And if you think about out it; God made dirt on the first day, when he created the heavens and the Earth. Carwash owners will find this significant and thank God for making the entire surface of the planet out of dirt.

In 2004 the Car Wash Industry has changed the focus of the Industry. We had chastised the Industry and the ICA in their move to attack the home car owner washing in their drive way.
Yet, we now see in 2005 that there is a trend again afoot to use environmental laws to stop car wash fundraisers. Luckily this faction of the car wash industry is now butting heads with other owners who have a real soft spot for their communities. Although it took the industry an extra couple of years to change their direction, we still have to applaud this new tact. Originally they had proposed this:

Now the Car Wash Association has done a complete 180-degree turn. Now they believe they have achieved the new direction. Here are some comments from Mike Black the ICA-International Car Wash Association in his message to the industry.

The President of the association needs to address the lack of integrity of some of the rogue car wash owners as well, as they have drawn fire to good car washes and caused actions against good car washes. There are many who consider the car wash industry a black plague; police officers are quick to point out that crime happens at car washes and often unethical employees will sell drugs out the back of a car wash. Sixty minutes did a special of missing personal items out of cars and another focusing on the hot wax deals, which were not wax at all. The IRS profiled car wash owners as corrupt and often tax cheats:

while the State of CA attacked car washes also over cheating car washes on payroll and workmen’s comp fees also illegal aliens. Today the car wash industry claims they are changing, but we had already seen the changes this year in an effort to bring the Industry back inline with the proper ethics:
Yes, the car wash industry has a dark side, like any other business. We all need clean cars but at what price? Should car washes be allowed to hurt non-profits, bring crime to the community, cheat on taxes, exploit the labor, trick consumers on add-ons and hire illegal aliens? Many think not, some in fact wish to clean up the car wash industry. What do you think?

Car Wash Lyrics

Car Wash
Rose Royce

Ooh ooh
You might not ever get rich
But let me tell ya it's better than diggin' a ditch
There ain't no tellin' who you might meet
A movie star or maybe even an Indian chief

(Workin')
At the car wash
Workin' at the car wash, girl
Come on and sing it with me
(Car wash)
Sing it with the feelin' ya'all
(Car wash, girl)

Ooh!

Some of the work gets kinda hard
This ain't no place to be if you planned on bein' a star
Let me tell you it's always cool
And the boss don't mind sometimes if you act the fool

At the car wash
Whoa whoa whoa whoa
Talkin' about the car wash, girl
Come on, ya'all and sing it for me
(Car wash)
Oooh oooh oooh
(Car wash, girl)

(Work and work)
Well, those cars never seem to stop coming
(Work and work)
Keep those rags and machines humming
(Work and work)
My fingers to the bone
(Work)
Can't wait till it's time to go home (?)

(Hey, get your car washed today)
Fill up and you don't have to pay
Come on and give us a play
(Do the wash, right away)

(The car wash)
Talkin' 'bout the car wash
Car wash, girl
Come on, ya'all, let's sing it with me
(Car wash)
Sing it with feelin', ya'all
(Car wash, girl)

Whoa whoa whoa whoa
(Car wash)
Never seem to stop comin'
What'd I say
Keep those rags and machines hummin'
(Car wash)
Let me tell you, it's always cool . . .

Car Wash Construction Do’s and Don’ts

You’ve probably heard the old expression, “What I learned could fill a book.” Well, trust me, my last experience building a car wash could fill several books.
The project was a 7,000-square-foot, full-service, tunnel carwash. Our 100-foot tunnel is touch free, equipment supplied by Mark VII, AVW, ISS, AquaTech and Huron Valley. Fortunately, this was the easy part of the project since everyone on the supply side did his job. Design, permitting, contracting, construction and finishing was another story.
This project was one in a long list of car washes and other construction projects I’ve built, financed and operated. It’s only a rumor that it gets easier the second, third or 30th time.
It all starts with the site and professionals you employ to get you through the planning process. The good news is most engineering firms understand fairly quickly what needs to be done, with direction from your equipment supplier. They know what to do to get you the necessary approvals and eventually a building permit.

The Architect
Most architects don’t have a clue when it comes to building a car wash. Many of them don’t even use car washes. So, the challenge is educating this individual on your needs, budget and what impression you want to present to customers. Of all the things we do as car washers, the first impression—the building —can be the most important; it’s what attracts motorists out of the traffic flow. Site layout and building design are critical. It has to be done right. Picking your architect won’t be easy.
Fortunately, architects belong to a national association that lists a set of standards. You can obtain these from the American Institute of Architects (AIA ) website. I suggest interviewing several architects and looking closely at the commercial buildings they’ve done. Your suppliers may have some suggestions, so listen closely to their input.

The Contractor
Finding a contractor who will complete the job on time and on budget is very difficult. To ensure you don’t get caught in the old change-order disaster, you should triple check bids, hire an outsider and use the services of the architect. But whatever you do, minimize changes.
On this last project, we sent bid requirements to a minimum of three subcontractors. Whether it was for excavating, electrical, plumbing, framing, finishing, concrete or other major areas, we required three bids. We interviewed each bidder, went over their credentials and thought we’d done a thorough job. Everything was looking good. The bank had our estimates, the subcontractors were selected and we anticipated the rest would be a walk in the park.
Unfortunately, the walk in the park wound up more like a crawl through a jungle. Where we goofed was not having a mandatory risk-reward contract. Our general contractor, recommended by the architect, had no sense of urgency. His arrogance and unwillingness to understand our needs required us to fire him. The replacement was better, but because he came in after we broke ground, any issues that came to the surface resulted in lots of finger-pointing. This led to difficult and unresolved results.
Car washes are different animals. Probably the least understood parts are plumbing, electrical and concrete. In a conveyor car wash, concrete work is crucial. It has to be done right for the conveyor to function with minimal problems. So, instructing your general contractor about your needs is paramount.
Most electricians look at a car wash and grossly underestimate or—worse—overbid the job. Next time, I will require all trades visit several existing sites. I will demand suppliers install a team to review all the mechanical drawings and review them with every trade. In a car wash project, not taking every precaution will cost you money due to poor definitions. It’s crucial that an agreed-upon list of responsibilities be identified and signed off in advance by all parties. For most of you, this may be your first major construction project, so remember: A pound of prevention is priceless.

Hindsight
What would I do differently, knowing what I know now? First, everyone would sign an agreement stipulating his responsibilities. Everyone would have within his agreement a “not-to-exceed” date as well as a completion date. A penalty would be levied for every day the project is late, and a reward offered for finishing prior to the completion date.
A mistake I made this time was relying on friendships and not holding our contractor and subcontractors fully financially accountable. Yes, the people involved in making your dream a reality will establish a relationship with you, and you’ll be tempted to forget every once in a while this is a business situation. Don’t do it. Every day you are delayed in washing cars is lost opportunity.
Bottom line, it takes a lot of people, trades and professionals to take a dream and create a successful business. Don’t let your guard down, don’t get caught in the change-order merry-go-round and don’t rely on friendship. Document everything and demand perfection. After all, you’re going to live with the results of your efforts for a long time. One last precaution, make sure everyone involved in your project has insurance. No insurance, no contract. Good luck, and I look forward to hearing happy construction stories.

Complete Car Wash construction

Building a car wash is a long, tedious, expensive project. Each type of wash carries its own set of requirements, whether it’s a self-serve, self-serve with automatic, automatic, or conveyor tunnel (exterior or full-serve). Utility, site layout, traffic and production demands play major roles in developing a successful site. Therefore, preplanning and execution are paramount to making the numbers work and managing your budget, resources and bottom line.
Your construction format will be controlled by three major factors:
  • The type of wash you want to build. A project will require a “stick build” format or a manufactured building. The more sophisticated the business, the more it will lend itself to the former.
  • The surrounding community. Every area has its own building requirements. In general, planners look for conformity to adjacent projects and how well the wash “fits” into the neighborhood’s master plan.
  • The site itself. Each project is unique. The more requirements there are for site preparation, soil conditions, utility placement, driveways, street location, etc., the higher the costs of the finished facility.

Getting Started
Preplanning is critical. Once you have chosen a site and the type of car wash you desire, the real work begins. Assuming you will be financing the project, you’ll have to assemble an extensive business and financial plan. A key ingredient will be a list of cost estimates for the project, including everything required from conception to washing your first vehicle.
Now you have to choose your team: an equipment manufacturer, distributor, architect and other preconstruction professionals. Complex projects will definitely require an architect, who will do a lot more than just draw the building. Depending on your skill and involvement, he will also assist you with the local planning board, city engineer, contractors, subcontractors and others to get your site approved. He can also help you manage the project once construction begins. Ask about the architect’s services and costs up front.
If your project is a simple one, you may be able to use a pre-manufactured building product. In this case, you’ll find the building and equipment supplier will play a major role in finding suitable contractors to ready the site for your structure.

The Right Representation
Regardless of the scope of the project, building a car wash is an involved process requiring focus and energy. The key to a successful, low-stress experience begins with your commitment. For your own protection, you must be involved every step of the way.
If you are fortunate enough to have construction experience, you’ll find your day-to-day dedication will be ongoing from the first shovel. If you don’t have that knowledge, the key lies in choosing a representative who will watch your dollars as if they were his own. Unfortunately, very few people in the building trades know anything about car washes. As a result, you may wind up paying for their learning curve. To minimize this risk, select the right equipment distributor.
Most car-wash distributors have assisted with and built many facilities. Their recommendations for contractors and architects will be very helpful. Once your site design is complete, you’ll submit bid requests to at least three general contractors and subcontractors. This keeps everyone honest and allows you to evaluate their responses. Insist on references and call them.
Interview all your candidates in front of another set of eyes and ears—your supplier, architect, partner, etc. Ask tough questions and demand answers. Pin everyone down to understand their commitment. Know where your distributor’s responsibilities end and the various installers and contractors take over.
Finally, establish a risk-reward program for your general contractor related to time and budget goals. Your financing will be based on the project costs you submitted to the lender. Overruns resulting from misinformation or mismanagement don’t sit will with financial institutions.
The majority of them will not provide extra funds for going over budget. As a result, you must keep everything in control or be prepared to dig into your own pockets. Building a car wash can be stressful. The best way to minimize hassle is careful planning. Do your homework, get the best team possible, and stay totally involved in the entire process.
Fred Grauer is the vice president, distributor network, for MarkVII Equipment LLC, a car-wash equipment manufacturer in Arvada, Colo. He has made a lifelong career of designing, selling, building and operating car washes.

Car Wash Equipment

Car wash equipment falls into two distinct categories – DIY for the domestic owner who wants to wash his car at home, and commercial, which are the car washes of the kind that you drive your car through. KÄRCHER caters for both of these end users in the car wash equipment that it manufactures and markets. For the DIY car washer there are a number of different high pressure washers in the range, and all of these have been designed so that they can be used for washing cars, amongst other things. These can be used for almost any outdoor soiled surfaces, such as garden furniture and tools, walls, cars, motorbikes, patios and so on. Commercial car wash equipment brings us into the realms of the drive through car wash as well as still more high pressure cleaners, using both hot and cold water, designed to be used on a more commercial or industrial basis. The drive through car wash are usually operated by conveyor belts, and the cars go through different stages of cleaning, like rinsing, soaping, waxing and drying, at particular points in the conveyor. The use of high-pressure equipment is the key to a speedy and effective car wash. It’s very important that high-pressure detergent and water spray clean every inch of the car. A tunnel system ensures that the car progresses smoothly through the car wash systems in the bay. The conveyor runs through the tunnel system, and sprayers and under body washers, top and side brushes, rinsers and driers are fitted at different points. The car on the conveyor is cleaned step by step as it progresses through the wash bay.

UltraSonic 2001
  • Automatic
  • Self Serve

The Ultrasonic 2001 TouchFree car wash is by design the "best of the best" in touchfree car washing. Delivering more cars washed per hour is important in high revenue producing sites. Utilizing Hi-Impact technology, the UltraSonic Wash is fast and can deliver more washed vehicles per hour. When it comes to cleaning, the UltraSonic Wash has: Pre-Soak nozzles positioned for thorough coverage, Hi-Impact technology for best possible surface impact and utilizes a state of the art PLC controller. The UltraSonic Wash is truly the best of the best when it comes to touchfree car washing.

  • Hi Impact pump Technology
  • Ultrasonic Vehicle Sizing
  • On-Board Equipment - pumps and water heater
  • 2 step Chemical Option
  • Tri foam wax option
  • Programmable wash cycle
  • Euro-Styling design
  • 5 year pumps and frame warranty

Many Profit Enhancing Options for the US 2001

  • On-board dryer of Free Standing Dryer
  • Chemical tire spray
  • Rocker panel / wheel blaster
  • Under car wash


Monarch II
The Monarch II High Impact uses a revolutionary new pumping system that delivers more impact to the vehicle's surface for a level of clean never experienced before with a touch-free machine. The greater reliability, increased customer satisfaction, and increased throughput from the Monarch II-HI all add up to increased profits.

  • Hi Impact Pump Technology
  • Ultrasonic Vehicle Sizing
  • Enhanced Equipment Diagnostics
  • Reduced Cycle Time
  • 5 year pump and frame warranty

Many Profit Enhancing Options for the Monarch II

  • On-board dryer of Free Standing Dryer
  • Chemical tire spray
  • Rocker panel / wheel blaster
  • Under car wash

UltraSonic 2001 OHD

  • Superior Wash Quality in Two Minutes - Separate overhead manifolds are used to apply tri-colored foam, clear coat and spot-free rinse. Limiting the need for the robotic arm to the pre-soak and Hi-impact wash cycles decreases the overall wash time substantially.
  • No Bay Plate - It accurately detects vehicle position with the use of our UltraSonic Vehicle Detection System. When a vehicle enters the wash bay and arrives in position, the OHD accurately locates and sizes the vehicle accordingly for the optimum wash.
  • No Bearings to Grease
  • No Rubber Tire Wheels - The all new tape-belt overhead drive system increases reliability, provides precise machine-to-vehicle positioning, eliminates slipping drive wheels and decreases cost of operation.
  • Lower Maintenance Costs
  • No Costly Chemical Dumping - The pivoting robotic spray arm contain 2 different sets of application manifolds: The High Impact spray manifolds for the wash cycle and solution manifolds for pre-soak application. Reduces chemical costs substantially.
  • All Stainless Steel - The stainless steel gantry rides on all stainless steel support system. Say "goodbye" to corrosion. Available as a wall mount or with "legs".VWSI sells and services Oklahoma, Tulsa, Oklahoma City.

AtLantis

  • Easily washes irregular shaped vehicles
  • Provides multiple chemical passes
  • On board diagnostics
  • Variable drive speed
  • 350 GPM pumping system (reclaim or fresh water)
  • Fresh-water or spot-free rinse available

The AtLantis is capable of washing various sized and shaped vehicles. Whether is be a dump truck, a street-cleaner or a semi-truck, the AtLantis will produce a clean, thorough wash.

  • Rocker Panel Wheel Blaster - As it moves to the back of the vehicle, the optional rocker panel blaster effectively removes dirt and road grime from the rocker panels. On the return pass, the Atlantis' optional wheel blaster pauses at each wheel to efficiently clean the wheels with a high volume of water.
  • High Impact - Delivers a great force of water to the vehicle surface for a clean that no other wash system can match.
  • Control Panel - The AtLantis control panel is an easy to read, operator friendly center. It contains a joy stick for the extra wash capability.
  • Tag-line Assembly - The tag-line assembly contains all electric, chemical and water lines which operate on a track allowing ease of movement of the AtLantis.
  • Adjusting Top Carriage - The top carriage detects and automatically lowers when it reaches the front and back of the vehicle. This allows the Atlantis to apply chemicals and deliver a high impact wash to these often overlooked areas.

FoamBrite

  • Provides a safe, soft, gentle wash
  • Repeated washing enhances the vehicle's gloss and luster
  • Increases customer satisfaction with a thorough wash time after time
  • Material is virtually water resistant - dirt and sand particles are washed away
  • FoamBrite is extremely durable but soft and forgiving - a feather-light wash
  • Vehicle damage is virtually eliminated
  • The wash process is unlike anything available at existing wash locations
  • Eliminates customer wash complaints

FoamBrite is revolutionizing the vehicle wash industry. This soft and gentle material produces an incredibly flexible cleaning action that brightens the vehicle's finish with repeated washings.You'll notice the difference when you feel FoamBrite. At first touch, you'll discover a unique product that is both pliant and supple, yet durable and forgiving - unlike any material ever used for vehicle washing. FoamBrite is feather-light fabric that is virtually water resistant, and its cell structure prohibits small particles of dirt and sand from imbedding into the material. Customer complaints about dirt and road film left on their vehicles or the wash marking the finish on their cars are a thing of the past with FoamBrite! Wash units that include FoamBrite now have features such as touch-sensing, ultrasonic mapping, and split-rotating wash arms. Technological advances in machinery that not only enhance the effects of FoamBrite but also provide the wash customer with the most thorough, safest wash possible!

Car Wash Franchises

Franchise businesses are so common as to be ubiquitous in America today. According to the International Franchise Association, a new franchise business opens somewhere in the U.S. every eight minutes. In fact, about one out of every 12 retail stores is a franchise. Because of the unique way they are run, they present an excellent business opportunity for budding entrepreneurs.
The concept of a franchise is simple: an independent business buys the right to use a large company's name and get access to its expertise. The big company gets a new outlet that will promote its brand and provide ongoing revenue, while the franchisee gets a big leg up thanks to a proven business plan, an established brand, and many different types of assistance and training.
It is important to distinguish between regular chain stores and franchises. In a chain store, the corporate parent owns and runs every location. With a franchise operation, each franchised branch is owned and run independently of the corporate headquarters. Franchisors, as the parent companies are known, can own some outlets directly while franchising others; franchisees can own one local store or dozens of branches across a city, but the basic relationship remains the same.
The nature of a franchise business comes down to a significant tradeoff: franchisees get access to a proven business model while giving up significant control in how they do business. This BuyerZone Buyer's Guide will help you decide if buying a franchise is the right choice for you, teach you how to evaluate potential franchisors, and point out some common mistakes you should avoid.

Benefits and drawbacks of franchising
The primary benefit of franchising is that it leverages the brand and experience of a successful business concept, while the main drawback is the tight control franchisors exert over their franchisees.
Pros
The franchise system provides the benefits of a big company to an individual businessperson. These include:

  • Brand awareness and advertising
  • Proven business processes and training
  • Products familiar to customers

Consider a burger franchise. While opening a small, independent burger stand is fairly easy, succeeding against national chains that benefit from widespread advertising, lower costs through bulk purchasing, and time-tested recipes and procedures presents a very serious challenge. Buying a franchise of the national chain gives you all of those advantages while still letting you run your own business.
Since you represent its carefully-cultivated brand name and image to the public, the franchisor has a vested interest in your success above and beyond the fees you pay them. Because of this, they provide many types of consulting and guidance:

  • Considerable expertise to bear on problems such as choosing a site, which can be essential to a retail business.
  • An operating manual that can spells out how to effectively run the business.
  • Sales and marketing help - from ideas, to sample collateral, to assistance in execution.
  • Occasional seminars and workshops or send consultants to help train your staff.

All of these factors combine to greatly increase the success rate of franchises compared to independent businesses.
Cons
To protect their hard-won image, franchisors have very strict procedures and rules. One inherent problem with franchise businesses is that the people most likely to be interested in starting their own business - independent, entrepreneurial, and creative - are also the most likely to feel stifled by the tight control franchisors exert over each local branch. This control can extend to many different aspects of the business:

  • Franchisor-imposed restrictions. A franchisor can place restrictions on the goods and services you can sell, the hours you are open, employee uniforms, and the type of signs outside your business.
  • Restrictions on business procedures. That same operating manual that helps you run your business can also spell out specific accounting practices, operating procedures, hiring requirements, and other rules.
  • Purchasing restrictions. While there are anti-trust restrictions that prevent franchisors from forcing you to overpay for goods, they can specify the suppliers you must use to outfit your business.

Is a franchise business right for you?
While opening a franchise business may be easier than starting your own business, it still requires a broad skillset and a commitment to hard work. The most important characteristic of successful franchise operators is dedication: a willingness to work hard and the ability to stay motivated. Also critical is business aptitude. Previous management experience is not required, but you will have to be able to learn business skills, from hiring to bookkeeping to inventory management. As with any startup business, expect long hours and minimal pay at first.
This is one reason that you should choose an industry that interests you personally - success is really driven by the amount of work you put in, so it helps if you enjoy the work.
As a general rule you should expect not to make any money personally during the first year of business. Any profits the franchise creates should be put back into the business to drive further success, so you should make sure you have other funds to live on. If possible, starting a franchise as a part-time venture can be a good way to launch the business and still pay your rent.
In some ways, what the company actually does has little to do with your duties as franchise owner. Mundane planning details, employee managements, and ongoing administration are critical functions that will fall on your shoulders. Studying the market before you purchase, staying on top of industry trends once you do, and keeping on top of bookkeeping, inventory, and staffing plans can all make or break your venture.
Many people who are successful in traditional businesses may not be suited for operating a franchise, so it is worth taking the time to consider these questions.

Franchise buying tips

  • A great question to ask franchisors: "What traits do your most successful franchisees share?"
  • Any franchisor who guarantees specific returns or asks for cash up front is breaking the law. Move on to your next prospect.
  • The FTC can be a big help to franchise buyers. Call them at 1-877-FTC-HELP or visit them online at http://www.ftc.gov.
  • If possible, try to work at a business in the same industry as the franchise you are considering. Familiarity with the industry and experience with the day-to-day realities of running a similar business will help your franchise get off to a good start.

Franchise brokers and consultants
While most franchises are sold directly by the parent franchisors, there is a growing set of middlemen called franchise brokers or franchise consultants. Much like real estate agents, they work to help match buyers and sellers. Their services are free to the buyers - they are paid a commission by the franchisor.
Working with a franchise agent involves a couple of steps. First, they will consult with you to determine your needs, skills, and available capital.
Once they have a good understanding of your situation, they will recommend a few companies that they think will be a good fit based on your interests, financial qualifications, and the current market. Then they will put you in touch with the franchisor directly.
There are a couple of advantages to using a franchise consultant:

  • They pre-screen franchisors, making sure the companies they represent are responsible and financially fit.
  • They can introduce you to franchisors you may never have found on your own.
  • They will help you make your case to the franchisor.
  • It's free!

The only real disadvantage is that each franchise broker has only a limited amount of companies that they work with, so you may miss out on opportunities that would be great for you. Some brokers are focused on particular industries, which can be an advantage if you are certain you want to operate in that industry, but is too limiting if you are trying to explore all your options.

Costs of buying a franchise
Buying a franchise is a major investment. You should expect to draw on almost all of your financial resources and/or take on additional lines of credit. Before start talking to franchisors, have these questions answered:

  • What is your net worth? How much of that is liquid (accessible cash)?
  • How much can you afford to lose? (Remember - nothing is guaranteed.)
  • Is your credit rating favorable?
  • Do you have sources of additional financing if they become necessary?

There are two main costs associated with buying a franchise. The first, which is most likely to cause sticker shock, is the franchise fee. This is a one-time startup fee that can range be as low as $1,000 or as high as $100,000. Most are between $20,000 and $30,000, and some are non-refundable, even if you decide to pull out of the deal before opening your franchise.
The second major cost is the monthly royalty payment. This fee ranges from 3% to 6% of your gross monthly sales. Some franchises have monthly minimums that can really hurt during slow periods for your business.
Other costs vary almost limitlessly, depending on the industry and the specific franchise. Some typical expenses include:

  • Location. Most franchises need a place to do business - some contracts mandate corporate-controlled leases, others allow you to set up your own lease.
  • Equipment. Could be anything from food preparation equipment to vehicles to display cases to cash registers.
  • Signs. Many franchisors will specific exactly what type of signs you have to buy.
  • Opening inventory. You may need weeks' worth of inventory to open.
  • Working capital. For expenses that accrue before you start generating revenue - pre-opening payroll, for example.
  • Advertising fees. Larger franchisors typically require that you pay into a national advertising fund that goes to support the company as a whole.