How To's
Here’s the Real 1800 Radiator & A/C Franchise Cost
For those looking for a venture related to automotive services, a radiator and air conditioning business can be a lucrative option. If you’ve always wondered about the 1800 Radiator franchise cost, you’ve come to the right place.
In this article, we’ll discuss crucial info about opening your own 1-800 Radiator & A/C. We’ll also look at how much money and time you’ll need to invest in a franchise. So, get ready to take notes as you learn more about the business.
Franchise Description
Before diving deep into the 1800 Radiator franchise cost, let’s learn a bit more about the business. 1-800 Radiator & A/C has been serving clients since 1985. The business started franchising under 1-800-Radiator Franchisor SPV LLC in 2001, with a head office in Benicia, CA. They have around 190 units at present.
The business’ system involves a system that offers superb quality and breadth of inventory. That said, having a warehouse under the franchise would allow you to source supplies from over 1000 major brands. Because the purchase system lowers vendor costs, franchise owners can offer products at a good rate.
When you franchise this business, you’ll have the right to open a warehouse under the name “1-800-RADIATOR & A/C.” The venture involves selling radiators, A/C compressors, fan assemblies, and other automotive exhaust products.
On average, the brand has 1,000 automotive type businesses. This includes repair shops, parts stores, new and used car dealers, junk yards, and radiator repair shops. The business has come up with a winning system, thanks to their experience and expertise. That said, owning a franchise means not having to build a business from the ground up, giving one an edge over local players.
Training Overview
Aside from the 1800 Radiator franchise cost, you’ll also need to invest time and effort if you want to open your own venture. Before you can set up shop, you need to complete a one-week training in their head office.
After the first training, the head office also requires franchise owners and key personnel to attend refresher courses. This further training helps ensure that every franchised warehouse follows standards set by the head office.
There’s also an annual conference, where stakeholders discuss business issues and other concerns. Because it’s a crucial part of keeping a stellar brand, the head office requires all franchise owners to attend these events.
Obligations and Restrictions
Besides the 1800 Radiator franchise cost, there are other duties required to open your own shop. For instance, the head office requires franchise owners to manage the warehouse full-time. If a group or a corporation owns the franchise, one owner will assume the role of a representative.
Each franchise owner gets an exclusive area to be jointly approved by the owner and the head office. This area will be named in the franchise contract. The head office will not approve new franchise requests nor build company-owned depots within a current territory. Each area covers a client base of 500 to 3,000 shops.
Aside from the duties above, franchise owners need to abide by rules on products and services to offer. Warehouses can only sell products and services approved by the head office. In the same vein, they must offer all products and services required for all stores. The head office also has the fullest extent to set pricing rates for products and services. This includes joining system-wide discounts and other promo programs.
The first franchise term lasts for 20 years. Franchise owners may choose to renew the franchise for another 20 years if they meet the head office’s conditions.
1800 Radiator Franchise Cost
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Warehouse Equipment Package | $42,000 | $42,000 |
| Opening Marketing Package | $30,000 | $30,000 |
| Travel and Living Expenses While Training | $2,500 | $5,000 |
| Lease Deposit | $2,000 | $15,000 |
| Delivery Vehicle | $5,000 | $35,000 |
| Miscellaneous Opening Costs | $25,000 | $75,000 |
| Opening Inventory | $200,000 | $800,000 |
| Rent for First 3 Months | $6,000 | $49,000 |
| Additional Funds (3 months) | $50,000 | $150,000 |
| ESTIMATED TOTAL (for new warehouse, excluding real estate purchase costs) | $457,500 | $1,246,000 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Ongoing Franchise Fee | 8% of gross sales. |
| Local Marketing Fee | 0.5% of gross sales. |
| System Marketing Fee | 1.5% of gross sales. |
| Monthly Mailers | $0.65 per mailer, but could increase if the franchisor’s costs increase. |
| Inventory Purchases | Varies, depending on the franchisee’s inventory orders. |
| Call Center Fees | As determined by the franchisor (currently $1 to $2 per call, depending on whether the calls are received during regular business hours, after regular business hours or during peak volume times). |
| Collections Fee/Credit Card Processing Fee | Currently 3% of amount collected on the franchisee’s behalf for chain accounts. |
| Referral Fee for Chain Accounts | Not currently charged. |
| Inventory (Private Label Products) | The current pricing as ordered by franchisees (If franchisees qualify for participation in the program). |
| Initial Training | Tuition-free. |
| Additional Training | Tuition-free. |
| Conferences | $250 per attendee per day. |
| Network Support Fees | Currently the network support fees cover software and e-mail access (currently these fees are $145 – $165 per year per user account for software, plus $4 per month per e-mail address). The franchisor may increase these fees upon notice to franchisees. |
| Personal Sales Visit Reimbursement | The franchisor’s actual expenses. |
| Administrative Fee | $150 plus interest on late amounts at 18% or highest legal rate. |
| Late Payment Penalty | $500 |
| Audit | Reasonable accounting and legal fees. |
| Renewal Fee | $10,000 |
| Transfer Fee | $15,000 |
| Acquisition Costs | Based on inventory and additional sales. |
| Attorneys’ Fees | Reasonable amount. |
| Default Costs | Will vary. |
| Insurance Premiums | Amount of premium, plus 10% processing fee. |
| Container Program Fee | $300 per container. |
Did You Know?
Here are a few things to know about 1800 Radiator & A/C:
- The venture’s annual meeting does more than give franchise owners a chance to network and learn from one another. It’s also an event where the head office holds the Franchisee of the Year awards. This recognizes the franchise owners in terms of market penetration and sales.
- The business takes pride in offering same-day delivery. They make sure to have a stock of auto parts to help franchise owners be on top of their game.
- A franchise comes with a CRM feature, which provides sales formulas. The CRM can track in-person sales visits, phone calls, comments, mailers, and each client’s sales within the area. This data equips the franchise owners on how to market their shop better.
- The company takes pride in the fact that over $65 million in rival income has been added to franchise owners’ sales since 2000. The venture has an in-house system focused on integrating acquired rivals into the network.
Without a doubt, 1-800 Radiator & A/C offers a system that will make your business stand out from local players. If the franchise cost, duties, and training terms suit you, it’s surely one of the most viable venture options to consider under the automotive market.