1-800-Radiator & A/C

Description

Same day delivery and specialty distribution company - finding the right buyer with long term potential is most important. Established in 1985, this company is a member of an exceptional network and chain store owned infrastructure - this is the largest and most successful network nationwide within this $200 billion industry.

The Company presents a compelling acquisition opportunity for a new owner-operator to further expand a growing and profitable wholesale distribution outlet. The Company sells specialized products to small businesses and retail customers. The Company anticipates the introduction of further product offerings which should increase profits substantially over the next five to seven years. Other outlets have been very successful without prior industry experience and a new owner is not expected to have any prior industry experience.

Investment Highlights:

  • Attractive industry / end-market: over 80% of product sales are non-discretionary in nature.
  • Long term secular growth driven by continued aging of U.S. vehicle population. (better engineered vehicles, macro-economic conditions and consumer perception on vehicle ownership has led to a continued aging of cars on the road).
  • Sustainable competitive advantage as specialty distributor with inventory availability in core product offerings significantly better than competitors.
  • Pricing power Nationally, gross margins have remained stable over the past 5 years; further tailwinds expected due to increased global sourcing.
  • Scalable business opportunity ability to increase same-store revenue / add new products leads to significant profit growth.
  • Supported by technology focused and data driven network that provides significant resources in business analytics and CRM.
  • Buying power supported by national chain and combined system sales.
  • Total network sales of over $220,000,000 annually
  • Typically 4-6 employees, open 8-5 Mon-Fri and 9-2 on Sat

Background

Year First Franchised: 2005
Franchised Units: 100+
Actual number of units: 225
Company Owned Units: 5
Projected New Units (12 months) 3

States referrals are accepted in:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

Avail. in Canada: Masters/Area Developer: No

Facilities:
Conveniently located local outlet with approximately 3000-10,000 sq ft. of warehouse capacity.

Competition:
The Company competes favorably against the competition due to its superior infrastructure and same-day delivery service. The Company sells a majority of its volume to other small businesses and benefits from an owner-to-owner relationship which is a key differentiator from its competitors. The Company differentiates itself from competitors by providing customers with a 90% same-day fill rate. This level of service is unmatched in the Company's product categories.

Growth/Expansion:
The Company anticipates the regular introduction of new products to increase revenue from its existing customer base. Additional product lines currently carried by other locations can also be added to grow sales revenue. The Company has proven the ability to seamlessly integrate new products such as air conditioning and fuel related products.

 

Financial/Terms

Minimum Investment: $250,000
Minimum Net Worth: $750,000
Franchise Fee: $25,000

Royalty: 8%
Ad: 2%
Average # of Employees: 4
Passive Ownership Allowed: Yes
Earnings Claims: No

Notes:
Potential financing available on
all transactions.

Franchisor will assist in financial analysis of all resale P&L's.

Franchisor will assist in candidate proforma build and opening budget build.

Passive Ownership Allowed: Possibly, as long as certain qualifications are met.

Earnings Claim: Except for the Sales and Costs Table at Exhibit C of the FDD, we do not furnish or authorize any salesperson to furnish any oral or written information concerning the actual or potential sales, costs, income or profits of a 1-800-RADIATOR franchised business. Actual results vary from unit to unit and we cannot estimate the results of any particular franchise. See Exhibit C.


Franchise Sales

Single Unit: Yes
Multiple Units: Yes
Area/Master Developer: No
Resales: Yes


International Expansion

International Expansion
Opportunities: No
Developing outside of the U.S.: No
Single Unit Availability Outside U.S.: No
Multiple Unit Availability Outside U.S.: No
Area Development or Master Avail.: No
Cash Investment: Inquire with Franchisor
Total Investment:Inquire with Franchisor

 

Support & Training Provided

Financial Assistance Provided: Yes
Site Selection Assistance: Yes
Lease Negotiation Assistance: Yes
Co-operative Advertising: Yes

Notes:

Support/Training:

Excellent training program and support systems provided. Turn-key business model. No specific industry experience required. The Company’s sales, marketing, CRM, pricing, inventory management and training systems are the most advanced in the industry and allow owners with little or no experience the ability to operate effectively without prior experience.

There are two weeks of training that take place at the Corporate Headquarters located in the San Francisco Bay Area. Time is spent in HQ as well as in a Corporate run warehouse in Sacramento, CA. The Sacramento location is one of the best run operations in the network. While in training at HQ, the candidate will learn all aspects of operating a 1-800-Radiator & A/C location from the inside-out. While in Sacramento, the candidate will be hands-on working in every aspect of the business to become a true expert in all facets of the operation.


Get Started!

 

Freddy O'Pry

Franchise Development

281-342-7474