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1-800-Radiator & A/C Franchise & Franchising
05/08/2011, 01:17:45
Yorum: #1
1-800-Radiator & A/C Franchise & Franchising
1-800-Radiator Franchises
1-800-Radiator is gearing up to capitalize on the slowdown of new car sales. There has never been a better time to be in the automotive parts and repair industry and our wholesale customers are already seeing demand. Our product line expansion, recent acquisitions and continued focus on systems and franchise support have and will continue to make us the number one radiator distributor in North America.

An Exceptional Business Opportunity
1-800-Radiator is one of the fastest growing franchises in North America. It's a simple concept: 1-800-Radiator delivers brand-new radiators, a/c condensers, HVAC and coming soon body parts within two to three hours to local customers and next day to customers outside of the same-day delivery area. Customers love our service and in addition to quick delivery, our radiators and air parts line come with a lifetime guarantee and are sold at the most competitive prices and from a local owner-operator who insures the best experience for our wholesale customer base. This extremely effective business model has enabled 1-800-Radiator to become the largest independent direct distributor in North America. The tight economy has created an even greater opportunity for the repair and replacement industry as the fleet on the road today ages.
1. No Automotive Experience Required
A big part of the 1-800-Radiator marketing effort is the training and ongoing corporate support. The franchisee will spend up to three weeks learning how the radiator market works. You will also learn about the 1-800-Radiator lifetime guaranty. 1-800-Radiator will train you how to use the computer systems to maximize your time spent marketing to customers and minimize time spent in the warehouse. Franchisees will be taught how to grow their territories quickly and efficiently.
2. No "Bad" Locations
The only location requirement for a 1-800-Radiator franchise is that the warehouse be reasonably close to the center of the territory. There is no such thing as a "bad" location as there often is with a bad food franchise location. The 1-800-Radiator franchisee, not being confined to the "store", is free to travel all day seeing customers. The more customers he or she sees, the more chance of success they have. Our state of the art marketing systems will help you work smarter so you know who to visit and how best to win and sustain their repeat business. We will help you find a cost-effective and logistically sensible location.
3. Canadian Territories
1-800-Radiator began expanding into Canada in 2006 and currently has 10 locations open with more scheduled to open in 2009. Check out our available territories to see if your area is open. We offer bi-lingual invoicing and systems to accommodate predominately French speaking provinces as well!
4. Fewer Employees Necessary
The 1-800-Radiator start-up franchisee usually has just three employees -- two delivery drivers and a warehouse manager-order taker. A food franchise often has upwards of 15 employees, often teenagers who require more management and supervision. The 1-800-Radiator franchise is open just 5 1/2 days per week versus all 7 days for the food franchise. The 1-800-Radiator location is open 9 hours per day Monday thru Friday and 4 hours on Saturday. The food franchise is open often 19 hours per day, 7 days per week. A 1-800-Radiator franchisee works very hard, but time is spent much more in market planning and in contacts with customers, as opposed to constant recruiting, training and disciplining of young workers..
5. No heavy investment in an expensive building or build-out
A 1-800-Radiator warehouse is a simple, low-cost 2,500 square foot space located in primarily industrial parks, stocking approximately 2,000 radiators to enable delivery within two hours. The total cost to set up a warehouse is $16,000, which includes racking, computers and office equipment. The inventory requirement is usually $100,000.
6. State-of-the-Art Marketing System
You will make the most out of your marketing dollars. Our computer systems have been designed to allow the franchisee-owner maximum time for outside sales and marketing. We use our own proprietary web-based point of sale system that allows you to easily track your customer activity (CRM), accounting and purchasing. Many of our competitors use outdated systems and paper customer lists. You will know who to visit, how to price them and you will be able to measure the effects of your campaign.
7. Existing Customer Base
1-800-Radiator has been marketing nationwide for years and start-up territories have an average of 200 automotive customers who have purchased from the company in the past 24 months. In the first weeks of operation, 1-800-Radiator sends in a marketing team to call on these existing and potential customers and to introduce the new franchisee. These customers will learn that 1-800-Radiator now has a location right in their own backyard which will be able to give much better service than they have been getting before. Many customers will happily find out that they will now get their radiators in 2 hours instead of 24 hours. In areas where a location already exists, the customers will learn that they now have a closer location run by an owner-operator who cares about them and is easily accessible.
The new franchisee will also be pleasantly surprised at the flow of retail business (do-it-yourselfers) which is constantly coming in. This is a result of yellow page and on-line marketing. 1-800-Radiator also is the dominant marketer of radiators on the Internet. These orders also will be constantly coming in. The franchisee does not have to worry about generating these sales --- they just happen automatically and provide an immediate and welcome cushion of cash flow. This business is fairly predictable and 1-800-Radiator will provide the prospective franchisee with its historical records by week, month, and year, showing how much of this business has occurred in the past.
8. Six Million Radiator Replacements Per Year
In the United States, there were approximately six million radiator replacements last year. 1-800-Radiator is dominating this market, making it fast and easy to get a brand new radiator in the box delivered to your door. At an average price of $126 - $134, 1-800-Radiator sells its radiators to automotive repair shops and do-it-yourselfers - it does not install the radiators or perform any repair work. In 2007 we expanded out product line to include the air parts line, fan assemblies and have our sites on the crash parts market. We also acquired several key national and regional competitors in 2007 and 2008 which has allowed us to tap into the best minds in the air-parts industry and given is increased market penetration. We are poised to take advantage of the tremendous opportunities in the repair and replacement industry this year!
9. Limited Number of Franchises Available
To insure that each franchise has its own protected territory, 1-800-Radiator is limiting the number of franchises available in the United States and Canada. Currently there are approximately 230 locations open. Our growth has allowed us to focus on product line expansion, sales at existing outlets and acquisition

The Radiator Market
A Winning Business Strategy
Over the last 25 years, 1-800-Radiator has grown from a small $3 million company to one with over $188 million in revenue. The company has outperformed rivals by designing state-of-the-art computer systems to handle marketing, warehousing and purchasing. These systems have allowed 1-800-Radiator to efficiently outmaneuver local mom-and-pop competitors who are still stuck using paper catalogs.
1-800-Radiator has also stood up to the larger, multi-unit competitors by using its systems to fine tune direct mailings, phone blitzes and sales promotions to gain market share. By being the leader in internet marketing, 1-800-Radiator has taken market share from retail auto part outlets as well.
The Right Concept for Today's Market
The 1-800-Radiator franchisee has approximately 1,000 automotive type businesses as its primary customers, including parts stores, gas stations, repair shops, body shops, new and used car dealers, junk yards, and radiator repair shops. The franchisee uses 1-800-Radiator's systems and promotional materials to mass market to these customers. One of the advantages 1-800-Radiator has over its competition is the breadth and quality of its inventory. Because 1-800-radiator sources from all the major manufacturers, it almost always has exactly the right part in stock. The 1-800-Radiator computer system has a proprietary "stocking mechanism" in its software which helps fine tune each and every market to have a unique inventory mix.
1-800-Radiator has also designed a "Customer Relationship Management" (CRM) feature into its computer system to make marketing easy for its franchisee. The CRM automatically tracks every phone call, every mailing, every visit, every comment, and every sale made by each of the 1,000 customers in the territory. This data is constantly being manipulated in order to give the franchisee direction on where to go next with marketing efforts.

1-800-Radiator: Frequently Asked Questions
What's the best way to learn about the 1-800-Radiator franchise business?

Visit our media center and watch the videos as well as take a few virtual tour. If you would like additional information you can always fill out our rapid request form.
Do I need automotive experience or knowledge about radiators?

No. To become a franchisee you do not need any prior knowledge or experience. 1-800-Radiator has spent millions of dollars developing computer, purchasing and marketing support that gives 1-800-Radiator franchisees a huge competitive advantage.
What’s it like being in the radiator business?

It's a lot different than you think! No grease on your hands. No repairs. It's all about service and sales. Shops buy from suppliers who deliver a quality part fast. 1-800-Radiator has the best suppliers at great pricing. 1-800-Radiator has a lifetime guarantee. You will be set up with the correct inventory so you will almost always have the exact radiator for every request. You will have the only "state of the art" marketing system in the radiator business. Your marketing tools will tell you which shops to contact and what to say to get them buying from you. 1-800-Radiator is also #1 on the internet; http://www.radiator.com sells more radiators on the internet than any other web site. Day in and day out internet sales will happen in your area. Your printer will spring to life and you'll have another radiator to go deliver!
Are the franchise opportunities New Startups?

There is no such thing as a "Startup". 1-800-Radiator is the best known name in radiators and has been selling radiators throughout the United States for twenty years. In the past 12 months 1-800-Radiator has sold almost 500,000 radiators (over $60million) to 60,000 different automotive shops in nearly every city in the nation. Every new franchise will have many shops that have done business with 1-800-Radiator. These shops have been receiving their radiators by UPS or Fed-Ex from a 1-800-Radiator distribution center, usually one or two days after they ordered their part.
The first thing 1-800-Radiator does, when a new franchise opens, is send in a "blitz crew" who calls on all the existing customers and tells them the good news that there is now a new location nearby which will be able to deliver their radiators in the same day. This is the main reason why new franchisees experience an immediate boost in sales when they open their new locations. Shops much prefer receiving their radiators the same day they order their parts.
Do I buy my inventory from 1-800-Radiator?

No you do not - and this is one of the key reasons why 1-800-Radiator is such a unique franchise. 1-800-Radiator does not try to make additional money from its franchisees by selling product or materials to them. 1-800-Radiator's philosophy is to use its significant buying power and strong vendor relationships to negotiate highly favorable purchasing agreements with the major manufacturers and to then pass 100% of the negotiated savings on to the franchisees by arranging for vendor-direct purchases. With 1-800-Radiator's huge buying volume, this makes the franchisees extremely competitive.
Who supplies the radiators?

1-800-Radiator works with 13 major manufacturers, over 70% of whom are large public companies. Delphi and Visteon, the original equipment suppliers to GM and Ford, are the two largest suppliers, each with sales in excess of $10 billion. Behr and Nissens supply many of the European parts. Koyo, CSF and Samsung handle most of the Asian parts. Many parts are also sourced from Proliance, Valeo, Nitoma, and Spectra. 1-800-Radiator also imported over 100 cargo-containers directly from foreign manufactures in 2005.
Are there opportunities available to purchase existing corporate locations?

250 total territories are available in the United States. The vast majority of them fit the configuration of the New Locations discussed above. Approximately 20 existing corporate locations are also available for purchase. These have sales of up to $1.5 million per year and will sell for as much as $750,000. Contact us if you are interested in taking over an existing location.
If I am already in the radiator business, are there any opportunities to purchase a franchise?

Ambitious individuals with no experience have been extremely successful as radiator franchisees. Outgoing, ambitious individuals not afraid of hard work are what 1-800-Radiator is looking for. Being in the radiator business gives no inherent advantage as a 1-800-Radiator franchisee unless you are very motivated to grow your business. If you are, then a 1-800-Radiator franchise could be an opportunity for you.
Why are radiators being replaced instead of repaired? Is there a strong demand for new radiators?

Several years ago, most auto makers began installing plastic/aluminum radiators instead of copper/brass. Plastic/aluminum is much more difficult to repair. Labor costs have also risen significantly. Both of these factors have given 1-800-Radiator the opportunity to be the leading replacement radiator supplier in the country.
What about Hybrids?

Hybrids need radiators too. Early hybrids, such as the Prius, have small radiators, but more recently, much larger radiators are appearing in hybrid SUVs, as the car makers are using hybrid technology to gain power in addition to fuel efficiency.
What are the typical hours of operation?

8:00 AM to 5:00 PM Monday through Friday and 3-4 hours on Saturday.
What size and type of warehouse is needed?

A huge advantage a 1-800-Radiator franchise has over other types of franchises is the minimal real estate risk entailed. In your area there are many locations with 1,500 and 3,000 square feet in industrial areas which would be totally adequate. Depending on the real estate market in your area, 1-800-Radiator is usually successful in finding rents between fifty cents and one dollar per square foot. Before you invest 1-800-Radiator sends its location expert to help you find your right location.
How much inventory is recommended?

$100,000 is normal. Higher volume units will typically require 10% of annual sales to provide the best service to the customers.
What is the average ticket?

The price of a radiator ranges from lows of $89 for smaller Asian cars up to $299 for heavy pickups and SUV's. The average part sells for $138. Your cost is usually a little more than half. Dealer prices are sometimes double what 1-800-Radiator sells its parts for. All 1-800-Radiator parts come with a lifetime guarantee.
How many deliveries can I expect to make per day?

Depending on volume, you could expect to have 5 to 30 deliveries a day.
How many employees are needed to run the business?

A person with a new location could run the business as an owner/operator with no staff during the initial start-up. Once the delivery volume is 5 to 10 radiators per day it's a good idea to add a driver. A location doing $1million should have 3 to 4 employees (including owner), although some franchisees may choose to have more employees in order to grow their business faster.
Is training provided?

Yes. A one week training course is provided at the corporate headquarters in the San Francisco Bay Area. This is followed by two to three more weeks at your location. You are taught all about how radiators work and why they fail. Most of your training is on how to use 1-800-Radiator's marketing systems to grow your business quickly. You are taught how to talk to different types of automotive shops. For example, you will learn that radiators for body shops tend to be for late model cars and radiators for repair shops tend to be for older model cars.
Is ongoing support provided?

Absolutely. An account manager will be assigned to each franchisee on an ongoing basis. The manager will personally contact local shops that are not regular customers and explain the benefits of using 1-800-Radiator. This will be done 3-4 times in the first year, and will be ongoing thereafter. The integrated computer system will also remind franchisees on a daily basis who should be contacted and ideas on what should be said to help increase sales.
Can I observe a typical operation before I commit my funds?

Yes - we encourage you to talk to and visit other franchisees as part of your research. There are now 25 franchise locations and we'd be happy to help you make contact with them.
How long will it take to become operational?

Depending on financing and training, it takes as little as 8 weeks to become operational.
Do new franchisees have access to the database of local customers?

Yes. The current database for the franchisee's territory is made available along with support ideas to effectively market to customers within the territory.
What kinds of computer systems are needed?

Any typical PC will connect to the main computer at the company's headquarters. Our IT Staff will specify your computer requirements to assure your equipment will match the needs of your business. A broadband connection such as DSL is highly recommended. All operational software used to run the business (excluding accounting functions) is licensed by 1-800-Radiator as part of the franchise program.
What kind of sales growth per year can I expect?

As with any business venture sales can go up or down. In general, sales increases have been very strong for several years and a local franchisee marketing program is likely to enhance sales growth. See Exhibit 5 of the U.F.O.C. for actual expenses and growth rates of franchisees.
Do you offer a secure territory?

The cities and all geographic area included within the territory will be the franchisee's exclusive territory for all radiators sold by 1-800-Radiator or the franchisee in that area. Territory populations average around 750,000 people.
What kind of marketing support is provided for my local advertising?

The marketing department is constantly developing new programs for corporate owned and franchise territories. These programs will be available to the franchisee. Local advertising will be comprised of direct mailings, yellow pages advertising, and other special promotions.
What is the royalty and advertising fee?

8% Royalty and 2% advertising: 25% of your advertising funds will be used for local store marketing in your franchise territory. The remaining funds are allocated to national marketing such as the Internet. We plan future expansion into magazines, television and radio.
How much money can I make?

There are no guarantees on profitability as it will vary from operator to operator. For a sampling of historic cash flow for the franchiser at varying sales volumes (of existing warehouses), refer to the 1-800-Radiator UFOC, Exhibit 5.
What is my break even point?

A hard working Franchisee can break even, delivering as few as 5 radiators per day. A new location can operate with no employees other than the Franchisee. A "delivery vehicle" will not be necessary because the average radiator weighs just 20 pounds. Franchisees can use their own cars and can deliver as many as 15 radiators per day in them. The main fixed expense will be rent - usually less than $2000 per month. To determine your break even point, it is recommended you review the UFOC and question the franchiser and other franchisees.
How is inventory handled?

Once a week 1-800-Radiator's proprietary "Order Generator" program scans and compares the in-stock inventory level with the rate of parts moved and automatically places orders with the appropriate vendors. The orders arrive five to seven days later at the warehouse.
How much are shipping costs for inventory?

Most suppliers provide free shipping with a minimum order of 10 to 25 parts. The Order Generator automatically maximizes the free shipping parameters.
How are Accounts-Receivable handled?

Approximately 80% of sales are C.O.D. Creditworthy customers are given 25 day terms, at your discretion. Most credit customers will be local car dealers, large body shops, and parts stores such as Auto Zone and Pep Boys. The 1-800-Radiator "Account Collector" helps the franchisee collect on those accounts efficiently. National accounts like Auto Zone and Pep Boys are collected by 1-800-Radiator and remitted to you.
What is the warranty allowance?

Each supplier has a different warranty policy. The policies range from an allowance of 2% of purchases to a 100% return policy on defective parts. 1-800-Radiator's corporate-wide warranty and scrap cost approximates 1.7% of sales.
Does 1-800-Radiator have any regional or national market growth analysis?

Yes. The 1-800-Radiator "Customer Relationship Management" (CRM) system has historical growth rates by zip code, city, county, state, region, and customer type.
Does 1-800-Radiator offer financing?

We do not offer financing; however there are a number of resources available to prospective owners seeking this option. A thorough evaluation of a business you are interested in buying is obviously a must. However, if you would like to finance the purchase, you will need to document this evaluation in a business plan.
We provide a uniform franchise operating circular (UFOC), which contains relevant information for your business plan. While every franchise must produce a UFOC, some are more detailed than others. We invite you to review ours by submitting an application. 1-800-Radiator is a data driven company and we will provide market reports in fine detail. Reading the UFOC and reviewing our reports are the first steps towards properly evaluating this enterprise.
In addition to the information contained in the UFOC and market data, we have located several resources which have proved very helpful to our current franchisees. The first resource is business software used to create a sound business plan. Our franchise owners have found success using this kind of software to create comprehensive and professional business plans. It's easy to use and is also very inexpensive.
The second financing resource is the ability to use retirement funds to start your business without premature distribution penalties or any interest payments. The ERISA Act of 1974 and EGTRRA in 2001, allowed taxpayers the use of 401(k) and IRA monies to fund their own businesses. There are companies who provide financial components that enable small business funding, while fulfilling the requirements to insure full compliance with applicable IRS, ERISA, and Department of Labor code sections and rulings.
Please call the Franchise Sales Team for details and references at 866-780-9392.
I'm interested, what are the next steps?

Contact 1-800-Radiator franchise sales at 1-866-780-9392 or email to FranchiseSales@1800radiator.com
Complete the “Confidential Personal & Financial Statement” form and submit it to 1-800-Radiator. If available, fax or email your resumes and personal financial statements. Also provide information on the best times to contact you.
A 1-800-Radiator representative will contact you once we receive your information.
If your qualifications meet the requirements of 1-800-Radiator and if you have continued interest, you will be immediately sent a 1-800-Radiator Franchise, Inc. "Uniform Franchise Offering Circular". Prior to any further discussions, you will need to acknowledge the receipt of this document by signing the last page (item 23) and faxing or sending this back to 1-800-Radiator.
The next step is a phone or in-person interview with a 1-800-Radiator representative.

Getting Started
1-800-Radiator helps franchisees find and set up the warehouse. Each new franchisee has his or her own personal Startup Coordinator who will work closely with them on all aspects of getting started. 1-800-Radiator is famous for its "hand-holding" during training, startup, and forever after. 1-800-Radiator will never have thousands of franchise locations. It will have a select few, and the company is dedicated to a long and happy relationship with its franchisees.
Take the Next Step and Join the 1-800-Radiator Team Today
You don't have to know anything about radiators or, for that matter, about cars. The ideal 1-800-Radiator franchisee is a person with an outgoing personality, who is not afraid of hard work, and who wants to succeed. We provide all the training and leadership necessary for your success.. Financial requirements range between $99K - $199,000 available capital. We can help you with financing.

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17/08/2011, 07:28:53
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