PrecisionTuneAutoCare US Franchise Package FM-pdf

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The Right Brand. The Total Package.


Dear Future Franchisee: I want to thank you for your interest in exploring the franchise opportunity available through Precision Tune Auto Care. I hope you will take the time to review our prospectus and visit our website. With the automotive aftermarket growing and changing every day, now more than ever, it makes sense to be affiliated with a company like Precision Tune Auto Care that has experience with a proven operating system. PrecisionTune.com has information on many of the tools that a franchisee will need --- from operational business plans, equipment and tools, education, market analysis, forecasts and training. We are committed to conducting business in accordance with the highest standards of professional and ethical conduct and have been doing so for more than 30 years. In order to move forward, you will want to learn more about us and as you review the information that follows, you will see that we are very committed to our Franchisees. Conversely, we will want to learn more about you and understand your commitment to developing the Precision Tune Auto Care brand. If you have any questions, please contact a member of our Franchise Development Team, toll free at 866-944-8863. Sincerely, Precision Franchising LLC

Robert Falconi President and CEO

Precision Franchising LLC

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Precision Tune AuTo cAre exisTing FrAnchise Licenses WorLDWiDe

As of August 1, 2009 Approximately 275 centers in the united states Approximately 73 centers internationally

Canada Dominican Republic Oman Portugal Saudi Arabia Spain Taiwan United States

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Precision Tune AuTo cAre WorLDWiDe cenTers

United Sates Portugal

Taiwan

Oman Spain

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The Right Brand. The Total Package.


FrAnchise oPPorTuniTies WiTh Precision Tune AuTo cAre Who is Precision Tune Auto Care? Founded in 1976 and franchising since 1977, we are one of America’s largest car care companies. We have over 280 centers operating in the u.s. and another 98 centers located internationally including: Taiwan, Portugal, spain, canada, oman and the Dominican republic. Further, we have initiated an aggressive growth plan to open more centers internationally including countries in Africa, Turkey and the republic of georgia and domestically in Maryland, Virginia, north carolina, ohio, nevada, california and other areas across the country.

The Market The typical Precision Tune Auto care customer is middle class families who are dependent on their vehicle for transportation. With the complexity of today’s vehicles the “do-it-yourselfers” find they “cannot do it”. While they may have the necessary tools to change their oil, and maybe change their spark plugs, they don’t have the resources to diagnose and repair today’s technologically advanced engines. Although each market is unique, the Precision business model has proven successful in a variety of very different environments, with minor modifications, made as necessary. read more about the automotive aftermarket industry on pages 12-14.

Our Services Precision Tune Auto Care was founded on the basic engine tune-up. Over the years, we have diversified our mix of services to provide total quality car-care opportunities for our franchisees to grow and expand their customer base. Today we offer a wide variety of specialized and scheduled car-care services. These services include: Brakes & Traction Control Cooling System Diagnostic Discovery Services Emission Controls Engine & Power-train Management Relays & Modules Exhaust Systems Factory Scheduled Maintenance Services Heating & Air Conditioning Instrument Panel, Gauges & Warning Lights

Lighting & Horns Oil Changes Starting & Charging State Inspections Steering & Suspension Tire Sales & Service Transmission & Drivetrain Windows & Glass Wiper & Washer Systems

The Competition in the 1970’s and early 1980’s, our primary competition came from full-service gas stations. Today, our primary competition comes from the dealership. The dealerships are focusing more on after sale service as a revenue generator. The problem with the dealers’ strategy is that today’s automobile owners are not happy with the dealerships. high cost, inconvenience and the quality of the work are most often cited as the reasons why. Tire dealers and maintenance garages form the next level of competition.

The Right Brand. The Total Package.

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Precision Tune Auto care can and does compete very effectively against the above mentioned competition. We are more convenient: an average car is in our shop approximately an hour and a half and most of the centers take appointments. We beat the dealerships’ price, job for job, and warranty our work for 12 months or 12,000 miles.

Our Support System Precision Tune Auto care is a business format franchise. our business concept has not only been invented, it has been successfully working since 1976 and internationally since1991. We continue to develop and refine the systems and procedures that when properly implemented can lead to businesses with excellent sales potential. our support systems encompass the necessary disciplines for Franchisees to develop and grow our brand within their area and include but are not limited to: site selection, marketing, advertising, technical and management training, operations, parts acquisition and much more. Site Selection Franchisees lease or purchase their own location. Training at Precision University Precision Tune Auto care offers one of the most advanced training programs in the industry. We will teach you how to create and implement the needed infra-structure to support and profitably operate a PTAc center during the Franchise Management course. We will cover all aspects of the business including: financial management, salesmanship, business management, marketing & advertising, labor and purchasing as well as an overview of our services. in addition to the Franchise Management course, Precision university offers the following Management courses: service Writer Training; Financial Modeling & Templating; and softwrench Training. our engine performance and automotive maintenance training program for technicians spans eight weeks and entails 40% classroom and 60% hands-on training. While it is an extensive course, when your technicians have successfully completed the course, they will be highly qualified. These Technical classes include: engine Performance; Automotive electronics, emissions and on-Board Diagnostics; Brakes; Air conditioning service & repair; Preventative Maintenance; Domestic and Asian Fuel injection. Details of Ongoing Support: You’re never on your own when you partner with Precision Tune Auto care. new partners work closely with a team of experienced professionals. Most of the u.s. is supported by our Area Developer network (Area Developers) providing local guidance and support with marketing, operations, sales management and training - starting on day one. Areas that do not have an Area Developer are supported by the corporate team. Partners can stay plugged into success by accessing our dynamic private intranet site, MYPTZone, which provides immediate access to advertising artwork, operations bulletins, technical updates and training materials. it also features our company and marketing news, as well as forums where Precision Tune Auto care partners can discuss key business issues or concerns with fellow franchisees as well as the Area Developers and corporate management team. page 6

The Right Brand. The Total Package.


Vendor Relationships As a global player, we have preferred customer status with many nationally recognized vendors. As a Precision Tune Auto care partner, you will enjoy discounted rates on parts, equipment, advertising, and technology. our in-house printing division, Precision Printing, is an exclusive resource for each partner needing branded promotional materials offered at a great value to you. Advertising Support our multi-faceted marketing program provides all the planning tools, materials and professional guidance necessary to get you started and keep you going. The advertising fees collected are used to provide professionally produced broadcast (television and radio), and in-store promotional materials to help establish a strong, positive brand image in your community. We’re with you from the start with a grand opening Kit to future phases as your center matures, including powerful retention tools.

Your Locations in our infancy, our primary source of centers was converted service stations. in the 1980s, we began opening in auto malls which are occupied exclusively by tenants in like industries. in the 1990s, we developed the latest in aesthetically pleasing and professionally designed centers. complete blue print packages, equipment listings, parts room designs, and graphic requirements are provided to each franchisee. After 30 years in the automotive business, Precision Tune Auto care has established a formula for success. The site criteria and demographics we look for include: • A population base of 50,000 (predominantly middle income) within three miles for Metropolitan areas. however, this will vary from area to area. • Activity generators. We want to create a synergy and be surrounded by other businesses which will also draw people into our location.

Profile of a Successful Franchisee • An understanding of business management principles (such as how to complete and review a P&L statement) is a must. • Involvement as an owner-operator in the management of the shop gives Precision Tune Auto care a competitive edge. • A retail/customer-focused grounded in ethics will assist you in motivating your team to deliver a positive customer experience. it’s all about respect. • A successful franchisee also possesses proven management skills, leadership ability, vision and an appetite for growth.

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The Right Brand. The Total Package.


Financial Qualifications • Approximately $75,000 liquid assets • $350,000 net worth and • Ability to finance start-up costs

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The Right Brand. The Total Package.


WhAT is A FrAnchise, AnD WhY shouLD i oPen one? “84% of all independent businesses would have failed by the time they would have reached their 10 year anniversary. 84% of all franchise businesses succeed as opposed to fail.” Michael Gerber, E-myth Academy & Author Franchising is a method of distributing products or services. At least two levels of people are involved in the franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system. Technically, the contract binding the two parties is the “franchise”, but that term is often used to mean the actual business that the franchisee operates. Precision Tune Auto care is an example of business format franchising, in which the franchisor prescribes for the franchisees a complete plan, or format, for managing and operating the establishment. The plan provides step-by-step procedures for major aspects of the business and, anticipating most management problems, provides a complete matrix for management decisions confronted by the franchisees. The major advantage of buying a business format franchise is that the system has been developed, tested and associated with the trademark. As a result, rapid expansion of a successful retail concept can occur more quickly than through company-owned expansion. Precision Tune Auto care is a member of the international Franchise Association.

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The Right Brand. The Total Package.


FrAnchising nATionAL oVerVieW Direct Contributions to the U.S. Economy

Jobs Payroll output establishments

in Franchised Business 11,029,206 $278.6 Billion $880.9 Billion 909,253

Percent of u.s. Private sector 8.1% 5.3% 4.4% 3.3%

• There are 909,253 franchised business establishments in the United states. • Franchised businesses provide more than 11 million jobs, or 8.1 percent of the national private-sector workforce. • Franchised businesses supply an annual payroll of $278.6 billion, or 5.3 percent of all private-sector payrolls in the united states. • Franchised businesses produce goods and services worth $880.9 billion per year, or 4.4 percent of private-sector output in the united states. included in “franchised businesses” are all those establishments that are part of a franchise system – those businesses owned by franchisees and those owned by the franchisor.

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Source: Economic Impact of Franchised Businesses, Vol. 2 – IFA

The Right Brand. The Total Package.


FrAnchising nATionAL oVerVieW (continued) Total Contributions to the U.S. Economy

Jobs Payroll output

Because of Franchised Businesses 20,974,636 $660.9 Billion $2.31 Trillion

Percent of u.s. Private sector 15.3% 12.5% 11.4%

• Franchised businesses demand products and services from other businesses and provide income to their workers and owners, who then spend their income with other parties. As this cycle repeats, the jobs, payroll and output that exist because of franchised businesses grow beyond the jobs, payroll and output that are in franchised businesses alone. • Franchised businesses are the cause of nearly 21 million jobs, or 15.3 percent of all U.S. private-sector jobs. • Franchised businesses are the cause of $660.9 billion of annual payrolls, or 12.5 percent of all private-sector payrolls in the united states. • Franchised businesses are the cause of $2.31 trillion of annual output, or 11.4 percent of all private-sector output in the united states.

Automotive:

Franchisor owned Franchisee owned Total % of line of business

Jobs

Payroll

output

establishments

47,324 128,534 175,858 7.9%

$ 1.4 Billion $ 3.8 Billion $. 5.2 Billion 8.1%

$ 6.8 Billion $18.5 Billion $ 25.3 Billion N/A

9,585 26,032 35,616 5.7%

Source: Economic Impact of Franchised Businesses, Vol. 2 – IFA

The Right Brand. The Total Package.

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WhY The AuToMoTiVe serVice inDusTrY MAKes sense The Automotive service industry is worth the look for several reasons. First, the united states lacks an efficient mass transit network. Because of this fact Americans have come to rely upon their vehicles for daily transportation. in fact, the u.s. has the lowest person to vehicle ratio in the world with most citizens having access to two or more cars. The automotive aftermarket has expanded to $285.5 billion in 2007, an increase of 4%. The service segment represents nearly $90 billion dollars and is expected to continue to expand further regardless of the total economy. some say the automotive aftermarket is recession proof. other factors to consider include the fact that salvage rates continue to decline. This means that the average vehicle will stay on the road for nearly 10.5 years. consumers are more likely to maintain their present vehicle rather than buy a new one. This equals an amount of $400 - $600 per year for general automotive maintenance and an additional equivalent amount for tires every 24 – 36 months. given the rate of population expansion and the lack of national transportation alternatives, Americans will continue to be reliant upon their vehicles for their daily transportation needs well into the 21st century. Therefore, we should continue to see annual growth within the automotive aftermarket for years to come.

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Source: 2009 Automotive Aftermarket Factbook

The Right Brand. The Total Package.


siZe oF The u.s. MoTor VehicLe AFTerMArKeT

Year

Automotive

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

$138.8 $141.8 $148.7 $157.2 $166.4 $173.9 $181.2 $187.9 $196.5 $201.5 $211.4 $215.5

Medium and heavy Duty $53.4 $55.3 $58.6 $61.5 $60.9 $61.5 $62.1 $66.5 $70.6 $73.0 $74.1 $75.2

Total Aftermarket

% change

$192.2 $197.1 $207.3 $218.7 $227.3 $235.4 $243.3 $254.4 $267.1 $274.5 $285.5 $290.7

-2.6% 5.2% 5.5% 3.9% 3.6% 3.3% 4.6% 5.0% 2.8% 4.0% 1.8%

The u.s. motor vehicle population grew 1.6 percent in 2007, reaching 249.5 million vehicles. registrations of light vehicles (240.9 million) increased 1.6 percent in 2007, while medium and heavy duty truck registrations (8.6 million) increased 2.6 percent from the previous year. The number of licensed drivers in the u.s. has also continued to grow, reaching 205.3 million people in 2007. This resulted in a ration of 1.17 light vehicles per licensed driver for the year, a figure which remains unchanged from 2006. since 2000, declining vehicle scrappage rates and increasing vehicle average age are evidence of continued vehicle longevity. While the scrappage rate for all light motor vehicles rose slightly for the second consecutive year, the average age of vehicles in the u.s. reached historic highs in 2007 with the average age of passenger cars and light trucks increasing to 10.4 years and 9.0 years, respectively. What does this mean? People are putting off the purchase of new vehicles and spending more money to maintain what they have today. This trend will create more opportunity for repair shops.

Source: 2009 Automotive Aftermarket Factbook

The Right Brand. The Total Package.

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siZe oF The u.s. MoTor VehicLe AFTerMArKeT (continued) Total vehicle operating costs, which vary by vehicle class, include the costs for fuel, maintenance and tires. The vehicle type with the highest estimated vehicle operating costs for 2008 are suVs (23.5 cents per mile), followed by minivans (19.4 cents) and large sedans (19.1 cents). The vehicle types with the lowest operating costs are small sedans (17.9 cents). Vehicle operating costs are primarily driven by gasoline prices. Maintenance costs are the next largest vehicle operating expense, ranging from 4.0 to 5.5 cents per mile. Tires are the least expensive operating cost for light vehicles. This means the average person will spend $500-$612 annually in maintenance expense

Average Annual Miles Traveled, 1996 – 2005 (By Vehicle Type) Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

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cars 11,330 11,581 11,754 11,848 11,976 11,831 12,202 12,325 12,460 12,375

Light Trucks 11,811 12,115 12,173 11,957 11,672 11,204 11,364 11,287 11,184 11,114

Medium Trucks 12,167 12,637 11,861 12,199 11,897 12,702 13,426 13,295 12,732 12,380

heavy Trucks 68,075 69,601 64,265 65,260 64,399 63,404 60,939 73,445 70,819 68,845

Source: 2009 Automotive Aftermarket Factbook

The Right Brand. The Total Package.


GETTING STARTED: Confidential Qualification Report NAME ADDRESS STREET CITY

STATE

ZIP

HOW LONG AT THIS RESIDENCE?

PREVIOUS ADDRESS IF LESS THAN 5 YEARS STREET CITY

STATE

HOME PHONE

ZIP

WORK PHONE

SOCIAL SECURITY # / ID #

FAX

E-MAIL

DRIVER'S LICENSE #

DATE OF BIRTH

MARITAL STATUS

SPOUSE'S NAME

NO. OF DEPENDENTS

This form is for the presentation of personal information for the confidential use of our Executive Review Committee. Please complete this in detail by each person owning 5% or more of the franchise, as it will enable us to begin qualification quickly. The completion of this report places no continuing obligation on either Precision Franchising LLC or its agents or the prospective franchisee.

EMPLOYMENT HISTORY NAME

CITY

PHONE

FROM

TO

STATE/COUNTRY

POSITION

OTHER INVESTORS �� INDIVIDUAL

ADDRESS

% OWNERSHIP

% TIME

SOCIAL SECURITY #

INDIVIDUAL

ADDRESS

% OWNERSHIP

% TIME

SOCIAL SECURITY #

��

GENERAL EDUCATION PLEASE CIRCLE HIGHEST LEVEL COMPLETED. 1-12 GRADES

1

2 3 4 COLLEGE

ADDITIONAL DEGREES (PLEASE STATE AND GIVE DETAILS)

PERSONAL INFORMATION OTHER BUSINESS VENTURES WITHIN LAST 10 YEARS

1. HAVE YOU EVER OWNED A FRANCHISE?

YES

NO

NAME OF FRANCHISE?

2. ARE YOU EXPLORING OTHER FRANCHISE OPPORTUNITIES?

YES

3. WOULD YOU EXPECT TO DEVOTE FULL TIME TO THE BUSINESS?

NO YES

WHICH ONES? NO

IF NOT, WHAT % OF TIME?

4. DO YOU HAVE OR CAN YOU OBTAIN THE NECESSARY CASH FUNDS TO INVEST IN THIS BUSINESS? EXPLAIN IN DETAIL.

5. DO YOU REGARD A PRECISION TUNE AUTO CARE®�FRANCHISE AS AN 6. WOULD YOU EMPLOY A FULL TIME MANAGER?

YES

INVESTMENT

CAREER

SPECULATION

NO

7. IF YOU ARE SELECTED WHEN WOULD YOU BE ABLE TO START THIS VENTURE? 8. TERRITORY IN WHICH YOU ARE INTERESTED: 9. HAVE BANKRUPTCY PROCEEDINGS EVER BEEN INSTITUTED BY OR AGAINST YOU? 10. ARE YOU NOW OR HAVE YOU EVER BEEN A PARTY TO ANY SUITS OR CIVIL ACTIONS?

YES

NO

YES

NO

YES

NO

11. IF YES, PLEASE EXPLAIN. 12. HAVE YOU BEEN CONVICTED OF A CRIME OTHER THAN MINOR TRAFFIC OFFENSES? IF YES, PLEASE EXPLAIN.

Precision Franchising LLC Rev. 7/19/06

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The Right Brand. The Total Package.


PERSONAL CREDIT REFERENCES YOUR PERSONAL BANK

CONTACT

PHONE

ADDRESS

ACCOUNT NO.

FAX

YOUR PERSONAL BANK

CONTACT

PHONE

ADDRESS

ACCOUNT NO.

FAX

MAJOR CREDIT REFERENCES (Attach additional schedules when needed)

CREDITOR'S NAME AND ADDRESS

DATE OPENED

HIGH BALANCE

MONTHLY PAYMENT

CURRENT BALANCE

CREDITOR'S NAME AND ADDRESS

DATE OPENED

HIGH BALANCE

MONTHLY PAYMENT

CURRENT BALANCE

PERSONAL/FINANCIAL STATEMENT (Attach Business Financial)

PLEASE DO NOT LEAVE ANY QUESTIONS UNANSWERED. USE "NO" OR "YES" WHERE NECESSARY. ASSETS

IN EVEN DOLLARS

CONFIDENTIAL UPAID BALANCES IN EVEN DOLLARS

LIABILITIES

$

CASH ON HAND IN BANKS

$

NOTE PAYABLE TO BANKS - SECURED

CASH V VALUE - SECURITIES LIFE INSURANCE MARKETABLE

$

NOTE PAYABLE TO BANKS - UNSECURED

$

ACCOUNTS AND NOTES RECEIVABLE

$

NOTE PAYABLE TO OTHERS - SECURED

$

NON-MARKETABLE SECURITIES

$

ACCOUNTS AND BILLS DUE

$

REAL ESTATE OWNED (MARKET VALUE)

$

REAL ESTATE MORTGAGES PAYABLE

$

AUTOMOBILES

$

UNPAID INCOME TAX

$ $

YR YR

MAKE

VALUE

$

OTHER LIABILITIES

MAKE

VALUE

$

TOTAL LIABILITIES

$

OTHER ASSETS

$

NET WORTH (ASSETS MINUS LIABILITIES)

$

TOTAL ASSETS*

$

TOTAL LIABILITIES AND NET WORTH*

$

*These two numbers should be equal. ANNUAL SOURCES OF INCOME

CONTINGENT LIABILITIES

SALARY

$

BONUS AND COMMISSIONS

$

OTHER

$

TOTAL

$

DO YOU HAVE ANY CONTINGENT LIABILITIES? IF YES, GIVE DETAILS.

YES

NO

APPLICANT: STATEMENT OF CERTIFICATION I certify that the information contained in this application is true and complete. You are authorized to make an investigative report including obtaining a credit report or any inquiries that you deem necessary to verify the accuracy of this information and to determine my credit worthiness and general reputation, whether in connection with this application or at any time in the future in connection with any ongoing business relationship. All information will be kept confidential, provided, however, that I understand and agree that any information which I provide or which you obtain independently through your investigation will be shared with the Precision Tune Auto Care Area Developer(s) you believe need access to this information. Submitted this _____________________________________ day of _______________________________________ 20 ______________ Printed Name: ___________________________________________________________________________________________________ Signature of Applicant:_____________________________________________________________________________________________ RETURN TO: Precision Franchising LLC Attn: Franchise Development PO Box 5000 Leesburg, VA 20177 PH: 800-438-8863 FX: 703-669-1539

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The Right Brand. The Total Package.

Precision Franchising LLC Rev. 7/19/06


expenditure initial Franchise Fee

estimated Amount or estimated Low-high range $2,000 - $25,000

Land/Building Construction/Site Acquisition

$5,000 - $7,000

Deposits, including rent and utilities

$6,000 - $10,000

interior & exterior signs

$5,500 – $15,000

equipment, Fixtures, Furniture and Technical Manuals installation of signs and compressors initial inventory insurance (Workman’s Compensation Insurance and other prepaid insurance costs) initial Training new center Marketing Miscellaneous computer software support computer hardware computer software Additional Funds 3 months esTiMATeD iniTiAL inVesTMenT

$59,500 - $95,000 $3,000 - $4,000 $5,000– $7,500 $2,000 - $6,500 $0 - $2,500 $3,000 1,000 -$3,000 $0 - $ 600 Purchase – $ 2,500 - 4,500 Lease - $200 - $700 $500 - $2,000 $25,000 - $40,000 $120,000 - $225,575

The above table assumes you will lease the land and building from your landlord. if you construct the building or purchase the land, your initial investment will be higher. All estimates set forth in the chart are based upon our experience and the experience of our affiliates and predecessors operating centers and selling franchises over the past 29 years. since these figures are estimates, we make no representations that your costs will not exceed the estimated range when starting a Precision Tune Auto care business. These expenses will vary according to region, time of year, and local and other conditions, such as: your management skill and experience; local economic conditions; the prevailing wage rate; competition; and the sales level you reach during the initial phase of your business. You should review these figures with a business advisor before making any decision to purchase a franchise. All figures in are estimates only; your actual costs may be different depending on a number of factors. All amounts described are non-refundable, except that, under certain circumstances, we may refund 20% of the initial franchise fee. except as specifically stated above, the amounts given may be subject to increases based on changes in market conditions, our cost of providing services, and future policy changes. At the present time, we have no plans to increase amounts over which we have control. Furthermore, we may offer special promotions at periodic times that may lower your initial investment. page 17

The Right Brand. The Total Package.


What started as a small tune-up shop in Beaumont, Texas in 1976 has now grown to become a world leader in the automotive service market. With more than 400 centers—and growing—in 8 countries Precision Tune Auto Care’s loyal customers depend on us for all their car care needs. We meet that challenge by providing our franchisees with a proven operating system that ensures success. For entrepreneurs who want to be in business for themselves but not by themselves, we offer the total package. We call this...The Precision Advantage.

Why AN AUTOMOTIVE FrANchIsE?

Why PrEcIsION TUNE AUTO cArE? n 30+ Years of Franchising Success

n $190 Billion Automotive Aftermarket

n Proven Business Model

n Fastest Growing Franchise Category With 4-5% Growth Per Year n Over 230 Million Vehicles On The Road In The U.S.*

n World Class Management, Sales and Technical Training n Turnkey Marketing and Advertising Programs

n Average Consumer Spends Over $475 Per Year On Maintenance and Repair*

n Market Leadership Position

n Consumers Value One-Stop-Shopping

n Continuous Research and Development

n Consumers Value Convenience and Expertise

n National and Local Support Team n 24/7/365 Online Support System n World Class Software Management System Capability (to track key performance indicators off-site)

Sign up today to become part of our professional service team!

*Source: AAIA 2007/2008 Factbook

E-mail: franchising@precisionac.com Web Site: www.precisiontune.com 703/777-9095, x211 800/438-8863, opt. 3 toll-free 703/669-1539 fax

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The Right Brand. The Total Package.


What does

do for you?

H

ave you ever asked yourself “What do I get for my royalty dollar?” If you haven’t, then you are unique because it is a question we hear at corporate all the time. So we wanted to take some time to answer the question “What does YELLOW do for you?” to ensure you feel good about your investment and that you know how to utilize your support structure to receive the full benefit of YELLOW. As you can see from the attached support matrix, PTAC is a 3-tier system for the overwhelming majority of franchisees; that is, for most of the system, corporate has engaged the services of an Area Developer to assist in providing services to you. This is important to understand because PTAC corporate is not always the entity that provides you with support. Many times, the Area Developer is providing support, even though PTAC corporate retains the ultimate responsibility for ensuring that services are provided to the franchisee. For franchisees located in open areas with no Area Developer, PTAC corporate normally provides the services for you that are detailed below. PTAC invests your royalties to provide a solid support structure, starting with the right to use the Precision Tune Auto Care brand name.

1

PRECISION BRAND. The Precision brand is well known and respected throughout the U.S. and in many other parts of the world including Portugal, Taiwan, Brazil, Saudi Arabia, the United Arab Emirates and Indonesia. Furthermore, it is the result of millions of dollars of advertising spent over more than 25 years. Based on research studies, the PTAC trademark has 90% name recall. It is a fact that the courts have determined that the brand means a great deal deal, which is why the company was recently awarded a judgment in excess of $6 million when the company pursued an ex-franchisee for trademark infringement. The brand that you are allowed to use is both valuable and protected, and portions of your royalty dollars are used to help protect it. Pro-

tecting the brand is the responsibility of PTAC corporate and we take it very seriously. Enforcement of the Precision Tune Auto Care brand and the related rights of our franchise system are top priority. building plans, which are 2 prototype provided by PTAC corporate. These PROTOTYPE PLANS. You receive 6-Bay

help get a new franchisee up and running much quicker and at less cost than if they were to build the business without the benefit of our 25+ years of experience. OPERATING MODEL. You have access

the center operating system, which 3 toincludes both technical and sales man-

agement procedures that are focused on helping you attract new customers and retain your customer base. Included are proprietary inspection forms and procedures.

4

START-UP SUPPORT. You receive startup management training and support. with our Franchise Management training class available at PTAC headquarters in Leesburg, VA. Once attended, you are welcome to attend this class again to ensure you are utilizing the operating system to its full capacity. This class is also available locally through your Area Developer. FIELD SUPPORT. Through our Area Developers or their representatives, we visit your shops about once a month to provide constructive input and perform quarterly evaluations of how your business is operating. These provide valuable feedback for your operations.

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Meet Robert Falconi, Precision Tune Auto Care’s Chief Operating Officer and Chief Financial Officer for the past two years. Robert has a BBA from the University of Texas and an MBA from George Mason University, in addition to several professional designations and more than 20 years of experience as a CFO/Vice President of Finance and Administration for 4 other companies. This gives him the requisite background and skill to lead our company to stronger financial footing. At one of those companies, Robert and Lou worked together to successfully turn around a company in serious financial distress. Robert oversees Finance & Administration, Operations, Franchise Sales, Collections, and Marketing.

PROFESSIONAL TRAINING. Training is available to the franchisee in two ways. Either PTAC corporate will come to your store or area or your Area Developer will see that you are provided specific training. In order to provide more personalized training, we have arranged for Area Developers to provide training to the franchisees. In some cases,

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The Right Brand. The Total Package.

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The Right Brand. The Total Package.


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