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Q — What is Alloy Wheel Repair Specialists, Inc?
- Alloy Wheel Repair Specialists, Inc. is an international franchise. We are the only company that offers the complete line of wheel repair services. In addition to our specialty, which is unmatched on-site mobile repair, we provide total remanufacturing and wheel replacement services.
Q — What exactly is a franchise?
- A Franchise is a regulated sale and, as such, is the safest business investment. It is important to understand that not all “Business Opportunity” sellers are franchises. You must be careful when selecting a business that tries to convince you that franchises are not desirable. Franchise sellers must present a UFOC (Uniform Franchise Offering Circular) to prospective buyers that must conform to Federal and State laws, one of which requires the Franchisor to furnish the prospective buyer with the entire customer list and publish all failures, if any. The benefit of such regulation is that your chances of success are much greater. In short you have a much better chance of not losing your money.
Q — What are the specific differences between Franchises and other businesses?
- There are actually three different categories of Business Opportunity, which are as follows:
- Franchise Opportunities — Franchising is regulated by the Federal Trade Commission. All potential buyers must be presented with a Uniform Franchise Offering Circular (UFOC) by the Franchisor This UFOC will contain an entire prospectus of the franchisor and a complete list of current franchisees and their contact information. Typically, the franchisee is assured of a specific territory, thus providing protection against competition from within; and they can look to the Franchisor for support in all areas of the business from launch to business planning, sales techniques, new technology and dealing with outside competition. Generally speaking, the overall success of the potential buyer is much greater with this type of "regulated" business opportunity.
- General Business Opportunity — Although there are State Laws regulating businesses, going independent is less expensive than operating as a Franchise. However, independent business opportunity sellers frequently select this route because they are undercapitalized. Since the seller does not have to comply with Federal Law, less “up-front” money is required to actually sell this type of business. Many of these sellers violate State laws and rely on inexperienced investors who are also undercapitalized. Ongoing support from the seller is not guaranteed, nor can it be expected.
- Training & Equipment Offerings — These opportunity sellers prey on the naive buyer. They claim that buying anything in excess of what they are offering is a waste of money. They do not supply a list of contactable references, their training program is limited and they typically supply inferior equipment to complete the job requirements. Not only is there no guarantee of ongoing support, there is no limit on the number of sales that can be made by the seller in a single territory. This choice is usually doomed to fail.
Q — How can I be sure I am buying the right business opportunity?
- Many businesses opportunities are undercapitalized and could be violating state laws. Be wary of training and equipment sellers who claim they have all you need and try to dissuade you from buying “an overpriced Franchise”. These businesses will typically oversell a territory, provide you with inferior equipment, ineffective training and will offer little or no sales support. Once a naïve buyer gets involved with the wrong company there is little remedy left when failure results. Even if you elect not to buy a franchise, some things to be aware of when choosing a business are as follows:
- Achievement record or history of success
- Number and availability of satisfied references
- Content and extent of their training program
- Extensiveness and quality of equipment provided
- Startup and ongoing sales support program
- Exclusive territory guarantee
If any of these specifics are unclear, these could be the first of many more “red flags”
to come.
Q — What is the difference between AWRS and other Franchises?
- At this point in our evolution, there is little difference. As with other premier franchises, your success is guaranteed, if you follow the franchise plan. The biggest difference is how quickly we became an international phenomenon. We have only been in existence since 2001 and in the first 5 years, we sold over 120 territories with 25% of our Franchisees purchasing 2 or more. In that same time span, over 300 mobile units began operations. In the history of all Franchises very few have enjoyed comparable start-up growth. That alone suggests that AWRS would be a valuable business partner. AWRS technology is “cutting edge” and to be a part of it solidifies your investment and assures your place on a winning team. You could say that we are now the “McDonald’s” of our industry.
Q — How do you compare with other mobile wheel repair companies?
- The AWRS Franchise specializes in mobile wheel repair and there is no other mobile business that can compare to us. Shop-based companies can’t compete either because we offer the same services and more. In reality, we have no equal. Our technology is the most advanced in the industry and our patented Mobile Repair Facilities enable us to provide the most comprehensive and professional repairs possible, regardless of weather conditions. We alone have addressed all of the environmental issues and have already introduced painting systems in Europe that comply with the latest initiatives of the European Union. This technology will soon be required in the United States.
What also sets us apart from others is the fact that we offer total solutions for all cosmetic and structural aspects of wheel repair, including straightening and total remanufacturing. Yes, there are other mobile wheel repair business sellers out there and we know all about them. They are all cheaper and they share the same flaws. They are only capable of minimal damage repairs, they deliver inferior quality and color-matching capabilities restrict their activities to used car lots who are willing to accept second-rate repairs. You will never see technicians from our competitors providing service-drive repairs at up-scale car dealerships, customers routinely visited by AWRS technicians on a daily basis.
Many of our competitors are underinsured, or carry no insurance at all, putting themselves and their customers at serious risk. When working on a $200,000 luxury car, this could become a real problem. AWRS franchisees are required to carry all necessary insurances, including Liability and Garage Keeper’s Insurance.
Lastly, AWRS provides exclusive territories along with national and regional accounts. We furnish personnel to launch your territory and render them available to assist you with continuing sales strategies. If necessary, our technical instructors will travel to your location to make sure the quality of your work meets corporate standards. As with other premier franchises, your success is guaranteed, if you follow the franchise plan.
Q — Will wheel repair endure as a safe investment?
- The evolution of wheel technology is continually changing. Wheels are part of the unsprung weight of a vehicle and reducing the weight of the unsprung mass is extremely important. The lighter the wheel, the better the vehicle rides and performs. Fuel efficiency is also affected by unsprung weight. For these reasons, aluminum alloy wheels are here to stay. They are lightweight, extremely strong and are more cost effective to manufacture than exotic materials such as Titanium and Carbon Fiber. Still, premium wheels can be extremely expensive and, when damaged, become a problem for owners, that needs to be addressed immediately. The option of a quality repair instead of replacement will always be an attractive choice.
Q — What if I want to buy a Franchise, but the territory is already sold?
- We offer alternative territories as close as possible to your first choice. If you would prefer, you can also be placed on a waiting list for a specific territory. If you are willing to locate to another part of the country, as a few of our Franchisees have done, we will place you in a territory where our services are not yet available and the potential for success is enormous.
Q — What are the costs involved in opening this business?
- Like any other business start-up, you will have incidental expenses. These will include registering your corporation, obtaining insurance, traveling to the training center, etc. The cost of buying the franchise will include the franchise fee and start-up kit, which will include the Mobile Repair Facility of your choice. Depending on the size of the territory and/or package the initial fees will vary. However, after the initial package costs are determined, there are no other start-up fees paid to AWRS.
Q — How will AWRS assist me in start-up?
- We will send a Field Operations Manager into your market for 3-4 days immediately after you complete our ten-day training class. The Field Operations Mangers are highly skilled in all facets of the business including wheel repair. During the launch period, our Manager will make sales calls with you to help establish your initial base of customers and build the foundation of your business, and they will oversee initial repairs and provide technological support as needed. Our staff will always be available on an on-going basis to assist you with all aspects of your business.
Q — Why must I pay a royalty?
- Your royalty payment will be the most valuable payment you make every month. The first and most important reason is to insure you the rights to all new technology developments, training and programs created to maximize your equity. These “cutting-edge” technologies and educational directives keep us strides ahead of any potential competitor. Our foremost pledge is to provide you with the security of knowing that we have no equal. Secondly, your royalty payments guarantee your exclusivity and prevent any other AWRS franchisee from soliciting business in your territory. And third, your payment allows you to use the AWRS logo and branding. Name recognition is the key to exposure and being a part of an international team of professionals provides confidence to your customers and solidifies your place in the market.
Q — Can I operate this business as an absentee owner?
- We do not recommend this approach. Absentee ownership has not proven to be the most effective way to build our type of business. What most owners do is function as a technician in the early stages of the growth. After additional technicians and repair units have been added, the owner can then move into more of a management role.
Q — What type of mobile repair units do you offer?
- We can provide you with either a fully equipped truck or a trailer. Both MRF (Mobile Repair Facility) alternatives are totally self-supporting, which means that you can do a complete wheel repair in the middle of a field, if necessary. Each unit has all the electrical and air power needed to perform body shop quality restoration.
Q — Which type is right for me?
- The makeup of the territory in which you will be operating is usually the main thing to consider when selecting the type of MRF (Mobile Repair Facility). Congested urban areas and territories where dealership lots are tight will sometimes necessitate the use of a truck, while more spacious territories are much more suitable for trailer use. Most often though personal preference is the deciding factor and either option will enable you to provide the same quality service.
Q — What type of tow vehicle do I need, if I decide to use a trailer?
- We strongly suggest a ¾-ton pick-up truck such as a Ford F-250. This type of vehicle is designed to pull heavier loads and can support the tongue weight of the 6,000-pound trailers. You can use a ½-ton pick-up but you will need to make some upgrades to the rear suspension. The only other downside to using a lighter vehicle is that fact that more frequent maintenance will be required for optimum performance.
Q — How many Mobile Repair Facilities can I expect in my territory?
- We do not place a limit on the number of repair units you can operate. We have found that most territories can support at least one MRF for every 250,000 people. For an average size territory, we anticipate that a minimum of three Mobile Repair Facilities can be successfully operated.
Q — Can you summarize the reasons I should buy this Franchise?
- Alloy Wheel Repair Specialists is a winning team. We are the McDonald’s of our industry. We enjoy the unique position of being able to offer both mobile and shop-based wheel repairs and we are the only company in the world that does both. We have total solutions for both cosmetic and structural damage to alloy wheels. We grant exclusive territories for all of our national and regional accounts and provide launch personnel to assist you in start-up. Most importantly, we have an amazing record of success and offer a business development strategy that works!
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