2001
208
$500,001
$45,000
$750,000
No
B2B Automotive Parts Distributor- Simple Proven Business Model in the Distribution Space
1-800 Radiator & AC is an automotive parts distribution network. However no automotive knowledge or experience is needed to be successful. In fact, there are only a handful of current franchisees that have come from the automotive industry. Most weren’t even looking in the automotive sector when they decided to become franchisees.
Our customers are the repair shops, collision shops, dealerships and even the part stores. There are approximately 900 of these service type shops within each franchise territory. This is a unique business model and there are not many similar competitors. The primary competition are the part stores. The Napa’s, Autozone, and Parts Authority’s of the world.
What makes 1-800 Radiator & AC unique and able to become industry leaders competing with these national brands?
This brand focuses on select product lines where we will have the part 90-95% of the time these shops call us and we offer quick same day delivery. By focusing on the bigger, bulkier, and harder to stock product lines our competition will only have the part 20-30% of the time. Availability is our first competitive advantage. This is a need based business and when a shop is calling they need the part quickly because they have a broken down vehicle. We back this up with hard data that shows when we have the part at that local franchise our close rates are 3.5x-4x higher then when we do not.
In addition, we offer higher quality parts at a competitive price. This is what makes us the #1 choice with these service shops for the product lines we carry.
This is also an exciting time within the network. In the past 2 years we have added 2 major product lines into the network. Adding new product lines is part of our long term growth strategy. It allows our franchisees to quickly ramp up revenue and profitability by leveraging their existing buying customers. Our most mature locations have shown the largest growth this past year because they are the first to launch when we introduce a new line.
Established: 2001
First Unit Franchised: 2005
Franchised Units: 208
Company Owned Units: 1
States Registered In: All
Canada Franchises: Yes
International Franchises: No
Financial Terms:
Minimum Net Worth: $750,000
Franchise Fee: $45,000
Royalty: 8%
Ad: 2%
Average Number of Employees: 7
Item 19: Yes
visa-candidates: No
Passive Ownership: No
Home Based: No
B2B: Yes
Master Franchise Opportunities: No
Veteran Discount Yes
Special Discount Programs: $5,000 off Franchise Fee for Veterans.
Financial Assistance Provided: No
Site Selection Assistance: Yes
Lease Negotiation Assistance: Yes
Recruiting Assistance: Yes
Co-Operative Advertising: Yes
Training: 2 weeks of remote training with subject experts. 1 week at the corporate office for hands-on training. Support staff on-site the week before and after launch.
Other Info: No automotive knowledge or experience needed. No service or repair, just moving boxes.
A typical day in a life of a franchisee: 1-800 Radiator & AC franchisee's receive all of the tools needed to be successful as well as support to make sure they have complete visibility into their business. This allows them to focus on the areas that generate results. Below are areas that an owner will focus during typical week.
