
This list of questions and answers was developed to provide basic information to potential Carnett's franchisees. If you find that you have questions outside of what is listed below, please contact us. We would be happy to answer any questions you may have regarding our policies and process.
How do I get my car wash business started?
The first step is to fill out the online information
questionnaire. This does not obligate you or
Carnett's Franchising Inc. in any way. The
information is simply used to determine
whether or not owning a Carnett's Car Wash
business may be right for you. Upon receipt
and review, we will contact you to arrange a
personal meeting and address your questions.
At the first meeting you will be given our Uniform
Franchise Offering Circular ("UFOC") for review. This document contains all the information required by the Federal Trade Commission and/or the particular state in which your Carnett's Car Wash will be located. A copy of our franchise agreement is included in the UFOC. Our UFOC will enable you to diligently investigate our franchise program.
What is the initial franchise fee?
The initial franchisee fee for your first franchise is $50,000 to $80,000 and may be reduced for additional franchises based on certain conditions and criteria. The fee is also dependent upon the type and size of Carnett's Center you choose to offer. Presently, there are 3 types of Centers: Megaplex, Standard and Express.
What is franchising? How does it work?
Simply put, franchising is a way for a business to expand beyond its original owners. The most common form of franchising is a business format franchise where the franchisor contributes certain elements of the business and the franchisee contributes certain elements. The power of franchising is realized through the combination of the contributions from the two participants. Franchisees pay initial franchise fees and then ongoing royalties for access to the format the franchisor has developed and for ongoing enhancements to the system.
The franchisor contribution will include the brand / trademark of the concept; it will include the proven business system (commonly called the operating system); and the franchisor will provide the initial and ongoing support as the franchisee builds their business.
The franchisee contribution involves the management skills to run the business day to day using the franchisor-provided brand and system; and the franchisee also contributes the capital to fund the opening and continued operations of the business. Finally, the franchisee brings a level of desire and interest in having the business succeed that is essential to franchising - and the focused desire is something the franchisor can't replicate on their own.
There is a contract - called the Franchise Agreement - signed by both parties that governs the relationship between the franchisor and franchisee and explains in detail the responsibilities of both sides. The franchisor is required to provide a generic copy of the Franchise Agreement early in the investigation process, and this contract will provide a roadmap for the duration of time the agreement is effective.
What qualifications does Carnett's seek in its potential franchisees?
The following qualifications, among others, are essential in order to be considered for a Carnett's Car Washes franchise:
How much cash or liquid assets are initially required to acquire a franchise?
The initial cash investment is dependent upon the real estate, size of lot, and choice of services offered.
What is the availability of sites in my area?
The availability of franchises in specific areas will be discussed during your initial interview. However, as you can appreciate, Carnett's cannot predict which locations will be available when your application and qualification process is complete. Therefore, the flexibility to relocate when considering a franchise opportunity may be required.
Will Carnett's buy a piece of property that I own and then sell me the franchise for that location?
Our franchisee-selection process does not play a part in our site selection. In other words, we develop a location based on our analysis of its potential for success and without regard to who the franchisee may be. Carnett's does all of the site evaluation and selects the location. We acquire the property, improve the site and construct the building. As sites are developed, we offer them to candidates who have already completed training and are approved to become franchisees.
What is the term of the franchise agreement?
Your franchise agreement will have an initial term of 15 years.
Is there a continuing royalty fee?
The continuing royalty is 3% of gross revenue during the first 52 weeks after you open your center and 5% of gross revenue after the first year, paid weekly.
Is there an advertising fee?
Currently the national advertising fee is 1% of gross revenue in addition to local and regional advertising requirements.
Do I get a protected territory?
Yes, you do receive a protected territory.
How much money do I need to get started?
The initial investment for your first franchise is dependant upon which type of Carnett's Center you choose to open. The initial franchise fee for multiple units may be discounted for additional franchises based on certain conditions and criteria as explained in the "option addendum" attached to the Franchise Agreement. The total investment including land, buildings, equipment, and inventory can range from $2.5 million to $3.5 million for a Megaplex center; $1.9 million to $3.6 million for a Standard Center; $1.6 million to $2.6 million for an Express Center. The size and type of location are also factors. The aforementioned project cost includes $100,000 for working capital.
How long does it take to open a Carnett's Car Wash Business?
We hesitate to give time frames due to the number of variables that exist. Usually, a Carnett's Car Wash Business can be opened within 4 to 5 months from the time the permitting process is complete and groundbreaking occurs. Many factors influence the time from the execution of the franchisee agreement to groundbreaking. This timeline may vary due to the following factors:
Will I receive assistance in finding a location for my Carnett's Car Wash?
Yes, while it is each franchisee's contractual responsibility to find a suitable location, we may voluntarily assist you in this process. We will collectively review all available options and approve a location that is mutually agreed upon and meets our criteria.
Do I receive training from Carnett's?
Our current training program consists of three segments. The first segment is a minimum of 80 hours of hands-on experience in an operating Carnett's Car Wash location in the metro-Atlanta, Georgia area.
This practical experience is followed by 80 hours of formal on-the-job training at a Carnett's classroom or at your facility. Carnett's training program covers all facets of operating a business, such as marketing, accounting, hiring policies and procedures, cash management, customer relations, and other critical business matters. Once this class has been successfully completed, the franchisee must spend an additional minimum 40 hours in a Carnett's Car Wash to gain more hands-on experience. Carnett's will then assist the new owner to open your new car wash.
What type of support will I receive?
An Area Representative may be available for assistance and, if possible, will be an integral part of our support in assisting you in your business development.
Can I open more than one store?
Yes. We encourage those franchisees that are qualified to open multiple locations. Based on your application and financial information, you may be eligible to purchase more than one Carnett's franchise up front. Alternatively, you may want to purchase a franchise, become familiar with the business, and then purchase your second or third Carnett's franchise.
Can I offer the Helping Hands program as a franchisee?
Yes. Carnett's encourages franchisees to support and participate in the Helping Hands program. It is a wonderful opportunity to give back to the community, support local area schools and non-profit organizations, as well as to earn new customers.