2. WHEEL REPAIR AND RECON PROS
OVERVIEW
Love cars? Are you a People Person, looking for
management and/or hands-on in a unique franchise?
Kwicksilver is now offering franchises to qualiļ¬ed
businesses and individuals interested in taking
advantage of the rapidly emerging wheel repair/
recon market.
No one else offers such a comprehensive package of
training, equipment, tools, supplies, marketing and
ongoing consultation. We are with you every step of
the way to ensure your success.
Co-brand with your existing shop or start an entirely
new business. Kwicksilver franchises are designed
to be a mobile business primarily; however, the
business can also be run from a ļ¬xed-location shop.
A combination of both works best. Single
franchise territories, multi-unit franchises, and area
development agreements are available. A select
number of Eight (8) Regional Master Franchises will
be awarded in the US. Master franchise opportunities
are also available outside the U.S.
Owning a Kwicksilver franchise can provide:
90% Gross Proļ¬t
Access National Customers
Immediate Startup and Income
Patented Machinery and Proprietary Methods
Financing Assistance
Protected Territories
Cap on Royalties
Special Terms for those already in Wheel
Repair
3. WHEEL REPAIR AND RECON PROS
THE OPPORTUNITY
A PROVEN SYSTEM: Buying a Kwicksilver franchise
removes much of the risk of starting a business.
Most businesses fail due to a lack of experience
which leads to unrecoverable mistakes. We have
tackled all the problems a new business owner
might face and have created solutions. These
solutions have evolved into a proven method of
operation that maximizes efļ¬ciency and minimizes
problems.
Weāre also your own personal consultant, providing
ongoing technical and administrative support.
Remember, a Kwicksilver partner is in business for
himself but not by himself. Research shows that
after 5 years in operation, only 8% of franchised
businesses close, while over 77% of independents
fail.
SMALL INITIAL INVESTMENT: The initial franchise
fee is $15,000. There are two equipment/training
packages from which to choose, valued at $13,000
and $18,500 (Please refer to the Startup Equipment
Package). The higher-priced, upgraded package
includes our newest wheel straightener, which
is capable of straightening 8 rims in one hour.
The royalty fee is 6% but includes a portion for
advertising in your local market. There are no
royalties for the ļ¬rst 4 months after opening.
Moreover, Kwicksilver puts a cap on royalties once
you reach $30,000 in monthly sales. All sales over
this mark are royalty free. Consequently, we have
some franchisees paying as little as 2% - 3% in
royalties per month.
INTENSIVE TRAINING: In a new business, during
the initial learning period, the upfront capital can be
exhausted because of too much trial and error. This
often leads to closure of the business. Kwicksilver
removes this unproductive period by providing
comprehensive hands-
on training and ongoing
support, to ensure a fast
start for the business.
Youāll receive two
weeks of step- by-step
instruction from our
Kwicksilver Technical
Team. The training includes, basic tire/ wheel
identiļ¬cation and instruction, tire service training
according to TIA standards, wheel straightening
and repair, cosmetic damage repair, custom wheel
painting and polishing.
Youāll also receive our Operations Manual, which
is loaded with useful information on repair
techniques, vendor and supplier information, sales
and marketing advice, etc. Youāll be prepared for
success right from the start.
4. WHEEL REPAIR AND RECON PROS
Youāll also be entitled to ongoing
technical consultation from
the Tech Team, future periodic
training programs, and
assistance from the corporate
ofļ¬ce.
ADVERTISING AND
MARKETING: Most business
owners do not have the expertise
or the money to advertise and
market their business successfully.
When they do, their efforts are often
poorly conceived and inconsistent.
As a Kwicksilver partner, you beneļ¬t from our ability
to provide high quality creative talent and resources
necessary for local, regional and national advertising
and marketing. This is especially important in large
metropolitan areas where advertising costs are often
prohibitive. Our cooperative advertising agreements
allow each Kwicksilver partner to tap into the
resources of all the other partners. Youāll receive
point-of-sale marketing materials, brochures and
promotional advertising leaļ¬ets.
BRAND RECOGNITION: When you become a
Kwicksilver partner, you beneļ¬t from strong brand
recognition. It provides immediate credibility and
identiļ¬cation for your shop. As we increase the
number of Kwicksilver partners, the intangible value
this creates will only strengthen. Our commitment
to our advertising and marketing programs will
ensure that the Kwicksilver brand remains strong and
growing.
PROPRIETARY TOOLS AND METHODS:
Kwicksilver partners will have access to
the latest innovations in the wheel
repair and recon industry.
Kwicksilver has invented
and patented wheel-
straightening equipment
for all OEM and aftermarket
wheels. In addition, we have created a system for
wheel restoration and reconditioning that is second
to none. The process is effective, efļ¬cient and
uncomplicated. Kwicksilver is committed to the
continuing research and development of new tools,
products and methods to enhance the Kwicksilver
system.
SITE DEVELOPMENT: Kwicksilver assists in the
selection of a site ideally suited for the Kwicksilver
shop. We know where to locate your shop, relative
to your prospective customers, to maximize its
proļ¬t and efļ¬ciency. Weāll allow you the ļ¬exibility
to choose the speciļ¬c location, within a general
area. Youāll receive an exclusive protected territory
in which to run your business, without the worry of
encroachment. Upon request, weāll work to negotiate
favorable lease terms for you, and help identify
problematic lease issues. Youāll be presented with the
general layout of the typical Kwicksilver shop as well
as a list of essential tools and equipment.
NETWORK PURCHASING POWER: A Kwicksilver
partner is able to exploit the purchasing power of
a network that includes Kwicksilver corporate, in
addition to your fellow Kwicksilver franchise owners.
While youāre permitted to purchase non-proprietary
equipment, such as tire changers and balancers,
from any reliable vendor, Kwicksilver has forged
relationships with certain vendors and manufacturers
that will be able to offer you signiļ¬cant discounts on
paints, abrasives, tools and equipment.
5. WHEEL REPAIR AND RECON PROS
ABILITY TO QUICKLY EXPAND: Kwicksilver offers
both multi-unit franchises and area development
rights for qualiļ¬ed individuals, investment groups or
companies. Multi-unit franchises can be purchased
at a discount to the single-unit franchise fee. Our
area development agreement allows a franchisee
to expand, by opening additional shops, within an
exclusive area, according to a schedule. Either option
allows for proļ¬t growth at a much faster pace, when
compared to the single-unit franchise.
PROFIT POTENTIAL: A Kwicksilver franchisee
will take advantage of several streams of revenue,
such as wheel straightening and repair, chrome
exchanges, cosmetic wheel repair, custom wheel
painting, wheel location and replacement, tire/
wheel sales, resale of exclusive Kwicksilver car care
products (Kwick6 & FLOW Products), mobile wheel
repair, etc.
A Kwicksilver franchisee will have both wholesale and
retail customers. Repairs typically range from $55
to $250, depending on the severity of the damage,
the type of rim, and the particular customer. One
experienced technician can repair as many as 15
rims in a day. An individual franchiseeās revenue
depends heavily upon the franchiseeās ability to
spend a signiļ¬cant amount of time developing a solid
customer base. This is a very local business
where frequent, ongoing, in-person
sales calls are necessary.
CO-BRAND WITH YOUR EXISTING BUSINESS:
Kwicksilver realizes that you may have an existing
business ideally suited to add wheel repair and
recon services. Whether you own a tire/wheel shop,
a body shop or simply provide services to existing
dealers, such as detailing, PDR, bumper repair,
upholstery, glass repair, etc., adding wheel repair can
greatly increase your proļ¬ts.
BEWARE OF THE BIZ-OP: The biz-op is whatās
commonly known as a business opportunity.
Companies that sell these opportunities often
refer to it as a license or franchise. The biz-op
often appears attractive because of the low entry
fee and lack of royalty payments. However, most
biz-ops provide little or no training, no continuing
ļ¬eld support, no advertising or marketing and no
trademark recognitionāthe very things that make
franchising so successful. Youāre on your own to
fumble through the challenges and difļ¬culties of
your new business.
6. WHEEL REPAIR AND RECON PROS
ALUMINUM OVER STEEL: The ratio of aluminum
to steel wheels is growing at an ever-increasing
rate. Today, approximately 70% of vehicles use
aluminum wheels. Some high-end manufactures
are using aluminum exclusively. Virtually all
aftermarket wheels are cast or forged aluminum.
This is a natural transition, as the aluminum wheel
is lighter, providing better performance, handling,
improved gas mileage and, it just plain looks better
than a steel wheel with a cheap plastic cover. The
drawback to the consumer is the additional cost of
an aluminum wheel, as well as its propensity to bend
and scuff easily. Whatās bad for the consumer is
good for the Kwicksilver professional.
BIGGER IS BETTER TREND: Have you looked at
the size of your typical performance wheel these
days? The ability to manufacture low proļ¬le tires
has radically increased the wheel size on many
vehicles. At one time, 16ā wheels were only available
by special order. Now, 17ā, 18ā and larger wheels are
common. Aftermarket wheels are often 20ā, 22ā ā
even 24ā. As wheels increase in size, their durability
is reduced. Itās not uncommon for a careless driver
with low-proļ¬le tires to bend all four wheels in one
incident.
These
larger,
softer, aluminum wheels are also prone to curb rash,
scrapes and gouges. This translates into additional
business for the wheel repair technician.
REPLACE OR REPAIR: Replacing a damaged or bent
aluminum wheel with a new one is becoming less
of an option these days. With the escalating cost of
these new wheels, the owners and their insurance
carriers are looking for alternatives. The obvious
answer is Kwicksilver. A bent wheel can generally be
repaired for $75 - $200. A cosmetically damaged
wheel can be reconditioned for $50 - $175. The work
can be performed in 15 ā 45 minutes. The price of
performance OEM rims range from approximately
$400 - $2,000 each. Aftermarket aluminum alloys
can cost even more. The numbers clearly favor repair
over replacement. Itās a win-win solutionāboth shop
owner and customer beneļ¬t.
FRAGMENTED INDUSTRY: The wheel repair and
reconditioning industry is fragmented into tiny
wheel shops, sporadically located, and
a few large warehouse companies.
This is precisely what makes the
industry ripe for the emergence
of a high-quality specialty
THE MARKETPLACE
7. WHEEL REPAIR AND RECON PROS
franchise like Kwicksilver. The small
wheel shops suffer from the lack of name
recognition, network support/pricing and
skilled wheel repair technicians.
The large warehouse companies suffer
from the inability to provide quick, efļ¬cient
and accurate repair and reconditioning.
The damaged wheel is often shipped to
a distant location and painted with one
basic silver, which is unlikely to match the
original color. The result ā the customer
is forced to wait days for a wheel that
doesnāt match the other 3 on his vehicle.
Finally, both the small shop and large
warehouse company will not have access
to the equipment, tools and techniques
that we have developed to be used by
every Kwicksilver technician.
PRIME LOCATIONS AVAILABLE:
Kwicksilver is a growing franchise but
many of the most proļ¬table locations
are still available. Our typical franchised
territory is very generous in size, and
will have a population of 800,000 -
1,200,000. Some territories are even larger,
depending on various demographics. Donāt
miss out on this very unique opportunity!
8. WHEEL REPAIR AND RECON PROS
What Does a Franchise Cost?
The initial franchise fee is $15,000. There are two
equipment/training packages to choose from, valued
at $13,000 and $18,500 (Please refer to the Startup
Equipment Package). The higher priced upgraded
package includes our newest wheel straightener,
which is capable of straightening 8 rims in one hour.
The royalty fee is 6% but includes a portion for
advertising in your local market, as well as national
advertising. There are no royalties for the ļ¬rst 4
months after opening. Moreover, Kwicksilver puts a
cap on royalties once you reach $30,000 in monthly
revenues. Anything earned over this mark is royalty
free. Consequently, we have some franchisees
paying as little as 2% ā 3% in royalties per month.
If you choose to open a full service shop, which
includes a CNC lathe, your royalties are capped at
3%, once you reach certain monthly revenue levels.
How Much Money Can I Expect to Make?
A Kwicksilver franchisee will take advantage
of several streams of revenue, such as wheel
straightening and repair, cosmetic wheel repair,
welding, wheel machining, powder coating, custom
wheel painting, wheel location and replacement, and
tire/wheel sales. A Kwicksilver franchisee will also
beneļ¬t as a reseller of some exclusive Kwicksilver
products. These include our Kwick6 tire shine and a
full line of FLOW Car Care Products. A Kwicksilver
franchisee will have both wholesale and retail
customers. Repairs typically range from $55 to
$250, depending on the severity of the damage,
the type of rim, and the particular customer. One
experienced technician can repair as many as 15 rims
in a day. An individual franchiseeās revenue depends
heavily upon the franchiseeās ability to spend a
signiļ¬cant amount of time developing a solid
customer base. This is a very local business where
FREQUENTLY ASKED
frequent, ongoing, in-person sales calls are necessary.
Our business model differs from our competitors in
that our franchisees derive revenues from several
different sources and provide several different wheel-
related services to the wholesale and retail markets.
This gives Kwicksilver a huge competitive advantage.
We are the one-stop-shop for everything related to
wheel repair and replacement. The competition relies
heavily on the wholesale market at car dealerships.
Conversely, when you offer a complete package of
wheel services to the wholesale and retail market,
as our franchisees do, your revenues and margins
increase dramatically. Youāll also avail yourself to our
latest 50500 wheel straightener and Kwickspinā¢
cosmetic repair station ā the most advanced and
innovative wheel repair equipment in the industry.
What Sort of Training Will I Receive?
Youāll receive 2 weeks of step by step instruction
from our Kwicksilver Tech Team. The training
includes basic tire/wheel instruction, wheel
straightening and repair, cosmetic repair, paint
blending techniques, and custom wheel painting.
Additional training modules can be added, such as
welding. The training is loaded with valuable trade
secrets that we have developed over many years.
Youāll also receive important administrative guidance
on setting up accounts with tire/wheel suppliers,
body shops, tire stores and insurance companies,
etc. There is no fee for the ļ¬rst person. Thereafter,
the training fee is $2,000 per person. In addition,
you must pay travel and living expenses for yourself
and/or your employees/partners during the training
period.
Once you return home you will have unlimited access
to the Kwicksilver Tech Team. The Team will be
9. WHEEL REPAIR AND RECON PROS
available by phone or email to answer any technical
questions you may have. This support is especially
beneļ¬cial during your ļ¬rst few months of operation.
Moreover, Kwicksilver has split the country into 8
regional master territories. Each master territory will
have a Master Franchisee. The Master Franchisee
will be your primary contact for technical questions
and marketing support. After training, the Master
Franchisee will come to your territory and assist in
setting up your initial accounts.
Where Will I Obtain Financing?
We have partnerships with lenders to cover your
capital equipment needs, including the ļ¬nancing of
our new fully equipped Kwickshopā¢ trailer. This can
help limit your upfront, out of pocket expenses. We
also offer some in-house ļ¬nancing that is considered
on a case-by-case basis.
Bank loans are generally done on a local basis.
Overall, franchisees have an easier time obtaining
bank loans because of the established nature and
experience of the franchisor. Often, there are lower
default rates on loans for franchises. Lenders will
expect the borrower to come up with 15% ā 30% of
the total capital needed.
Home equity loans and lines of credit are also a great
source of start-up capital and carry very low interest
rates. The line of credit is an especially useful tool
because you only pay interest on those funds that
you actually use.
How Can I Secure an Area Without Immediately
Jumping In?
We understand that there are many variables that
make up your decision to become a franchisee. Itās
not always simply a matter of seeing Kwicksilver as
a great opportunity and having the money/ļ¬nancing
ready. There are timing issues to consider, such
as, creating a smooth transition from your current
employment or ļ¬nding a suitable location for the
operation of the business.
Consequently, we leave the timing up to you. After
we have a signed agreement and down payment,
you dictate when you will be available for training. It
may be in 2 weeks or 4 months. This gives you more
control and should increase your comfort level.
Can I Add Kwicksilver to my Existing Business?
Absolutely ā the Kwicksilver concept is a perfect
match for those already providing aftermarket
repairs, mobile detailing, PDR, windshield repair,
carpet and upholstery reconditioning, etc.
Kwicksilver is also very well suited for an existing tire
dealer, performance shop, custom wheel shop, body
shop or service center. Simply designate one bay or
area of your shop for wheel repair.
You will be allowed to continue to use your existing
name or trademark for your existing services.
However, you are required to use Kwicksilverās
trademarks when you are offering wheel repair
services.
Do I Have to participate in the Operation of the
Business?
Kwicksilver does not require that you personally
supervise the franchised business. You may want
to purchase a franchise solely as an investor or
part-time owner. However, the business must
be supervised by an on-premises manager who
has successfully completed Kwicksilverās training
program. The ideal franchisee may have several
technicians working in different shops, all of whom
have completed the training program.
Will I Receive an Exclusive Territory?
You will receive an exclusive territory which is
dependent upon the general population, the number
10. WHEEL REPAIR AND RECON PROS
of body shops, tire dealers, and car dealers, among
other factors. The typical population range is
800,000 ā 1,200,000. You will operate from one
location and must receive Kwicksilverās permission
before relocating. Kwicksilver will not operate other
shops or grant additional franchises in your territory.
There is no minimum sales quota. You maintain rights
to your area even though the population increases.
You are allowed to do business outside your
protected area until we sell a franchise in that area,
at which time you will be required to give up those
customers to the new franchisee. Sometimes, other
arrangements can be agreed to between the two
franchise owners.
How Can I Expand My Operations?
Kwicksilver offers both multi-unit franchises and
area development rights for qualiļ¬ed individuals,
investment groups or companies. Multi-unit
franchises can be purchased at a discount to the
single-unit franchise fee. Our area development
agreement allows a franchisee to expand, by
opening additional territories, within an exclusive
area, according to a schedule. Either option allows
for proļ¬t growth at a much faster pace, when
compared to the single-unit franchise.
What Sort of Marketing/Advertising Materials are
availablew?
Kwicksilver has a full assortment of brochures,
ļ¬yers, mailers, signage, vehicle wraps, POP displays,
banners, logo artwork, and website design materials.
New franchisees receive these materials as part of
the their Startup package. Kwicksilver franchisees
receive help with website development and local
SEO (search engine optimization).
Do I Have To Open Up a Fixed Location Shop?
No, you can open the business from a ļ¬xed location
or from a Kwickshop trailer or truck.
The addition of a small shop can be very beneļ¬cial.
This is especially true when building a retail
customer base. The Kwickshop trailer is primarily
designed for servicing large auto dealer accounts, on
their lot.
Any Special Programs for Existing Wheel Repair
Guys?
Yes, depending on your current level of work
and customer base, Kwicksilver offers a reduced
franchise fee and royalty program for existing wheel
repair vendors. Several of our new franchisees came
to us with existing wheel repair companies.
Any Special Pricing on Tools, Equipment and
Supplies?
As a network, we are able to leverage our size
to secure special pricing on tools, equipment
and supplies. This includes shop equipment,
consumables (paints, abrasives) and marketing
materials. We also offer special pricing on web
services, such as website design and SEO (search
engine optimization).
HOW TO CONTACT US
Kwicksilver Systems, LLC
PO BOX 428
Washington, VA 22747
Phone: 800-201-7597
Fax: 540-675-3230
Ofļ¬ce Hours:9 a.m.-6 p.m. Mon-Fri (EST)
partners@kwicksilverusa.com
www.kwicksilverusa.com