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Honest-1 Discovery Presentation
- 1. Honest-1 Auto Care®Discoverthe OpportunityMonte TysonDirector of Franchise Development
- 2. Making a LivingThreeWays to Make MoneyJobBusiness by yourselfFranchise Business
- 3. State of theUnionDo You Believe in Corporate America?Companies are in jeopardyOnly 10% of Fortune 500’s meet forecastsPension funds today are under-funded by $409 BILLION50% of pension funds are gone over the last 20 years
- 4. Is Your JobSafe?Is having a job today without risk?Unemployment is way upLengthy unemployment adds to uncertaintyCompanies are slashing benefitsCan a job finance your dreams?
- 5. The Perception ofRisk“Sure, I’d like to start my own business, but I think it’s too risky.”
- 6. Business by YourselfSoyou want to be an entrepreneur?Businesses failed by year 1? 33%Businesses failed by year 5? 65%Businesses make it to year 10? 17%Source: U.S. Commerce Dept.
- 7. Franchise BusinessOver 80%of franchise businesses are still in business at year 10How is this possible?Quantify the riskQualify the candidateProven systems
- 8. Automotive IndustryAutomotive repairis a proven & durable industry, not a fad$35 billion annual revenues249 million registered vehicles$29,000 average MSRP on new vehicles9.4 years - average age of vehicles 2007 Bureau of Economic Analysis
- 9. LifestyleThe Honest-1 FranchiseOpportunityReasonable business hoursLimited inventory & receivablesHighly skilled & limited employeesNot tied to a desk/flexible owner dutiesPride of ownership: helping people, family friendly, eco-friendly
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- 11. Honest-1® BrandHonest-1 brandis more than just a logo…Fresh face in an old & tired industryRepresent forward innovative thinkingHonesty, Integrity, Customer Centric, and Good Stewards of our Planet
- 12. ECO-Friendly Auto Care™Wehelp our customers make their vehicles more eco-friendlyOffer services targeted at reducing engine emissions & improving fuel efficiencyProprietary Product Line featuring ECO 360™
- 13. ECO-Friendly Auto Care™Weimplemented eco-friendly business practices in all Honest-1® CentersESA™ Certification ProgramOnly national automotive franchise chain to be 100% eco-friendly
- 14. Training & SupportHonest-1®is committed to your successHonest-1® UniversityOwner’s SchoolManager’s SchoolOn-site TrainingMentoring Program
- 15. Honest-1 TeamFamily ownedGary& Lisa MesserJack Keilt – President & CEORissy Sutherland – SVP OperationsOver 50 years of automotive management experienceOver 70 years of franchise management experience
- 16. Franchise SpecificsFranchise fee$25,000Ongoing royalty of 6% & ad fund contribution of 1%Total investment range between $196,200 and $287,100No multiple unit requirementsArea Representative programs available
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Editor's Notes
- #2 First, let me introduce myself, my name is Monte Tyson. I am Director of Franchise Development for Honest-1 Auto Care.My background includes over 15 years in automotive in varying roles, most recently in franchising and operations management.I have been with Honest-1 since July 2007 and have held positions in Operations and Project Management, and now most recently in Sales.We would like to take a few minutes and introduce Honest-1 and our franchise opportunity. We understand that the decision to buy a franchise is very complex and difficult.It is my job to ensure you have all the information you need to make a well informed and intelligent business decision about purchasing an Honest-1 franchise. So let’s get started!
- #3 OK, so you are here today because you want to make money.Typically there are three ways to make a living, Have a job Go into business by yourself Purchase a franchise
- #4 Let’s talk about having a job… Do you still believe in corporate America?There are companies large and small across the country that are in jeopardy.Only 10% of the Fortune 500 are meeting their forecasts.Pension funds today are under funded by $409 billion. That’s billion with a “B”.A full half of all pension funds over the past 20 years have vanished.
- #5 So where is the risk? If you are working today, you have to realize that your job may not be as secure as you thought.Unemployment is up and continues to climb. Some companies are cutting jobs just because they can.If you are unemployed, the longer you stay unemployed increases the uncertainty of finding another job.Companies continue to slash benefits, pensions, retirement plans. Social Security gets a little less secure every year.So let me ask you, can a job finance your family’s dreams?
- #6 Sure, this is a funny cartoon, but it really helps put risk into perspective. Jobs in today’s marketplace still have an incredible amount of risk.
- #7 Ok, so that brings us to opening a business by yourself. Here are some pretty scary statistics about independent businesses.What percentage of businesses do you think fail before their first anniversary? 33% - one third of independent businesses fail in the first year.Ok, so what percentage of businesses fail in the first five years? 65% - almost two thirds of independent businesses fail before they are five years old.What percentage of independent businesses make it to year 10? Only 17%. How do you like those odds?
- #8 So why would anyone think about starting or buying a business?Well that brings us to the third option…purchasing a franchise.Current statistics show that over 80% of franchise businesses are still in business after 10 years.How can this be you may be asking? Well it’s pretty simple really, there are three major reasons…We can quantify the risk. We know the challenges facing you as you start and develop this business. We can help you identify problem areas and over come them. Validation with people in the industry, the franchise peer group within the Honest-1 system help you know exactly what the risks are in this business.We qualify the candidate. You were probably annoyed by all the questions I asked you in our first conversation about your background, your experience, your financial stability. All those questions were helping me figure out if you were right for this business.We have a proven set of processes and systems. You can start and operate your franchise business without having to reinvent the wheel.Real Estate & Site SelectionTrainingOpening AssistanceLeverage & Buying PowerProven Marketing StrategiesOperations SupportOn-going SupportExit Strategy
- #9 So, which franchise do you choose?Well, now I’m going to give you all the reasons why you should choose Honest-1.The first reason is our industry. Automotive repair is a proven and durable industry. It’s been around a while and it’s not going anywhere. As long as there are cars, there will be a need to service them.More statistics… in 2007, independent auto repair facilities reported $35 billion in annual sales. And that doesn’t include quick lubes, specialty centers like transmission centers, or car dealerships. With all those categories thrown in, the number was $54 billion.There are over 249 million registered cars on the road, and that number continues to grow daily. It’s estimated that 70% of cars out of warranty are repaired at independent repair centers.The average sale price of new cars in 2007 was $29,000. The more expensive cars become, the more sophisticated cars become, the higher the costs to repair them.The average age of cars on the road continues to increase, it’s now 9.4 years.So this is a snapshot of the automotive repair industry. I could quote you statistics all day, but this quickly shows you how large the automotive repair market place is.
- #10 Now, let’s discuss some of the lifestyle attributes of the Honest-1 franchise opportunity.First, Honest-1 centers usually operate in a 6 day work week. Business hours are reasonable and competitive.Next, in our recommended operation guidelines, you will have a very limited inventory, typically less than 0.5% of your unit sales volume. We also have limited receivables, usually only for the larger fleet accounts you perform work for and that is always good business to have.The Honest-1 centers are staffed by a small number of highly skilled employees. You do not have to deal with the headaches of minimum wage earners or entry level workers.Honest-1 center owners are not tied to a desk. Our franchisees enjoy flexible working hours and duties.And finally, the Honest-1 business model of being customer centric and eco-friendly is a business you can take pride it. You will be helping people and providing a good example in your community. This is a business you can run together with your family. In fact the last two Honest-1 centers to open have been run by father-son teams.
- #11 The Honest-1 brand.Let me show you something…Seeing a trend? There are only four colors represented by our competitors, black, yellow, red, and blue.And when the Honest-1 logo is up on a sign or a building, it truly stands apart.
- #12 But there is more to the Honest-1 brand than just a logo… it’s our entire philosophy of bringing change and innovation to this industry.We’re a fresh face in what is perceived to be an old and tired and in some cases a downright dirty industry.Our brand positioning represents forward thinking; an innovative approach to how we do business.Our brand stands for Honesty, Integrity, we are Customer Centric and Good Stewards of our Planet.
- #13 Let’s talk about Eco-Friendly Auto Care and what it really means to us.First of all, you see the TM? It’s a trademark, we own it. Honest-1 is way ahead of the industry on this.Now let’s be clear, we don’t use the word “green” for a reason. We feel that word is abused by some, and this isn’t simply a marketing position for us. Eco-Friendly Auto Care represents a fundamental part of the Honest-1 philosophy.It breaks down into two separate functions within our business model.The first is helping our customers make their vehicles more eco-friendly. We do that by offering services targeted at reducing harmful engine emissions and improving fuel efficiency.Honest-1 also has launched a proprietary product line featuring ECO 360, an organic friction modifier. We are the only national automotive franchise company with an exclusive product line available only in Honest-1 centers.
- #14 The second part of the Eco-Friendly Auto Care philosophy is in the way we operate our repair centers.We have created a certification process called Environmentally Sustainable Actions or ESA. This is a comprehensive certification that every Honest-1 repair center has completed featuring 92 separate items.It includes categories for pollution prevention, recycling, resource conservation and offering eco-friendly services like our ECO TuneUp.In addition, Honest-1 is now the only national automotive chain to be 100% certified eco-friendly.Remember when we were looking at the Industry Statistics and you saw that $35 billion? Well, recent consumer reports and studies have shown that given the choice, some 35% of consumers will choose green if price is not an issue. That calculates to over $12 billion in consumer buying power that we are perfectly positioned to capture.
- #15 Now I want to briefly touch on our training and support programs.Honest-1 has developed H-1 University which is a comprehensive program designed to teach you how to own and manage an Honest-1 center.H-1 University is comprised of three weeks of intensive training and includes: Owner’s School: everything you need to know about owning a shop. Manager’s School: everything you need to know about running a shop. On-site training: spending time in a successful shop and learning how it all comes together.This is augmented by on-going support from our Operations department as well as our Mentoring Program. This is a program designed to pair experienced Honest-1 operators with new or less experienced operators to share best-practices.
- #16 Honest-1 has built a top-notch, experienced team of executives to manage this company and drive our brand into the future.It all starts with ownership and Honest-1 is family owned by Gary and Lisa Messer. Gary and Lisa are experienced entrepreneurs and business owners who purchased Honest-1 in 2007 and are committed to Honest-1’s growth and success.Our company is run by Jack Keilt, a thirty-plus year veteran franchise executive. Jack has built and managed large companies and brands including Fantastic Sam’s, Burger King, and Jack-in-the-Box.Our SVP of Operations and your front line of support is Rissy Sutherland. Rissy comes from a family of shop owners and has owned and managed her own shops.Together, the Honest-1 executive team has over 50 years of automotive management experience and over 70 years of franchise management experience.This is the team that will stand beside you, working together for your success.
- #17 So, how much does it cost?Honest-1 has an up-front franchise fee of $25,000.Our on-going royalties are 6% with an advertising fund contribution of 1%.Our total investment range is between $196,200 and $287,100. This range includes allowances for the franchise fee, start-up costs, equipment and inventory, operating capital, signage, the lobby package, training travel, and grand opening advertising.Honest-1 has no multiple unit development requirements, but multi-unit packages are available at discounted franchise fees.Honest-1 also offers an area representative franchise, which grants development rights within an exclusive territory. For more information on this program, please contact our corporate offices.
- #18 Thank you for attending this discovery presentation. I want to assure you that during your discovery process, you will be given all the information you need to make a good business decision. Please visit us at H-1franchise.com or for more information, contact our franchise sales team at 1-877-HONEST-1.