ABRA Auto Body
ABRA Auto Body franchises offer high-quality auto body repair and refinishing services with locations across the U.S., specializing in competitive pricing. Known for comprehensive auto glass repair and replacement, ABRA operates in the automotive service sector.
ABRA Auto Body franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open one Abra® repair center ranges from $263,640 to $313,640. This includes an Initial Franchise Fee of $35,000 for a single Repair Center (with a $10,000 deposit upon signing the Site Selection Agreement) plus additional estimated pre-opening expenses as detailed on page [p.34].
What is the initial franchise fee?
The initial franchise fee ranges between $10,000 and $25,000, though this amount can vary based on regional costs and market conditions. This fee is not refundable unless terminated within six months of signing the Site Selection Agreement, in which case a full or partial refund may be provided along with interest [p.24].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a mandatory minimum payment that must be made regardless of sales levels [p.4]. For each franchise agreement, the franchisee will also pay continuing fees and advertising fees at the same percentage rate as specified in the initial agreement [p.239]. The National Brand Fund Fee can be up to 1% of gross sales, with current requirements being 0.7% of gross sales for franchised repair centers [p.41]. This fee supports various promotional and maintenance activities for the brand [p.164].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. However, according to [p.151], you have the right to renew your Abra® license for one additional term of ten years if you meet certain conditions.
Can I sell or transfer my franchise, and what does that require?
You cannot sell or transfer your franchise without the franchisor's prior written consent, which they may not unreasonably withhold [p.241]. Additionally, transfers must comply with specific conditions set by the franchisor [p.170].
On what grounds can the franchisor terminate the agreement?
The franchisor, Abra, can terminate the Site Selection Agreement at its discretion during the first six months after executing it, if the prospective franchisee has not leased or purchased a site acceptable to Abra within that period [p.186]. Additionally, Abra may refund the full $10,000 deposit plus interest if they terminate the Site Selection Agreement within 6 months of signing it [p.24].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchise granted is for the right to operate a business at the Authorized Location only, with no territorial protection except as specified in your Protected Area [p.204]. Additionally, Abra retains the right to issue franchises or operate competing businesses near your protected area and has similar rights regarding the Exclusive Development Territory [p.48] and general reservation of rights [p.151].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training to new franchises and transferees of existing Repair Centers. This includes an on-site or online training program for managers such as the general manager, customer service manager, customer service representative, and pre-op manager within approximately 10 weeks after the effective date of the Franchise Agreement [p.39]. Ongoing support involves inspections, advisory services, updates to the Business System, additional training programs (for a fee), and access to certain portions of the franchisor's intranet or similar communications media as deemed necessary by the franchisor [p.154]. Safety training is also recommended but not required, with an emphasis on using Abra’s approved supplier for this purpose [p.33].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if you are considering purchasing one. Additionally, they may supplement the information provided in Item 19 with possible performance at a particular location or under specific circumstances, but they do not make representations about future financial performance or past performance of affiliate-owned or franchised outlets [p.61].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only those goods and services that Abra has approved [p.51]. Additionally, you must offer all goods and services that Abra designates as required for all franchisees. Abra may add new goods and services based on various factors [p.51]. For supplies, while you are not required to buy from the franchisor or designated suppliers, there is a possibility that certain items may be more expensive if bought elsewhere due to supplier restrictions mentioned in the FDD [p.3]. This isn't specified in the excerpts for all supply sources, but it indicates potential requirements and costs associated with supplies.