Auto Lab
Auto Lab offers full-service automotive repair and diagnostic services under the brand 'Auto-Lab Complete Car Care Centers.' Known for comprehensive maintenance and repair solutions, it operates in the competitive auto care franchise market.
Auto Lab franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single unit Auto-Lab franchise ranges from $296,750 to $746,000. This includes an additional $13,750 to $27,500 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the type of agreement. For a single unit franchise, it is $27,500 [p.12, p.66]. If you are an Area Developer or opening additional franchises, the fee is 50% of the initial franchise fee offered at that time. For a Conversion, the initial franchise fee is $19,500 [p.116].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of all weekly Gross Sales [p.66]. For local advertising, you must spend 6% of your annual Gross Sales on advertising in your local market [p.14, p.67]. This isn't specified in the excerpts for a specific advertising fee amount, but it includes contributions to an advertising cooperative if required [p.14].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement and the conditions for renewal are not specified in the provided excerpts. However, it does mention that a franchise owner may renew the agreement under certain conditions, as detailed in Section 3.2 on page [p.65].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without the franchisor's approval, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.201]. This restriction also applies if you are a resident of Washington and the franchise business will be located there [p.137].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable period, typically no more than thirty (30) days after receiving written notice [p.5]. This isn't specified in the excerpts for other grounds.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific financial requirements such as net worth or liquid capital for franchisees to qualify. It only mentions that if the franchisor's most recent unaudited financial statements show a net worth of less than $100,000.00, you may request escrow arrangements for your initial investment and other funds until certain obligations are fulfilled [p.202].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.29]. You may face competition from other franchises, outlets owned by the company, or competitive brands controlled by them within your designated area.
What training and ongoing support does the franchisor provide?
The franchisor provides up to thirty (30) days of initial instruction and training at a location chosen by them, covering general aspects of the business, customer sales and service techniques, and methods for operating an auto repair and maintenance business. This training also includes trade secrets and other confidential information but does not control day-to-day operations [p.71]. Additionally, the franchisor offers ongoing support through manuals and possibly additional assistance as needed [p.63].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 20 franchised locations in operation. The FDD does not specify the number of closed or terminated franchise outlets [p.53].
Does the franchisor share any financial performance or earnings information?
The franchisor shares financial performance information only as specified in Item 19 of the FDD, which includes unaudited statements of gross sales for certain franchised stores. The franchisor does not authorize its employees or representatives to provide additional financial performance information [p.37, p.113].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell only those goods and services that the franchisor has approved (see [p.34]). You must ensure you have an adequate inventory to perform services and sell related merchandise, which you must purchase from Vendors approved by the franchisor ([p.18]). Supplies and equipment used in your Auto-Lab business must be approved by the franchisor ([p.3]).