Tire Pros
Tire Pros offers tire sales and service franchises. Known for comprehensive tire care services, the brand operates in the automotive aftermarket sector.
Tire Pros franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to start a TIRE PROS Center ranges from $271,975 to $443,725. This includes various costs such as product purchases and additional funds needed for the first 3 months of operation after opening [p.1, p.22].
What is the initial franchise fee?
The initial franchise fee ranges from $1,500 to $7,000 for a 5-year term. This fee is fully collectible and nonrefundable, but it is deferred until your Center opens for business after the franchisor has completed its initial obligations under the Franchise Agreement [p.207, p.190, p.186].
What are the ongoing royalty and advertising fees?
The ongoing franchise fee (royalty) ranges from $395 to $695 per month [p.207]. Additionally, franchisees pay a monthly marketing fee as reimbursement for advertising and promotional services provided by the company [p.208].
How long is the initial franchise agreement, and can I renew it?
The initial franchise fee ranges from $1,500 to $7,000 for a 5-year term [p.207]. The franchise agreement may allow the franchisor to change its manuals and business model without your consent, which might require additional investments or harm your business [p.3], but this excerpt does not specify the renewal process directly. This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to [p.71], you cannot transfer or assign your rights under this Agreement without TPF's prior express written consent, except for TPF's right to transfer its interests as described. For a transfer to be approved, the proposed transferee must meet certain qualifications and conditions set by TPF, including not having any existing defaults in your obligations, settling all outstanding accounts with TPF, and paying a transfer fee not exceeding $2,000. [p.70] provides more details on these requirements.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
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 agreement does not provide any territorial rights or protections [p.34, p.55]. You may face competition from other franchisees and outlets controlled by the company [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides New Dealer Onboarding and Program Training at no cost, which covers the TIRE PROS marketing philosophy, product lines, warranty programs, and general information [p.29]. Additionally, the franchisor supports franchisees with training, marketing, and sales techniques, though specific ongoing support details are not detailed in these excerpts [p.211].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD does not give a specific number of franchised outlets or the exact number that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document. However, they do not make any representations about future financial performance or past performance of company-owned or franchised outlets, nor do they authorize their employees or representatives to make such claims [p.41, p.42].
What am I restricted to selling, and where must I buy supplies?
You are required to offer the "Required Product Offering" at all times unless you receive written consent from the franchisor not to carry a specific product. This offering may include items that the franchisor or a limited group of suppliers designated by them require you to sell [p.22]. Additionally, you may have to buy or lease certain items from the franchisor or these designated suppliers, which could be more expensive than purchasing elsewhere [p.3].