1-800-Radiator is an automotive parts distribution brand supplying automobile repair shops and parts stores, fleets, chain accounts and retail consumers. The franchise specializes in radiators, compressors, and HVAC components.
Key Insights
- 1-800-Radiator began with a vision to simplify the purchase of automotive radiators. The business evolved by building a network of distributors and a centralized ordering system, allowing for efficient product sourcing and delivery across various locations. This approach has established a scalable model for serving a broad customer base.
- The franchise operates a business-to-business model, supplying radiators and related cooling system parts to repair shops and auto parts stores. Customers place orders through a unified platform, and the business manages inventory and logistics to ensure timely fulfillment. This streamlined operation focuses on accessibility and speed for professional clients.
- The automotive aftermarket industry encompasses a wide range of products and services for vehicle maintenance and repair. Radiators are a critical component within this sector, experiencing consistent demand due to vehicle usage and component wear. The business is positioned within a stable and essential segment of transportation services.
Franchise Fee and Costs to Open
Exploring the financial picture of 1-800-Radiator gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $383,500 - $5,279,000, along with a franchise fee of $45,000 - $45,000.
Financial Performance and Revenue
Yearly gross sales of $1,580,373 and estimated earnings of $142,234 - $189,645 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 17.6-19.6 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
1-800-Radiator provides comprehensive training for new franchisees. This initial training, lasting two weeks, takes place at their headquarters. Resources offered include operational manuals and ongoing support. The franchisor also provides marketing guidance.
Legal Considerations
Legal considerations for a 1-800-Radiator franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
A franchisee might encounter considerations regarding established local dealerships offering parts, managing inventory across a diverse range of automotive and marine models, and ensuring consistent supply of components from various manufacturers. The volume of orders and the need for timely delivery can present operational complexities, while dependence on a few key suppliers for specialized items requires careful relationship management.
Franchise Datasheet
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