1-800-Radiator

1-800-RADIATOR & A/C marries cutting-edge technology, enormous buying power and great vendor relationships to profitable, locally-owned-and-operated franchised businesses to ensure the fastest and highest quality solution for the wholesale parts industry.

Franchise Details
Investment Amount: $300,000 - $500,000 Agreement Length: 20 years
Franchise Fee: $0 Royalty Fee: 8%
Company Established: 1983 Franchising since: 2003
Franchised Units: 220 Total Units: 223
Earnings Claim: No Financial Assistance: No

1-800-RADIATOR & A/C FRANCHISE INFORMATION

1-800-RADIATOR & A/C is the best Franchise and solution for automotive aftermarket parts in the industry.

What is 1-800-RADIATOR & A/C?

1-800-RADIATOR & A/C integrates big business technology and buying power with locally owned and operated businesses to provide a better solution for the automotive aftermarket parts industry.

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1-800-Radiator & A/C is one of the fastest growing franchises in North America. It's a simple concept: 1-800-Radiator & A/C delivers brand-new radiators, a/c condensers, compressors and other automotive parts within two to three hours to local customers (automotive repair shops, parts stores, etc) and next day to these same types of wholesale customers in rural areas. The Company is expanding the product offering into other key automotive parts categories as well. Customers love the service our local Franchise Owners provide and in addition to quick delivery, our radiators and air parts line come with a lifetime guarantee and are sold at very competitive prices. This extremely effective business model has enabled 1-800-Radiator & A/C to become the largest independent direct distributor of heating and cooling parts in North America.

The tight economy has created an even greater opportunity for the repair and replacement industry as the cars and trucks on the road today grow older.

1. No Automotive Experience Required

A big part of the 1-800-Radiator & A/C marketing effort is the training and ongoing corporate support. The franchisee will spend up to three weeks learning how the market works and how to foster lasting and profitable relationships with customers. You will also learn about the 1-800-Radiator & A/C lifetime guaranty. 1-800-Radiator & A/C will provide in-depth training on some of the best computer systems in the industry to maximize your time spent marketing to customers and minimize time spent in the warehouse. Franchisees will be taught how to grow their territories quickly and efficiently.

2. No "Bad" Locations

The only location requirement for a 1-800-Radiator & A/C franchise is that the warehouse be reasonably close to the center of the territory. There is no such thing as a "bad" location as there often is with food franchises, where if you lease the "wrong" location you are out of luck no matter how hard you try. The 1-800-Radiator & A/C franchisee, not being confined to the "store", has the freedom throughout the day to see customers and develop business opportunities. The more customers the Franchisee sees, the more opportunity there is for success. Our state of the art marketing systems will help you work smarter so you know who to visit and how best to win and sustain repeat business. We will also help you find a cost-effective and logistically sensible location.

3. Fewer Employees Necessary

The 1-800-Radiator & A/C franchisee usually has substantially fewer employees than a food franchise, which often has upwards of 15 employees, often teenagers who require a lot of management and supervision. The 1-800-Radiator & A/C franchise is open just 5 days per week plus five to eight hours on Saturday. The food franchise is open often 19 hours per day, 7 days per week. A 1-800-Radiator & A/C franchisee works very hard, but time is spent much more in market planning and in contacts with customers, as opposed to constant recruiting, training and disciplining of young workers. Franchises doing between $500k and $2 million in sales could have employee counts between two and eight. Also, about 40% of your employees are relatively inexpensive delivery drivers.0

4. No heavy investment in an expensive building or build-out

A 1-800-Radiator & A/C warehouse is a simple, low-cost, 3,000 to 5,000 square foot space, primarily in industrial parks, stocking approximately 3,000 parts to enable delivery within two to three hours. The total cost to set up a warehouse is $20,000, which includes racking, computers and office equipment. The inventory requirement is usually $150,000. Existing territories with historically high sales volumes will typically require a larger investment to cover current income streams.

5. State-of-the-Art Marketing System

You will make the most out of your marketing dollars. Our computer systems have been designed to allow the franchisee-owner maximum time for outside sales and marketing. We use our own proprietary web-based point of sale system to allow you to easily track your customer activity (CRM), accounting, inventory management, customer pricing, purchasing, reporting, and many other tools. You will know which customers to visit, how to price customers and how to measure the effects of each campaign.

6. Existing Customer Base

1-800-Radiator & A/C has been marketing nationwide for over 20 years. In the first weeks of operation, 1-800-Radiator & A/C sends in a marketing team to call on the existing and potential customers in your territory and to introduce the new franchise Owners. In areas where a location already exists, the customers will learn that they now have a location run by a new owner-operator who cares about them and is easily accessible. There are approximately 400,000 automotive shops in the country (our primary customers) and more than 150,000 of these shops have purchased from 1-800-Radiator since 2008, so our name is highly recognized in most territories as the dominant supplier of cooling parts. The new franchisee will also be pleasantly surprised at the flow of retail business (do-it-yourselfers) which is constantly coming in. Because 1-800-Radiator & A/C is one of the dominant internet marketers of radiators, these orders will also be constantly coming in. The franchisee does not have to worry about generating these sales --- they just happen automatically and provide an immediate and welcome cushion of cash flow. This business is fairly predictable and 1-800-Radiator & A/C will provide the prospective franchisee with its historical records by week, month, and year, showing how much of this business has occurred in the past.

7. 11 Million Replacements per Year

In the United States, there were approximately 11 million replacements of radiators, condensers and compressors last year. 1-800-Radiator & A/C makes it fast and easy to get brand new auto parts to your customers. At an average radiator and condenser price of $126 - $134, 1-800-Radiator & A/C sells its parts to automotive repair shops and do-it-yourselfers. We do not install the parts or perform any repair work. In 2007 we expanded our product line to include air conditioning and fan assemblies and are currently test marketing new product categories to expand our franchise offering.

8. Limited Number of Franchises Available

To insure that each franchise has its own protected territory, 1-800-Radiator & A/C limits the number of franchises available in the United States and Canada. Our growth has allowed us to focus on product line expansion.

IDEAL OWNER

The best franchisees are highly motivated and ambitious people who want to run multiple locations and are focused on rapid market penetration. The candidate should have a minimum net worth of $1millon with at least $300K liquid (including retirement accounts). Some markets will require higher minimums depending on the size of the market. The most successful franchisees typically have run or owned another business before buying into the 1-800-Radiator & A/C franchise network. This is not to say this is a prerequisite, but most of the top quartile franchisees have similar backgrounds.

Success in this business is highly dependent on the amount of sales and marketing activity conducted by the franchisee, so it comes as little surprise that franchisees with a sales management background really enjoy and do well with this business.

One skill which seems to make little difference is knowledge of automotive parts and vehicles. The System has been designed to take all the “expertise” out of consideration.

INVESTMENT 

A significant investment in fixed assets is not required. A 1-800-Radiator & A/C warehouse is a simple, low-cost, 3,000 up to 10,000+ square foot space, primarily in industrial parks, that can stock approximately 3,000 parts to ensure delivery within two to three hours. The total cost to set up a warehouse is approximately $25,000, which includes racking, computers and office equipment. The inventory requirement range from $150,000 to $500,000 per warehouse (depending on sales volume). Existing territories with historically high sales volumes will typically require a larger investment to cover current income streams.

SUPPORT

A big part of the 1-800-Radiator & A/C marketing effort is the training and ongoing corporate support. All new franchisees spend two weeks learning how the market works and how to foster lasting and profitable relationships with customers. New franchisees also learn about the 1-800-Radiator & A/C lifetime guaranty. In-depth training is provided on how to use the best computer system in the industry to maximize time spent marketing to customers and minimize time spent on bookwork and other non-productive activities. Franchisees are taught how to grow their territories quickly and efficiently.

A dedicated line is staffed six days a week just for franchisees to call with any and all issues, questions and ideas they have about their businesses. This group answers about one hundred calls daily with questions ranging across all aspects of the business.

Profit Team (Accounting)

Each franchisee has a Profitability Manager, working directly with the franchisee building budgets, tracking variance reporting to these budgets and then recommending improvements to reach that franchisee’s financial goals. As new products are added, or as the business grows with more employees, the Profitability Manager helps the franchisee to streamline continued growth in a profitable way to minimize risk.

**We have less than 15 locations available at this time**


Ideal Candidate

The best franchise owners are highly motivated, ambitious people who want to run multiple locations and grow a business with revenues well over $1million annually. The most successful Owners typically have run or owned another business before buying into the 1-800-Radiator & A/C franchise network. (This isn't a prerequisite, but most of the top quartile franchisees share this characteristic.)

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