Precision Tune Auto Care Saudi Arabia Master Franchise Brochure 02042015

The Right Brand. The Total Package.

748 Miller Drive, SE • Leesburg, VA 20175 • (703) [email protected] • www.PrecisionTune.com

M A S T E RF R A N C H I S E L I C E N S E

A P R E S E N T A T I O N F O R S A U D I A R A B I A

2 | www.PrecisionTune.com | The Right Brand. The Total Package

Dear Future Master Franchisee:

I want to thank you for your interest in exploring the master franchisee opportunity available through Precision Tune Auto Care. I hope you will take the time to review our prospectus and visit our website.

With the global automotive aftermarket growing and changing every day, now more than ever, it is critical to be involved with a company like Precision Tune Auto Care that has international experience with a proven operating system. PrecisionTune.com has information on many of the tools that a Master Franchisee will need — from operational business plans, equipment and tools, education, market analysis, forecasts and in country training. Whether you are new to the market or have prior experience in the Automotive Industry, we can develop a solution adapted to your objectives, skills and means.

We are committed to conducting business in accordance with the highest standards of professional and ethical conduct and have been doing so for more than 30 years. In order to move forward, you will want to learn more about us and as you review the information that follows, you will see that we are very committed to our Master Franchisees. Conversely, we will want to learn more about you, your team and understand your commitment to developing the PTAC brand in your country.

If you have any questions, please contact our development department at (703) 777-9095 x211.

Sincerely,

Robert FalconiPresident and CEO

www.PrecisionTune.com | The Right Brand. The Total Package | 3

AU TO M OT I V E I N D U S T R Y U P DAT E

The automotive aftermarket in Saudi Arabia for maintenance and repair is estimated to be in excessof $2 Billion USD per year and growing by 7 – 10 percent per year. With one of the highest per capita GDPs in the world, it is no surprise that car ownership continues to increase. With the economy remaining stable and rising usage of cars, the automotive sector in Saudi Arabia has completely changed the local auto industry‘s supply chain. The major sources of imports are Japan, Germany, America, as well as Korea, China and some other Asian countries. Automotive as well as autoparts sector plays a crucial role and has a more prominent impact on the economy. According to the studies led by the automotive sector, it is evident the auto industry will thrive in the Kingdom. Saudi Arabia is one of the fastest growing automotive markets in the Middle East with massive car sales in its main cities like Riyadh, Jeddah and Dammam. It is recognized as a destination for premium and budget cars.

The Kingdom has witnessed a growing demand for new cars and has made it easier for the customers to buy a new car. Simply put the absence of “The luxury tax or VAT, which is added to cars in different parts of the world, makes a car two or three times more expensive than in Saudi Arabia. Which gives a much larger population base the ability to purchase a car relative to their earnings as compared to other markets. Saudi Arabia has a huge number of cars on the road and they are increasing day by day. Most recent statistics show nearly 7 million registered vehicles. The opportunity exists to capitalize on the automotive maintenance and repair sector with the establishment of the Precision Tune Auto Care brand. Given the present level of car ownership and usage it is estimated the market can currently hold between 40 – 60 Precision Tune Auto Care service centers.


F R A N C H I S E U P DAT E F O R S AU D I A R A B I A

Franchising has witnessed remarkable growth in the Middle East region over the last few years.With an increasing number of international companies seeking to establish a presence in the region. According to a business journal, franchising projects represent 50 percent of retail business models worldwide with a total value of $9 billion, out of which 5 percent is represented by the Middle East. The past five years have witnessed a tremendous growth in the Franchise market in Saudi Arabia with many successful American, European and local franchise concepts taking shape. Many of the brand names are already well entrenched in the market. It is estimated that Saudi Arabia represents a multi-billion dollar market for franchising with an estimated value of $1.3 billion in annual fees and royalties, and expected to grow an average of 12 –15 percent per year. Most of the franchise concepts are focused in the restaurant, food & beverage and retail fields. Catching on the trend, many local Saudi franchise developers have managed to promote more than 30 Saudi concepts using franchising within the Kingdom, with some of them having gone international.


F R A N C H I S E U P DAT E F O R S AU D I A R A B I A

Saudi Arabia is the largest market in the Arabian Gulf and the Franchising approach continues to expand in several business sectors. A thriving economy coupled with a growing and young population makes Saudi Arabia an inviting market for the franchising industry. With a per capita reaching its highest level ever at $18,531 and a young population, 57 percent are under the age of 25, both combine to provide an important base for the franchising sector. Moreover, there is an overwhelming number of Saudis who have studied and traveled abroad extensively, and who have acquired a taste for Western trends and culture.

American concepts are presently representing 70 percent of all the franchised operations in Saudi Arabia. Introduction of various new fast food and restaurant concepts has notably increased in recent years, especially for take-away food and beverage joints located in shopping malls where Saudis usually spend most of their leisure time. Some of the franchises currently present in Saudi Arabia include McDonalds, Burger King, Pizza Hut, KFC, Chilies, TGIF, Hardee’s, Ruby Tuesday, Fuddruckers, Quiznos Sub, Dominos, Subway, Starbucks, Mochachino, Seattle’s Best, Cinnabon, XOXO, Debbenhams, Saks Fifth Avenue, Sheraton, Hilton, Four Seasons, Floresheim, Martinizing, Avis, Hertz, Budget, Limited Too, Mail Boxes, Alphagraphics, Kwik Kopy, DHL, Ann Kleine, Guess among many others. Lately, reputed names like Krispy Kreme, Gap, Le Notre, and Outback have forayed into this blooming industry in Saudi Arabia.

Given the growth of both the Saudi franchise sector and car ownership, Precision Tune Auto Care is prepared to award the Master Franchise rights to a single company to develop throughout Saudi Arabia.


AU TO M OT I V E S TAT I S T I C S

Total Registered Vehicles

6,953,765

2012 NewCar Sales

550,473

2012 LightTruck Sales

153,696

Total Roadways 221,372 km

Total Population 23,000,000

Ratio of Peopleto Cars

3.3 people per 1 car

Annual sustained Growth of Car Parc

7 – 10percent

Statistics

Development Opportunity Kingdom of Saudi Arabia


SAUDI ARABIA DEVELOPMENT OPPORTUNIT Y F O R T H E 20 L A R G E S T C I T I E S

Precision Tune Auto Care is willing to award the Master Franchise rights to the Kingdom of Saudi Arabia for the sum of $400,000 USD.

Based upon average U.S. production. Precision Tune Auto Care seeks a car population of 20,000 – 40,000 units within a 10 – 15 minutes driving time. The total annual automotive aftermarket for maintenance and repair in the largest 20 cities of Saudi Arabia is estimated to be in excess of $2.4 Billion USD. This illustrations shows the development potential not withstanding 7 – 10 percent annual growth to the car market for the top 20 cities with a minimum potential today for 38 locations.

CITY PROVINCE POPULATION ESTIMATED # OF CARS

# POTENTIAL PRECISION CENTERS

Riyadh Riyadh 5,328,228 1,585,782 8 – 12

Jeddah Makkah 3,456,259 1,028,649 4 – 8

Mecca Makkah 1,675,368 498,621 3 – 5

Medina Al Madinah 1,180,770 351,420 2 – 4

Al-Ahsa Eastern 1,063,112 316,402 2 – 4

Ta’if Makkah 987,914 294,022 2 – 3

Dammam Eastern 903,597 268,928 3 – 5

Khamis Mushait Asir 630,000 187,500 2 – 3

Buraidah Al-Qassim 614,000 182,738 1 – 3

Khobar Eastern 578,500 172,173 1 – 3

Tabuk Tabuk 569,797 169,582 1 – 3

Ha’il Ha’il 412,758 122,845 1 – 3

Hafar Al Batin Eastern 389,993 116,069 1 – 3

Jubail Eastern 378,949 112,782 1 – 3

Al-Kharj Riyadh 376,325 112,001 1 – 2

Qatif Eastern 371,182 110,471 1 – 2

Abha Asir 366,551 109,093 1 – 2

Najran Najran 329,112 97,950 1

Yanbu Al Madinah 298,675 88,891 1

Al Qunfudhah Makkah 272,424 81,079 1


P R E C I S I O N T U N E AU TO C A R E E X I S T I N G F R A N C H I S E L I C E N S E S I N T H E U. S .

• Coral Springs, AL• Margate, AL• Delray Beach, AL• Naranja, AL• Lauderhill, AL• Dallas, AL• Fort Worth, AL• Arlington, AL• Dallas, AL• Plano, AL• Jacksonville, AL• Macon, AL• Warner Robins, AR• Albany, AR• Valdosta, AR• Macon, AR• Columbus, AR• Columbus, CA• Phenix City, CA• Port Arthur, CA• Beaumont, CA• Fort Walton Beach, CA• Pensacola, CA• Columbus, CA• Daphne, CA• Gulf Breeze, CA• Panama City, CA• Crestview, CA• Mobile, CA• Gulfport, CA• Pensacola, CA• Mobile, CA• Pensacola, CA• Jacksonville, CT• Alexandria, FL• Lake Charles, FL• Baton Rouge, FL

• San Antonio, FL• Little Rock, FL• North Little Rock, FL• Nashville, FL• Knoxville, FL• Nashville, FL• Knoxville, FL• Little Rock, FL• Nashville, FL• Knoxville, FL• Chattanooga, FL• Jonesboro, GA• Chattanooga, GA• Chattanooga, GA• Murfreesboro, GA• Austin, GA• Austin, GA• Killeen, GA• Austin, GA• Waco, GA• Victoria, GA• Temple, GA• Pflugerville, GA• Eagle Pass, GA• Harker Heights, GA• Copperas Cove, GA• Cedar Park, GA• Killeen, GA• Roseville, GA• Minneapolis, GA• Columbia Heights, GA• St. Paul, GA• Minneapolis, GA• Coon Rapids, GA• Eagan, GA• Eden Prairie, GA• Plymouth, GA

• New Hope, GA• Bloomington, GA• Champlin, GA• Maple Grove, GA• Andover, GA• Elk River, GA• Apple Valley, GA• Fargo, GA• Spring Lake Park, KS• Lino Lakes, LA• Burnsville, LA• Independence, LA• Shawnee, MA• St. Joseph, MD• Kearns, MD• Murray, MD• Salt Lake City, MD• Las Vegas, MD• Lynnwood, MD• Marysville, MD• Everett, MD• Renton, MD• Culpeper, MD• Hayes, MD• Newport News, MD• Petersburg, MD• Richmond, MD• Harrisonburg, MD• North Chesterfield, MD• Tulsa, MD• Springdale, MD• Tulsa, MD• Owings Mills, MD• Catonsville, MD• Baltimore, MD• Rosedale, MI• Annapolis, MI

• Hunt Valley, MI• Randallstown, MI• Edgewood, MN• Severna Park, MN• Salisbury, MN• Baltimore, MN• Frederick, MN• Lexington Park, MN• Baltimore, MN• Aberdeen, MN• Williamsport, MN• Burton, MN• Traverse City, MN• Raleigh, MN• Raleigh, MN• Durham, MN• Durham, MN• Raleigh, MN• Wilmington, MN• Raleigh, MN• Burlington, MN• Jacksonville, MO• Goldsboro, MO• Greenville, MS• Rocky Mount, MS• Cary, NC• Raleigh, NC• Wilson, NC• Wake Forest, NC• Morrisville, NC• Birmingham, NC• Decatur, NC• Birmingham, NC• Florence, NC• Birmingham, NC• Alabaster, NC• Pelham, NC

• Opelika, NC• Oklahoma City, NC• Edmond, NC• Oklahoma City, NC• Oklahoma City, NC• Oklahoma City, NC• Yukon, NC• Fayetteville, NC• Pineville, NC• Charlotte, NC• Charlotte, NC• Gastonia, NC• Charlotte, NC• Greensboro, NC• Hickory, NC• Concord, NC• Greensboro, NC• Greensboro, NC• Winston Salem, NC• High Point, NC• High Point, NC• Mooresville, NC• Dayton, ND• Huber Heights, NV• Englewood, OH• Columbia, OH• Charleston, OH• Columbia, OK• Columbia, OK• Summerville, OK• Rock Hill, OK• Florence, OK• Sumter, OK• Hendersonville, OK• Myrtle Beach, OK• Asheville, PA• Cayce, SC

• Mount Pleasant, SC• Johnson City, SC• Irmo, SC• Greenwood, SC• Greenville, SC• Anderson, SC• Greenville, SC• Spartanburg, SC• Lexington, SC• Silver Spring, SC• Clinton, SC• Beltsville, SC• Manassas Park, SC• Bowie, SC• Montgomery Village, SC• District Heights, SC• Shelton, SC• Fairhaven, SC• Hanover, SC• Detroit, TN• Royal Oak, TN• Atlanta, TN• Marietta, TN• Smyrna, TN• Norcross, TN• Athens, TN• Lawrenceville, TN• Decatur, TN• Tucker, TN• Duluth, TN• Forest Park, TX• Mableton, TX• Atlanta, TX• Gainesville, TX• Union City, TX• Douglasville, TX• Newnan, TX

• Lilburn, TX• Marietta, TX• Snellville, TX• Riverdale, TX• Conyers, TX• Marietta, TX• McDonough, TX• Decatur, TX• Savannah, TX• Salinas, TX• San Jose, TX• Morgan Hill, TX• San Jose, TX• San Jose, TX• Sunnyvale, UT• Sunnyvale, UT• San Mateo, UT• Fremont, VA• Redwood City, VA• Milpitas, VA• Santa Clara, VA• Gilroy, VA• Augusta, VA• Augusta, VA• North Augusta, VA• Aiken, WA• El Cajon, WA• San Diego, WA• Murrieta, WA• Vancouver, WA• University Place, WA• Gig Harbor, WA• Lakewood, WA• Parkland, WA• Tacoma, WA

As of January 1, 2015 there are approximately 260 centers in the United States

11

10

14

19

34

34

22

20

21

16

58

8

4

3

3

3

2

2

1

1

1

1

11


P R E C I S I O N T U N E AU TO C A R E E X I S T I N G F R A N C H I S E L I C E N S E S W O R L D W I D E

As of January, 2015 there are approximately 65 centers internationally

19

2

26 4

2

1

15

Angola Nigeria Oman Portugal Republic of Georgia

Mexico Taiwan United States


UNITED STATES

TAIWAN

NIGERIA

PORTUGALOMAN

P R E C I S I O N T U N E AU TO C A R E W O R L D W I D E C E N T E R S


Founded in 1976 and franchising since 1977, we are America’s largest engine performance car-care company. We have over 280 centers operating in the U.S. and another 98 centers located internationally including: Taiwan, Portugal, Spain, Canada, Oman. We have initiated an aggressive growth plan to open more centers internationally, including countries in Eastern Europe and Southeast Asia.

T H E M A R K E TThe primary Precision Tune Auto Care customers are middle class families who are dependent on their vehicle for transportation. With the complexity of today’s vehicles, the “do it yourselfers” find they “cannot do it”. While they may have the necessary tools to change their oil, and maybe change their spark plugs, they don’t have the resources to diagnose and repair today’s technologically advanced engines. Although each international market is unique, the PTAC business model has proven successful in a variety of very different environments, with minor modifications made as necessary.

T H E CO M P E T I T I O NIn the 1970s and early 1980s, our primary competition came from full-service gas stations. Today, our primary competition comes from the dealership and we estimate that will probably be the case worldwide. The dealerships are focusing more on after-sale service as a revenue generator. The problem with the dealers’ strategy is that today’s automobile owners are not happy with the dealerships. High cost, inconvenience and the quality of the work are most often cited. Tire dealers and maintenance garages form the next level of competition. We are prepared to analyze market potential anywhere in the world.

Regardless of the competition, our model can work anywhere in the world. We are more convenient: an average car is in our shop approximately an hour and a half, and most of the centers take appointments. We beat the dealerships’ price, job for job, and warranty our work for 12 months or 12,000 miles (or 12 months/20,000 kilometers). Internationally, Precision Tune Auto Care has positioned itself as the alternative to the dealership while providing convenience, expertise and the best value for today’s consumer.

I N T E R N AT I O N A L F R A N C H I S E O P P O R T U N I T I E S


O U R S E R V I C E SPrecision Tune Auto Care was founded on the basic engine tune up. Over the years, we have diversified our mix of services to provide total quality car care opportunities for our franchisees to grow and expand their customer base.

Today, we offer a wide variety of specialized and scheduled car care services. These services include:

B R A K E S A N D T R AC T I O N CO N T R O L

CO O L I N G S YS T E M

D I AG N O S T I C D I S CO V E R Y S E R V I C E S

E M I S S I O N CO N T R O L S

E N G I N E A N D P O W E R - T R A I N M A N AG E M E N T

R E L AYS A N D M O D U L E S

E X H AU S T S YS T E M S

FAC TO R Y S C H E D U L E D M A I N T E N A N C E S E R V I C E S

H E AT I N G A N D A I R CO N D I T I O N I N G

I N S T R U M E N T PA N E L , G AU G E S A N D WA R N I N G L I G H T S

L I G H T I N G A N D H O R N S

S TA R T I N G A N D C H A R G I N G

S TAT E I N S P E C T I O N S

S T E E R I N G A N D S U S P E N S I O N

T I R E S A L E S A N D S E R V I C E

T R A N S M I S S I O N A N D D R I V E T R A I N

W I N D O W S A N D G L A S S

W I P E R A N D WA S H E R S YS T E M S

I N T E R N AT I O N A L F R A N C H I S E O P P O R T U N I T I E S ( CO N T I N U E D )


O U R S U P P O R T S YS T E MPrecision Tune Auto Care is a business format franchise. Our business concept has not only been invented, it has been successfully working since 1976 and internationally since1991. We continue to develop and refine the systems and procedures, that when properly implemented, can lead to businesses with excellent sales potential. Our support systems encompass the necessary disciplines for Master Franchisees to develop and grow our brand within their country and include, but are not limited to: site selection, marketing, advertising, technical and management training, operations, parts acquisition and much more. We are prepared to provide support to international Master Franchisees both in our corporate offices in the United States and throughout the world.

Site Selection — Franchisees lease or purchase their own location.

Training at Precision University — Precision Tune Auto Care offers one of the most advanced training programs in the industry. We will teach you how to create and implement the needed infrastructure to support your franchises, as well as how to profitably operate a PTAC center in our Franchise Management course. We will cover all aspects of the business including: financial management, salesmanship, business management, marketing and advertising, labor and purchasing, as well as an overview of our services. In addition to the Franchise Management course, Precision University offers the following management courses: Service Writer Training; Financial Modeling and Templating; and Softwrench (POS System) Training.

Our engine performance and automotive maintenance training program for technicians spans eight weeks and entails 40% classroom time and 60% hands-on training. While it is an extensive course, when your team has successfully completed the course, you will have the most qualified technicians in your country. These technical classes include: Engine Performance; Automotive Electronics, Emissions and On-Board Diagnostics; Brakes; Air Conditioning Service and Repair; Preventative Maintenance; Domestic and Asian Fuel Injection; and Hybrids.

Operations — Master Franchisees provide the first echelon of support in any market. They provide routine support in site identification, marketing and day-to-day operations, as well as periodic training, site visits and offer constructive feedback of the center’s operation. Master Franchisees are normally located in the region.

Advertising — Each center is required to spend resources on advertising. The Master Franchisee may elect to collect some or all of these funds for use in a cooperative advertising campaign. This strategy provides for a much larger potential audience than possible to an individual center.The corporate marketing and advertising department will provide the Master Franchisee with professional advice on the selection and implementation of marketing plans and tools. They will also receive regular updates on advertising materials and opportunities.

I N T E R N AT I O N A L F R A N C H I S E O P P O R T U N I T I E S ( CO N T I N U E D )


YO U R LO C AT I O N SIn our early years, many of our centers were converted service stations. By the 1980’s we began opening in auto malls which are occupied exclusively by tenants in like industries. In the 1990s, we began operating in state of the art professionally designed centers. Complete blueprint packages, equipment listings, parts room deign, and graphic requirements are provided to each master franchisee. With over thirty years in the automotive business, Precision Tune Auto Care has established a formula for success.

The site criteria and demographics we look for are:

• A population base of 50,000 (predominantly middle income) within three miles for Metropolitan areas. However, this will vary from one country to another.

• Activity generators. We want to create a synergy and be surrounded by other businesses which will also draw people into our location.

T H E O P P O R T U N I T YIn developing international Master Franchise opportunities, Precision Tune Auto Care is looking to establish long-term relationships with quality business professionals. Prior experience in the automotive industry is not as critical to your success as is your ability to adapt and implement a proven business system to your local conditions. Precision Tune Auto Care provides the system, superb training in the specifics, continuous and ongoing support and the opportunity to capture a significant portion of the growing automotive industry.

Master Franchise opportunities are available worldwide. The first step in developing a relationship is to define the opportunity within the host country. Specifically, we need to determine the number of centers the country can accommodate. Once you have reviewed the literature, we can discuss specific opportunities.

H O W D O YO U G E T S TA R T E D ?Simply call us at (800) 438-8863, option 3 (toll-free) or (703) 777-9095 x211 (outside of the United States), and we will discuss your interests. We will want to get details about your plans and the resources available to you to bring those plans into effect. We are also prepared to meet with you in our corporate office in Leesburg, Virginia (a suburb of Washington, DC). Our fax number is (703) 669-1539.

If there is a “meeting of the minds,” then the next step is to sign a letter of intent after which we will send you a copy of the Master Franchise Agreement. You and your attorneys will review it and we will negotiate the terms of the Agreement. This negotiation process will typically take between 1–2 months as details are worked out such as the Development and Training Schedules and country specific considerations.

As noted above, Precision Tune Auto Care has a number of locations across the world and because we are very growth oriented, we stand ready to move out with qualified prospects at a moment’s notice.

B E N E F I T S O F B E I N G A P R E C I S I O N T U N E AU TO C A R E M A S T E R F R A N C H I S E E


S O U R C E S O F R E V E N U E• % of monthly operating fees is paid by Franchisee to Master Franchisee

• The initial franchise fee is paid by Franchisee to Master Franchisee

• Sales generated by the operation of a corporate center (if applicable)

P R E C I S I O N T U N E AU TO C A R E VA LU E• Over 30 years of worldwide franchising success

• Proven international operating system

• World-class training at Precision University

• Turn-key marketing and advertising

• Worldwide vendor partnerships

• Continuous and ongoing communications Support Provided to Master Franchisee:

S U P P O R T P R O V I D E D• Current standard construction plans and specifications for franchise centers in the U.S.

• Operational manuals

• Annual visits from Sr. V.P. of Operations and V.P. of Training

• Point of sale software

• Training for Master Franchisee and employees of Master Franchisee made available

• Advice, consultation, technical support available through our intranet, telephonic conference calls and technical hotline

• Advertising and promotional plans and materials

B E N E F I T S O F B E I N G A P R E C I S I O N T U N E AU TO C A R E M A S T E R F R A N C H I S E E

The Right Brand. The Total Package.

www.PrecisionTune.com

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Precision Tune Auto Care Saudi Arabia Master Franchise Brochure 02042015

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