PTAC_Presentation_India_2015

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 I N D 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

Vehicle ownership could be called the backbone of economic development in India. Industrialization has caused a migration from rural farming to city living and grown the GDP. Many people are adjusting to a western standard of living and are purchasing personal vehicles.

India is the second largest growing automobile industry in the world. The first cars hit the streets of India in 1897. All vehicles were imported up until the 1930s. Now there are more than 20 million private vehicles and over 3 million vehicles being produced domestically each year.

The popularity of car ownership and the growth of the automotive sector in India is alive. One Indian news agency is quoted as saying “it is growing exponentially”. Some published reports show roughly 13 cars per 1000 persons, while the Indian government reports nearly 20 million registered non transit 4 wheeled vehicles such as cars and jeeps alone. The demand for increased capacity in public transport and the growth of increased road infrastructure has led to the year over year growth in vehicle ownership.

The growth rate of personal vehicle ownership presents an exciting opportunity for business. There are over 20 million cars and light trucks on the road. The demand for car maintenance and repair exceeds 8 Billion USD per year. The market is growing by 20 – 25% per year according to the Automotive Aftermarket Industry Association. The continued industrialization and economic development of India provides tremendous opportunity to develop the Precision Tune Auto Care brand throughout the country. The car has become one of the first material items a person will buy with their new wealth, yet the car maintenance industry has remained a very large and untapped market in India.

Source: vktkv, https://creativecommons.org/licenses/by/2.0/legalcode, no edits made


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

India is now the world’s largest franchise market after North America; it is growing at about 30% per year. Franchising as a business model has been known in India for decades. There has clearly been an unprecedented interest in adopting the franchising business model recently, as evidence from the growth rate witnessed in the last five to ten years.

KPMG conducted a study on the franchising sector in India in 2013. It found that the sector had grown to USD 13.4 Billion in 2012, and is expected to grow at a compounded annual growth rate of 30% over the next five years. There are currently 1,200 franchisors in India, of which 25 percent are of international origin. U.S. brands representing the lion’s share of international concepts. Ultimately, KMPG expects the franchising industry will grow to exceed 20 Billion USD per year by 2020, at which time franchising will be contributing roughly 4% of India’s GDP.

India is undergoing a huge demographic transformation thanks to industrialization and economic development that will continue to fuel a consumption boom for products and services. The rapidly growing economy has created a class of over 250 million middle-income Indians with high disposable incomes. India’s greater demand for goods has generating a greater demand for franchises, especially U.S. franchises.

Franchising is ideally suited for Indian entrepreneurs as a business model. It is expected that the services sector, such as the automotive aftermarket, financial services, logistics, health & wellness, and food service will be a major contributor to the growth story of franchising in the next half decade. Precision Tune Auto Care looks forward to the development of the brand in India. India, coupled with unprecedented car ownership rates and a love for franchising, is a market that is hungry for Precision Tune Auto Care. Once the brand enters the local economy, it will become a brand known for an exceptional service within the automotive repair sector.


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

Total Registered Vehicles 141,866,000*

2012 NewCar Sales 2,719,941

2012 LightTruck Sales 716,554

Total Roadways 3,320,410 km

Total Population 1.2 Billion

Ratio of PeopleTo Cars 55:1

Annual Sustained Growth of Car Parc

20 – 25%per year

*According to the government of India

Statistics

Development Opportunity Kingdom of India


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

STATE/ TERRITORY POPULATION ESTIMATED # OF CARS

# POTENTIAL PRECISION CENTERS

Maharashtra 12,478,447 2,731,146 20 - 30

Delhi 11,765,097 2,240,717 30 - 40

Gujarat 15,583,350 1,579,889 20 - 30

Tamil Nadu 12,991,124 1,563,453 20 - 30

Telangana 8,231,084 1,316,973 15 - 20

Karnataka 13,794,218 1,311,609 15 - 20

Uttar Pradesh 21,647,814 1,308,416 15 - 20

Kerala 2,450,790 1,289,113 15 - 20

Haryana 3,814,036 1,110,721 12 - 15

Andhra Pradesh 6,135,009 1,088,584 10 - 12

Rajasthan 8,370,488 845,909 8 - 10

Punjab 4,299,812 680,076 6 - 8

West Bengal 11,705,410 575,085 6 - 8

Madhya Pradesh 7,722,610 475,841 6 - 8

Assam 963,429 332,885 4 - 6

Orissa 2,072,784 331,645 4 - 6

Jharkhand 3,502,596 294,525 4 - 6

Chandigarh 960,787 286,584 4 - 6

Jammu and Kashmir 1,696,482 255,248 4 - 6

Bihar 4,506,399 245,289 4 - 6

Source of Data: http://www.data.gov.in/keywords/registered-motor-vehicles?page=4


The statistics on the left represent only the non-transport registered cars and jeeps, it does not account for taxis and other fleet vehicles used in transport and are otherwise classified by the government of India. The development opportunity could be understated by as much as 30 – 50%. The primary customer profile will be the upper middle class customer and companies with fleets interested in maintaining their cars and light trucks in good working order outside of relying upon the dealership for service. The motorcycle and scooter market will never disappear, but clearly, a migration is underway from 2 wheeled to the 4 wheeled vehicles.

Precision Tune Auto Care is willing to award the Master Franchise rights to the entire country of India for the sum of $1,500,000 USD. Should your company only operate in ¼ of the country, a company can purchase the master franchise rights for as little as $500,000 USD for each ¼ of the country awarded.

Based upon average US production, Precision Tune Auto Care seeks a car population of 20,000 – 40,000 vehicles within a 5 – 15 minutes driving time. The total annual automotive aftermarket for maintenance and repair in the largest 20 states of India is estimated to be in excess of 8 Billion USD per year. This illustration shows the development potential not withstanding 20 – 25 percent annual growth to the car market for the top 20 states with a minimum potential today for more than 200 locations.

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

WA N T TO K N O W M O R E ?

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 questions and 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.

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.


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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