Question 1 :

Is there any charge / fee for an application form?

No. There is no charge for registering an interest or for sending in an application form. An application is taken confidentially and we will respond promptly to your request.

 

Question 2 :

What type of solutions / franchises do you offer?

We generally offer two types of franchises. One is for a trolley mobile wash service and the other is for a full valet jet wash service.

 

Question 3 :

Is there a big price difference between the franchise choices?

Yes. A mobile trolley wash service will normally cost between £12,000 - £25,000 (plus VAT). Final price will depend on the location, landlord and size of the site and what revenue potential it offers. Part of the cost also includes the initial purchase of mobile trolleys and a chemical starter pack. 

A full valet jet wash service involves a detailed and expensive build. The site also has to be surveyed as well as planning permission achieved to be able to build the site. However, once built, the site offers a long term highly valued business with a long term franchise agreement. Prices usually range from £65,000 - £80,000 (VAT included) dependent on the cost of the build and the location.

 

Question 4 :

What landlords do you deal with and what type of terms can I expect?

CPV work closely with the landlords to ensure we obtain an excellent site and business opportunity for you to work from.

Our landlords tend to be top retailers such as ASDA, Waitrose and Sainsbury’s. We do also work with some smaller retail park operators that are specific to certain areas. We will however always consider any site, so if you have a relationship with a landlord and believe we can create an opportunity to deliver a franchise based car wash service then we will always consider it. 

Generally, the landlord will offer us terms from between 3-5 years dependent on the service. Mobile trolley wash services tend to attract 3 year terms whereas due to the high build investment, full valet jet wash sites tend to attract terms ranging from 4-5 years.

 

Question 5 :

Once I have bought a franchise do I own the assets?

No. As per the general trend with franchise type businesses you do not own the assets. You do own a licence to operate and this is a very important and unique privilege offered by CPV and the landlords.

You do have a right at any time to sell the site provided all terms are confirmed to us and that we undertake an application form with the new buyer and are confident that they can operate the site. We do however have the right to reject any applicant as well.

 

Question 6 :

What are the average costs I need to pay you each month to run a site?

Generally speaking, a mobile trolley wash site will cost between £1000 to £1500 per month plus VAT. 

Within this monthly fee you will have paid the landlord their fixed fee, CPV their management fee, covered the cost for extensive public liability insurance cover and been allocated at least £100 worth of chemicals. Thereafter you may buy more chemicals direct from us by purely picking up the phone and calling us on 01223 206050 and placing an order. Orders are then placed with Nielsen Chemicals and despatched direct to your site.

The average fees per month for a full valet jet wash site range from £2000 to £3500 per month plus VAT. Prices vary depending on the location, landlord and whether mains electricity and/or water are included. Thus before entering into any full valet jet wash contract CPV will provide you with an exact detailed price breakdown for each month.

You may need to take financial and/or legal advice before entering into any franchise licence agreement with us and this is your right to do so. Once you have entered into the contract by way of signature you are legally and financially committed to the venture for the full duration of the licence.

CPV will always be happy to provide you with a financial quote and a copy of the licence agreement under no obligation before you enter into any contract with us.

 

Question 7 :

Can I have more than one site, regardless of type?

Yes, you may have more than one site. However, in taking extra financial commitment CPV will want to see that you are not financially over committed and that you can successfully run the sites.

 

Question 8

What happens at the end of the licence term?

At the end of the term, we will have already entered into negotiations with the landlord and will be seeking to obtain new favourable terms for you to run another licence term (ideally between a further 3 – 5 years).

 

Question 9

What risks do I need to consider if I enter into a franchise agreement?

As stated beforehand, we will always be happy to provide you with a financial quote and a copy of the licence before you enter into any contract. Also you may wish to seek legal and financial advice before committing to us.

CPV are keen to ensure that every franchisee fully understands in detail what the franchisee is entering into and we would rather that you take your time and understand the business opportunity in full.

Financial risks involved are one of ensuring you generate sufficient revenue each month to cover all your costs as you will need to ensure rent is paid on time for the full duration of the licence term.

Operational risks are that you need to ensure you invest in resources (people) to make sure the site is run properly and with total compliance in line with CPV and landlord objectives. Failure to comply with compliance can result in written and financial warnings as well you run the risk of losing the site and your investment.

Business risks means that you must ensure that all your workers are approved by us for the UK right to work and that you ensure that all employment legislation, including dealing with the HMRC, tax compliance and National Insurance matters are all managed properly. The franchisee is totally responsible for such matters and liable to answer to the HMRC, Immigration Agency and any other government agencies that require information or approvals at any time.

 

Question 10

Based on running a successful franchise what can I expect my earnings to be?

With regards the mobile trolley wash franchise the service tends to operate one of two ways. Some franchisees run the sites themselves and have family or close relatives work the sites with them. Other franchisees prefer to appoint a supervisor and have them manage the site with trolleys rented out to self employed operatives. Because the operatives are self employed the revenue earned by the franchisee is a fixed amount and should be sufficient to recover monthly operational costs and add some profit.

Historic data shows that these type of franchise businesses generally see the first two weeks of all income being soaked up in the overall monthly costs and any salaries paid to supervisors etc.     

Generally, feedback from our franchisees suggests that the last two weeks of the month the income received is generally profit for the franchisee.

Please note that these are only examples and can only be used as a general guide.

Note that during the winter months with adverse weather conditions the trolley wash businesses may suffer from a downturn in orders due lack of interest in car washing services. Please remember this when considering a yearly revenue business plan.

In the case of the full valet jet wash franchises we have better data to make comparisons as each car wash results in a receipt being issued to the client.

As a general guide we would expect the average jet wash site to generate at least between £75,000 and £150,000 gross income per year. Some larger sites may earn upwards of £200,000 whereas some coastal smaller sites due to the seasonal work may earn less than £75,000 gross per annum.

In all cases we believe our sites offer the opportunity with prudent management for the initial franchise investment (between £60-£80,000 including VAT) to be recovered via profitable income within the first 12-18 months and generate decent monthly profits over term of the franchise.

Obviously the greater profitable success will be determined by prudent management of costs as well strong marketing and support of promoting the business to success.