| After searching all the available Car Wash locations | | | | important ingredient, Consistently producing an |
| that are available and finally deciding on a Car Wash | | | | exceptionally clean car in a freindly |
| location he desires to purchase, the buyer should | | | | environment.Customers will go out of their way for |
| create a punch list of competing washes in the | | | | this level of service. |
| chosen area of purchase. There are many unique | | | | Continued: |
| variables a buyer should be aware of in purchasing a | | | | Once a buyer completes the detailed punch list, |
| car wash location; an inexperienced buyer would be | | | | performs an initial site analysis and chooses to |
| wise to consult with an industry consultant to help in | | | | advance to the purchase stage, if the buyer is new |
| analyzing and investigating the results from the | | | | to the car wash industry it is recommended that he |
| following list. | | | | consult with an industry car wash broker/consultant. |
| 1) Check the demographics of this chosen area. | | | | The consultant/broker will help him determine what |
| 2) Check the competition in a three mile radius. | | | | additional services could be added to increase the |
| 3) Check the physical layout of each of the | | | | total prospective gross sales. Car washes are adding |
| competing locations. | | | | complete C stores, oil change & light mechanics, |
| 4) Check the type of competing competition, Full | | | | state inspection, windshield repair, dent repair and |
| Service, Exterior, Etc. | | | | express detailing, just to name a few. The buyer |
| 5) Check the offerings, (menu pricing) for all services. | | | | should also review with the consultant any initial |
| 6) Check the appearance of each location. | | | | deficiencies encountered in his ten step punch list of |
| 7) Check the customer handling and quality produced | | | | the competitive area, and any deficiencies he |
| at the competing washes. | | | | encountered during the inspection of the intended |
| 8) Check the type of on site discounting offered at | | | | site. |
| competing washes. | | | | Critical areas that affect the asking price for the |
| 9) Check how customer friendly each competitor is. | | | | location and are potential negotiating points are as |
| 10) Check with the city planning, if new car washes | | | | follows. |
| were approved in the area. | | | | The amount of lease offered if the property is not |
| Compare all of the above to the location you are | | | | included. The years remaining on the lease, the rent |
| about to purchaser | | | | and the amount of rent increases. Is the buyer |
| Before getting involved with the seller on a location | | | | accepting structural responsibility? If so, the seller is |
| he chooses to purchases, it would be wise for the | | | | obligated to assign the lease structurally sound. |
| buyer to inconspicuously perform an extensive | | | | Building inspection is recommended. |
| review of all the aspects of this location by washing | | | | Equipment, on line and offline, should be inspected by |
| his car at this location a few times during a slow | | | | a qualified car wash equipment mechanic; all |
| period and also during peak periods. Record detailed | | | | equipment must be in operational order on passing of |
| notes on the presentation of the seller and how | | | | ownership. |
| efficient and pleasant was his sales pitch to upgrade | | | | Inventory, Soap, Waxes, Chemicals and Retail items, |
| you each time. The vacuuming your car received, if | | | | what is included and what is not. |
| offered, the quality of the windows if offered and | | | | Discount yearly plans club plans and gift certificates |
| the overall experience you received from all the | | | | that continue in circulation. Usually an amicable formula |
| employees and management, (finally "the quality of | | | | will be worked out. |
| the final end product". This is the only reason the | | | | The buyer should review all wholesale accounts if any |
| majority of customers patronize a particular car wash | | | | to determine what percentage of income is derived |
| location. | | | | from it. |
| In evaluating all of the above a buyer should compare | | | | The buyer would review all income and expense |
| the results to the above ten point punch list | | | | statements, this is most critical, expenses are for the |
| accumulated. In short, know your competition and | | | | most part easily determined, and the income |
| the situations you will be competing against. | | | | verification is best completed under the guide of an |
| In the evaluation process a buyer looking for a turn | | | | industry broker/consultant. This industry broker |
| key operation should expect that all of the above | | | | consultant will also be valuable in arriving at a fair |
| results should average between (8.5 to 10) on a scale | | | | evaluation of the business. The car wash industry is a |
| of 1 to 10. This being the case the location would be | | | | unique business in that there are many variables that |
| doing well in all aspects and in most situations asking | | | | could dictate the value, high or low of a particular car |
| a premium price for the business. | | | | wash location. |
| In the event your results are below the scale, in | | | | The next step assuming the buyer chooses to make |
| most cases this should be reflected in the amount of | | | | an offer to purchase; the broker/consultant would |
| business at this location, therefore also reflected in | | | | assist the buyer with negotiations for the final selling |
| the price. The good news is that if you recognize the | | | | price, if successful would guide the buyer in the due |
| deficiencies of any location, in most instances they | | | | diligence process. Assuming all goes well the buyer |
| can be corrected. | | | | should stipulate that the site be inspected with a |
| Through the years I have inspected numerous car | | | | phase one environmental. The buyer should also |
| wash locations and have observed many different | | | | obtain permission to retain the telephone numbers |
| management/ownership scenarios. It has been my | | | | dedicated to this intended location. |
| experience that many of the same locations were | | | | Lastly, obtain a good lawyer, I would strongly |
| top locations, producing huge volumes and great | | | | recommend seeking an attorney that is very familiar |
| dollar averages per car and these same locations at | | | | with the contractual requirements in the sale of a car |
| other times were in total regression. Think about this: | | | | wash location, it is also to the buyers advantage to |
| in 99% of the locations the only difference was that | | | | use a broker that specializes exclusively in car |
| the management/ownership had changed and the | | | | washes. |
| present management lost focus on the one | | | | |