Franchise Opportunities

$29,000

Kwicksilver is primarily focused on the repair, reconditioning, or replacement of aluminum rims using its patented machinery, patented repair methods, and proprietary systems. The services provided by the Kwicksilver franchisee include rim straightening and repair, cosmetic repair, wheel re-machining, wheel polishing, paint matching and clearcoating, as well as custom wheel painting. Kwicksilver shops also sell tires and wheels and offer chrome repair and chrome exchanges to their customers. Kwicksilver shops will have both wholesale and retail customers. Every person who owns a car is a potential Kwicksilver customer.

The initial franchise fee is $29,000. The royalty fee is 6% or a minimum of $300. This minimum increases to $400 after the first 6 months, and $500 after the first year in operation. The royalty fee on the resale of products, such as aftermarket rims, tires, caliper covers, etc., that are purchased by you from Kwicksilver corporate, is just 3%. The average material costs for cosmetic repair is less than 5 dollars per wheel. The franchise fee includes all training and instruction, our entire patented wheel straightening/repair equipment, the Kwickspin™ cosmetic repair station, air tools, hand tools, and a generous amount of our reconditioning consumables, such as the paints, fillers, and abrasives.

More detailed information on the franchise including, training, marketing, financing and revenue estimates can be found in the FAQ, or visit www.kwicksilver.ca


FOR MORE INFORMATION, PLEASE CONTACT:
Marty Long
Owner/Operator
Image Auto Appearance / Kwicksilver Wheel Repair
tel: (780) 443-4220
fax: (780) 451-3151

Franchise FAQs...

What Does a Franchise Cost?

The initial franchise fee is just $29,000. The royalty fee is 6% or a minimum of $300. This minimum increases to $400 after the first 6 months, and $500 after the first year in operation. The royalty fee on the resale of products that are purchased by you from Kwicksilver corporate is just 3%. The average material costs for cosmetic repair is less than 5 dollars per wheel. The franchise fee includes all training and instruction, our entire patented wheel straightening/repair equipment, the Kwickspin™ cosmetic repair station, air tools, hand tools, and a generous amount of our reconditioning consumables, such as the paints, fillers, and abrasives. (Please refer to our Equipment & Product Startup Package for complete list of what you’ll receive.

How Much Money Can I Expect to Make?

A Kwicksilver franchisee will take advantage of several streams of revenue, such as wheel straightening and repair, chrome exchanges, cosmetic wheel repair, dealer/customer aftermarket upgrades, custom wheel painting, wheel location and replacement, tire/wheel sales, mobile wheel repair, etc. A Kwicksilver franchisee will have both wholesale and retail customers. Repairs typically range from $55 to $250, depending on the severity of the damage, the type of rim, and the particular customer. One experienced technician can repair as many as 15 rims in a day. An individual franchisee’s revenue depends heavily upon the franchisee’s ability to spend a significant amount of time developing a solid customer base. This is a very local business where frequent, ongoing, in-person sales calls are necessary.

Our business model differs from our competitors in that our franchisees derive revenues from several different sources and provide several different wheel-related services to the wholesale and retail markets. This gives Kwicksilver a huge competitive advantage. We are the one-stop-shop for everything related to wheel repair and replacement. The competition relies heavily on the wholesale market at car dealerships. Wholesale cosmetic wheel repair at car dealerships is becoming very competitive in many parts of the country. The prices have come down dramatically in the last year to an average price of $60 per wheel.

Conversely, when you offer a complete package of wheel services to the wholesale and retail market, as our franchisees do, your revenues and margins increase dramatically. You’ll also avail yourself to our patented Wheelsaver® straightening equipment and Kwickspin™ cosmetic repair station - the most advanced and innovative wheel repair equipment in the industry.

What Sort of Training Will I Receive?

You’ll receive 2 weeks of step by step instruction from our Kwicksilver Tech Team. The training includes basic tire/wheel instruction, wheel straightening and repair, cosmetic repair, paint blending techniques, and custom wheel painting. We also show you how to use chrome exchanges and dealer/customer aftermarket upgrades to enhance your profits. The training is loaded with valuable trade secrets that we have developed over many years. You’ll also receive important administrative guidance on setting up accounts with tire/wheel suppliers, body shops, tire stores and insurance companies, etc. There is no fee for the first person. Thereafter, the training fee is just $2,000 per person. In addition, you must pay travel and living expenses for yourself and/or your employees/partners during the training period.

Once you return home you will have unlimited access to the Kwicksilver Tech Team. The Team will be available by phone or email to answer any technical questions you may have. This support is especially beneficial during your first few months of operation.

Where Will I Obtain Financing?

We have partnerships with lenders, such as LeaseProcess, to cover your capital equipment needs, including the financing of our new fully equipped Kwickshop™ trailer. This can help limit your upfront, out of pocket expenses. In addition, there are tax advantages to leasing that LeaseProcess will go over with you.

Bank loans are generally done on a local basis. Overall, franchisees have an easier time obtaining bank loans because of the established nature and experience of the franchisor. Often, there are lower default rates on loans for franchises. Lenders will expect the borrower to come up with 15% - 30% of the total capital needed.

Home equity loans and lines of credit are also a great source of start-up capital and carry very low interest rates. The line of credit is an especially useful tool because you only pay interest on those funds that you actually use.

How Can I Secure an Area Without Immediately Jumping In?

We understand that there are many variables that make up your decision to become a franchisee. It’s not always simply a matter of seeing Kwicksilver as a great opportunity and having the money/financing ready. There are timing issues to consider, such as, creating a smooth transition from your current employment or finding a suitable location for the operation of the business.

Consequently, we leave the timing up to you. After we have a signed agreement and down payment, you dictate when you will be available for training. It may be in 2 weeks or 4 months. This gives you more control and should increase your comfort level.

Can I Add Kwicksilver to my Existing Business?

Absolutely, the Kwicksilver concept is a perfect match for those already providing aftermarket repairs, mobile detailing, PDR, windshield repair, carpet and upholstery reconditioning, etc. Kwicksilver is also very well suited for an existing tire dealer, performance shop, custom wheel shop, body shop or service center. Simply designate one bay or area of your shop for wheel repair.

You will be allowed to continue to use your existing name or trademark for your existing services. However, you are required to use Kwicksilver’s trademarks when you are offering wheel repair services.

Do I Have to participate in the Operation of the Business?

Kwicksilver does not require that you personally supervise the franchised business. You may want to purchase a franchise solely as an investor or part-time owner. However, the business must be supervised by an on-premises manager who has successfully completed Kwicksilver's training program. The ideal franchisee may have several technicians working in different shops, all of whom have completed the training program.

Will I Receive an Exclusive Territory?

You will receive an exclusive territory which is dependent upon the general population, the number of body shops, tire dealers, and car dealers, among other factors. You will operate from one location and must receive Kwicksilver’s permission before relocating. Kwicksilver will not operate other shops or grant additional franchises in your territory. There is no minimum sales quota. You maintain rights to your area even though the population increases.

You are allowed to do business outside your protected area until we sell a franchise in that area, at which time you will be required to give up those customers to the new franchisee. To avoid this, we strongly encourage you to consider a multi-franchise agreement or area development agreement.

Can I Accept Customers Outside My Designated Territory?

Kwicksilver will be placing print ads in national trade publications with subscribers in the hundreds of thousands. We will also be exhibiting at the major automotive aftermarket tradeshows. Consequently, you are likely to receive customer referrals outside your territory. For example, when a tire dealer finds our ad in Tire Business Magazine and asks us to locate a Kwicksilver shop we will refer them to their nearest Kwicksilver franchisee, even when that customer is outside the franchisee’s designated territory. We also expect you to receive customer referrals through our website and through Internet advertising we conduct, such as that found on Google.

How Can I Expand My Operations?

Kwicksilver offers both multi-unit franchises and area development rights for qualified individuals, investment groups or companies. Multi-unit franchises can be purchased at a discount to the single-unit franchise fee. Our area development agreement allows a franchisee to expand, by opening additional territories, within an exclusive area, according to a schedule. Either option allows for profit growth at a much faster pace, when compared to the single-unit franchise.

It is our intention to offer franchises in large metropolitan areas only to ambitious franchisees interested in owning whole counties with populations in excess of 1,000,000. These are the most sought-after locations. As such, we want our most motivated franchises to control these areas.

Do I Have To Open Up a Fixed Location Shop?

No, we no longer require you to open a fixed location shop. You can run the business strictly as a mobile operation from our new Kwickshop™ trailer. (Please refer to the Trailer Spec Sheet for complete details.)

However, as you build and expand the business, the addition of a small shop can be very beneficial. This is especially true when building a retail customer base.

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