SuperGlass Windshield Repair Franchises
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1 SuperGlass Windshield Repair Franchises UK Prospectus Bristol
2 Super Glass Franchise Opportunity - Bristol Offered as background information and to be read in conjunction with our standard UK franchise agreement. Background The purpose of this document is to outline a unique investment opportunity to reproduce an already successful international franchise business in Bristol. The Bristol Franchise shall comprise of an area to include all BS post codes. This opportunity will be offered exclusively by the franchisor to an appropriate owner operator or entity that can support the brand values and service ethic. All relevant opportunities that arise within this area shall be exclusively the right of the franchisee to service. These may include opportunities arising from various networks that SuperGlass is affiliated to or members of. The business model outline Quality competitive windscreen repair primarily on fleet and insured vehicles. Repair only - we do not replace windscreens this give confidence to the buyer of our focus on a quality repair Better quality repairs based upon unique processes, resins, components and repair methodologies. Low cost / overhead business Multi technician franchise area Related services included Windscreen refurbishment Headlight lens repair Scratch removal from vehicular glass Scratch removal from architectural glass Virus shield.
3 Business Description The primary service/product of the company and its Franchisees is Windscreen Repair. The related services that are offered by the Franchisee are headlight lens repair and scratch removal from glass and acrylic. The market for these products is separated into two segments; the Commercial Market that is made up of Motor Freight Fleets, Auto Sales Dealerships, Auto Rental Companies, Food & Beverage Distributors, Government Fleets and all other commercial transportation entities. This market is obtained by direct contact, appointments and a demonstration of the services coupled with a presentation to provide the service on a regular, weekly basis. The second market is the Individual Motorist who owns one to two vehicles and needs the same services. This market is generally obtained through insurance network affiliations, strategic partnerships with repair / replacement companies and by traditional advertising, Internet advertising Google and a website presence in the market. Windscreen Repair is a process where resin is injected into broken laminated glass, air is evacuated and the resin is cured to prevent the glass from breaking further from the damaged area. The service is provided mobile as the equipment is totally portable and is 12 volt powered. The purpose of Windscreen Repair is to prevent the damaged (scored) glass from breaking further due to temperature change and vibration. The process typically takes minutes per repair. Headlight Lens Repair has become important to all customers since the acrylic material of the headlight lens will deteriorate due to exposure to solvents and UV rays. The repair process removes all degraded acrylic, restores the clarity of the acrylic and coats the lens with a protective coating that will resist further degradation for up to three years. The process typically takes 20 minutes per headlight. Scratch Removal from Glass is a process that removes windshield wiper arcs and other scratches from glass and restores the clarity without distortion. This process is to save windshields and side and back tempered glass when it is scratched due to faulty cleaning or worn windshield wipers. The process can take from 20 minutes to an hour, depending on the severity. All three services are generally provided to our commercial customers by servicing them on a repeatable route basis. Most commercial customers will request weekly service. Each technician will service approximately 5 to 7 customers per day totalling 25 to 35 customers serviced per week by each technician.
4 As expertise grows with headlight lens repair, technicians can learn advanced techniques that will allow them to perform advanced repairs on other expensive acrylic transparencies such as large aquariums and boat windows. As expertise grows with scratch removal from glass, technicians can learn advanced techniques that will allow them to perform advanced repairs on very expensive architectural tempered glass, such as office buildings, hotels, etched artwork or other expensive glass. SuperGlass in the USA - A Franchise Pedigree SuperGlass Windshield Repair Inc was founded in 1992 by David Casey, Bill Costello and Bill Mitchell in Atlanta. The company began franchising in 1993 and has locations throughout the world. The private company is based in Orlando, Florida with over 300 franchise outlets. SuperGlass is highly ranked by entrepreneur.com in the top 500 Franchise business list and is a partner to most of the major rental brands and transport fleets in the USA. It has a 24 year track record of success in its chosen niche market. Moreover it is partner to the major repair replacement brands who look to improve their repair ratios for customers and to provide strategic geographic coverage. The fact is their will never be enough quality technicians to manage all of the windscreen damages requiring repair. The following global rankings are independently created by Entrepreneur.com In 2016 SuperGlass became the number one international repair only franchise as recognised by entrepreneur.com Also awarded Best of the Best 2016
5 The following is a sample / indication of USA cities with major airports and the gross sales of that SuperGlass franchise is shown below. Auto Rental customers provide the vast majority of the sales of these sample SuperGlass franchises. SuperGlass in the UK SuperGlass UK was formed in early 2014 after around 12 months of research and negotiations from the US (franchisor) business and set up as a master franchise for the territory. SuperGlass London At the same time SuperGlass London was formed as a stand alone franchise (same ownership as SUK) for two purposes; firstly as a proof of concept initiative and secondly as a long term wealth business proposition. From a standing start and zero customers but with the proven support of the US marketing model and some hard work and dedication of two key staff the London business has now grown into a thriving business turning over 136K pa with 3 full time technicians to date. Projections for end of year three trading to be around 200K Turnover gross profit at between 50%+. London could be viewed as 4 distinct franchise areas combined; London Heathrow, London Gatwick, London Luton, Central London and other surrounding areas.
6 Other franchises now sold in the UK network Birmingham (Co-owned by an ex London technician) Reading Swindon (second purchase by owner of Reading after fast start) Portsmouth (Co-owned by another ex London technician) Southampton (as above) Ipswich Maidstone Stansted Launches 2/1/2017 Basingstoke Launches January 2017 Bracknell Launches January 2017 Chelmsford (CM Post Codes) Launches January 2017 The Bristol Opportunity Although each segment is important to establish a diversified market for the franchise, the Auto Rental segment offers a unique opportunity for volume that is more dynamic than the other segments. The logistics of servicing multiple cars, at the same location, creates the potential for tremendous productivity with minimal driving and administrative time spent. Since one airport generally hosts all of the major Auto Rental companies and a number of smaller companies, many customers can be serviced within a small area with minimal travel time and expense. The Bristol area is offered as pre-revenue and the fee is reflective of this fact and based its vast potential. As the area is developed and creates profitable income the fee will increase. Other opportunities may exist to service opportunities outside of the BS post code areas until such time as those areas are purchased as stand alone franchises. Potential Business 1) Strategic Partnerships Nationwide Windscreens (Potential Strategic Partnership) SuperGlass UK have been approached by the above national repair / replacement company to assist in servicing repair business and increasing repair ratios for their fleet and insurance companies. We service them in all current franchise areas.
7 Other Potential Strategic Partnerships Superglass UK are in discussions with other repair replacement companies to provide enhanced repair quality and service to their fleet and insurance customers. Europcar via Windscreen Repair Network There is a possibility that SuperGlass UK will be offered the rights to service the Europcar fleets within this area in the near future as we have been asked to cover on many occasions. We typically repair around 80% of all glass damage for Europcar and successfully repair around 98% of all repairable damage presented. There is an agreed repair fee of 25 +Vat (this covers up to 2 repairs on each screen). Other Rental Fleets SuperGlass UK are in long term negotiations with the following national brands; Hertz Avis Budget Enterprise (currently contracted until 2017) We service Easirent in all franchise areas and would expect this agreement to extend to Bristol also. Marketing Support Both SuperGlass Inc and London will proactively support the contact any potential customers on behalf of the franchisee to arrange repair demonstration appointments to be conducted by the franchisee. The franchisee would also be expected to support its own growth with drop ins and on the spot demonstrations. Typical targets will be; Local Transport Companies Private Car & Van Rental Firms Dealerships Other Repair Networks MoT and Vehicle Servicing Business Coach & Bus Companies Food & Drink Distributors Van Sales Companies Lease Companies
8 The area is rich in opportunities to market our services as described in the business opportunities section and appears to be potentially very lucrative. Census Population Data Bristol City Area 428,100 Relative to potential insurance repairs The Cardiff market should produce quick cash flow and the opportunity for SuperGlass Cardiff personnel to observe and take part in a typical franchise City Set Up. Creating opportunities to demonstrate the repair process will be key to Market penetration Business Valuation SuperGlass UK conservatively estimate the pre revenue value of the Bristol opportunity at 20,000 (fees will be subject to VAT) and this is the fee to acquire this area as described above. Each franchise fee covers exclusive rights for a ten year period that is renewable. The fee includes the following; 1) Training fee (Including city set up) 2) Full equipment for one technician 3) Franchise investment fee (exclusive rights) 4) Uniform for one technician 5) Initial printing 6) Standard website NB Fee does not include a vehicle. Ongoing fees SuperGlass is considered a low cost entry and ongoing cost business with high earnings potential. The following comprise ongoing / continuing fees payable under the franchise agreement; Royalties (monthly based upon all revenue / turnover) 6% Supply of additional equipment (expand business / enhance productivity) Supply of resins and consumables Training for additional technicians Software platforms
9 Resin and drill bits will be the largest consumable and is likely to comprise around 4-5% of revenue. Potential Year One Revenue Expectations (Single owner / operator) Year One Turnover 50-70K Assumptions here; 8 average repairs per day (London experienced techs typically average between 8 and 16 repairs per day) 6 working days per week Average repair price 28 (conservative) Main overhead considerations Royalties Insurance Vehicle costs and Diesel Supplies and consumables (As above) Potential Expectations of Gross Profit at say 60% 30-42K Non Exhaustive Fleet Data - Company fleet numbers by industry (Basic internet search results) Transport & Haulage 24 Couriers 34 Distribution 18 Van Sales 28 Van Rentals 25 Car Sales 32 Body Shops 51 Coach & Bus Companies 16 Servicing & MoT s 7 Aggregate 7 Total Fleet / Stock Type Businesses - 242
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