Home
>
Small Business
>
Home Based Franchise Case Study

Home Based Franchise Case Study

Here is an interesting case study of a company, which franchised mobile car wash units. It started with the humblest of beginnings indeed. I can say that with complete knowledge because this is a company I started at age 12 years old. It was not until I was nearly 32 years old that we franchised my business. This franchise was great in concept but franchisees would not follow the system enough, they deviated from the plan in most cases. The franchisees that stayed with the plan did very well, the ones who did not, did okay, but could have done better.

Since this was our first try at franchising, we made the franchise documents too lenient and therefore it was hard to enforce standards. The customers were blown away by the idea of getting their car washed anywhere at anytime by phone call or e-commerce B2C. They love us, it is better than being the Fed Ex or UPS guy. If someone has not played sports or been involved in competitive events sometime in their life; we will not sell them a franchise. We want the Olympic style attitude. Because of this the Competition hates us, but only because I am so competitive since I was involved in sports and politics myself. Also in 1991 a car wash owner tried to run me out of business by lobbying to local politicians and lodging complaints to code enforcement, EPA, and County environmental control boards. This was the new environmental age and I was learning quickly about politics and business the hard way. Most Industry leaders representing our competition are clashing with us due to our drive, electronic Blitz marketing and bright yellow HERE I AM mobile car wash trucks.

At one point I had 53 Independent contractors in 39 cities washing cars. Kind of like a mini-franchise system. It was hard work. Soon I realized I was going to have to franchise this business. So we did in 1996-97. Upgraded everything, painted trucks yellow and allowed independent contractors to transfer in. Some did, most did not. Why should they sign anything they were already making money and it was all on a hand shake. I didn't blame them.

As the franchise grew we started allowing those franchisees who bought multiple trucks to have additional areas to expand into, giving us better marketing power to sing up bigger accounts in many areas. It worked. Then came e-commerce, upgrades and we took everything we learned and kept upgrading, unfortunately soon the original franchisees did not look anything like the newer franchisees; different equipment, training, marketing, CDROMS, business plan, new web site. And we needed to divide and conquer each market sector individually. We were washing golf cart, shopping carts, wheelchairs, ski lifts, silos, buses, trucks, cars and we got into a situation were there was too much work, and a challenge to hold onto routes and consistency.

We decided to upgrade the system. Since I had always owned the trade name myself we started another company WashGuy.com to divide up the markets and franchised all our ideas to allow maximum use of all my contacts, and the associates I had gathered and their skills. Then we would franchise each brand name by itself and let all the franchisees of all the systems work together trade leads and operate in harmony washing their specialty niche. The New Car Wash Guys; www.carwashguys.com would be part of WashGuy.com, which was going to acquire the franchise Car Wash Guys International, Inc. Unfortunately Car Wash Guys International did not have the royalty stream to service the franchisees properly and grow correctly so it was closed and all the franchisees in good standing were allowed a no franchise fee entry into the new system to be fair. Those that were not near current status on royalties were terminated prior to closing.

WashGuy.com agreed to take on the burden of keeping up those franchisor requirements in the previous Car Wash Guys International agreement even though it would be a loss. It would give the new franchise system a head start with franchisee numbers and make it easier to secure group discounts on products, and entice lending institutions to go with lower rates and better terms and prevent us from ever having to use sleazy leasing companies, with exorbitant rates causing a poor ROI for team members and slower growth rate for new trucks and to add to the franchisees arsenals. I did not charge a royalty, I charge per unit, so the more trucks the more royalties to grow the franchise. The only way for me to make more is if the franchisees have so much business they need more trucks to do the work. I win only if they win. If they lose, I lose worse; indeed a great incentive to work together and communicate. I even co-authored a book in which this was my main theme; "Franchising 101" Dearborne Publications.

This was a great franchise and growing fast. Our customers are anyone one that owns a car. There are on average 1.7 cars for every man woman and child in this country and so my potential exposure to this market is 5 times that of the cable TV Industry and twice that of cellular phones. Average car wash is $10 X 50 weeks a year. So of all my markets this is the most challenging of all. It will take twenty years to conquer. What I need is a 40-60 million dollar financed competitor to go and set up the major markets with mobile car washing so I can take all those customers away with superior service and more efficient operations thus lower prices. I need this competitor to teach my future customers how to do business with me and then I will slice and dice city by city as Car Wash Guys earn our destiny.

I started washing cars because I ran out of local airports to wash at since I had a 35% market penetration at all the near by airports and needed more to wash. Plus I got my drivers license. This was when I was 16. Boy I will tell you being a franchisor is the toughest business in the World and if you want to do it, you are nuts. I work 17 hours a day 7 days a week, no days off in 15 years. I can remember one three-year period I have skipped every third night of sleep, and follow up with a ten-hour crash. You have to give up everything to be a franchisor. For many Entrepreneurs this is simply part of the game, but for most they cannot deal with it. I understand that, accept it and challenge myself since there are no market leaders of any significance in my markets. We designed and attempted to build an LPG car wash truck to help the environment and worked on an aircushions hover system with electric motor. It did not work, it seems as an entrepreneur you are always doing stuff, some works, some doesn't but you are always pushing the envelope, God Bless the entrepreneurs, I hope you enjoyed today's case study as it is a chapter of my life as well as lessons learned in franchising. Think on this.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs

apartment cleaning near Highland Park ..

In The News:

Hyundai AutoEver America suffered a data breach affecting 2,000 current and former employees, exposing names, Social Security numbers and driver's license information.

Washington court rules automated license plate reader images are public records, even when stored by vendors like Flock Safety, setting precedent for transparency.

Fake airline texts claiming flight cancellations are targeting travelers with convincing scams. Learn how cybercriminals steal personal data and credit card info.

Discover how iOS 26's new Adaptive Power feature automatically extends iPhone battery life by learning your usage patterns and adjusting performance intelligently.

New TikTok malware campaign tricks users into running PowerShell commands that download Aura Stealer, which steals credentials and authentication tokens.

Gaia Family offers fixed upfront pricing for IVF cycles with unlimited embryo transfers and financial protection, partnering with over 100 U.S. fertility clinics.

The Jetsons Act aims to position Pennsylvania as a leader in advanced air mobility by establishing regulations for hybrid ground-air vehicles.

Fake Geek Squad invoice emails are targeting users with convincing charges and urgent phone numbers to steal personal information and money.

Fox News Digital's artificial intelligence newsletter digs into a robot in Russia that faceplanted, George Clooney's alarm and OpenAI's rivalry with the New York Times.

Major data breach at Conduent exposes personal information of 10+ million people. Government contractor hit by cyberattack affecting Medicaid, child support systems.

Texas startup Janta Power raises $5.5M for innovative vertical solar towers that generate 50% more energy than traditional panels while using just one-third the land.

NASA's twin ESCAPADE spacecraft launched aboard Blue Origin's New Glenn rocket Thursday afternoon from Cape Canaveral, beginning their journey to Mars with arrival expected in 2027.

Learn how to set email reminders on iPhone and Android so you never forget to reply again. Simple built-in features help you stay organized and on top of messages.

Discover how Apple's passkeys revolutionize Mac security by replacing vulnerable passwords with biometric authentication and encryption for ultimate protection.

New survey reveals 78% of parents fear AI scams targeting their kids, yet nearly half haven't discussed these threats. Learn why this dangerous gap exists.

Chrome now autofills passport and driver's license info automatically. Google's latest browser update adds official document support with encryption and user control.

Scammers impersonate Department of Veterans Affairs employees claiming veterans owe money, but real VA communications only direct to VA.gov or official channels.

The AltoVolo Sigma hybrid-electric aircraft flies 500 miles at 220 mph while operating 80% quieter than helicopters, featuring safety systems and compact design.

Google search scam alert: fake customer service numbers can give scammers remote control of your phone. Learn how to spot these traps and protect yourself.

Electric vehicles overtake gas cars in total CO2 savings after just two years of driving, with emissions benefits growing over time as power grids get cleaner.

Louvre Museum reportedly used "Louvre" as password for surveillance system during $100M jewel heist. Learn how weak passwords put even famous institutions at risk.

Bipartisan AI jobs bill from Sens. Hawley and Warner would require companies to report AI-related layoffs and hiring to Department of Labor quarterly.

Joe A. from Shelton, Connecticut, lost $228,000 to a ZAP Solutions cryptocurrency investment scam after his divorce, highlighting rising online fraud.

AI-powered autonomous trucks from Waabi and Volvo target U.S. freight driver shortage with Level 4 self-driving technology and NVIDIA computing platform integration.

Survive flight disruptions with expert travel tips: Book early morning flights, download airline apps and know your refund rights during service cuts.

Home Based Franchise Case Study

Small Business