Q. What is the Tier 1 program?
A. PIRTEK USA’s Tier 1 program is the company’s standard franchise ownership model.
Q. What are the Tier 1 program’s requirements?
A. The Tier 1 program requires a $50,000 franchise fee to open a Service & Supply Center with a full staff (about six people) and three Mobile Service Vehicles. The franchisee should have a net worth of $750,000.
Q. Where can I open a PIRTEK franchise under the Tier 1 program?
A. PIRTEK will help prospective franchisees select a suitable location. A Tier 1 franchise should be in an area with the population, industry and ability to maintain an ETA of 1-hour response time. If a location already has a PIRTEK center, the area must be able to accommodate multiple centers before adding an additional Service & Supply Center. Also, the new franchise must be in a territory that does not compete with any existing PIRTEK.
Q. Does a Tier 1 franchise owner need any special experience in hydraulic or industrial hoses before owning a franchise?
A. No. PIRTEK will provide comprehensive training to the franchise owner and the new Service & Supply Center staff before the center opens its doors. PIRTEK franchisees include corporate professionals, sales people, managers, finance professionals, contractors, marketers, computer engineers, franchisees and veterans.
Q. What are some of the attributes a successful PIRTEK franchisee should have?
A. First of all, it’s important that a PIRTEK franchisee possess a strong entrepreneurial spirit and be success-oriented. He or she should also understand the value of networking, sales, marketing and community involvement.
Q. How long does it take to set up a PIRTEK franchise?
A. It’s possible to set up a PIRTEK franchise in a matter of months.
Q. What industries can provide a PIRTEK center with a customer base?
A. Any industry that uses hydraulic or industrial hoses is a potential PIRTEK customer. That includes construction, marine, manufacturing and many others. Any business with heavy equipment, vehicles, planes, trains or elevators can benefit from PIRTEK’s services.
Q. Is there another franchise ownership program other than Tier 1?
A. Yes, a Tier 2 franchise program is available. A Tier 2 franchisee can start with a mobile-only option: two Mobile Service Vehicles and a place to keep inventory (a garage or store facility). The franchisee is expected to add a third vehicle after the first year, progressing to a full Service & Supply Center location within three years. The plan requires a $150,000 point of entry. For more information, refer to the Tier 2 FAQ document.
Q. Are there any discounts available to veterans of the U.S. Armed Forces?
A. Yes, if you are an honorably discharged veteran of the U.S. Armed Forces, you may be eligible to receive a $15,000 discount off of the initial franchise fee amount at the time you sign the franchise agreement for a Tier 1 Business or $5,000 off the initial franchise fee for a Tier 2 Business.
Q. What is the Tier 2 program?
A. PIRTEK USA’s Tier 2 program provides entrepreneurs access to a PIRTEK franchise with a lower up-front investment. Under the program, the entrepreneur can initially operate his or her franchise with just two leased Mobile Service Vehicles, without having to open a staffed Service & Supply Center right away.
Q. Does it replace the standard PIRTEK franchise program?
A. No, the standard Tier 1 program will continue to exist alongside the new option. A Tier 2, mobile-only business is designed to transition into a standard PIRTEK franchise featuring a Service & Supply Center along with several Mobile Service Vehicles.
Q. What’s the major difference between Tier 2 and the standard ownership option?
A. The Tier 2 program requires a point of entry of only $20,000, while the standard option requires $50,000. Under the standard option, a franchisee must open a Service & Supply Center with a staff (about six people) and three Mobile Service Vehicles. Tier 2 franchisees can open with a mobile-only business (typically two vehicles), while keeping an inventory in a home garage or storage facility. The franchisee is expected to add a third vehicle after the first year and progress to a full Service & Supply Center location within three years.
Q. Who qualifies for the Tier 2 program?
A. Any entrepreneur who meets the investment requirements and exhibits the right capabilities and desire to own a franchise.
Q. Why is PIRTEK offering this new Tier 2 program?
A. First, we wanted to respond to those entrepreneurs who demonstrated the right qualities, capabilities and desire to own a PIRTEK franchise, but didn’t quite meet all the resource requirements. Secondly, we wanted to provide our current franchisees with an accelerated process to expand their territories and markets.
Q. Is there a standard net worth that a Tier 2 franchisee must meet?
A. A Tier 2 franchisee typically should have a net worth of $250,000, which is less than the standard option requirement.
Q. What is the total investment needed to launch a Tier 2 franchise?
A. Launching a Tier 2 franchise requires a $20,000 entry cost, with a cost of $10,000 for each new van added to the existing fleet. The new franchise also will need to launch with approximately $35,000 in inventory.
Q. Where can I launch a Tier 2 franchise?
A. We’ll work closely with the franchisee on where to launch, however, the Tier 2 program allows a franchise to launch in a region that would ordinarily be too small for a standard PIRTEK location. Regardless if it’s our standard or Tier 2 program, however, the franchise should open in an area with a population and industrial sector capable of sustaining a Service & Supply Center.
Q. How long does it take to be up and running with a Tier 2 franchise?
A. Once the process begins, a franchise is typically operational under the Tier 2 program in a matter of months.
Q. How will this program help existing franchisees who wish to expand their operations?
A. Some franchisees are in a metro area that can sustain more than one PIRTEK operation. In these cases, the franchisee may wish to increase the scope of the business by opening a mobile-only franchise outside the existing territory, creating a satellite operation. In other cases, the franchisee may want to launch a mobile-only offering in a new, currently undeserved market.
Q. How soon is a Tier 2 franchisee expected to progress into a full operation with a staffed Service & Supply Center?
A. A Tier 2 franchisee is anticipated to grow to the point of having to add an additional Mobile Service Vehicle after the first year and open a fully staffed Service & Supply Center within three years. Our corporate team is available to work closely with the franchisee and provide appropriate guidance to facilitate this transition.