What's the best way to learn about the
1-800-Radiator franchise business?
Visit our media center and watch the videos as well as take a few virtual tour. If you would like additional information you can always fill out our rapid request form.
Is this business right for me?
Owning a successful 1-800-Radiator franchise is all about building and sustaining customer relationships. Our model is very simple. We use our buying-power, technology, sales and marketing experience to grow each protected territory. However, our strongest performing franchisees are the ones who actively call on their wholesale customers. If you have a background in sales and are comfortable getting out in front of your customers, this is a perfect business for you and can be fun. If the idea of being out of your warehouse calling on customers is not appealing to you, this business would not be a good fit. Back to Top
Do I need automotive experience or knowledge about radiators?
No. To become a franchisee you do not need any prior knowledge or experience. 1-800-Radiator has spent millions of dollars developing computer, purchasing and marketing support that gives 1-800-Radiator franchisees a huge competitive advantage. Back to Top
What’s it like being in the radiator business?
It's a lot different than you think! No grease on your hands. No repairs. It's all about service and sales. Shops buy from suppliers who deliver a quality part fast. 1-800-Radiator has the best suppliers at great pricing. 1-800-Radiator has a lifetime guarantee. You will be set up with the correct inventory so you will almost always have the exact radiator for every request. You will have the only “state of the art” marketing system in the radiator business. Your marketing tools will tell you which shops to contact and what to say to get them buying from you. 1-800-Radiator is also #1 on the internet; www.radiator.com sells more radiators on the internet than any other web site. Day in and day out internet sales will happen in your area. Your printer will spring to life and you'll have another radiator to go deliver! Back to Top
Are the franchise opportunities New Startups?
There is no such thing as a “Startup”. 1-800-Radiator is the best known name in radiators and has been selling radiators throughout the United States for over twenty five years. In the past 12 months 1-800-Radiator has sold almost 1,000,000 radiators (over $100 million) to 80,000 different automotive shops in nearly every city in the nation. Every new franchise will have many shops that have done business with 1-800-Radiator. These shops have been receiving their radiators by UPS or Fed-Ex from a 1-800-Radiator distribution center, usually one or two days after they ordered their part.
The first thing 1-800-Radiator does, when a new franchise opens, is send in a “blitz crew” who calls on all the existing customers and tells them the good news that there is now a new location nearby which will be able to deliver their radiators in the same day. This is the main reason why new franchisees experience an immediate boost in sales when they open their new locations. Shops much prefer receiving their radiators the same day they order their parts.Back to Top
What if I don’t make it as a 1-800-Radiator Franchisee?
1-800-Radiator has never had to take a franchise back; however, we do have an “Inventory Buyback” policy. If you decide in the first year that this is not for you, 1-800-Radiator will guarantee to repurchase your inventory at the exact same price you originally purchased it for. Back to Top
Do I buy my inventory from 1-800-Radiator?
No you do not – and this is one of the key reasons why 1-800-Radiator is such a unique franchise. 1-800-Radiator does not try to make additional money from its franchisees by selling product or materials to them. 1-800-Radiator's philosophy is to use its significant buying power and strong vendor relationships to negotiate highly favorable purchasing agreements with the major manufacturers and to then pass 100% of the negotiated savings on to the franchisees by arranging for vendor-direct purchases. With 1-800-Radiator's huge buying volume, this makes the franchisees extremely competitive. Back to Top
Who supplies the radiators?
1-800-Radiator works with 13 major manufacturers, over 70% of whom are large public companies. Delphi and Visteon, the original equipment suppliers to GM and Ford, are the two largest suppliers, each with sales in excess of $10 billion. Behr and Nissens supply many of the European parts. Koyo, CSF and Samsung handle most of the Asian parts. Many parts are also sourced from Proliance, Valeo, Nitoma, and Spectra. 1-800-Radiator also imported over 100 cargo-containers directly from foreign manufactures in 2005. Back to Top
Are there opportunities available to purchase existing corporate locations?
There are only a handful of available territories left for sale. Contact us today to discuss what areas remain. Back to Top
If I am already in the radiator business, are there any opportunities to purchase a franchise?
Ambitious individuals with no experience have been extremely successful as radiator franchisees. Outgoing, ambitious individuals not afraid of hard work are what 1-800-Radiator is looking for. Being in the radiator business gives no inherent advantage as a 1-800-Radiator franchisee unless you are very motivated to grow your business. If you are, then a 1-800-Radiator franchise could be an opportunity for you. Back to Top
Why are radiators being replaced instead of repaired? Is there a strong demand for new radiators?
Several years ago, most auto makers began installing plastic/aluminum radiators instead of copper/brass. Plastic/aluminum is much more difficult to repair. Labor costs have also risen significantly. Both of these factors have given 1-800-Radiator the opportunity to be the leading replacement radiator supplier in the country. Back to Top
What about Hybrids?
Hybrids need radiators too. Early hybrids, such as the Prius, have small radiators, but more recently, much larger radiators are appearing in hybrid SUVs, as the car makers are using hybrid technology to gain power in addition to fuel efficiency. Back to Top
What are the typical hours of operation?
8:00 AM to 5:00 PM Monday through Friday and 3-4 hours on Saturday. Back to Top
What size and type of warehouse is needed?
A huge advantage a 1-800-Radiator franchise has over other types of franchises is the minimal real estate risk entailed. In your area there are many locations with 1,500 and 3,000 square feet in industrial areas which would be totally adequate. Depending on the real estate market in your area, 1-800-Radiator is usually successful in finding rents between fifty cents and one dollar per square foot. Before you invest 1-800-Radiator sends its location expert to help you find your right location. Back to Top
How much inventory is recommended?
$100,000 is normal. Higher volume units will typically require 10% of annual sales to provide the best service to the customers. Back to Top
What is the average ticket?
The price of a radiator ranges from lows of $89 for smaller Asian cars up to $299 for heavy pickups and SUV's. The average part sells for $138. Your cost is usually a little more than half. Dealer prices are sometimes double what 1-800-Radiator sells its parts for. All 1-800-Radiator parts come with a lifetime guarantee. Back to Top
How many deliveries can I expect to make per day?
Depending on volume, you could expect to have 5 to 30 deliveries a day. Back to Top
How many employees are needed to run the business?
Three people are needed to run a typical location in the first 3-6 months. Including the owner, whose main focus will be driving sales and visiting wholesale customers, you will need a driver and an inside phone representative who will speak directly to customers calling 1-800-radiator in your territory. A location doing $1 million should have 3 to 4 employees (including owner), although some franchisees may choose to have more employees in order to grow their business faster. Back to Top
Is training provided?
Yes. A one week training course is provided at the corporate headquarters in the San Francisco Bay Area. This is followed by two to three more weeks at your location. You are taught all about how radiators work and why they fail. Most of your training is on how to use 1-800-Radiator's marketing systems to grow your business quickly. You are taught how to talk to different types of automotive shops. For example, you will learn that radiators for body shops tend to be for late model cars and radiators for repair shops tend to be for older model cars. Back to Top
Is ongoing support provided?
Absolutely. An account manager will be assigned to each franchisee on an ongoing basis. The manager will personally contact local shops that are not regular customers and explain the benefits of using 1-800-Radiator. This will be done 3-4 times in the first year, and will be ongoing thereafter. The integrated computer system will also remind franchisees on a daily basis who should be contacted and ideas on what should be said to help increase sales. Back to Top
Can I observe a typical operation before I commit my funds?
Yes - we encourage you to talk to and visit other franchisees as part of your research. There are now franchise locations in every state and we'd be happy to help you make contact with them. Back to Top
How long will it take to become operational?
Depending on financing and training, it takes as little as 8 weeks to become operational. We will help generate business during your grand opening as we route the calls in your territory directly to you and visit existing and potential buyers during the marketing blitz. Back to Top
Do new franchisees have access to the database of local customers?
Yes. The current database for the franchisee's territory is made available along with support ideas to effectively market to customers within the territory. Back to Top
What kinds of computer systems are needed?
Any typical PC will connect to the main computer at the company's headquarters. Our IT Staff will specify your computer requirements to assure your equipment will match the needs of your business. A broadband connection such as DSL is highly recommended. All operational software used to run the business (excluding accounting functions) is licensed by 1-800-Radiator as part of the franchise program. Back to Top
What kind of sales growth per year can I expect?
As with any business venture sales can go up or down. In general, sales increases have been very strong for several years and a local franchisee marketing program is likely to enhance sales growth. See Exhibit 5 of the U.F.O.C. for actual expenses and growth rates of franchisees. Back to Top
Do you offer a secure territory?
The cities and all geographic area included within the territory will be the franchisee's exclusive territory for all radiators sold by 1-800-Radiator or the franchisee in that area. Territory populations average around 750,000 people. Back to Top
What kind of marketing support is provided for my local advertising?
The marketing department is constantly developing new programs for corporate owned and franchise territories. These programs will be available to the franchisee. Local advertising will be comprised of direct mailings, yellow pages advertising, and other special promotions. Back to Top
What is the royalty and advertising fee?
8% Royalty and 2% advertising: 25% of your advertising funds will be used for local store marketing in your franchise territory. The remaining funds are allocated to national marketing such as the Internet. We plan future expansion into magazines, television and radio. Back to Top
How much money can I make?
There are no guarantees on profitability as it will vary from operator to operator. For a sampling of historic cash flow for the franchiser at varying sales volumes (of existing warehouses), refer to the 1-800-Radiator UFOC, Exhibit 5. Back to Top
What is my break even point?
A hard working Franchisee can break even, delivering as few as 5 radiators per day. A new location can operate with no employees other than the Franchisee. A “delivery vehicle” will not be necessary because the average radiator weighs just 20 pounds. Franchisees can use their own cars and can deliver as many as 15 radiators per day in them. The main fixed expense will be rent – usually less than $2000 per month. To determine your break even point, it is recommended you review the UFOC and question the franchiser and other franchisees. Back to Top
How is inventory handled?
Once a week 1-800-Radiator's proprietary "Order Generator" program scans and compares the in-stock inventory level with the rate of parts moved and automatically places orders with the appropriate vendors. The orders arrive five to seven days later at the warehouse. Back to Top
How much are shipping costs for inventory?
Most suppliers provide free shipping with a minimum order of 10 to 25 parts. The Order Generator automatically maximizes the free shipping parameters. Back to Top
How are Accounts-Receivable handled?
Approximately 80% of sales are C.O.D. Creditworthy customers are given 25 day terms, at your discretion. Most credit customers will be local car dealers, large body shops, and parts stores such as Auto Zone and Pep Boys. The 1-800-Radiator "Account Collector” helps the franchisee collect on those accounts efficiently. National accounts like Auto Zone and Pep Boys are collected by 1-800-Radiator and remitted to you. Back to Top
What is the warranty allowance?
Each supplier has a different warranty policy. The policies range from an allowance of 2% of purchases to a 100% return policy on defective parts. 1-800-Radiator's corporate-wide warranty and scrap cost approximates 1.7% of sales. Back to Top
Does 1-800-Radiator have any regional or national market growth analysis?
Yes. The 1-800-Radiator "Customer Relationship Management" (CRM) system has historical growth rates by zip code, city, county, state, region, and customer type. Back to Top
We do not offer financing; however there are a number of resources available to prospective owners seeking this option. A thorough evaluation of a business you are interested in buying is obviously a must. However, if you would like to finance the purchase, you will need to document this evaluation in a business plan.
We provide a uniform franchise operating circular (UFOC), which contains relevant information for your business plan. While every franchise must produce a UFOC, some are more detailed than others. We invite you to review ours by submitting an application. 1-800-Radiator is a data driven company and we will provide market reports in fine detail. Reading the UFOC and reviewing our reports are the first steps towards properly evaluating this enterprise.
In addition to the information contained in the UFOC and market data, we have located several resources which have proved very helpful to our current franchisees. The first resource is business software used to create a sound business plan. Our franchise owners have found success using this kind of software to create comprehensive and professional business plans. It's easy to use and is also very inexpensive.
The second financing resource is the ability to use retirement funds to start your business without premature distribution penalties or any interest payments. The ERISA Act of 1974 and EGTRRA in 2001, allowed taxpayers the use of 401(k) and IRA monies to fund their own businesses. There are companies who provide financial components that enable small business funding, while fulfilling the requirements to insure full compliance with applicable IRS, ERISA, and Department of Labor code sections and rulings.
Please call the Franchise Sales Team for details and references at 866-780-9392. Back to Top
I'm interested, what are the next steps?
- Contact 1-800-Radiator franchise sales at 1-866-780-9392 or email to FranchiseSales@1800radiator.com
- Complete the “Confidential Personal & Financial Statement” form and submit it to 1-800-Radiator. If available, fax or email your resumes and personal financial statements. Also provide information on the best times to contact you.
- A 1-800-Radiator representative will contact you once we receive your information.
- If your qualifications meet the requirements of 1-800-Radiator and if you have continued interest, you will be immediately sent a 1-800-Radiator Franchise, Inc. “Uniform Franchise Offering Circular”. Prior to any further discussions, you will need to acknowledge the receipt of this document by signing the last page (item 23) and faxing or sending this back to 1-800-Radiator.
- The next step is a phone or in-person interview with a 1-800-Radiator representative.
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