B2B Automotive Distribution Franchise

Financial Information

  • Asking Price: $430,000
  • Gross Revenue: $689,328
  • Cash Flow: N/A
  • Down Payment: 0
  • FF&E (Not Included): $50,000
  • Inventory: $200,000
  • Financing: No

Business Location

  • Confidential
  • Missouri
Primary Business Category: Wholesale Trade

B2B Automotive Distribution Franchise serving customers since 2006 operating as a successful, profitable business in the fast growing automotive aftermarket. The automotive aftermarket refers to vehicles on the road today which are older than ever before averaging 11 years of age. These older cars need more repairs. Cars are becoming more complex in nature thus leading to less DIY (do-it-yourself) and less DIFM (do-it-for-me) repairs. The quality of aftermarket manufacturer's parts is getting closer to that of the OE/dealer (Original Equipment) parts. Our franchisor is committed to the success of each franchisee. The franchisee receives select quality, proven product lines integrating state of the art cutting edge technology, enormous buying power, powerful marketing tools into the operations of their locally owned franchise. The current owner is semi-retired while also having several other business interests. $430,000 cost of the business breaks down as follows: $120,000 Business Valuation $145,000 Existing Inventory $ 55,000 Add'l inventory to bring existing inventory to satisfactory levels. $ 45,000 Franchsie Fee $ 50,000 FFE (Furniture, Fixtures, & Equipment) $ 15,000 Launch Expense (to catapult new owner's business relaunch) $430,000

Competition Description

The automotive distribution industry is very competitive. Current Owner feels there are many good competitors servicing his territory, but strongly feels his company has a built in superior advantages vs competitors. Advantages include being in business for over 13 years, having an excellent reputation in the market, having solid rapport between his sales & delivery personnel and customers, plus the benefits of being part of a national franchise system which provides state of the art solutions in those areas most challenging to the everyday success of franchisees, as well as the excellent exclusive territory his business services for same day & second day deliveries of automotive parts.

Growth / Expansion overview

The current owner feels the automotive distribution industry is prime for continued growth due to the good economy. He strongly feels his recent stagnating sales trends can be explained away to personal reasons and day-to-day personal distractions. He further feels that his company's revenue growth should easily expand double digit for years to come. Accelerated growth can be achieved with: #1. A new hands-on owner immersing themselves into fine tuning day to day operations by focusing on product lines and the expertise offered by their proprietary software systems, #2. Increasing current inventory on-hand from $145,000 to $200,000 to better reach the same day and next day needs of customers as on-hand inventory is a significant advantage vs competition, #3. Hire 2 - 3 additional sales and delivery personnel, #4. Look to expand current warehouse space from 3.300 square feet to a minimum of 6,000 square feet. The current warehouse is being used to 90% capacity and has a $1,850 per month lease through 7/31/2020. Either expansion into adjacent warehouse space which may be attainable at the current warehouse location, or a new and larger 6,000 square foot warehouse needs to be sought and secured prior to 7/31/2020, #5. Further investing into this business by taking on a new Exhaust line which has successfully increased other franchisees' businesses by $300,000 in just the Exhaust line category in a very short period of time.

Support / Training Comments

A new buyer must be first approved by the franchisor and have a net worth of at least $780,000. The new buyer need not be an "expert" in the automotive aftermarket industry. The steps to purchasing this business rests with the franchisor. Once vetted and approved, the new owner will undergo the following: • Intro with the Director of Franchise Sales • Receive by email the territory specifics and application • A call with the VP Franchise Development • Webinar offering a tour of the company's software systems & Competitor Analysis • Deal Structure is negotiated • Discovery Day • Training • Opening Day is set Formal training includes: • 2 weeks of remote webinar training • 5 days at Franchisor's Headquarters • 1 additional week of onsite training at franchise location • Ongoing interaction with sales & inventory support staff.

  • Home Based: No
  • Year Established: 2006
  • Franchise: Yes
  • Year Acquired: 2006
  • Willing to Train: Yes
  • Relocatable: No
  • Required Licences:

  • Is Property Leased: No
  • Real Estate Available: No
  • Real Estate Included: No
  • Real Estate Value: N/A
  • Fulltime Employees: 4
  • Part time Employees: 1
  • Is Management Staying: No
  • Distressed: No
  • Monthly Payroll: $0
  • Monthly Rent: $1,850

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Business Listed by

Sunbelt St. Louis

Contact: Michael Gianino
Office Phone: 314-412-6098
Mobile Phone:
Listing ID: STLOUMO002-N4

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Disclaimer: No salesperson, field representative or other person has the authority to make a statement, promise or assurance concerning any matter related to the franchise that is contrary to, or different from, the information/terms contained in the Franchise Disclosure Document/Franchise Agreement. Any such statement, promise or assurance is unauthorized, unwarranted and unreliable. If you believe someone has made an unauthorized statement, promise or assurance to you, please contact Jessica Czekalinski, Esq. at 216-674-0645 ext. 619.