designing and building an EE with detail 10 miles from texas motor speedway. what do you guys think of trying to get the NDP group to let me use the nascar name? i was talking to someone from sobrite water reclaim who said he knew someone that knew someone that pays 25 cents a car to use the name. if that's it, it seems reasonable. on the website it states they're "not a franchise". so what are they? the nascar name would definitely be a differentiator and worth something in my market.
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nascar carwash ....
- Thread starter parsonii
- Start date
I.B. Washincars
Car Washer Emeritus
What benefit will there be to using the Nascar name. I'm a huge Nascar fan, but I realize that about 90% of the people aren't. Are you saying that you would have to cough up 25¢ from each and every wash when you would most likely get 99% of them without the Nascar name?
I think it would be a differentiator, but I don't think it would be worth anything. My 2¢
I think it would be a differentiator, but I don't think it would be worth anything. My 2¢
robert roman
Bob Roman
I have been studying and writing articles about carwash franchising since 2000.
I was also part of a venture group that tried to bring NASCAR-branded carwash (NCW) into Florida.
NCW is a brand and licensing agreement. There is no integrated investment model of network expansion.
Instead, the strategy is to prospect investors, developers and operators that want ownership in a NASCAR-branded carwash via new construction (preferably area development) or re-flagging existing carwash facilities.
There are no royalties or regional marketing fees. However, NCW does take some cents per car off the top based on carwash count.
Like a franchise, new construction is required to adopt the NCW design and model. Some sites have oil change. Reflag is renovation to NCW model.
Like a franchise, operators are required to adopt the NCW revenue and marketing model.
NCW must approve locations but the requirements, unlike a franchise, are fuzzy.
NCW does not provide finance but it may help leverage portion of funding start-up expenses.
How well has it worked?
Consider the NASCAR races in Florida gross more revenue than all other sports properties in Florida combined annually.
However, our venture group failed to bring several qualified investors to the table for a $12 million deal.
There are no NASCAR-branded carwashes in Florida, the third most populated state in the U.S.
I was also part of a venture group that tried to bring NASCAR-branded carwash (NCW) into Florida.
NCW is a brand and licensing agreement. There is no integrated investment model of network expansion.
Instead, the strategy is to prospect investors, developers and operators that want ownership in a NASCAR-branded carwash via new construction (preferably area development) or re-flagging existing carwash facilities.
There are no royalties or regional marketing fees. However, NCW does take some cents per car off the top based on carwash count.
Like a franchise, new construction is required to adopt the NCW design and model. Some sites have oil change. Reflag is renovation to NCW model.
Like a franchise, operators are required to adopt the NCW revenue and marketing model.
NCW must approve locations but the requirements, unlike a franchise, are fuzzy.
NCW does not provide finance but it may help leverage portion of funding start-up expenses.
How well has it worked?
Consider the NASCAR races in Florida gross more revenue than all other sports properties in Florida combined annually.
However, our venture group failed to bring several qualified investors to the table for a $12 million deal.
There are no NASCAR-branded carwashes in Florida, the third most populated state in the U.S.
For a simple example's sake let's assume that you are going to charge $5 per wash and wash 1000 cars/month.
$5000 revenue - $0.25/car =$4750 or a 5% royalty to use the name.
To see any benefit to using the NASCAR logo you would need to wash an extra 52 cars each month to achieve the same volume of sales revenue. (5.2% increase in volume)
Even though a quarter doesn't seem like much, giving up $0.25/car is huge when you start looking at the volume. As I.B. hinted at, with 90% of the population not part of your target demographic, it might be very difficult to see a return on your 5% investment.
$5000 revenue - $0.25/car =$4750 or a 5% royalty to use the name.
To see any benefit to using the NASCAR logo you would need to wash an extra 52 cars each month to achieve the same volume of sales revenue. (5.2% increase in volume)
Even though a quarter doesn't seem like much, giving up $0.25/car is huge when you start looking at the volume. As I.B. hinted at, with 90% of the population not part of your target demographic, it might be very difficult to see a return on your 5% investment.
mjwalsh
6 bay SS w/laundromat
Parsonii from Texas,
I have a very vivid memory of visiting with Richard Petty (one on one) at one of the booths at the ICA convention back in 1980 that I attended. It definitely was a significant added excitement in the air surrounding that specific large booth.
mike walsh king koin usa
rph9168
Carwashguy
Franchising by any other name still costs money that probably does not need to be spent. There are many excellent sources to learn how to operate a car wash successfully. Name branding the wash has little effect on local clientele and usually costs money off the top. The most important factor is to keep your wash in excellent working condition while giving your customers value along with a clean, dry vehicle. if you don't do that you won't be long for the business.
Success in the car wash business is simple:
a. Visible location
b. Easy to access and exit
c. Good quality wash
d. Excellent customer service
e. Consistency - quality and service always the same
f. Fast service
g. Reasonable price, no more than $5.00 or $6.00 for basic wash
You do these things and you will not have to do anything like partnering with NASCAR for $0.25 a car.
KISS is the watchword in the car wash business.
Bud Abraham
a. Visible location
b. Easy to access and exit
c. Good quality wash
d. Excellent customer service
e. Consistency - quality and service always the same
f. Fast service
g. Reasonable price, no more than $5.00 or $6.00 for basic wash
You do these things and you will not have to do anything like partnering with NASCAR for $0.25 a car.
KISS is the watchword in the car wash business.
Bud Abraham
