Due Diligence Questions for a Tunnel Wash - New to Tunnels

[JaySingh]

Hey Guys, Just went under contract on a Tunnel Wash + SS Car wash. I am familiar with Self Serve Bays and Equipment but don't know much about Tunnel Washes and the due diligence needed.

What are some questions you would ask the seller and numbers that they can provide to help evaluate the quality, value, and condition of the Tunnel wash. The maintenance? How soon are these parts replaced or serviced and etc. What questions are critical to know from the seller?

I am going to have 2 independent Techs come and give an assessment on the Tunnel.

The Equipment list is as follows:
-Macneil 90' Conveyor
-Bellanger Command Center
-Bellanger Whipper Snapper
-Belanger Rocker Brushes (2)
-NS Wrap Brushes (2)
-Rain Arches (2)
-Lava Arch
-TSS Eclipse
-Rinse Arch
-Superior Hurricane Blowers (4)
-Superior Tripple Foam Unit
-Sonny's CTA
-TSS LED Signs (2)
-Unimac (202)
-ICS Tunnel Conroller (24 Controller)
-Sonny's POS

TIA!

 

[traveler17]

There are some tunnel guys in here but in my experience due diligence is supposed to be done before you buy

 

[JaySingh]

I haven't bought the car wash yet... I am in escrow / under contract.

 

[Earl Weiss]

Find out when pits / trench were last cleaned. Not fun to take over a place and have to quickly spend $5000 to clean pits. Get a local equipment installer to examine equipment if you are not familiar with it. Most important consideration is that it is structurally sound. Things like Bearings, Motors etc can be easily replaced.

 

[washnshine]

Hey Guys, Just went under contract on a Tunnel Wash + SS Car wash. I am familiar with Self Serve Bays and Equipment but don't know much about Tunnel Washes and the due diligence needed.

What are some questions you would ask the seller and numbers that they can provide to help evaluate the quality, value, and condition of the Tunnel wash. The maintenance? How soon are these parts replaced or serviced and etc. What questions are critical to know from the seller?

I am going to have 2 independent Techs come and give an assessment on the Tunnel.

The Equipment list is as follows:
-Macneil 90' Conveyor
-Bellanger Command Center
-Bellanger Whipper Snapper
-Belanger Rocker Brushes (2)
-NS Wrap Brushes (2)
-Rain Arches (2)
-Lava Arch
-TSS Eclipse
-Rinse Arch
-Superior Hurricane Blowers (4)
-Superior Tripple Foam Unit
-Sonny's CTA
-TSS LED Signs (2)
-Unimac (202)
-ICS Tunnel Conroller (24 Controller)
-Sonny's POS

TIA!

Find out how many cars have been cleaned with the current conveyor chain - you techs should have a good look at that.

That’s quite a smorgasbord of equipment!

All cloth/foam/wash material needs to be checked for replacement if it is worn or thin.

Mechanically speaking:


Mitter should be fine - it’s greaseless and low maintenance. Providing the frame was never hit or damaged it should give you decades of use. If it is truly a whipper snapper, it is the four leg design with either 4 or 6 baskets from the 1990’s - it might be pretty old, but certainly can last.

Rockers - check shocks and bearings

Wraps - NS has a super simple gravity based design. Check bearings , springs and adjustments - wraps need to be set to create optimum pressure in the cars. This is done with the angle of pivot on these wraps. You basically loosen some U bolts and hammer the arm angle in one direction of the other. A good tech should do this - not you, right now!

Blowers are generally very low maintenance and last a very long time.

All chemical delivery systems need to be checked for clear lines that deliver consistent product. Nozzles and applicators/foamers should provide even coverage.

All lighted signs and controllers will be pretty obvious if they are not functioning properly - there will be visible signs of malfunction.

 

[Axxlrod]

You're under contract already? You agreed on a price but don't know the numbers?

I would be rather suspect of the equipment due to the fact that everything is pieced together from random companies. That would suggest the current owner bought a bunch of random used equipment and made a Frankenstein tunnel.

 

[JaySingh]

You're under contract already? You agreed on a price but don't know the numbers?

I would be rather suspect of the equipment due to the fact that everything is pieced together from random companies. That would suggest the current owner bought a bunch of random used equipment and made a Frankenstein tunnel.

Yes under contract; 90 days to close escrow. I do know their numbers but I am trying to verify them and see if the numbers stated are actually true. Want to see if the car counts match the P&L, etc.

 

[traveler17]

Yes under contract; 90 days to close escrow. I do know their numbers but I am trying to verify them and see if the numbers stated are actually true. Want to see if the car counts match the P&L, etc.

PNL s are ok but you need to request tax returns

 

[JaySingh]

PNL s are ok but you need to request tax returns

Yes will have those, part of the problem is I am buying 1 Car Wash and the owner has 3 others on the Tax Returns.

 

[traveler17]

I agree, that could be a problem because you’re just going by his word. And that has got a lot of people in trouble. Maybe someone on here has been through a similar situation can offer up better advice than just tread lightly. Good luck !!

 

[Dan kamsickas]

Yes will have those, part of the problem is I am buying 1 Car Wash and the owner has 3 others on the Tax Returns.

Any way you can back out of the deal? You have absolutely no way to be certain he isn't just dumping his poorest performing wash on you.