Franchise: ESPRESSO CARWASH CAFE - Car - Car Wash

Espresso Carwash Café first established a site on cnr Lincoln Road and Moorhouse Avenue, Christchurch and started trading on the 1st June 2004. This site is different to our mall locations as we provide a café and board room facilities for our customers. This site was franchised in March 2007.

Our second location was opened on 1st April 2005 at The Palms Shopping Centre. After 5 months of trading we decided to Franchise, as it is common knowledge that owner operated businesses operate so much better (and also making sure we had the right Franchisee).

The Hub, Hornby, Shopping Mall, Christchurch which we opened on 1st August 2006 and then franchised in 2007. Northlands Mall, Christchurch was opened on 18th May 2006, this mall location was pre sold as a Franchise before opening. This location has exceeded our 1st year budgets and continues to steadily grow. Our fifth location we are currently looking at is in the Ferrymead area of Christchurch.

"At Espresso Carwash Café our aim is to provide you with the best customer service and attention to detail while being the most environmentally friendly hand wash carwash in New Zealand without compromise".

Espresso Carwash Café was established because we believed there was a gap in the market for this particular service and concept. We wished to provide our customers with an affordable and diverse service that many had not experienced before.

1. Costs - Initial Franchise Fee $95000.00 plus GST plus set up costs ranging from $55000.00 minimum to approx. $75000.00 for a stand alone location i.e. shopping centre. With full café and carwash facilities ranging from $125000.00 to approx. $195000.00 the costs all depend on the location.

2. Rules - we have a franchise agreement and franchisee hand book that has everything covered. We are a 7 day a week business and hours depend on whether or not the business is stand alone or attached to a mall, as this would run with the mall hours. The franchisee is required to work the business at least 70% of the time. It has been proven in our existing sites in Christchurch that having the owner on site increase's turnover and quality of work.

3. Cost for Franchise per month - we charge a 5% fee plus GST on the net monthly turnover per month plus a marketing fee which at this stage is .50% of the net monthly turnover plus GST per month.

Above are indicative figures for set up costs and also what our franchise and marketing fees are per month.

This is a fairly new concept in New Zealand and the potential for growth is huge. The market for this style of carwash facilities has not been fully tapped into. We have 4 Franchise's already operating in Christchurch with a fifth location to be opened by Christmas and this gives us coverage over a large portion of the Christchurch area. The only other area in New Zealand that has facilities of this kind is in the Auckland area with a carwash business having 2 locations. Our view is that we can expand our franchise business throughout New Zealand and have a total of 20 locations nationwide.