TIER 2 Franchise Program
Frequently Asked Questions
Q. What is the Tier 2 program?
A. PIRTEK USA’s Tier 2 program provides entrepreneurs access to a PIRTEK franchise with a lower up-front investment. Under the program, the entrepreneur can initially operate his or her franchise with just two leased Mobile Service Vehicles, without having to open a staffed Service & Supply Center right away.
Q. Does it replace the standard PIRTEK franchise program?
A. No, the standard Tier 1 program will continue to exist alongside the new option. A Tier 2, mobile-only business is designed to transition into a standard PIRTEK franchise featuring a Service & Supply Center along with several Mobile Service Vehicles.
Q. What’s the major difference between Tier 2 and the standard ownership option?
A. The Tier 2 program requires a $20,000 franchise fee, while the standard option requires $50,000. Under the standard option, a franchisee must open a Service & Supply Center with a staff (approximately six people) and minimum of two (2) Mobile Service Vehicles. Tier 2 franchisees can open with a mobile-only business (typically two vehicles), while keeping an inventory in a small warehouse or storage facility. The franchisee is expected to add a third vehicle after the first year and progress to a full Service & Supply Center location within three years.
Q. Who qualifies for the Tier 2 program?
A. Any entrepreneur who meets the investment requirements and exhibits the right capabilities and desire to own a franchise.
Q. Why is PIRTEK offering this new Tier 2 program?
A. First, we wanted to respond to those entrepreneurs who demonstrated the right qualities, capabilities and desire to own a PIRTEK franchise, but didn’t quite meet all the resource requirements. Secondly, we wanted to provide our current franchisees with an accelerated process to expand their territories and markets.
Q. Is there a standard net worth that a Tier 2 franchisee must meet?
A. A Tier 2 franchisee typically should have a net worth of $250,000, which is less than the standard option requirement. For more information on total investment and other qualifiers, you can contact our corporate office at 1-888-774-7835.
Q. What is the total investment needed to launch a Tier 2 franchise?
A. Launching a Tier 2 franchise requires an initial franchise fee of $20,000, with a cost of $10,000 for each new van added to the existing fleet. The new franchise also will need to launch with approximately $35,000 in inventory. For more information on total investment and other qualifiers, you can contact our corporate office at 1-888-774-7835.
Q. Where can I launch a Tier 2 franchise?
A. We’ll work closely with the franchisee on where to launch, however, the Tier 2 program allows a franchise to launch in a region that would ordinarily be too small for a standard PIRTEK location. Regardless if it’s our standard or Tier 2 program, however, the franchise should open in an area with a population and industrial sector capable of sustaining a Service & Supply Center.
Q. How long does it take to be up and running with a Tier 2 franchise?
A. Once the process begins, a franchise is typically operational under the Tier 2 program in a matter of months.
Q. How will this program help existing franchisees who wish to expand their operations?
A. Some franchisees are in a metro area that can sustain more than one PIRTEK operation. In these cases, the franchisee may wish to increase the scope of the business by opening a mobile-only franchise outside the existing territory, creating a satellite operation. In other cases, the franchisee may want to launch a mobile-only offering in a new market.
Q. How soon is a Tier 2 franchisee expected to progress into a full operation with a staffed Service & Supply Center?
A. A Tier 2 franchisee is anticipated to grow to the point of having to add a third Mobile Service Vehicle after the first year, a fourth Mobile Service Vehicle after the second year and open a fully staffed Service & Supply Center within three years. Our corporate team is available to work closely with the franchisee and provide appropriate guidance to facilitate this transition.
Q. Where do I get more information?
A. You can contact our corporate office at 1-888-774-7835.