Franchise Business Opportunity?

Octopus Car Washes Inc. does not offer business franchises. We are a privately held company that doesn’t believe franchises work in the car wash industry. Many attempts by other groups have tried and failed. Over the past few years consolidation groups have attempted to form national, publicly held, companies without success. Some of these groups are now facing bankruptcy protection.

Interested in making an investment in the full service car wash industry?

Here are some points to consider.

Octopus Car Washes Inc. have been in business since the inception of the industry in the early 1950’s. What we have realized over the years is that this is a difficult business to operate without years of prior experience. This is not a business that can be run part time or remotely by the owners. We have been able to expand over the last 40+ years by developing management from within and eventually allowing them the opportunity to become stockholders.

The biggest reason for failure of new car wash operation is the in-ability to comprehend the complexities of the full service business.

1. 100% customer service. You are dealing with one of the single most psychologically important possessions people acquire.
2. Managing a work force of mostly low skill labor is challenging and expensive.
3. It is difficult to hire management because there is not much parallel experience to qualify the candidate. The owner must train the manager providing the owner has the experience.
4. Weather related business. People don’t wash cars in the rain, snow, or drought.
5. Low Profit margin. Like many industries public perception of value dictates price. We charge less for our core service than it costs us to perform it.
6. High expense ratio.

a. Worker’s compensation rates like the construction industry.

b. Labor costs as high as 40% of gross income.

c. Industrial/mechanical facility that is expensive to upkeep.

d. Utility costs are skyrocketing.

It is not for everyone or there would be more of them.