When looking to join a franchise, there are many things you should know and consider to ensure your investment is safeguarded. Compared to independent companies, an industrial franchise like PIRTEK is considered low risk because they offer the independence of small business ownership, with the support, backing, and benefits of a globally well-established, recognized brand and its business network – which significantly lowers the failure rate.
Here are six things that matter when franchising in the industrial sector.
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Market Growth and Demand
The global hydraulic and industrial hose market saw significant growth when last valued in 2020 at $1.94 Billion. Since then, it has shown signs of an advancing market, with an expected CAGR of 4.5% by 2027.
Investing in a PIRTEK franchise means capitalizing on a successful enterprise in a growing market and the proven sales success of our existing franchisees. Our brand has shown tremendous growth between April and September, with four openings and nine franchisee signings in Georgia, Louisiana, Texas, Kentucky, and Virginia.
Our Franchise Partner Startup Costs
Just like starting a new business independently, there are costs involved with franchising. The upside of choosing a franchise is the training and support resources included in your investment.
PIRTEK’s most exciting differentiators are the two franchise tiers we offer – to suit our investors’ unique needs.
Our classic model includes a brick-and-mortar store and vehicles for mobile repairs. The cost spans from around $410,300 to $899,300, depending on various factors like size and location. Our Tier 1 franchisees are expected to have a net worth of approximately $750,000, and the business model allows you to offer more products and services to your customers.
As a Tier 1 franchisee, you’ll work with clients in construction, agriculture, food service, and many other industries that rely on hydraulic technology. The cost will cover the following:
- Rent and security deposit on your location
- Leasehold improvements
- Initial franchise fee
- Shop signage and equipment
The Tier 2 franchise is less expensive than Tier 1. With a net worth of around $250,000, Tier 2 franchises do business exclusively using Mobile Sales & Service units, e.g., company vehicles. This option is excellent for investors who want to start an industrial franchise but are still deciding whether to make the larger investment in a Tier 1 business.
This business model allows franchisees to generate income and establish a customer base to expand. The initial investment ranges from $249,400 to $557,000and includes the following:
- Mobile Sales & Service Units
- Training expenses
- Computer systems
- Five months of operating expenses
Access to training and support resources is essential to the success of your franchise. PIRTEK has a lot to offer potential franchisees, especially those new to the business. Our guidance and support will help you keep things running smoothly. We will help you keep things running smoothly, find clients, and consistently implement best practices throughout the life of your business.
PIRTEK’s long-standing reputation and outstanding customer service have entrusted our brand as one of the most reliable companies in the industrial franchise sector. With over four decades of experience and operations in 23-plus countries in more than 475 locations, our franchisees have maintained our long-standing reputation by delivering reliable services to our customers – and YOU, too, can be part of our success story!
To learn more about industrial franchising, get in touch with us, and a PIRTEK team member will be happy to assist you!
Director of Franchise Development
In the Director of Franchise Development role, Nick leads the franchise sales, marketing, and compliance functions within the organization. He has been with PIRTEK USA for five years and during that time, he and his team have significantly contributed to the substantial growth that PIRTEK USA has achieved .