Auto Select

Auto Select, Inc., a Wisconsin corporation, is the franchisor. The circular says it offers qualified people the right to operate an Auto Select at an agreed location. The business serves the general public with automotive repair, service, tires and some accessories; certain branded items must be stocked and sold. The franchisor describes its system as including repair and maintenance methods, site-selection criteria, marketing and management information.

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Royalty5% Of Gross Receipts · $700 Weekly MinimumOpen The Full FDD
FDD Edition2009Open The Full FDD

Key Franchise Fees

Royalty
5% Of Gross Receipts · $700 Weekly Minimum
View Disclosed Terms

5% Of Gross Receipts · $700 Weekly Minimum

What To Know

Item 6 defines the stated base as Gross Receipts received, billed, or generated from the business and excludes sales tax. The passages do not provide further deductions or a fuller agreement definition, so none are inferred.

The fee is calculated weekly; Saturday is the last day of the week and payment is due the following Wednesday. No inflation or rate-change rule for this fee is stated in the supplied passages.

The disclosure concerns the Auto Select franchise business; no different currency or geographic rate is stated.

2009 FDD · PDF Page 9 · Item 6

Review Fee Sources
Fees And Payment Terms
FeeDisclosed TermsSource
Royalty5% Of Gross Receipts · $700 Weekly Minimum
What To Know

Item 6 defines the stated base as Gross Receipts received, billed, or generated from the business and excludes sales tax. The passages do not provide further deductions or a fuller agreement definition, so none are inferred.

The fee is calculated weekly; Saturday is the last day of the week and payment is due the following Wednesday. No inflation or rate-change rule for this fee is stated in the supplied passages.

The disclosure concerns the Auto Select franchise business; no different currency or geographic rate is stated.

2009 FDD · PDF Page 9
Transfer FeeThe disclosed franchise transfer fee is $1,500.
What To Know

Item 6 identifies the fee as payable to transfer the franchise and states it is due as incurred. Item 16 indicates transfer approval is required and lists payment of a transfer fee among the conditions for approval.

No inflation or adjustment rule, discount, refund, or geographic variation for this fee is stated in the supplied passages.

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Manager TrainingSubsequent manager training costs $1,000 when a management change requires training a new manager.
What To Know

The table states the fee is due as incurred. The supplied passages do not specify a separate start trigger beyond the required training following a management change, nor a more detailed payment date.

The fee is stated for the franchise; no unit, territory, currency, inflation, discount, or refund variation is disclosed in the supplied passages.

2009 FDD · PDF Page 10
Continuing EducationBusiness and management consulting is provided for a minimum of 24 hours each calendar quarter; the current fee is $1,000.
What To Know

The table says the franchisee pays the Company's then-current standard charge for consulting or another amount as otherwise agreed; it describes $1,000 as the current fee. It does not expressly state whether that amount is per hour, per quarter, or another unit, so it is reported only as the stated current fee and not converted into a unit rate.

The table lists payment as due as incurred, and Item 11 describes consulting as provided quarterly. The fee is subject to the Company's then-current standard charge or another agreed amount; no separate inflation formula, cap, discount, refund, currency, or geographic variation is disclosed.

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Tire InventoryThe franchisee must maintain a monthly minimum inventory of at least 300 tires, plus other minimum inventories designated by the company or its manuals.
What To Know

The table gives no fixed cost or payment date for inventory; it describes the requirement as an operating inventory obligation, with other minimum inventory levels subject to designation from time to time by the Company or Company Manuals.

The requirement applies to the franchisee's Service Center. No discount, refund, inflation formula, or geographic variation is stated.

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Some fees apply only to a specific event or service. These are not all monthly expenses.

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Your Role As An Owner

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Auto Select may require the franchisee or an Operating Partner to participate actively in management. The center must be managed by the franchisee, an Operating Partner or a manager who has satisfactorily completed Auto Select’s training; that manager need not own equity. If the franchisee is an entity, it must designate an Operating Partner who owns and controls at least 10% of its equity and has satisfactorily completed training. The Operating Partner must have authority for day-to-day dealings unless another owner is designated in writing, is reasonably acceptable to Auto Select, and has that authority.

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Read The Disclosed Requirements

The franchisee is responsible for staffing and employment decisions. The circular says Auto Select may require each owner of an entity franchisee to sign a personal guaranty covering the franchisee’s financial and other obligations. Officers, directors, managers and others attending Auto Select training must sign nondisclosure agreements.

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The agreement grants the right to operate at a specific premises, not an expressly exclusive territory. The franchisee may not operate the business or use the system at another location, or relocate the center, without Auto Select’s prior written consent. The stated rights and obligations do not apply to centers already open, under development or approved when Auto Select notifies the franchisee that the premises are approved.

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A disclosed territory policy does not confirm that your preferred area is available. Ask the franchisor about the specific area you are considering.

Training & Support

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Auto Select says its assistance is limited to the items listed in the circular. Before opening, it will approve or disapprove the site, provide standard plans, provide initial training for up to five people, and loan one copy of the confidential Company Manual. The franchisee and its manager are required to attend initial training; the passage does not state its duration.

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Read The Disclosed Requirements

The circular describes in-store training over two to four months, provided at Auto Select’s discretion through the manual, other communications or consultations. It also says sales-related new employees will receive training within 60 days of hiring, business and management consulting is provided quarterly, and Auto Select will visit and periodically consult on merchandising, sales and operations. The company may conduct periodic seminars or meetings; those are not stated as guaranteed.

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The franchisee proposes a site within the agreement’s Market Area within 270 days and must provide requested information, including a site analysis report. Auto Select considers the proposed site under its guidelines and must approve it; the circular says it need not consider a site until it has the requested information. The service center must be open and operating within twelve months of the agreement date.

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Franchisor Financing

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The circular says the franchisee must make all financing arrangements needed to open and operate an Auto Select Service Center. It does not describe financing provided by Auto Select or state whether outside lenders will offer financing.

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Inside The FDD

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Plain-language summaries of the FDD. Follow the page links to read the original document and its conditions.

Source-linked summaries of this FDD. Unresolved terms are omitted.

Sources
01The Franchisor And The Business

Auto Select, Inc., a Wisconsin corporation, is the franchisor. The circular says it offers qualified people the right to operate an Auto Select at an agreed location. The business serves the general public with automotive repair, service, tires and some accessories; certain branded items must be stocked and sold. The franchisor describes its system as including repair and maintenance methods, site-selection criteria, marketing and management information.

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The circular says Auto Select was incorporated in Wisconsin in 2000 and has offered franchises since September 2005. It identifies Michael J. Molitor, Sr. and Roxanne Molitor as the company’s 100% owners. It says the company’s activities are operating Auto Select Service Centers and Auto Select Express Quick Lubes, and activities related to franchising and operating those businesses.

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02Business Experience

The circular identifies Michael J. Molitor, Sr. as Auto Select’s owner and president since November 2000, and says he started the company. Before Auto Select, he worked for 23 years at a multi-store company specializing in auto parts and service centers, where he was vice-president of operations.

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03Litigation

The circular reports no pending civil litigation. Under prior civil litigation, it names XP Investments, LLC, Alphonse Marciulionis, Jr. and Maria Marciulionis as plaintiffs against Auto Select, Inc. and Michael J. Molitor, Sr., with Frontier Communications of Wisconsin LLC and/or Frontier Communications Corporate Services Inc. listed as involuntary defendants. It identifies Marathon County Case No. 19 CV 417 but gives no case outcome or further details in this passage.

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04Bankruptcy

The circular states that no person previously identified in it had been involved as a debtor in proceedings under the U.S. Bankruptcy Code.

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05Initial Fees

The initial fee is paid when the Franchise Application is signed and submitted. The circular says it helps cover documents, setup, training supplies, administration and location evaluation. Refund language differs elsewhere in the file, so the refund rule remains under review.

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06Other Fees

The continuing fee is the greater of $700 or 5% of Gross Receipts, payable weekly.

What To Know

Item 6 defines the stated base as Gross Receipts received, billed, or generated from the business and excludes sales tax. The passages do not provide further deductions or a fuller agreement definition, so none are inferred.

The fee is calculated weekly; Saturday is the last day of the week and payment is due the following Wednesday. No inflation or rate-change rule for this fee is stated in the supplied passages.

The disclosure concerns the Auto Select franchise business; no different currency or geographic rate is stated.

2009 FDD · PDF Page 9 · Item 6 · View Source

The disclosed franchise transfer fee is $1,500.

What To Know

Item 6 identifies the fee as payable to transfer the franchise and states it is due as incurred. Item 16 indicates transfer approval is required and lists payment of a transfer fee among the conditions for approval.

No inflation or adjustment rule, discount, refund, or geographic variation for this fee is stated in the supplied passages.

2009 FDD · PDF Page 11 · PDF Page 24 · Item 6 · View Source

Subsequent manager training costs $1,000 when a management change requires training a new manager.

What To Know

The table states the fee is due as incurred. The supplied passages do not specify a separate start trigger beyond the required training following a management change, nor a more detailed payment date.

The fee is stated for the franchise; no unit, territory, currency, inflation, discount, or refund variation is disclosed in the supplied passages.

2009 FDD · PDF Page 10 · Item 6 · View Source

Business and management consulting is provided for a minimum of 24 hours each calendar quarter; the current fee is $1,000.

What To Know

The table says the franchisee pays the Company's then-current standard charge for consulting or another amount as otherwise agreed; it describes $1,000 as the current fee. It does not expressly state whether that amount is per hour, per quarter, or another unit, so it is reported only as the stated current fee and not converted into a unit rate.

The table lists payment as due as incurred, and Item 11 describes consulting as provided quarterly. The fee is subject to the Company's then-current standard charge or another agreed amount; no separate inflation formula, cap, discount, refund, currency, or geographic variation is disclosed.

2009 FDD · PDF Page 10 · PDF Page 18 · Item 6 · View Source

The franchisee must maintain a monthly minimum inventory of at least 300 tires, plus other minimum inventories designated by the company or its manuals.

What To Know

The table gives no fixed cost or payment date for inventory; it describes the requirement as an operating inventory obligation, with other minimum inventory levels subject to designation from time to time by the Company or Company Manuals.

The requirement applies to the franchisee's Service Center. No discount, refund, inflation formula, or geographic variation is stated.

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07Estimated Initial Investment

Equipment, signs, tools, computer systems, administrative supplies, insurance, prepaid expenses and working capital appear in the startup budget. The entries distinguish upfront purchases from payments made as costs arise. These are figures from the supplied historical circular, not current startup quotations.

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08Required Purchases And Suppliers

The franchisee must follow the Company Manual’s methods and standards. Equipment and fixtures must meet Auto Select’s quality, performance and safety standards, and signs must meet its specifications; if they do, they may be obtained from any supplier. The circular lists required equipment and says some or all required equipment and supplies may be purchased through Auto Select, but that option is not stated as mandatory.

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Parts, uniforms, labels, inventory and supplies must meet Auto Select’s standards and/or come from approved suppliers, which may include Auto Select or affiliates. A franchisee seeking approval of another supplier must provide requested information, specifications and samples. The supplier is deemed approved if not disapproved within 30 days after all requested information is received. Auto Select may change standards and approved suppliers, and may charge evaluation costs for certain untested parts.

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The franchisee must lease or buy a computer system that meets Auto Select’s specifications and use required software. Alternative hardware is allowed if it meets specifications and works with the required software; approval of alternative software cannot be unreasonably withheld if it meets the requirements. The franchisee must maintain the system and make directed software and data-transmission changes at its own expense.

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09Your Obligations

The obligations table identifies franchisee duties concerning site selection and leasing, operations, inventory, training, signs, company standards, confidential information, marks, product and service restrictions, ongoing purchases, credit cards, records, insurance and advertising. It also points to agreement provisions on owner participation, transfers, renewal, termination, noncompetition and dispute resolution. The table directs readers to the agreement and other circular items for details.

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10Franchisor Financing

The circular says the franchisee must make all financing arrangements needed to open and operate an Auto Select Service Center. It does not describe financing provided by Auto Select or state whether outside lenders will offer financing.

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11Training And Support

Auto Select says its assistance is limited to the items listed in the circular. Before opening, it will approve or disapprove the site, provide standard plans, provide initial training for up to five people, and loan one copy of the confidential Company Manual. The franchisee and its manager are required to attend initial training; the passage does not state its duration.

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The circular describes in-store training over two to four months, provided at Auto Select’s discretion through the manual, other communications or consultations. It also says sales-related new employees will receive training within 60 days of hiring, business and management consulting is provided quarterly, and Auto Select will visit and periodically consult on merchandising, sales and operations. The company may conduct periodic seminars or meetings; those are not stated as guaranteed.

2009 FDD · PDF Page 18 · Item 11 · View Source

The franchisee proposes a site within the agreement’s Market Area within 270 days and must provide requested information, including a site analysis report. Auto Select considers the proposed site under its guidelines and must approve it; the circular says it need not consider a site until it has the requested information. The service center must be open and operating within twelve months of the agreement date.

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12Territory

The agreement grants the right to operate at a specific premises, not an expressly exclusive territory. The franchisee may not operate the business or use the system at another location, or relocate the center, without Auto Select’s prior written consent. The stated rights and obligations do not apply to centers already open, under development or approved when Auto Select notifies the franchisee that the premises are approved.

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13Trademarks

The circular lists principal marks, logos and phrases based on registrations and use, including “You’re Good to Go!,” “The Ultimate Service Centers,” “Tire Select,” “Auto Select Rewards,” “Auto Referral Rewards,” “Otto C. Lect,” “Auto Select TV,” “Quality Dependable Repair, Service, and Tires Done by Auto Experts you can trust!” and “My Garage.” The franchisee must promptly report apparent infringement, challenges or claims involving the marks; Auto Select controls its response and related litigation.

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14Patents, Copyrights And Proprietary Information

Auto Select says no patents are material to the franchise. It treats operating methods, technical information, site-selection criteria, sales and marketing techniques, certain operating and financial information, price and inventory information, and software as confidential or proprietary. The franchisee may use disclosed confidential information to operate the center and must protect it during and after the agreement. The stated restrictions do not apply to information or techniques that become generally known in the automotive service industry through no disclosure by the franchisee, subject to the source’s prior-written-consent condition.

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The franchisee must promptly disclose certain ideas, methods and products developed for an Auto Select center, other than patentable inventions. If Auto Select adopts them as part of the system, the circular says they become its exclusive property; the franchisee must sign documents to evidence that ownership and help secure related rights.

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15Your Role As An Owner

Auto Select may require the franchisee or an Operating Partner to participate actively in management. The center must be managed by the franchisee, an Operating Partner or a manager who has satisfactorily completed Auto Select’s training; that manager need not own equity. If the franchisee is an entity, it must designate an Operating Partner who owns and controls at least 10% of its equity and has satisfactorily completed training. The Operating Partner must have authority for day-to-day dealings unless another owner is designated in writing, is reasonably acceptable to Auto Select, and has that authority.

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The franchisee is responsible for staffing and employment decisions. The circular says Auto Select may require each owner of an entity franchisee to sign a personal guaranty covering the franchisee’s financial and other obligations. Officers, directors, managers and others attending Auto Select training must sign nondisclosure agreements.

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17Renewal, Termination, Transfer And Disputes

The agreement term is 10 years. The summary says the franchisee may terminate if Auto Select violates the agreement and lists no franchisor termination without cause. It points to Article 14 for renewal but does not state renewal conditions in the summary. At termination or expiration without a successor franchise, the franchisee must pay amounts owed, stop using the marks and confidential materials, address the telephone number and premises, handle inventory, and meet post-term obligations. Auto Select may take or be assigned the lease, subject to the stated notice and competitive-business exception.

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Auto Select has approval rights over transfers. Conditions include notice, compliance with agreements, a transfer fee, a noncompete agreement and release, the buyer meeting financial requirements, and the center being open and operating. The agreement restricts competition during the term and for one year after termination or expiration in specified locations and circumstances. The summary describes a limited circumstance in which the former franchisee may operate independently in a competitive business, subject to notice.

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The circular describes binding arbitration for most disputes, with stated exceptions, and identifies Marathon County, Wisconsin, as the exclusive jurisdiction for matters and Wisconsin law as generally applicable. It also says laws and court decisions in some states may supersede agreement terms, including on termination and renewal.

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18Public Figures

Auto Select states that it does not use public figures to promote its franchises. The passage identifies no public-figure or celebrity endorsement.

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19Financial Performance Representations

The circular’s earnings-claims section says that Auto Select Service Center franchise earnings history is attached. The supplied passage gives no figures or details about that attachment, so this summary makes no claim about franchise performance.

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20Outlets And Franchisee Information

The circular says the company owns Auto Select Service Centers and refers readers to Exhibit H for their listing. The supplied passages do not describe historical openings, transfers or closures, or state that the list is intended as a franchisee contact list.

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22Contracts

The circular says Exhibit C contains a copy of the Franchise Application and Exhibit D a copy of the Franchise Agreement. Its exhibit list also names the Company Manual table of contents (Exhibit G) and the Auto Select Service Center list (Exhibit H). The agreement passage says an Owner’s Personal Guaranty is attached after the agreement’s signature pages.

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