Pirtek franchise

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Pirtek is a B2B franchise operator, providing industrial and hydraulic hose services to organisations across the UK and beyond. One of the very few industrial businesses offering franchise opportunities, they say their goal is to succeed as the globe’s top hydraulic and industrial hose service business – and they’re looking for like-minded entrepreneurs to help get them there.

Pirtek business details

Launched in Australia in 1979, Pirtek has been offering franchises since 1986. With headquarters in Rockledge, Florida, the company claims to be the world leader in industrial and hydraulic hose services. Providing support to manufacturing, marine, transport, construction and waste and recycling businesses, they operate in 24 countries and have over 500 locations and more than +1500 mobile service vehicles worldwide.

Pirtek at a glance:

  • UK stores: 86
  • Required Investor net worth: £750,000
  • Required investor liquid cash: £500,000
  • Min. investment: £70,000
  • Max. investment: £500,000
  • Standard franchise term: 10 years

Can I start a Pirtek franchise?

You’ll need a net worth of £750,000 and £500,000 in available cash to qualify. Expect to spend up to £500,000 to get started. Additionally, although the company says you don’t need prior experience in this field, or even need to be technically savvy, you can’t run this franchise as a ‘hands off’ business if you’re going in alone. Pirtek demands that individuals directly manage and supervise their business on a daily basis. However, if you’re buying into Pirtek as a corporation, you can designate a key individual to take care of the day to day running of the franchise. 

How much does a Pirtek franchise cost?

Starting a Pirtek franchise will cost between £70,000 and £500,000 depending on the type of franchise you choose. This gives this opportunity a cost rating that ranges from low to moderate. The company currently offers two types of franchise:

  • Tier One: A bricks and mortar store with a fleet of service vehicles that go to customers. 
  • Tier Two: Mobile only. (Not available in all locations).

The initial franchise fee is £30,000. There is a £15,000 franchise fee discount for veterans.

After opening, you’re required to pay an array of ongoing fees and charges. They include:

  • Continuing licensing fee: 4% of gross revenues
  • Marketing fee: 1.5% – 3% of gross revenues
  • Local marketing fee: 0.375% to 0.75% of gross revenues
  • Computer system fee: £660 – £2,250 per month
  • Remodelling expenses: Maximum of £5,000 per year for every year of the contract
  • Insufficient funds fee for non-payment of ACH to Pirtek: 1% of due amount or £300, whichever is greater
  • Transfer fee: £25,000
  • Renewal fee: £2,500

Estimated key costs to open a Pirtek franchise (new business):

Key Costs GuideLowHigh
Franchise fee£30,000£30,000
Opening set up fee£0£14,000
Technology set up fee£5,000£10,000
Computer system£3,000£5,000
Training expenses – lodging, travel, etc£2,000£15,000
Opening inventory £55,000£120,000
Insurance premiums£20,000£40,000
Mobile service units (vehicles) if leased£64,000£270,000
Mobile service units (vehicles) if paid for £58,000£87,000
Attorneys’ fees£2,000£5,000
Other operational costs – five months£50,000£250,000

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Are Pirtek franchises profitable?

Yes. While exact figures vary, the average UK Pirtek franchise has gross revenues of £600,000 to £1million per year and net profits of 10% to 15%. Typically, it takes 1 to 3 years to recoup your initial investment. 

What is the failure rate for a Pirtek franchise?

Low to moderate. UK Pirtek franchises have a failure rate of 3% to 7% per year.

Why should you start a Pirtek franchise?

Low to moderate start-up costs, solid revenues, low to moderate failure rate, an industry that is almost recession proof and a franchise network that is growing at a rate well above the norm.  What’s not to like about that? Yes, you’ll need a chunky cash pile to qualify, and if you go all-in on a Tier One franchise and a fleet of service trucks, your opening costs will be headed towards three quarters of a million pounds, but Pirtek has few real competitors in the sector, and they’ve been around for 40 years. If engineering and machinery is your thing and you like to get your hands dirty while making money in the process, a Pirtek franchise may be the opportunity for you.

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What are the franchise territory policies for Pirtek?

Franchisees receive an exclusive operating territory, usually with boundaries defined by county lines, highway, streets, zip codes or waterways. During the term of your franchise agreement, Pirtek promises not to establish either another company owned or franchised Pirtek Hose Service Center within your territory or modify your territory without written permission, provided that your operation meets Pirtek’s minimum sales targets for your territory.

What franchise resources does Pirtek offer?

Pirtek support for franchisees includes:

  • Training: Franchisees must complete the initial Tier 1 or Tier 2 training program before they begin operating their business. The training usually lasts one week and is scheduled to begin approximately one to two weeks before franchisees open their business, followed by two weeks of on-site support. In addition, franchisees must attend regional seminars that Pirtek may organise from time to time.
  • Marketing support: Pirtek helps its franchisees with national and local advertising and marketing support. 
  • Third-party financing: Pirtek provides no financial support for investors seeking franchise funding, instead, you could work with the many independent funders who provide business loans to franchise operators.
  • Technology and innovation: The company offers initial technology support and access to proprietary software. 

What is the process for starting a Pirtek franchise?

It begins with an application. Start the process today.

Secure franchise funding with Swoop

Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new industrial services business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the UK. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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