Risk Score
Pending analysis
Investment Range
$4,250 - $17,400
Franchise Fee
$2,500
Business Summary
10-4 TOW offers a franchise for a vehicle towing and roadside assistance business. This franchise is specifically designed for individuals who are already operating an independent towing and roadside assistance business. The goal of 10-4 TOW is to bring these independent operators under a common brand and create a referral network to increase business for its franchisees.
Corporate History
10-4 TOW LLC was established as a California Limited Liability Company on January 25, 2018. The company operates exclusively under the 10-4 TOW brand and began offering its franchises in 2018. Before forming 10-4 TOW LLC, its President, Secretary, and Chief Financial Officer, Gavriel Taub, held similar positions with Trio Group LLC, an affiliate that has provided consulting and marketing services to independent tow truck and roadside assistance operators since 2010. 10-4 TOW has not engaged in or franchised any other lines of business.
Financial Overview
Investment Range
$4,250 - $17,400
Franchise Fee (Low)
$2,500
Franchise Fee (High)
$2,500
Equipment Costs (Low)
$250
Equipment Costs (High)
$2,250
Working Capital
$1,750
Audited Financials
Yes
Offers Financing
No
Financing Details
10-4 TOW does not offer any direct or indirect financing to its franchisees. Additionally, 10-4 TOW does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
10-4 TOW has no litigation history to report, as Item 3 of its Franchise Disclosure Document states that no litigation is required to be disclosed for the franchisor or its management.
Bankruptcy History
10-4 TOW has no bankruptcy history to report, as Item 4 of its Franchise Disclosure Document states that no bankruptcy information is required to be disclosed for the franchisor or its management.
Agreement Terms
Initial Term
1 years
Renewal Conditions
While the 10-4 TOW franchise is not technically renewable, a franchisee can enter into a new Franchise Agreement upon the expiration of their current one if certain conditions are met. Franchisees must provide written notice of their intent to enter a new agreement at least 6 months before the current agreement expires. They must be in good standing, meaning they have not defaulted on their agreement or any other agreements with 10-4 TOW or its affiliates, and have substantially complied with all terms. All financial obligations must be paid on time. Additionally, franchisees must sign the new Franchise Agreement that 10-4 TOW is currently offering to new franchisees, which may contain different terms, and must sign a general release of all claims against 10-4 TOW or its affiliates.
Training & Support Program
Franchisor Assistance
Before opening, 10-4 TOW assists franchisees by approving their business location, which can include a home office. If a franchisee does not have a principal place of business, 10-4 TOW will rent a space and sublease it to them. Initial training includes a review of system procedures and safety guidelines, based on industry standards, conducted at the franchisee's location. During operation, 10-4 TOW maintains a call center to refer customer inquiries and service requests to franchisees, using its discretion on referrals. Franchisees gain access to manuals (when developed), an Intranet, and other non-public sites containing operational and marketing information. They also receive ongoing assistance and advice, one or more email addresses, and a page on the 10-4 TOW website. 10-4 TOW may also provide additional training, meetings, conferences, and send representatives to visit businesses for consultations.
Initial Training Hours
5
Training Location
Franchisee's office
Ongoing Support
10-4 TOW provides ongoing support to its franchisees after opening through several avenues. It maintains a call center to receive customer inquiries and requests for services, which it then refers to franchisees based on its discretion. Franchisees are given access to 10-4 TOW's manuals (when developed) and online platforms (Intranet and other non-public sites) which contain operational, marketing, and public relations information. Ongoing assistance and advice are provided upon request during normal business hours. Franchisees also receive email addresses and a page on the 10-4 TOW website for their business. Additional training, meetings, and conferences may be offered at 10-4 TOW's discretion, and franchisees may be required to complete these. Representatives from 10-4 TOW may also visit franchisee businesses to consult on operations and performance.
Franchise Requirements
Ideal Candidate Profile
10-4 TOW is looking for individuals who are currently operating their own independent vehicle towing and roadside assistance business. The franchise is offered exclusively to these existing operators.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staffing Notes
10-4 TOW emphasizes that the training of drivers is the franchisee's responsibility. Franchisees must provide adequate initial and ongoing training for their drivers to ensure competent performance and compliance with agreement requirements. Franchisees are also responsible for supervising their drivers to enhance the business's image. 10-4 TOW can specify required training for drivers, including online training, and can require retraining or additional training attendance for personnel found unable to perform tasks adequately, with the franchisee covering expenses. Franchisees must comply with all employment-related laws and conduct criminal background checks on all public-facing staff where legally allowed, not working with individuals whose background poses a risk to customers or the business. Those working for the franchisee are considered the franchisee's employees, not 10-4 TOW's.