Risk Score
Pending analysis
Investment Range
$102,744 - $178,994
Franchise Fee
$30,000
Total US Locations
12
Business Summary
ALSET Auto operates an automotive paint protection business primarily serving owners of Tesla® vehicles. ALSET Auto offers services such as paint protection, ceramic coating, window tinting, and vinyl wraps, utilizing its distinctive operating procedures and standards. The business targets luxury car owners who seek to protect and maintain their vehicles.
Corporate History
ALSET Auto Development LLC was formed as an Oregon limited liability company on September 11, 2020. The company began offering franchises on December 21, 2020. ALSET Auto Development LLC does not own or operate any businesses of the type franchisees will operate. However, its affiliate, Alset, LLC, operates two ALSET Auto outlets: one in Portland, Oregon, since May 2019, and another in Redmond, Washington, since May 2021. ALSET Auto specializes in automotive paint protection, ceramic coating, and window tinting services primarily for Tesla® vehicles.
Financial Overview
Investment Range
$102,744 - $178,994
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$45,000
Royalty %
8%
Marketing %
1.5%
Equipment Costs (Low)
$9,744
Equipment Costs (High)
$49,494
Working Capital
$27,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
ALSET Auto Development LLC has shown profitability in its most recent fiscal years, with net income of $275,633 in 2024 and $280,069 in 2023, and positive cash flow from operations. However, the company's financial statements raise significant concerns. ALSET Auto Development LLC consistently operates with negative working capital, meaning its short-term assets are insufficient to cover its short-term liabilities. For instance, in 2024, its total current assets were $34,354, while its current liabilities were $164,780, resulting in a deficit of over $130,000. The independent auditors have explicitly expressed "substantial doubt about ALSET Auto Development LLC's ability to continue as a going concern" for both the 2024 and 2023 fiscal years. This concern is further echoed by several state regulatory agencies (California, Illinois, Maryland, Minnesota, and Virginia) which have required ALSET Auto Development LLC to provide financial assurances, such as surety bonds or deferment of initial franchise fees, due to the company's financial condition. Additionally, large member withdrawals, totaling $350,000 in 2024 and $220,000 in 2023, have significantly impacted the company's cash position, leading to a net decrease in cash for 2024.
Financing Details
ALSET Auto Development LLC does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure all necessary funds for their initial investment and ongoing operations through third-party lenders, personal savings, or other external sources. ALSET Auto Development LLC also does not guarantee any notes, leases, or other financial obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
12
Franchised Units
10
Corporate Units
2
Avg Square Footage
6,000
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
ALSET Auto reports a clean legal history, stating that no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document. This indicates that ALSET Auto, its predecessor, or persons identified in Item 2 have not been involved in any material litigation, administrative, or criminal actions requiring disclosure under federal franchise rules.
Bankruptcy History
ALSET Auto has no bankruptcy history to disclose in this item.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
ALSET Auto franchisees can renew their franchise agreement for at least one additional five-year term, unless the franchisor decides to withdraw from their territory. To be eligible for renewal, ALSET Auto franchisees must be in full compliance with the current agreement, have committed no more than three events of default during the initial term, and provide written notice to the franchisor at least 120 days before the term ends, returning all required documents within 20 days. They must also sign a new franchise agreement, which may contain materially different terms and conditions, pay a successor agreement fee of $3,000, ensure their location and vehicle meet current trade dress and other standards, execute a general release of claims, and comply with all current qualifications and training requirements, including the completion of any additional training.
Training & Support Program
Franchisor Assistance
ALSET Auto provides comprehensive support to its franchisees. Before opening, ALSET Auto assists with site selection guidelines and approval, and provides criteria and specifications for the layout, design, ventilation, and signage for the outlet. Franchisees receive a loan of the ALSET Operations Manual and access to online learning modules. ALSET Auto also provides a written list of required equipment, supplies, and products, including a starter kit of proprietary items. Initial training is conducted at ALSET Auto's headquarters in Portland, Oregon, or an affiliate-owned outlet, for up to three individuals, and an on-site trainer is provided at the franchisee's premises for up to three days. ALSET Auto provides standards for employee qualifications and training, recommends minimum and maximum prices for products and services, and sets up a unique website, social media platforms, and Google AdWords for the franchised business. After opening, ALSET Auto offers mandatory and optional additional training programs, including annual business meetings or conventions, with franchisees responsible for associated fees and travel. Corrective on-site training and individualized assistance via telephone, video conferencing, or email are available upon request, with fees and travel costs for trainers if on-site. ALSET Auto provides samples or digital artwork for advertising materials, conducts inspections of the franchised business, and furnishes written specifications for required items and updated lists of approved suppliers. ALSET Auto also approves all franchisee advertising and administers the system-wide Brand Fund.
Initial Training Hours
30
Training Location
Portland, Oregon
Ongoing Support
After opening, ALSET Auto franchisees receive ongoing assistance and support from the franchisor. ALSET Auto offers mandatory and optional additional training programs, which may include up to five days of training per year, and annual business meetings or conventions for up to three days per year at a designated location. Franchisees are responsible for any associated fees and travel expenses for these programs. Corrective on-site training and assistance are also available at the franchisee's premises upon request or as deemed appropriate by ALSET Auto, with franchisees covering a per diem fee and travel costs for trainers. Individualized assistance by telephone, video conferencing, electronic mail, or postal service is provided within reasonable limits. ALSET Auto furnishes samples or digital artwork for advertising and promotional materials, conducts inspections of the franchised business, and provides written specifications for required equipment, products, and services, along with updated lists of approved suppliers. ALSET Auto may recommend minimum and maximum prices for products and services and requires approval for all advertising and promotional material developed by franchisees. Furthermore, ALSET Auto administers the system-wide Brand Fund, to which franchisees contribute.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
limited
Territory Size Requirements
ALSET Auto territories are defined by specific towns, cities, or counties, identified by a group of contiguous zip codes. Each territory is determined individually based on demographics and the number of Tesla® owners, sales, and service centers in the area. Each ALSET Auto territory will have a minimum population of 200,000 people, calculated using market analysis from a third-party mapping service.
Staffing Notes
ALSET Auto outlets must always be directly supervised by a general manager. This manager can be the franchisee or an appointed individual acceptable to ALSET Auto. The general manager and the lead ceramic installer, along with any owners if the franchisee is a business entity, must successfully complete ALSET Auto's Initial Management Training Program and all other required training. The general manager must dedicate their full time to the role and cannot have an interest or business relationship with any competitors. All personnel who will have access to ALSET Auto's proprietary and confidential information and training must sign a Non-Disclosure/Non-Competition Agreement.