Kennedy Transmission Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$88,500 - $162,500
Franchise Fee
$10,000
Total US Locations
7
Business Summary
Kennedy Transmission® Brake & Auto Service franchises operate automotive repair stores specializing in transmission and driveline repairs, rebuilding, replacement, and maintenance services. They cater to owners of domestic and import automobiles and light trucks, also offering brake services.
Corporate History
Kennedy Franchising USA, Inc. (KFUI) was incorporated in Minnesota on February 26, 1999. In March 1999, KFUI acquired the assets of its predecessor, Kennedy Franchising, Inc., which had operated as a franchisor of Kennedy Transmission® businesses since June 1990. The predecessor company, Hammond Consulting, Inc., was originally incorporated in 1989. KFUI initially conducted business as 'Kennedy Transmission®' and, as of June 2007, operates under the assumed name 'Kennedy Transmission® Brake & Auto Service'.
Financial Overview
Investment Range
$88,500 - $162,500
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$17,500
Royalty %
6%
Marketing %
6%
Equipment Costs (Low)
$36,000
Equipment Costs (High)
$90,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kennedy Franchising USA, Inc.'s financial statements, audited for the years ending December 31, 2023, 2022, and 2021, received an unqualified opinion from independent auditors. The company has maintained positive current assets exceeding current liabilities, indicating healthy working capital. The retained earnings deficit has also shown improvement from 2021 to 2023, with positive net income reported for both 2022 and 2023. No substantial doubt about Kennedy Franchising USA, Inc.'s ability to continue as a going concern was noted.
Financing Details
Kennedy Franchising USA, Inc. does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own financing. However, in specific situations where a landlord will not lease directly to the franchisee, Kennedy Franchising USA, Inc. may, if the franchisee qualifies, enter into a prime lease and then sublet the premises to the franchisee. This arrangement does not include financing for any improvements or equipment for the store premises.
Performance Metrics
Total US Locations
7
Franchised Units
7
Corporate Units
0
Avg Square Footage
3,750
Franchising Since
1999
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Kennedy Franchising USA, Inc. has no litigation history to report. According to Item 3 of the FDD, no litigation is required to be disclosed for Kennedy Transmission® Brake & Auto Service.
Bankruptcy History
Kennedy Franchising USA, Inc. has no bankruptcy history. According to Item 4 of the FDD, no person identified in the relevant sections has been involved as a debtor in U.S. Bankruptcy Code proceedings.
Agreement Terms
Initial Term
15 years
Renewal Term
15 years
Renewal Conditions
To renew their franchise agreement, Kennedy Transmission® Brake & Auto Service franchisees must meet several conditions. They need to be in good standing with the current License Agreement and all operational and quality standards, having paid all fees and monies owed to Kennedy Franchising USA, Inc. Franchisees must also agree in writing to remodel and modernize their store, including the building, furniture, fixtures, signs, and equipment, to align with the franchisor's then-current specifications. Advance written notice of their intention to renew must be given at least 90 days before the current term ends. Additionally, they must sign a general release of any claims against Kennedy Franchising USA, Inc. and execute the then-current standard License Agreement offered to new franchisees. A renewal fee, equal to half of the initial franchise fee charged to new licensees at that time, is also required, payable either in cash or partly by promissory note.
Training & Support Program
Franchisor Assistance
Kennedy Franchising USA, Inc. provides comprehensive support to its franchisees. Before opening, Kennedy Franchising USA, Inc. assists with site selection and securing financing (though it does not provide financing itself), helps conform the store to its business system, provides a mandatory three-week initial training program, and furnishes a confidential Operations Manual. Ongoing assistance includes providing forms, brochures, signs, and other advertising materials, managing the Advertising Fund, and offering advisory services and consultation on store management upon request. Kennedy Franchising USA, Inc. also requires the use of an approved computer system and specific store management software.
Initial Training Hours
105
Training Location
KFUI headquarters in Long Lake, Minnesota and a Kennedy Transmission® Brake & Auto Service store in the Minneapolis area.
Ongoing Support
After opening, Kennedy Transmission® Brake & Auto Service franchisees receive ongoing support including access to forms, brochures, bulletins, procedures, signs, and advertising materials. Kennedy Franchising USA, Inc. manages the Advertising Fund and provides advisory services for local advertising upon written request. Franchisees can also request consultation on any aspect of store management. A franchisee advisory team, consisting of current franchisees, provides advice on advertising and promotional activities to Kennedy Franchising USA, Inc. The franchisor also offers a one-week training program for rebuilder technicians at its corporate training center.
Franchise Requirements
Ideal Candidate Profile
Kennedy Franchising USA, Inc. looks for individuals who are prepared to be hands-on, on-site owner/operators, personally managing their Kennedy Transmission® Brake & Auto Service business. Franchisees are expected to use their best efforts to promote and enhance the business. If the owner delegates management, the Designated Service Manager must successfully complete the franchisor's training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
Each Kennedy Transmission® Brake & Auto Service franchisee receives an exclusive territory defined as a 2-mile radius surrounding their approved store location.
Staffing Notes
Kennedy Transmission® Brake & Auto Service franchisees are required to ensure that either the individual franchisee personally manages the business or a designated Service Manager, approved by the franchisor, undertakes full-time management. Any Service Manager must successfully complete the franchisor's training program. Franchisees must also have a designated supervisor on duty during business hours to oversee employees and operations. Additionally, the franchisor requires that technicians employed as rebuilders complete a one-week training program at their corporate training center, familiarizing experienced rebuilders with the Business System. All employees with managerial duties and all corporate officers, directors, and shareholders (if applicable) must sign confidentiality agreements. Franchisees must maintain a sufficient number of adequately trained and competent personnel at all times to ensure efficient customer service.