Risk Score
Pending analysis
Investment Range
$235,137 - $666,638
Franchise Fee
$40,000
Min Cash Required
$50,000
Total US Locations
162
Business Summary
Pirtek USA operates service and supply centers that sell, custom assemble, and install industrial and hydraulic hoses, fixed tube assemblies, fittings, and related components. These services are provided to a wide range of mobile and stationary plant and equipment users across various markets, including earthwork, construction, industrial manufacturing, food production, materials handling, transport, agriculture, mining, and government. Businesses can operate from a physical service and supply center along with mobile service units, or initially as a mobile-only Tier 2 business with a future requirement to establish a physical center.
Corporate History
Pirtek USA LLC was formed as a Delaware limited liability company in June 1997. In the same year, Pirtek USA began offering franchises for its service and supply center businesses, which focus on the sale, custom assembly, and installation of industrial and hydraulic hoses. In September 2023, Pirtek Holdco, LLC was formed and became Pirtek USA's parent company.
Financial Overview
Investment Range
$235,137 - $666,638
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$55,000
Minimum Cash Required
$50,000
Royalty %
4%
Marketing %
1.5%
Equipment Costs (Low)
$22,500
Equipment Costs (High)
$154,281
Working Capital
$125,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pirtek USA's financial condition, as noted in its FDD's Special Risks section, raises questions about its financial ability to provide services and support to franchisees. However, the auditor issued an unqualified opinion on the financial statements, indicating they present fairly Pirtek USA's financial position. The company reported net income of over $12 million in 2024 and over $10 million in 2023, with members' equity of $18.2 million in 2024. A change in ownership occurred in October 2023, though its impact at the Pirtek USA level was not recognized through push-down accounting.
Financing Details
Pirtek USA does not offer any direct or indirect financing to franchisees, nor does it guarantee their notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
162
Franchised Units
162
Corporate Units
0
Avg Square Footage
3,000
Franchising Since
1997
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pirtek USA has no litigation or legal disputes to report in Item 3 of its FDD.
Bankruptcy History
Pirtek USA has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Pirtek USA franchisees must have complied with their Franchise Agreement and be current with all monetary obligations. They also need to provide written notice of intent to renew between three and six months before the current term expires. Additionally, franchisees must maintain the business premises, including modernization to current standards, pay a renewal fee of $10,000 (adjusted annually for inflation), sign a general release of claims, and execute Pirtek USA's then-current franchise agreement. This new agreement may have materially different terms and conditions.
Training & Support Program
Franchisor Assistance
Pirtek USA offers pre-opening assistance, including granting the license to operate, providing initial training for the owner and key staff, and making the confidential Operations Manual available. Ongoing support involves furnishing updated Manual materials, evaluating the business's overall performance, reviewing financial results, and accompanying franchisees on sales or service calls. Pirtek USA establishes and conducts various marketing and sales promotion programs. Additionally, the franchisor may offer suggestions regarding pricing policies or set minimum/maximum prices and negotiate Strategic Account arrangements that bind all businesses. Franchisees and their designated managers are required to attend national conferences and regional meetings or seminars organized by Pirtek USA.
Initial Training Hours
130
Training Location
Franchise Support Center in Rockledge, Florida
Ongoing Support
After opening, Pirtek USA provides ongoing support by furnishing franchisees with updated and revised materials for its confidential Operations Manual. The franchisor also evaluates the business's overall performance, reviews financial results, and may accompany franchisees on sales or service calls. Pirtek USA establishes and conducts various marketing and sales promotion programs. Additionally, the franchisor may offer suggestions regarding pricing policies or set minimum/maximum prices and negotiate Strategic Account arrangements that bind all businesses. Franchisees and their designated managers are required to attend national conferences and regional meetings or seminars organized by Pirtek USA.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Limited
Staff Count
6
Territory Size Requirements
Pirtek USA defines franchise territories using a combination of geographic boundaries, which may include county lines, highways, streets, zip codes, or waterways. The size of the Development Area (for multi-unit development) can range from a portion of a city, county, metropolitan area, or marketing area, and is based on factors such as demographics and the franchisee's resources. Pirtek USA explicitly states there is no minimum size territory that the franchisee will receive.
Staffing Notes
Pirtek USA franchisees must maintain a sufficient number of trained, efficient, competent, and courteous employees to properly service their customers. Franchisees are solely responsible for all aspects of hiring, supervising, and managing their employees, as Pirtek USA is not considered a joint employer. Key roles for the business include a designated manager (if not the owner), an operations manager, a technical sales representative (TSR) for Tier 1 businesses, at least two mobile sales and service unit (MSS) technicians, and an administration person, all of whom must complete initial training. Tier 2 businesses initially operate with at least two MSSUs and technicians, with a requirement to add a third MSSU and technician within 24 months, and open a Service & Supply Center and add a TSR within 39 months.