Risk Score
Pending analysis
Investment Range
$229,000 - $728,500
Franchise Fee
$5,000
Total US Locations
158
Business Summary
Tuffy operates retail automotive specialty centers that provide a wide range of automotive products and services. These services include selling and servicing automotive exhaust systems, brakes, front end, steering and suspension, alignment, air conditioning, engine diagnostics, batteries, and tires. Tuffy also offers other general automotive products and services to vehicle owners in their market area.
Corporate History
Gimex Properties Corp., Inc., operating as T.A.C. and Tuffy, was incorporated in Delaware on June 11, 1991. The company acquired substantially all of its assets, including the Tuffy trademarks and franchise agreements, from its predecessor, Tuffy Associates Corp., on April 1, 2016. Before this acquisition, Gimex Properties Corp. had assets but was not actively operating. Tuffy Associates Corp. had been franchising Tuffy businesses since 1986 and operating them until 2021. Gimex Properties Corp., Inc. has been offering Tuffy franchises since April 2016.
Financial Overview
Investment Range
$229,000 - $728,500
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$145,000
Equipment Costs (High)
$500,000
Working Capital
$30,000
Audited Financials
No
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD states that the franchisor's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. However, the franchisor provides the audited financial statements of its affiliate, Express Oil Change Franchise, LLC, which issues a Guaranty of Performance for Tuffy's obligations. The affiliate's financial statements show positive net income of $1,706,877 in 2023 and $2,175,666 in 2022, and it had positive total operating income in both years. Despite its profitability, the affiliate's net EOC Group Investment is negative, at $(461,507) in 2023 and $(476,087) in 2022.
Financing Details
Tuffy does not offer any direct financing for any part of the initial investment. Franchisees will need to secure their own funding, as the availability and terms of financing from third parties will depend on factors such as general financing availability, the franchisee's credit history, available collateral, and the lending policies of financial or leasing institutions.
Performance Metrics
Total US Locations
158
Franchised Units
100
Corporate Units
58
Avg Square Footage
4,840
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Tuffy has no litigation or legal disputes required to be disclosed in its Franchise Disclosure Document. This means the brand does not have any current or recent lawsuits, arbitrations, or legal proceedings to report.
Bankruptcy History
Tuffy has no bankruptcy history required to be disclosed in its Franchise Disclosure Document, indicating that neither the franchisor nor its key personnel have filed for bankruptcy.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
To renew the Tuffy franchise agreement, franchisees must notify the franchisor in writing at least 180 days before the current term expires if they elect not to renew. If they wish to renew, the franchisor's consent is required, which will not be unreasonably withheld. Conditions for renewal may include signing a general release of claims against the franchisor, executing the franchisor's then-current standard license agreement (which may have different terms), and renovating the franchise location to meet current standards.
Training & Support Program
Franchisor Assistance
Tuffy provides a range of assistance to its franchisees. Before opening, Tuffy helps with obtaining and approving a suitable location, provides construction and improvement specifications, and offers a list of approved equipment and signage suppliers. It also assists in recruiting, interviewing, hiring, and training initial employees, and provides one or more employees for approximately one week of on-site setup support. Franchisees also receive a copy of the operations manual and assistance with their grand opening advertising program. During operation, Tuffy indemnifies franchisees for trademark infringement claims (if trademarks are used correctly), reviews alternate location proposals if needed, and continually updates operational specifications. Tuffy's district managers periodically visit locations to evaluate operations and provide advice. Franchisees can request guidance on pricing and receive operational assistance by telephone. A performance assessment is typically required after three months of operation. Tuffy designates authorized products and services, reviews proposed products and suppliers, and administers the advertising fund. The franchisor also reviews and approves any additional advertising materials proposed by franchisees and assists with proposed transfers.
Initial Training Hours
124
Training Location
Tuffy Technical Center in Toledo, Ohio
Ongoing Support
After opening, Tuffy provides ongoing support through several channels. District managers conduct periodic visits to franchise businesses to evaluate operations and offer advice. Franchisees can request guidance on pricing of products and services, and receive reasonable operational advice by telephone, including on specific services or products. Tuffy may require franchisees or their principals to attend a performance assessment at the franchisor's office after approximately three months of operation, covering financial and administrative aspects. The franchisor continually updates its operational specifications, including for products, services, personnel, marketing, facility maintenance, and financial reporting. Tuffy also reviews and approves new products or suppliers and administers the advertising fund. Any additional advertising materials created by franchisees must be reviewed for approval by Tuffy.
Franchise Requirements
Ideal Candidate Profile
TownePlace Suites by Marriott seeks franchisees or their approved management companies with strong managerial and operational experience, skills, capacity, capabilities, and a business philosophy that aligns with the brand's standards for operating a hotel. The franchisor reviews the applicant's managerial and operational experience, skills, capacity, capabilities, and philosophy to determine if they can operate the hotel according to brand standards. If a franchisee is not qualified to operate the hotel directly, they will be required to hire an approved management company. Financial capability and a suitable ownership structure are also considered for guaranty requirements, and the franchisor may require the management company to hold at least a 10% equity interest in the franchised business. A general manager and other managers are required to devote full time to the hotel's management and operation.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Tuffy franchisees receive a protected area around their location. Typically, this protected area is defined as a geographic area within a three-mile radius of the licensed location, excluding any existing or under-development centers as of the agreement date. For area developers, the protected area is larger and may be defined by Designated Marketing Areas (DMAs), Metropolitan Statistical Areas (MSAs), political subdivisions like cities, townships, or counties, or by streets and natural borders. The size of an area developer's territory depends on population density, car registrations, and the number of franchises to be developed.
Staffing Notes
Tuffy franchisees are responsible for hiring and training all employees for their business. While Tuffy assists in recruiting, interviewing, hiring, and initial training of the first employees, the franchisee is exclusively responsible for the terms of employment, compensation, and proper training of their staff in the operation of a Tuffy Center. Tuffy's policies do not dictate employee policies and procedures, and the franchisor is not involved in personnel matters, compensation, or employment decisions. Franchisees must prominently display signs at their location to inform employees and independent contractors that their relationship is solely with the franchisee, not with Tuffy or its affiliates. Franchisees must comply with all federal, state, and local employment laws and indemnify Tuffy against any liability related to their employees or employment decisions.