Risk Score
Pending analysis
Investment Range
$5,950 - $16,153
Total US Locations
274
Business Summary
WINZER operates a business that supplies a wide array of automotive, chemical, and industrial products, including fasteners, adhesives, electrical components, cutting tools, chemicals, and shop supplies. WINZER franchisees primarily sell these products directly to retailers and end-users in the automotive, chemical, and industrial markets, leveraging their existing customer base.
Corporate History
WINZER Franchise Company, Inc. was incorporated in Texas on March 16, 2012, and began operating as the franchisor when its parent company, Winzer Corporation (WC), assigned its existing WINZER franchises to it on October 29, 2012. WC itself has a longer history, having started as International Metric Supply in 1977 and later becoming Winzer Corporation in 1980. WC had been in the fastener and maintenance supply business since 1977 and granted WINZER franchises from 1991 until the transition to Winzer Franchise Company, Inc. in 2012.
Financial Overview
Investment Range
$5,950 - $16,153
Franchise Fee (High)
$3,500
Royalty %
16%
Equipment Costs (High)
$2,178
Working Capital
$1,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
WINZER's financial condition, as noted in the FDD's special risks section, raises questions about its ability to provide services and support to franchisees. However, the franchisor's immediate parent company, GradeEight Holdings, LLC, which guarantees WINZER's performance, maintains positive working capital, with approximately $6.6 million as of July 31, 2024, and received an unqualified audit opinion for its financial statements.
Financing Details
WINZER does not offer any direct or indirect financing options to its franchisees. Additionally, WINZER does not guarantee any loans, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
274
Franchised Units
267
Corporate Units
7
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
WINZER has a minimal legal history. In June 2024, WINZER filed one lawsuit against a former franchisee for failing to pay amounts owed under a terminated franchise agreement. This case is currently pending in the District Court, Dallas County, Texas.
Bankruptcy History
WINZER has no bankruptcy history to report for the franchisor or its key management personnel.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, WINZER franchisees must meet several conditions. These include substantially complying with their franchise agreement throughout its entire term, providing written notice of their intent to renew at least 90 days before the agreement expires, and ensuring all money owed to WINZER, its affiliates, and suppliers is paid. Franchisees will also need to sign WINZER's then-current form of franchise agreement for new franchisees, which will supersede their old agreement, and execute a general release of claims against WINZER and its affiliates.
Training & Support Program
Franchisor Assistance
WINZER provides a range of assistance to its franchisees, both before and during operations. Before opening, WINZER helps prepare a list of protected customers, provides initial training in Plano, Texas, assists with installing proprietary software on the franchisee's order entry device, and lends a copy of the Confidential Operations Manual. Franchisees also receive start-up materials like catalogs, brochures, and business cards. During operation, WINZER strives for high quality products and fill rates, provides mandatory operating standards and regular updates to the Approved Winzer Products list via software. WINZER maintains comprehensive general liability and product liability insurance for franchisees. It sells products at current prices (allowing franchisees to set their own retail prices), sends periodic gross profit statements, and handles sales tax collection and reporting for Approved Winzer Products. WINZER also offers software maintenance, consults with franchisees on major product line changes, provides sales reports and updated product information, sends manual updates, and may purchase franchisee product receivables. For retiring franchisees, WINZER offers assistance in developing a plan to sell the business.
Initial Training Hours
18
Training Location
Remote or at corporate headquarters in Plano, Texas
Ongoing Support
WINZER provides ongoing support by striving to meet quality standards and fill rates, offering mandatory specifications and non-mandatory guidelines, and regularly updating the Approved Winzer Products list through its software. WINZER maintains general liability and product liability insurance for franchisees and handles sales tax collection for Approved Winzer Products. Franchisees receive periodic gross profit statements and timely sales reports, along with updated product information and Confidential Operations Manual updates. WINZER consults with groups of franchisees before major product line changes and may purchase certain franchisee account receivables. WINZER may also provide additional training virtually and at in-person meetings, although attendance at in-person meetings is optional and at the franchisee's expense for travel and lodging.
Franchise Requirements
Ideal Candidate Profile
WINZER is looking for franchisees who are already established in the business of supplying automotive, chemical, and/or industrial products and possess an existing customer base in these markets. If the franchisee is a legal entity, they must designate an acceptable operating principal who will be personally bound by the franchise agreement's obligations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
The WINZER territory is defined by the type of Licensed Market (Automotive, Chemical, and/or Industrial) and a specific list of "Protected Customers." WINZER franchisees operate within designated client-centered Licensed Markets rather than geographical areas. Their territory size is defined by a list of pre-existing customers, new customers they acquire who are not already protected by WINZER or other franchisees, and any other customers WINZER may designate. This structure means their sales are focused on specific customer accounts within defined market types, rather than a physical area or population size.
Staffing Notes
WINZER franchisees may hire employees or independent contractors as "Permitted Representatives" for sales or customer contact roles, but this is not a requirement, and a franchisee can operate alone. Each Permitted Representative must sign a confidentiality agreement. Franchisees are prohibited from hiring individuals whose involvement would violate any existing court order or non-competition agreement. If a Permitted Representative had a prior non-disclosure or non-competition agreement, they might be required to sign an indemnity agreement. Franchisees are responsible for ensuring all Permitted Representatives comply with the franchise agreement's terms and WINZER's operating procedures, as any violation by a Permitted Representative will be attributed to the franchisee.