Read: 5 min
30.06.2021
At the beginning of the year, PRO BRO, one of the leaders in car wash services, signed agreements to develop 10 new facilities in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys and Alytus. The company has also begun looking for investors interested in acquiring franchises for the new locations.
PRO BRO has introduced another innovation by offering franchise partners a choice of four different express tunnel car wash models. Construction is already underway at several sites, while the development of others is expected to begin shortly. The company also plans to secure agreements for several additional locations across Lithuania.
Having previously focused primarily on Lithuania’s largest cities, PRO BRO is now expanding into Šiauliai, Panevėžys and Alytus, alongside further development in Vilnius, Kaunas and Klaipėda. Some of the new facilities were planned to open in 2021, with the remaining locations expected to launch by mid-2022.
The availability of medium-sized and smaller express tunnel car wash models has enabled expansion into smaller cities. These markets were not initially included in the company’s development plans, but growing customer demand and strong market potential have created new opportunities to provide convenient everyday car care services in a wider range of locations.
Four models of car washes
PRO BRO is seeking franchisees to take over the management of new facilities before they open. Upon signing a franchise agreement, the new owners pay the initial franchise fee and provide the capital required to launch car wash operations.
Investors can choose from four tunnel car wash models, which differ in size and capacity. The smallest model, Smart, can serve an average of 60 cars per hour, followed by MINI with 100 cars per hour, MIDI with 160 cars per hour and MAXI with a capacity of more than 220 cars per hour.
This range of models provides greater flexibility, allowing future owners to select an option that matches their financial capacity, local market potential and expected return on investment. For example, a MAXI facility operating at its highest capacity could wash approximately 500,000 cars annually and generate more than EUR 2 million in annual revenue, with an estimated investment payback period of five to six years.
The most suitable model for each location is selected following a detailed market analysis that evaluates traffic flows and demand for car wash services in the surrounding area.
PRO BRO facilities are typically developed on some of the busiest roads in a city or town, in highly visible locations with convenient access. As the network expands into new markets, the company also applies standardised facility models and introduces innovative water recycling systems across its new locations to support more sustainable operations.
Proven business model
The attractiveness of the business model has already been demonstrated in practice, and franchise sales are no longer new to PRO BRO. Four existing facilities have been sold as going concerns, with their value determined using an EBITDA multiple, while a fifth facility near Gariūnai was sold as a greenfield franchise before construction had been completed.
The express tunnel car wash near Gariūnai Business Park was sold well before its planned opening. The franchisee secured bank financing and allocated the capital required to launch operations, demonstrating confidence in the business model by investing in a completely new facility that had yet to be built.
Franchisees who purchased the first car washes have also shown interest in acquiring additional locations. After seeing the model’s performance in practice, some are considering investing in a second facility.
Clear requirements for buyers
PRO BRO applies specific requirements when selecting future franchisees. They are expected to take an active role in managing the business and have relevant management experience.
The reputation, business background and financial capacity of each candidate are also carefully assessed. Franchisees must be able to contribute their own funds toward the initial investment. Depending on the selected model and the level of bank financing, the investment required for the Smart model starts from approximately EUR 300,000 and increases proportionally for larger car wash models.
PRO BRO supports franchisees in addressing key financial matters, negotiating suitable funding terms and preparing business plans. The franchisee ultimately takes over a fully completed and operationally ready facility.
The support package includes a proven business model, an established brand, access to a shared customer base, effective marketing tools and business management training. PRO BRO also provides technical equipment support, introduces new technologies and innovations, and supplies specialised products developed exclusively for its express tunnel car washes.
Drawing on more than 22 years of industry experience, PRO BRO supports franchisees throughout the development process, during the opening and for the entire duration of the franchise agreement. By the time the facility is handed over, the construction, design, technical solutions and operational preparations have already been completed.
30.06.2021
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