December 04, 2017 // Franchising.com // Rockledge, FL, USA - As Pirtek wraps up the first full year with its Tier 2, mobile-only model of franchise ownership in place, the results are clear: The idea has proven an overwhelming success. Across the United States, existing owners have expanded their reach and many new franchisees have entered the field under the new ownership model.
This mobile-only option allows entrepreneurs to start Pirtek franchises at a lower point of entry and with a faster time to market. Under Tier 2, a franchisee can keep the inventory in a warehouse or storage facility and lease two Mobile Service Vehicles.
“We anticipated this would be a successful strategy when we put it in place, but it’s exceeded our expectations,” said Glenn Duncan, chief executive officer of Pirtek USA. “It’s opened up franchise ownership to a much broader base and we’ve seen a significant response.”
Since the company introduced the option in the summer of 2016, there have been 13 such locations starting up around the country. The last quarter of 2017 saw major activity in Tier 2 openings: From September 2017 to the year’s end, Tier 2 locations launched in Columbia, SC; Madison, WI; Corona, CA; and Seattle.
Pirtek provides hydraulic and industrial hose replacement sales and services. There are 73 franchises and a fleet of Mobile Service Vehicles throughout the United States.
Florida has seen the most Tier 2 openings of any state since the program began, which include locations in Daytona, Fort Lauderdale, Palm Beach, Fort Myers/Naples, Lakeland/Polk County and Gainesville/Ocala. Tier 2 franchises have also opened in Austin, TX; Grand Rapids, MI; and Fort Collins, CO.
Tier 2 differs from the standard Tier 1 model in that the latter requires a franchisee to have a Service & Supply Center staffed with six team members and at least two Mobile Service Vehicles. The company expects its Tier 2 franchises to grow quickly into Tier 1 locations.
“This is a great way for entrepreneurs to enter the market and work toward a full Tier 1,” Duncan said. “What’s interesting is that we’ve actually had people come to us interested in the Tier 2 model who have then decided to start a full Tier 1 instead. It’s been an excellent recruiting tool for Pirtek ownership.”
Duncan added that the model provides franchisees with two distinct advantages. “The Tier 2 locations hit profitably in a shorter period of time, because they have less overhead compared to a Tier 1,” he said. “They’re more sales-focused, too. They don’t have a home base, so they’re out in the field a lot. In fact, some current Tier 2 locations are talking about expanding into a Tier 1 earlier than three years because of customer demand.”
The Tier 2 model has received positive reviews from owners, too. “It makes franchise ownership more accessible to a larger group,” said Dan Ferretti, owner of Pirtek Space Coast in Rockledge, FL, (a Tier 1) who recently opened a Tier 2 in Daytona. “It also enables existing owners to own multiple franchises - we wanted to take advantage of that benefit.”
Ferretti is one among several Tier 2 owners who already owned or worked for an existing Pirtek location before opening a mobile-only location. Others, such as Jason Barrs at Columbia, are new to Pirtek. “After I checked out the company and visited corporate headquarters, I was excited,” Barrs said. “When I left, I was thrilled and I couldn’t wait to get started.”
Pirtek is the fluid transfer solutions leader in sales and service and the only franchise of its kind in the United States. Pirtek boasts more than 400 Service & Supply Centers in 23 countries around the world, and has more than 30 years of experience in the hydraulic and industrial hose replacement field. Powered by an industry-leading approach to sales and service and backed by a corporate center passionate about its franchisees and customers, Pirtek offers unmatched service and logistics. For additional information about Pirtek USA, visit http://www.Pirtekusa.com.
Strategic Public Relations