P&G Still Bullish on Mr. Clean Car Wash Investments

Despite the sluggish economy and a poor lending climate, the goal for Mr. Clean Car Wash remains the same. Procter & Gamble still envisions the franchise chain as a national brand, but the company appears to be taking a patient route, focusing initially on the Georgia, Illinois, Kentucky, North Carolina, Ohio and Texas markets, according to a report by the Atlanta Business Chronicle.

P&G’s preference is to build new, “high-profile” Mr. Clean carwash facilities in densely populated areas, although the company is willing to discuss acquisitions as a possibility, according to Mike Foster, a director in P&G’s FutureWorks business-development division.

P&G launched its national franchise aspirations in February when it purchased the assets of the Atlanta-based Carnett’s Car Washes chain from Bruce Arnett Sr. and Bruce Arnett Jr. P&G previously had two corporate Mr. Clean locations.

Although investor interest reportedly has been high, P&G acknowledged that financing remains a challenge. A Mr. Clean Car Wash franchise investment would require $3 million to $4 million per location for property, construction and operating capital, in addition to a $35,000 franchise fee and monthly royalty fees equal to 6 percent of net revenue, the Atlanta Business Chronicle reported.

P&G will not finance or guarantee loans, the article said, but the company will work with lenders to help them understand the Mr. Clean business model and why P&G views the carwash franchise as a sound investment.

Source:

Atlanta Business Chronicle: P&G muscles into car wash biz

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