Procter & Gamble Co. has taken a strategic step toward turning its Mr. Clean Car Wash franchise into a national chain. Through Agile Pursuits Franchising Inc., a new P&G subsidiary established to oversee franchising efforts, the company has acquired the assets of Carnett’s Car Washes, an Atlanta-based chain. The move brings the total number of carwashes operating under the Mr. Clean Car Wash brand to 16, including two in the Cincinnati area that are corporately owned. Financial terms were not disclosed. P&G announced last August that it was pursuing franchising opportunities in Ohio and Kentucky, but the acquisition of Carnett’s immediately boosts Mr. Clean’s presence in the Southeast. Three other franchised carwashes are under development, P&G announced. “I’m excited to be a part of this,” said Bruce Arnett Sr., who launched Carnett’s with his son Bruce Arnett Jr. and will become CEO of Agile Pursuits. “We contacted P&G to learn about carwash franchise opportunities, and when we learned the details about their consumer knowledge and research, we knew we had found a winning solution to a national carwash business.” Bruce Arnett Jr. will become COO of Agile Pursuits, P&G announced. “Being a part of the P&G family of companies gives us benefits in scale that will allow us to provide even better service and value than before,” Arnett Sr. said. Most of the Carnett’s carwashes will be branded as Mr. Clean Car Washes by this summer, officials said. Together, the Arnetts bring a half-century of carwash leadership to Agile Pursuits. They will report to a board of executives and external franchising experts who will oversee the franchising efforts, P&G officials reported. Jim Amos, chairman and CEO of Tasti D-Lite and former chairman and CEO of Mail Boxes Etc. is chairman of the franchising board. Amos also is a former chairman of the International Franchise Association. “Jim brings expertise and leadership in franchising,” said Nathan Estruth, vice president of P&G FutureWorks. “So we have brought in someone with a proven record in franchising, and with the Arnetts we have a tandem of proven winners in the carwash industry. When you combine this with Mr. Clean and P&G’s record as the world’s largest brand builder, we have established a triad of leadership and expertise to build the first successful national carwash franchise system.” Estruth told The Wall Street Journal that P&G believes it can succeed in building a national carwash brand in part because the industry still does not have a national chain, the aging baby boomer population is not inclined to wash their own vehicles and municipalities are increasingly pushing residents toward professional carwashing as a means of water conservation. Agile Pursuits is accepting franchise applications nationwide. According to the Mr. Clean Car Wash Web site, the financial requirements include an initial franchise fee of $35,000 and an investment range between $2 million and $4 million. The liquid capital required is between $400,000 and $800,000, and the net worth required is $2.5 million. Franchisees pay a 6 percent royalty. The contract duration is for 10 years, with a 10-year renewal option. Related Articles
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