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Sears Home Appliance Showroom

What does a typical franchisee earn?

Earnings vary depending on market conditions, your store location, the extent of your sales, marketing and promotional activities and other factors. While opening a retail franchise business involves risk and uncertainty, Sears provides the product inventory and marketing support as you develop a strong customer base while utilizing the power of the Sears brand. You can refer to Item 19 in our Franchise Disclosure Document (FDD), where we have disclosed certain actual historical net sales numbers, excluding sales taxes and other taxes.

 

Where will I purchase the inventory?

You do not have to purchase inventory. As a franchisee, Sears invests in your business by providing you with your inventory. This benefits you, your customers and our organization. You won’t have to tie up your valuable capital in inventory.

 

Does Sears Home Appliance Showroom offer financing?

Sears can provide financing for up to 70% of the asset purchase price if you're buying an existing Sears Home Appliance Showroom from Sears. We also welcome each franchisee to arrange financing. All inventories, which generally require a sizeable investment, are owned by Sears and placed on your floor for demonstration purposes.

 

What are the qualities that you look for in a franchisee?

Sears Home Appliance Showroom is selective in choosing franchisees. We believe this contributes to more successful retail franchises. We have found that business-savvy individuals who place a value on continuous marketing efforts make the most successful Sears Home Appliance Showroom franchisees. The ability to own and operate multiple locations is very important to us. As a result, we prefer if a franchisee owns other franchises in non-related industries.

 

Can franchisees secure development contracts for more than one market?

Yes. If a franchisee has demonstrated the ability to grow their business and manage the personnel in their locations, we will encourage future ownership and development in additional markets.

 

What kind of training does Sears Home Appliance Showroom provide?

Beyond the initial training period, one of our experienced operations managers works with new franchisees to ensure that they are ready for their Grand Openings. Additionally, the experienced Sears support team is available to answer any of your questions or concerns as you embark on your retail franchise opportunity.

 

What other operational guidance will I receive after the store opens?

We will provide ongoing guidance on operational and business challenges. After years in business, chances are that we have experienced and successfully resolved the issues that our new franchisees will face and this experience is reflected in the Sears Home Appliance Showroom Operations Manual that we make available to all franchisees.

 

When can I review your franchise agreement?

Once you complete our initial application form, we will provide you with a copy of our Franchise Disclosure Document (FDD), which includes our franchise agreement.

 

What other sources of revenue are available to me in addition to in-store sales?

Because the Sears Home Appliance Showroom is a showroom concept, you will have access to products available on Sears.com via the Internet using our invaluable Sears Solution Center. This is a unique opportunity in retailing and allows you to conduct Internet searches and product selection side by side with your customer and have the purchased item delivered right to your customer’s home.

 

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Sears Appliance & Hardware Store

What does a typical franchisee earn?

Earnings vary depending on market conditions, your store location, the extent of your sales, marketing and promotional activities and other factors. While opening a business involves risk and uncertainty, Sears provides the business inventory and marketing support as you develop a strong customer base while utilizing the power of the Sears brand. You can refer to Item 19 in our Franchise Disclosure Document (FDD), where we have disclosed certain actual historical net sales numbers, excluding sales taxes and other taxes.

 

Where will I purchase the inventory?

You do not have to purchase inventory for your hardware store franchise. As a franchisee, Sears invests in your business by providing you with your inventory. This benefits you, your customers and our organization. You won’t have to tie up your valuable capital in inventory.

 

Does the Sears Appliance & Hardware Store franchise concept offer financing?

Sears can provide financing for up to 70% of the asset purchase price if you're buying an existing Sears Appliance & Hardware Store from Sears. We also welcome you to arrange financing. All inventories, which generally require a sizeable investment, are owned by Sears.

 

What qualities does Sears look for in a franchisee?

Sears is selective in choosing franchisees. We believe this contributes to more successful hardware franchises and we have found that business-savvy individuals who place a value on continuous marketing efforts make the most successful Sears Appliance & Hardware franchisees. The ability to own and operate multiple locations is very important to us. As a result, we prefer if a franchisee owns other franchises or businesses in non-related industries.

 

Can franchisees secure development contracts for more than one market?

Yes. If a franchisee has demonstrated the ability to grow their business and manage the personnel in their locations, we will encourage future ownership in additional markets.

 

What kind of training does Sears Appliance & Hardware Store provide?

Our training program provides a strong foundation for our hardware store franchise owners. Franchisees are required to attend and successfully complete the program, which includes two weeks at our training center in Hoffman Estates, IL and one separate week of in-store training at their franchise store. Franchise owners pay only the costs of transportation, lodging and meals.

 

What kind of support do I receive in opening my Sears Appliance & Hardware Store?

Beyond the initial training period, one of our experienced operations managers works with new franchisees to ensure that they are ready for their Grand Openings. Additionally, the experienced Sears support team is available to answer any of your questions or concerns.

 

When can I review your franchise agreement?

Once you complete our initial application form, we will provide you with a copy of our Franchise Disclosure Document (FDD), which includes our franchise agreement.

 

What other sources of revenue are available to me in addition to in-store sales?

Because the Sears Appliance & Hardware Store is a store concept, you will have access to products available on Sears.com via the Internet using our invaluable Sears Solution Center. This is a unique opportunity in retailing and allows you to conduct Internet searches and product selection side by side with your customer and have the purchased item delivered right to your customer’s home.

 

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Sears Auto Center

How do I qualify to own a Sears Auto Center franchise?

Solid business or retail experience, proven management skills and a strong financial position are what we seek in potential Sears Auto Center franchisees. You will need approximately $250,000 in cash or cash available for investment into the business and a net worth between $400,000 - $500,000 to begin discussions about this automotive franchise opportunity. Development of new and multiple locations would require greater cash and net worth amounts to qualify.

 

What special qualities or skills are required to become a Sears Auto Center franchisee?

You must have an understanding of business management principles and be involved as either an owner-operator of the automotive franchise or, in the case of a multi-unit investment, actively involved in the management of all franchise operations. Strong ethics and customer service values will guide you in building a customer-driven team in your shop. A successful franchisee will also possess proven management skills, leadership ability, vision and a strong desire for growth.

 

What is the franchise fee, royalty fee and franchise term?

Franchise fee* — $35,000 (US)
Royalty fee* — 7% of gross revenue
Advertising* — 1% of gross revenue for National advertising and $500 per week for local advertising
Franchise Term —10 years
*See the Franchise Disclosure Document dated for a description of the range of initial and ongoing franchise fees.

 

Will Sears Auto Centers assist with financing?

Sears does not provide direct financing, however we have identified a number of qualified lenders who have expressed an interest in working with Sears’ auto service franchise candidates. These lenders can usually meet a variety of business funding needs to help you pursue your dream of owning a Sears Auto Center franchise.

 

What does a typical franchisee earn?

Earnings vary depending on market conditions, your store location, the extent of your sales, marketing and promotional activities and other factors. You can refer to Item 19 in our Franchise Disclosure Document (FDD) where we have disclosed certain actual historical net sales numbers, excluding sales taxes and other taxes.

 

What are the benefits of converting my business to a Sears Auto Center franchise?

The high awareness level of our brand name increases your visibility and chances for success. By putting the Sears logo on your building, you become a part of something bigger. You will benefit from the tools we have perfected over the years to grow our franchise network, from our multi-media advertising campaigns created to generate brand awareness, to the skill-enhancing training programs that are designed based upon today’s retail environment.

We know that as an established business owner you are already knowledgeable about your market and your customers. We expect that you may be ready to grow your business even more by expanding your customer base through an affiliation with Sears. Also, under our brand name, you may find it easier to expand your business into new markets through multi-unit ownership.

 

How does Sears Auto Center evaluate a new automotive franchise location?

Sears analyzes information from various sources based on traffic count, registered vehicles, replacement rates, population, growth trends, competitive factors, zoning, retail shopping patterns and other applicable factors.

 

What is the typical store size?

The typical range of store sizes varies throughout our network from four to 10 bays, although some of our "Dealer Based" locations are significantly larger. These stores also vary in building design depending on when they were built. Based on our current business model, we generally recommend six bays or more. However, we will evaluate each market opportunity on a case-by-case basis to determine the right fit for anticipated service demands.

If you are a conversion candidate and are concerned about whether the size of your facility will accommodate the Sears Auto Center service offering, we will be glad to provide a professional evaluation and share our findings with you.

 

What automotive services does a Sears Auto Center franchise provide?

A Sears Auto Center franchise provides an extensive range of maintenance and repair services including air conditioning recharge and service; alignment services and products; alternator and starter service; battery testing and installation; coolant exchange service; differential fluid exchange; driveline service; fresh air quality service; internal engine oil cleaning service and oil change service; power steering fluid exchange service; shocks/struts and related parts; standard brake services; starting and charging system testing; suspension/chassis/steering service; tire installation and related services; transmission fluid exchange and more. While our legacy provides a strong foundation for building your business, increasingly important is sustaining long-term relationships with customers by expanding the range of services available at local Sears Auto Center car repair franchise locations.

 

What about inventory?

A Sears Auto Center franchisee buys its merchandise and certain parts inventory from Sears. The franchisee is required to maintain an inventory that is adequate both in terms of range and quantity to meets its customers’ demand. Sears will supply an assortment of merchandise that we determine to be appropriate based on the size of your auto service franchise location. In addition, we maintain a number of strategic alliances for parts distribution to support the franchisee network. These suppliers can provide "Just in Time" delivery to your store. By providing high quality merchandise at extremely competitive wholesale prices and by systematically building relationships on the supply side and within the retail network, the Sears Auto Center franchise continues to bring an expanding line of products your way.

 

What advertising support can I expect?

Both the National and Local advertising funds are administered by Sears and may be used for the production and placement of media advertising, direct response literature, direct mailings, brochures, collateral advertising material, a website, surveys to determine advertising effectiveness and a host of other advertising or public relations expenditures. At the local level, Sears works with franchisees to develop individualized plans to help generate traffic and sales. Those plans may include local media, direct mail and telephone directory advertising. In addition, Sears offers a variety of grand opening materials to maximize the success of your shop's introduction.

 

Does Sears assist in the hiring process and contribute toward benefits for shop employees?

No. The franchisee is responsible for hiring, managing and training the automotive franchise employees. Payroll and benefits are also the franchisee’s responsibility. The Sears Auto Center Franchise Support Center offers instruction that will prepare you to handle the automotive franchise opportunity effectively on your own during our pre- and post-opening training.

The Sears Auto Center franchisee controls all staffing decisions at a Sears Auto Center Franchise location. We expect the franchisee to make changes as needed to fit the business demands and to create an environment that delivers an excellent customer service experience.

 

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