Investment Overview:
The Real Asset Investor has partnered with Olympus Pines to build Tommy’s Express modern car washes in various high-growth markets across the United States. These markets and locations have been chosen with strategic advice from Tommy’s leadership as areas to outperform the national average due to favorable demographics and lack of substantive competition. The sites will be managed by a team of professionals dedicated to flawless operational execution and customer service.
Tommy’s is a rapidly growing national brand and has been a leading provider of car wash solutions for over 50 years. They are one of the nation’s fastest growing franchises that is leveraging their experience as one of the top car wash equipment manufacturers in the U.S. to transition into offering a cutting-edge car wash experience for customers across the country. Their fully automatic washes feature advances including the easy-loading car wash dual belt conveyor, wide services and free high-power self-serve vacuums on site.
Financial Highlights
Economics
Building + Land: $7-9M
Revenue: $2.6M
Operating Expenses: $1.4M
EBITDA: $1.2M
EBITDA Margin: 45%
Portfolio Locations
Virginia
Maryland
North Carolina
South Carolina
Nebraska
Pennsylvania
Texas
Utah
Company Profile
With over 50 years of industry expertise, Tommy’s differentiates themselves from the competition by focusing on innovation and operational efficiency. Tommy’s leverages technology to enhance the customer experience by using license plate readers for subscription members which identifies customer accounts and their associated wash plan without the need to stop and interact with employees. This reduces the time it takes customers to get through the wash and allows for greater wash volume. In the Fund, the most common tunnel size is 110 feet which can wash 160-180 cars per hour.
On the back end, Tommy’s utilizes technology to monitor the health of the equipment and detergent levels throughout the wash to proactively complete maintenance and stay ahead of any forthcoming issues. Each piece of equipment on the wash line also has backup to take over in the event a part fails. Additionally, staff is trained on how to quickly fix and/or replace equipment. These preventive measures ensure minimal downtime in the event of malfunction.
See below for how Tommy’s business model and strategy allows them to outshine their competitors:
From 2015 to Year End 2023, Tommy’s has grown from 5 car washes to 184. By the end of 2024, it is anticipated that there will be more than 270 Tommy’s Express locations across the country. While the growth is rapid, Tommy’s high standards have maintained the same. All sites are reviewed through a robust evaluation process. There are multiple indicators that predict success, three non-negotiable thresholds for success include the following:
- Within 500 feet of regional or national retail brand name
- Multiple points of entry, corner, connected to corner, or any cross access
- Free of significant competition (within a half mile)
Tommy’s success is built on innovation and operations
Industry Overview
The car wash industry is highly fragmented and growing rapidly.
The industry’s revenue totals over $10.3 billion and has an estimated 5-year compounded annual growth rate of 4.6%. While more than 61,000 car washes make up the industry, no one player generates more than 5% of the industry’s revenue.
Industry lacks innovation and is ripe for disruption
When assessing the variety of offerings for car washes in the industry today, most are overpriced, provide inconsistent service/washes, and are largely unreliable and inconvenient. Tommy’s is addressing a segment of the market that is growing organically while also disrupting the existing industry.
The objective is to drive value through
1) Implementing cutting-edge technology,
2) Creating recurring revenue through subscriptions and partnerships
3) Prioritize customer service
Tommy’s is a leader in minimizing environmental impact
WATER CONSERVATION AND RECLAMATION
- The Tommy’s system uses a water reclamation system with Rotating Bed Biofilm Reactor (RBBR) technology to reduce consumption without compromising on quality
- Up to 90% of water can be reclaimed (40% more than industry standard)
- Highly efficient targeted wash equipment
- Tommy’s Express uses ¼ the water as at-home washing, and sends water and detergents to the sewage system to be treated versus runoff into the environment
LEED CERTIFIED BUILDINGS
- Utilizes efficient design, natural lighting, and other energy conserving features
PARTNERSHIP WITH WATER MISSION
- Tommy’s Express has partnered with Water Mission, a nonprofit organization advancing sustainable clean water solutions in developing countries and disaster areas
Case Study
Our partners, Olympus Pines, have continued to display their strong operational capabilities through a variety of strategic decisions which have resulted in membership and revenue growth since Day 1. At every car wash in the fund, we will implement a marketing, sales, strategic partnership initiative and employee incentive plan that is unique to any other operator. Our first development site that is now in operations broke Tommy's opening weekend membership record at 1,191. The previous record was 1,152.
Frequently Asked Questions - Tommy’s Carwash Fund
OPERATIONAL:
RETURN/STRUCTURE/TAX:
If you have any additional questions, please reach out to us at
[email protected].
Franchisees love Tommy’s. Here’s what they told us:
“They perform exactly the way we were told they would”
“Go build a dozen and have a ball”
- Mark Mitchell, Florida
“We were up and running in 18 months.
2,000 members signed up in the first month”
- David Shaner, Nebraska
“[The secret to success was] do exactly what they tell
you to do”
- Jordan Williams, Louisiana
“I have no concern about Tommy’s. Alex has improved
the business a lot”
“We opened and it only took 2 months to cash flow”
- Ray Anderson, Nebraska
“Don’t go cheap on the land. Pay double if you have to”
- Scott Findlay, Tennessee
“I hired my general manager from Dominos”
- Mike Luders, California
Disclaimer
This Business Plan contains privileged and confidential information and unauthorized use of this information in any manner is strictly prohibited. If you are not the intended recipient, please notify the sender immediately. This Business Plan is for informational purposes and not intended to be a general solicitation or a securities offering of any kind. The information contained herein is from sources believed to be reliable, however no representation by Sponsor(s), either expressed or implied, is made as to the accuracy of any information on this property and all investors should conduct their own research to determine the accuracy of any statements made. An investment in this offering will be a speculative investment and subject to significant risks and therefore investors are encouraged to consult with their personal legal and tax advisors. Neither the Sponsor(s), nor their representatives, officers, employees, affiliates, sub-contractor or vendors provide tax, legal or investment advice. Nothing in this document is intended to be or should be construed as such advice.
The SEC has not passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials. However, prior to making any decision to contribute capital, all investors must review and execute the Private Placement Memorandum and related offering documents. The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities Potential investors and other readers are also cautioned that these forward-looking statements are predictions only based on current information, assumptions and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by such forward looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, such as "may," "will," "seek," "should," "expect," "anticipate," "project, "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology. These forward- looking statements are only made as of the date of this executive summary and Sponsors undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Financial Disclaimer
This Business Plan further contains several future financial projections and forecasts. These estimated projections are based on numerous assumptions and hypothetical scenarios and Sponsor(s) explicitly makes no representation or warranty of any kind with respect to any financial projection or forecast delivered in connection with the Offering or any of the assumptions underlying them. This Business plan further contains performance data that represents past performances. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data presented.
All return examples provided are based on assumptions and expectations in light of currently available information, industry trends and comparisons to competitor's financials. Therefore, actual performance may, and most likely will, substantially differ from these projections and no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained in this Business Plan. The Sponsor further makes no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown in the pro-formas or other financial projections.
