Investment Overview:
The Real Asset Investor has partnered with Olympus Pines to acquire and build 50+ Tommy’s Express modern car washes in various high-growth markets across the United States. The Fund will seek to acquire and build on Class A locations in high growth markets such as the suburbs of Washington D.C., Baltimore, Charleston (SC), Philadelphia, San Antonio and more. 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 open car wash bay for natural lighting, advanced presoak and sealer services and free high-power self-serve vacuums on site.
Financial Highlights
Unit Economics
Building + Land: $6-7M
Revenue: $2.6M
Operating Expenses: $1.3M
EBITDA: $1.3M
Fund Locations
Virginia
Maryland
North Carolina
South Carolina
Nebraska
Pennsylvania
Texas
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:
Innovation
App-based membership, license plate recognition, proprietary point of purchase, detergent management system, real-time business analytics, and much more.
Expertise
Proven business and operations models built on over 50 years of car wash operation experience helps you be more efficient, increase your ROI, and have a great guest experience.
Unique Building Design
Instantly identifiable architecture, natural light inside, and a site layout built to maximize your throughput. Our design also offers multi-lane, unlimited club app lanes and cashier lanes that help increase revenue and improve your ROI.
Low Labor Mode
A Tommy’s Express location is built to run with only 12 full time team members on the payroll.
Installation
Our experienced teams will help get your wash up, open, and fine-tuned for the best possible guest experience.
Industry-Leading Equipment
Tommy’s Express washes are built with dual belt conveyors, stainless steel wash equipment, robust drying systems, and state-of-the art wash control systems.
From 2015 to Year End 2022, Tommy’s has grown from 5 car washes to 137. By the end of 2023, it is anticipated that there will be more than 190 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
Innovation
The Tommy’s App
Conveyor belt
Industrial design
Operations
On-call staff
Remote monitoring
Tommy University
Partnership
Best practice sharing
Regional distributor support
Maketing
Coordinated marketing campaigns
Centralized management
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
Financials
Tommy’s Express Unit Economics
Projected Investor Returns based on $100,000 Investment
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. We acquired one of the Top 5 performing Tommy’s Car Washes in the country this spring, implemented the strategies mentioned above, and in a matter of weeks, our team took it to Top 3. The graph below shows the rapid membership growth post acquisition.
Olympus Pines Management Team
Trevor Sperry
President and CFO
Trevor will lead strategy and finance
Trevor is an experienced finance and strategy professional manager with a diverse educational and professional background. Trevor formerly worked at the Boston Consulting Group advising Fortune 500 corporations on strategic and operational challenges. He started his career at J.P. Morgan and later transitioned to Capitol Hill where he was Aide to the Chairman of the Senate Committee on Finance. He graduated from the finance program at BYU and holds an MBA from MIT and MPA from the Harvard Kennedy School.
Michael Cianelli
President and COO
Michael will lead operations and marketing
Michael is an experienced operating manager with a diverse professional background. He began his career flying Navy fighter jets before transitioning to Apple where he managed the global supply chain of iPhone cameras. Michael later moved to Apple Worldwide iPhone Marketing, tasked with making strategic recommendations to Apple’s C suite. Most recently, he led the effort forming industry partnerships for Boom Supersonic. Michael graduated with a degree in economics from the US Naval Academy and holds an MBA from Harvard Business School.
Alex Lemmen
Strategic Advisor
Alex will contribute to strategy and growth
Alex was promoted to and currently serves as the CEO of Tommy’s Express and Tommy Car Wash Systems. Alex joined Tommy’s in 2018 as the COO and has overseen rapid growth of the company. He brings an international perspective and growth mindset to Tommy’s. Previously he was a management consultant at The Boston Consulting Group for five years, after transitioning from J.P. Morgan. He holds a degree in business administration from the University of Michigan’s Ross School of Business.
The Real Asset Investor Team
Dave Zook
Founder and CEO
Dave is a successful Business owner, Syndicator and an Investment and Tax Strategist.
He has acquired more than $350M of Investment Real Estate since 2010 which include large institutional grade Self-storage facilities, Tommy’s Express Carwashes and Energy investments.
Dave and his team at The Real Asset Investor are one of the Top 5 ATM Fund Operators in the country, and they provide investment opportunities in their ATM, Self-storage, Carwash and various Funds for Cash Flow, Tax Impact and Equity Growth.
Dave and his wife Susan along with their 4 children live in Lancaster PA.
William K. Poole
Career Banker
William K. Poole was a career banker in the Central PA region for almost 40 years and is currently on the Board of Directors of Mid Penn Bank. Previously he was the Founding President/CEO and a Director of the HomeTowne Heritage Bank which he took to a successful exit.
Mr Poole has worked alongside The Real Asset Investor team in several of their projects before coming on as an equity partner in the Tommy’s Express Carwash franchise business with The Real Asset Investor Team as a partner and advisor.
Jack Barry
COO
Jack serves as Chief Operating Officer for The Real Asset Investor and has a strong background in financial analysis and real estate acquisitions.
Jack has worked for some of the nation’s top Self Storage acquisition firms and operators where he was mainly responsible for the valuation of potential acquisitions across the country. He has assisted in the acquisition of more than $450M in Self Storage properties. At The Real Asset Investor, Jack oversees all day-to-day operations and works closely with the firm’s portfolio companies/operating partners.
Brett Van Gorden
Portfolio Manager
Brett serves as Portfolio Manager for The Real Asset Investor. He has merged his experience creating tailored solutions for clients in the marketing industry with his strong understanding of financial markets to help facilitate a seamless investing experience for investors.
At The Real Asset Investor, Brett is responsible for monitoring current investments within the portfolio. He consults both current and potential investors to help them understand the intricacies of the different investment opportunities offered by the firm.
Frequently Asked Questions - Tommy’s Carwash Fund
OPERATIONAL:
In total, we anticipate there to be 50+ car washes across various markets in the U.S. providing significant diversification. There will be a combination of existing/stabilized sites and new sites, the majority being ground up developments.
Yes, at the time of this writing, there are 7 existing/stabilized car washes either under contract or owned by the Fund. In addition, there are 21 car wash sites owned and in development with many more under contract to build in coming
months.
Yes. We invested in Tommy’s Express Car Wash with our operating partner prior to offering the fund. As with all opportunities we offer, we did significant due diligence on the industry and partnered with a top operator in the space who has displayed significant operational capability. (See what they
did to an already Top 5 performing store in the U.S. on page 10 of the investment summary!)
As with all real estate investments, location is key. We work closely with the team at the Tommy’s Headquarters to help select attractive, high growth markets to grow our portfolio. We then focus on Class A locations within those markets. While Tommy’s Express business model has already proven to be successful, we maximize risk mitigation and focus on locations with the highest probability to succeed (See details on site evaluation process on page 7 of the investment summary). Additionally, we do not accept investor funds unless we have properties fully under contract.
RETURN/STRUCTURE/TAX:
Investors receive 100% of the net cash flow to the fund until their projected 1.75x is achieved.
Yes. Investors receive depreciation equal to 100% of their investment amount which we expect to be realized over the first three years.
Yes, this is possible and even expected. There is no cap on how much investors gets paid back each year and could achieve their 1.75x return in less than the projected timeline. We anticipate that the 1.75x return will be achieved in 4.75 years.
No, as like many of the investments we offer, it is a fixed return in which investors receive significant preferential treatment (in this case, 100% of the net cash flow). While there isn’t the ability earn greater than the fixed return, it could be returned quicker than the projected term (and we are incentivized to make that happen).
The first distribution is projected for approximately 9-12 months after the investment is funded. Distributions are scheduled to be sent quarterly (30-45 days after quarter end).
Distributions derived from cash flow are treated as passive income. Note that investors are to receive depreciation equal to 100% of their investment amount over the first three years.
Yes, we have many investors who participate in our offerings using qualified funds.
The minimum investment is $100,000.
Investors will receive a K-1 and our accounting team works hard each year to deliver these statements on or round March 15th.
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.
