LazrTek is a Truck Wash License Business with a Highly Successful Business Model and Licensing Formula.

Lazrtek Master Affiliate | Successful Business Model

Our Proven Successful Business Model Leverages New Technology in an Age-Old Business where Speed, Price and Convenience is desperately needed to Satisfy Customers

The Key to a Successful Business Model at LazrTek

We did it at LazrTek. We developed a unique, technologically advanced concept into a successful business model. Success is addictive. We want more. We want to make the step from entrepreneur to Licensor. How much do We want it and how big do want to get?

The potential and scalability of a truck wash Licensing formula, that’s what makes it so attractive. A good example is LazrTek started with a single licensee- LazrTek Shreveport, started in 2021 with one branch by Chad Erie. The successful LazrTek exclusive territory licensing formula now has several more branches and receives consistently high ratings of 4.5 stars or higher.

We are also undoubtedly familiar with other U.S. examples of licensing or franchising truck wash formulas of our competitors. I am sure they are good companies, but unfortunately, in reality, their business model success turns out to be less than ideal.

Many Licensing or Franchising formulas do not achieve the intended success because it often proves out in hindsight that the original business plan was not solid enough or behind the times.

We first answer the question: What is a Licensing? Next, we offer a step-by-step plan that can help us during the exciting journey from a start-up business to a multi-terrtory Licensing company with a successful business model.

A person is pressure washing a white truck inside an industrial cleaning bay.

What is a Licensing? (hard versus soft)

A Licensing company is a close cooperation between a single Licensor and several Licensees. The Licensee is given the opportunity (for a fee) to build on a previously successful proprietary business formula of the licensor. With cooperation such as this, both parties benefit from the advantages of an exclusive territory Licensing agreement. As the Licensor, Lazrtek manages the branches and provides support in the area of marketing and sales, while the Licensee focuses on his own branch, execution of the business model and his personnel. The aim is an efficient division of tasks and a uniform image to the outside world. However, the degree of uniformity strongly depends on the shape of the Licensing.

A more detailed explanation of the different Licensing forms can be found in our private portal for Master Associates. Below is a brief but clear comparison between hard and soft licensing or franchising (although a Licensing can also be placed in between these two extremes):

Soft Licensing

Advantages: A high degree of entrepreneurial freedom and we save valuable time in our exclusinve territory Licensing agreement and Licensing manual.

Disadvantages: Little control and a lower degree of uniformity between the individual Licensees.

Example(s): LazrTek provides a formula for each LazrTek operating entity within the exclusive licensed territories

Hard Franchising

Advantages: Franchisor retains complete control and uniformity between the various locations.

Disadvantages: It takes a lot of time to work everything out to perfection and the Franchisees are limited in their entrepreneurial freedom.

Example(s): McDonald’s, Starbucks, Domino’s etc.

Step-by-step plan: Become an Exclusive Territory LazrTek Licensee

Lazrtek Master Affiliate | Successful Business Model

1. Test and Optimize the LazrTek License Model

We developed a unique business model and operational system, opened a branch and are currently enjoying its tremendous success. It is a misconception to then assume that other branches will also be successful under the same Licensing formula. All kinds of (regional) factors can cause a non-comparable situation. For example, we have to take into account different customer needs and differences in competition.

In order to ensure that our Licensing concept also works within your unique business area environment, we customize the operation and marketing to fit the application. We always conduct a market- and industry study in your unique territory to ensure success in your local market environment with our successful business model. A market- and sector study consists of:

  • A market survey and feasibility study through surveys and/or interviews. Is there a sufficient need for our service within this area to be profitable?
  • A SWOT analysis: Strengths, Weaknesses, Opportunities & Threats.
  • Competition analysis of the the available truck wash options
  • An investigation into the truck traffic and truck density in the intended location market area.
  • A marketing analysis to determine our marketing strategy on the basis of the results: which target customer is our ideal group and what is the  most effective to marketing channel to reach this audience
  • Type of wash system
  • Do we test the market with mobile fleet washing before building a fixed wash?
  • Site selection
  • Estimated cost projections base on equipment selection and style washes to be delivered
  • Sources and Uses
  • Capital Structure
  • Advanced Technology choices

2. Recruit Licensees

Our successful business model has passed all the tests and has the shape of the Licensing formula has been decided (hard versus soft)? Our first few Licensee(s) have a lot of influence on the further course of our Licensing formula and overall business success. They determine the basis and pace upon which we can grow as a company. In addition, they proclaim our message and represent what we stand for at LazrTek. As a result, we must be very careful in choosing qualified, committed and hardworking entrepreneurial licensees.

It is important to clearly develop criteria that our future Licensees must meet before they start the licensed application process. We carefully base these criteria on our established goals, mission and vision. We also challenge ourselves to openly discuss their motivation with prospective Licensees pending within our network. We take our time to recruit our first Licensees to ensure they fit

 3. Share Our Expertise & Knowledge with Our Licensees to Ensure Their Success

Lazrtek Master Affiliate | Successful Business Model

As soon as we approve suitable Licensees, and the approved licensee has paid the proper fees, it is very important that we transfer our acquired knowledge efficiently. Our Licensing formula, including all the knowledge about it, the business model, educational materials, digital marketing strategy, operational systems, proprietary software for lead generation and proprietary retail truck wash app in a concise delivery system of digital documents through the Master Associate login of the LazrTek website. This will be included in the License manual, which also contains all the basic agreements.

In addition to the manual, an exclusive territory License agreement will be delivered to licensee set long-term goals so that everyone has identical vision towards the future.

Finally, an on-site training program is mandatory. A week-long training school is conducted at LazrTek headquarters in Dallas, Tx. On-site truck wash training and machine operations are also conducted at our location in Shreveport, LA.  Licensees proper training is essential to the integrity of our successful business model and ensures Licensee success. Proper training further ensures Licensees spend less time on solving problems when their business launches. LazrTek will continue to update its training materials, educational courses, and proprietary softwares to ensure its systems and processes work seamlessly to deliver a great customer experience every time.

Licensees will continue annual training through attending the annual LazrTek summit in Dallas to learn the newest and latest technologies and business improvements as well as interact with other licensees to stay abreast of the newest business solutions and leading-edge digital marketing strategies and processes.

 4. Prevent and manage conflicts with Licensees

Lazrtek encourages Licensee feedback and the robust exchange of positive and negative business issues that arise amongst its licensees. A Licensee council had been established to ensure prompt resolution of any conflicts that may arise between licensees or between licensees and licensor. In most cases a simple lack of clarity and wrong expectations may exist on both sides through inadequate communication and the Licensee council is designed to keep open channels of communication. The council’s mission shall be to openly discuss in detail what LazrTek expects from the Licensees and what they can expect from LazrTek as Licensor.

In particular, the expectations of Licensees regarding their entrepreneurial freedom will have to be tempered in the case of a hard Licensing issues that may best define the brand and business. The rights and obligations of the Licensees and Licensor are well documented in the Licensing agreement.

The Licensees will also utilize the Licensee council to express their ideas, opinions, questions and/or complaints on a regular basis. It is important that LazrTek is aware of such expressions so that we can gather good ideas and initiatives, solve any problems timely so that Licensees do not feel unheard or mistreated. LazrTek’s role will take on is different complexion than it may have been originally as an entrepreneur. We will serve more often as a mediator between different parties and delegate responsibilities for positive change through the Licensee council.

 5. Manage and use all incoming data from Our Licensing chain.

As our Licensing formula grows and we open more Licensed territories, our ability to have less visit the Licensees in person will diminish. Eventually, we will hire people called Licensing managers to do this for us. In this new role in which we gradually distance ourselves, data will be our best friend. The challenge for us is to set up all the data from the start to keep it organized. If we do this from the beginning, we will avoid data loss later and we will have everything at our disposal as soon as necessary.

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