What happens to customers’ ceramic coating warranties when I buy a detailing shop?
Customers who bought a coating, film or prepaid package keep the promises made to them, and you may be expected to honour them. Ask the seller for a list of every open warranty, maintenance plan and prepaid package, then settle in the purchase agreement who handles each one after closing.
A detailing shop sells more than a day’s work. A ceramic coating or protective film often comes with a multi-year promise, and some customers have also paid for maintenance visits or packages they have not used yet. When ownership changes, those customers still expect service. A buyer who does not find out about them until a customer walks in with a certificate takes on the cost without having planned for it.
Build the list of open promises
Ask the seller to list every warranty still running, with the customer, the vehicle, the product, the date and any maintenance condition. Add each prepaid package and maintenance plan, noting what was paid and what remains. Compare the list with the shop’s invoices and the coating brand’s registration records. Gaps between the two are worth asking about, since promises made over the counter may not be written down anywhere.
Who honours them after closing
There are a few ways to handle it, and the choice belongs in the purchase agreement. You might take on the obligations, or the seller might stay responsible when a claim arrives; the terms are for the parties to agree, with advice from your lawyer and accountant. Some brands back the product warranty themselves, which may change the picture. Your lawyer can explain how each option works and how to protect you if the seller later disappears.
Keep customers confident
Plan how you will tell customers about the change, and how you will record and service claims in the first year. Consider how honouring an existing warranty fits your plans for customers. Check that your own insurance and the brand’s requirements are in place before you promise anything, and keep records of every claim from your first day as owner.
The insurance checklist for a detailing purchase covers policies, while this page is about promises already made. See also whether dealer agreements transfer.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Buying
- Expert answerWhat do you get when you buy a mobile detailing business?
- Expert answerIs it too late to claim against the seller months after closing?
- Expert answerWhat if key customers leave after I buy?
- GuideBuying an auto detailing business in Canada
- Expert answerShould I buy a mobile detailing business or one with a shop?
Selling
- Expert answerWhat customer and vehicle records come with an auto repair shop sale?
- Expert answerHow do I hand over my flower shop’s standing delivery customers like funeral homes?
- Expert answerWhat should I say to print shop customers who place standing orders?
- Expert answerHow should I prepare my garage’s customer service history before listing it?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
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