What should I ask about a car wash’s chemical supplier before buying?
Ask who supplies the soaps and waxes, who sets and adjusts the chemistry, and whether the supply deal is tied to equipment service. Then read the remaining term, how pricing and minimums are written, what stock is on hand at closing, and meet the representative before handover.
The soaps, waxes and drying agents affect how clean the cars come out, and a supplier often does more than deliver: some set up the dosing, visit to adjust it and help when results slip. When you buy, you inherit that relationship, so ask about it as carefully as you ask about the equipment.
Who supplies and who sets the chemistry
Ask the seller who the supplier is and how long they have worked together. Ask who decides the mix and dilution, and who adjusts it when the weather or water changes. If a representative visits, ask how often and what they check. If the seller does it, ask what they know that is not written down.
Is the supply tied to the equipment?
Some suppliers also provide, lend or service pumps and dispensing gear. Ask whether the chemical deal and the equipment are linked, and what happens to one if you change the other. Ask who owns the dosing equipment. Ask whether the supplier deal is tied to the equipment, and what that link means for transfer.
Term, pricing and stock at closing
Ask to read the supply agreement, or a written summary if the arrangement is informal. Look for the remaining term, how prices are set and when they can change, any minimum order, and how it ends. Ask what stock is on hand and how it will be counted and treated at closing. Ask your lawyer whether the agreement can pass to a buyer under its terms.
- The supplier’s name, contact and length of relationship
- Who sets and adjusts the chemistry, and how often
- Any link between the supply deal and equipment ownership or service
- Remaining term, price changes, minimums and how it ends
The equipment page covers bays, pumps and controllers. Ask for a meeting with the supplier’s representative before handover, so the first call after closing is not a stranger’s.
Related reading
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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 CanadaGovernmentAfter buying a business, what is the next step?
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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