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HARLEy-DAviDSON & BUELL DEALER PROSPECT HANDBOOK

HARLEy-DAviDSON & BUELL DEALER PROSPECT HANDBOOK

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fAQS<br />

How much does it cost to be a Harley-Davidson dealer?<br />

The costs associated with becoming a Harley-Davidson dealer depend on the opportunity<br />

available. When a new dealership opportunity is available, the investment requirements will<br />

vary according to the size of the market opportunity. However for an average dealership,<br />

Harley-Davidson expects applicants to have at least £400,000 in net worth and £200,000<br />

in liquid assets. Dealership sellout opportunities vary depending on the asking price<br />

established by the selling dealer, operating capital requirements, and facility expenses.<br />

Does Harley-Davidson<br />

charge a Franchise Fee?<br />

Harley-Davidson does not charge a<br />

franchise fee. Harley-Davidson dealerships<br />

are not franchises - they are independently<br />

owned and operated businesses.<br />

I own some land and a building in<br />

the perfect location and would like<br />

to open a dealership.<br />

Harley-Davidson conducts its own market<br />

studies when considering expansion<br />

of the dealer network. This enables the<br />

company to view many market areas in a<br />

similar manner, optimising consistent and<br />

accurate results. Based on the results of<br />

these studies, Harley-Davidson selects<br />

the markets and locations where new<br />

dealerships will be established.<br />

Is there a set distance on how close a<br />

dealership can be to another dealer?<br />

There is no specific distance on how close<br />

dealerships can be to each other. However,<br />

in some markets each dealership is<br />

assigned a clearly defined and designated<br />

territory which in itself ensures a degree of<br />

distance between dealerships.<br />

Can we commission our own market<br />

study and send it in?<br />

There is no need for you to commission<br />

your own market study. Harley-Davidson<br />

conducts its own market studies utilising<br />

the best resources available. This enables<br />

the Company to view many market areas in<br />

a similar manner optimising consistent and<br />

accurate results.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® / <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

Can I purchase parts, accessories, and clothing directly from Harley-Davidson?<br />

Harley-Davidson Motor Company sells only through its authorised dealer network.<br />

I only want to sell Harley-Davidson<br />

clothing and/or parts and accessories.<br />

Is this possible?<br />

Harley-Davidson products are<br />

distributed exclusively through our<br />

authorised, full-line dealerships. Only<br />

these full-line dealers may own and operate<br />

additional locations that specialise in<br />

MotorClothes ® apparel, collectibles,<br />

and Genuine Motor Accessories.<br />

When can I expect to receive<br />

a response to my application?<br />

Whenever possible you will receive a full<br />

reply to your application within 30 days.<br />

What happens if my application is<br />

accepted and there are no current<br />

opportunities available?<br />

If there are no current opportunities<br />

available, we will retain your<br />

information in our database for one year.<br />

There is a city/town in which I would<br />

like to open a dealership where I<br />

believe the market is under served.<br />

Harley-Davidson conducts its own market<br />

studies when considering expansion<br />

of the dealer network. This enables the<br />

company to view many market areas in a<br />

similar manner, optimising consistent and<br />

accurate results. Based on the results of<br />

these studies, Harley-Davidson selects the<br />

markets and locations where dealerships<br />

will be established.<br />

FAQS 31<br />

How long does the<br />

application process take?<br />

It can take a few months or up to a year<br />

when building development is involved<br />

to complete and go through the above<br />

process. It is in both yours and our interest<br />

to be sure where we go. However, this does<br />

not mean that you will have to wait until you<br />

have received your final contract in order to<br />

get things going well in advance. In parallel<br />

to all of the above, we will assist you in your<br />

approach to move forward in all areas of<br />

developing your business, such as retail<br />

environment planning and management as<br />

well as facility planning etc.

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