Pirtek Franchise Cost, Profit & Failure Rate 2024

Franchises have been a part of the entrepreneur world for a very long time because they are easier to succeed and have less chance to fail.

A new entrepreneur or someone who wants to create a source of income without a lot of risks generally finds their way into franchising. Pirtek brand is one of those that franchise their business.

Different from many franchises, Pirtek is a B2B industrial franchise, and there aren’t many other examples in the B2B industrial franchise area.

Pirtek has over 40 years of franchising experience as a brand, and this makes it even more beneficial for those who would like to have a Pirtek franchise.

This article will give you an outlook on the Pirtek franchise, its history, fees, and every other detail if you are looking to buy a Pirtek franchise.

Pirtek Franchise
Pirtek Franchise

About Pirtek

Pirtek is an Australian company established in 1980 by Peter Duncan and quickly expanded into other territories such as the United Kingdom, Europe, and the United States.

They are an industrial piping business with hose service and supply centers in 23 countries around the globe.

They expanded to the USA in 1996 and have been franchising since 1986.

Pirtek franchises around the globe sell and give service to hydraulic hoses and their related parts in their service centers.

Pirtek History

Pirtek has about 550 estimated outlets around the globe, most of which are franchises.

Their franchise businesses have the right to sell, assemble and install industrial hydraulic hoses, tube assemblies, fittings, and other industrial components.

They primarily operate in the United Kingdom, the United States, Europe, and Australia.

Franchise Model Table

Cost Or FeesAmount
Initial Investment$222,000 to $900,000
Franchise YES
Franchising Since1986
Franchise-Fee$20,000 to $50,000
Estimated Outlets550

How Much Does It Cost To Open A Pirtek Franchise?

Opening a Pirtek franchise could cost you anywhere between $220,000 to $900,000, depending on your location, size, and everything else.

On average, there are certain fees you need to pay that will for sure cost you money, such as the initial fee, rent, equipment, systems, attorney fees, and so on.

Most of these costs depend mostly on your state, how big your franchise store area is, and the number of employees you are thinking of having.

The thing that costs the most is the equipment which could go as high as $100,000. 

Then, your rent and the wages for the employees you are going to hire will cover a huge chunk of your cost, which could also be around $200,000 in total.

If you are going to own the place, you don’t have to count the rent in this cost calculation. The rest is generally set and doesn’t change as much as these three important aspects.

Pirtek Franchise Revenue & Profit

As per the median of 88 Pirtek franchised-owned service centers, a Pirtek franchise owner makes $983,000 in revenue per year.

The revenue of the Pirtek franchise varies depending on whether you operate a Tier 1 center or a Tier 2 center.

Additionally, for Pirtek franchise stores that opened 1-2 years ago, the average revenue was $594,000; for stores that opened 3-4 years ago, the average revenue was $884,000; and for stores that opened more than 5 years ago, the average revenue was $1,415,000.

Also, the profit margin of a Pirtek franchise is 13%, and as per this, a Pirtek franchise owner earns an estimated annual profit of $130,000. 

Payback Period Of Pirtek Franchise

The investment of Pirtek is $900,000, and the yearly profit is $130,000. So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $900,000/ $130,000= 6.9 years

Based on these figures, it will take approximately 7 years to pay back the initial investment for Pirtek. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Failure Rate Of Pirtek

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2019, the growth rate was (15)/74×100≈20.27%
  • In 2020, the growth rate was (1)/89×100≈1.12%
  • In 2021, the growth rate was (16)/90×100≈17.77%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Company-Owned outlets:

  • In 2019, the failure rate was (4)/4×100≈100%
  • In 2020, the growth rate was (7)/0×100≈can’t be divided by zero
  • In 2021, the failure rate was (4)/7×100≈57.14%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For Total outlets:

  • In 2019, the growth rate was (11)/78×100≈14.10%
  • In 2020, the growth rate was (8)/89×100≈8.98%
  • In 2021, the growth rate was (12)/97×100≈12.37%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Pirtek grew from 2019 to 2021, showing a growth rate between 20.27% and 17.77%.

On the other hand, for company-owned outlets, the failure rate of Pirtek was lying in the range between 100% and 57.14% in 2019 and 2021. The company also experienced an increase in the year 2020.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Pirtek franchise has expanded in the years 2019-2021 showing a total growth rate between 14.10% and 12.37%.

Pirtek Franchise Requirements

Pirtek’s requirements are quite light compared to other industrial franchise businesses.

They do not require any previous experience working in the industry or with Pirtek.

This means that whether you have any previous experience or not, you can freely open up a Pirtek franchise if you comply with other requirements.

The most important and perhaps the only requirement is the financial requirement. 

You can get started if you have enough capital, liquidity, and the means to spend on the initial investment.

You still need to get training as a franchise owner in the process, but you can do so while you are setting up your franchise.

Pirtek Franchise Training And Support

Pirtek strategically supports its franchisees and gives them the necessary support and training to find the success they need.

In terms of the kind of support, Pirtek supports your franchise journey every step of the way.

This could be to help you find the best location or support your local marketing efforts. They are there to give you a helping hand.

In addition to the support on the business level, they also help you to train your staff or train yourself as a franchise owner.

They provide industry-leading training either physically at their headquarters or virtually. It depends on what you want.

These training sessions help you get started with sales, administration, IT work, and other technical details to help you give the same service as every other Pirtek franchise location.

Pirtek Franchise Terms Of Agreement & Renewal

When you buy a Pirtek franchise, the initial agreement you sign with the company is for ten years. 

This means that unless you break the rules of the contract, you have the right to use the Pirtek brand name for ten years.

At the end of the ten years, you have the right to renew for another ten years if the franchisor, Pirtek, is satisfied with you.

If they are not satisfied and there are problems with you as a franchisee, they have the right not to renew your Pirtek franchise agreement contract.

Pirtek Franchise Obligations And Restrictions

Pirtek brand doesn’t just give out franchise rights to everyone with money, you also need to agree on certain obligations, and there are restrictions you must follow.

You are obligated to only offer products and services that Pirtek, the franchisor, approves beforehand.

In addition, you must offer all products and services Pirtek wants you to, and the franchisor has the right to modify the products or services you are selling under Pirtek’s brand.

As a franchisee, you are restricted to directly supervising and managing your Pirtek franchise business.

You also have to manage the business relationships directly and actively and oversee all the management responsibilities on a daily basis.

Pirtek Franchise Financial Assistance

Pirtek franchise does not offer direct or indirect financial assistance to those who want to have a franchise.

They do not guarantee any kind of obligation, lease, or any other financial means.

If you would like to open up a Pirtek franchise, you have to finance everything on your own and do not trust Pirtek to support you financially.

Also Read: 11 Franchise Local SEO Marketing Strategies To Boost Local Rankings

Pirtek Comparison

CompanyFranchise FeeRoyalty FeeInitial Investment
Generator Supercenter$50,0003%-6%$425,000-$857,000


Finding an industrial franchise business is not easy as there are not many all around the globe. Pirtek is one of the most successful industrial enterprises that also franchises.

If you know what you want and what you are doing, the Pirtek franchise could ultimately offer substantial gains. However, its entry barrier is way high compared to other industries.

You don’t need any previous experience in the field or with the company to get started with a Pirtek franchise, but you do need certain financial requirements.

Nevertheless, since this is an industrial franchise, it’s not for everyone and could pose high risks to those entering without any previous experience in the field.


Who is the current CEO of Pirtek?

Pirtek has operations on different continents and countries, so each continent or country mostly gets its own CEO.

The CEO for the USA is Kim Gubera. Pirtek Europe’s CEO is Alex McNutt.

Do you need pre-approval to be a Pirtek Franchisee?

Yes, you have to apply to Pirtek to get the rights to a franchise, and if you satisfy all the requirements, you will get the approval.

Is Pirtek the best choice to open a franchise?

The best choice among franchises depends on your expertise, budget, and what you expect.

In its industry and sector, we can say that Pirtek is definitely one of the best choices in terms of profits and requirements.

Where is Pirtek headquartered?

Pirtek is headquartered in Kings Park, 3-7 Garling Rd, Australia.

Who founded Pirtek?

Pirtek was founded in 1980 in Australia by Peter Duncan.

How many locations does Pirtek has?

Pirtek operates 200 service centers in 8 countries, namely- Austria, Belgium, France, Germany, Ireland, Netherlands, Sweden and the UK.



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