Southwest Car Wash Association - ADVANTAGE - 1st Quarter 2020 by Southwest Car Wash Association ADVANTAGE

ADVANTAGE

Publication of the Southwest Car Wash Association

First Quarter 2020

SCWA DELIVERS ANOTHER “FANTASTIC EVENT!”

Keynote Speaker

Dick Cheney

2020 Lifetime Achievement Award

Brian Campbell

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PRESIDENT’S MESSAGE Creating New Experiences was the back drop and theme for the 2020 SCWA Convention & Car Wash EXPO, and the theme certainly lived up to expectations by creating new experiences for attendees. The key word this year was NEW– new home at the Fort Worth Convention Center; new Jeff Blansit days starting Wednesday through SCWA President Friday; kicking off a new year and anticipating a new decade. However as one attendee told me, “it is the same great Southwest hospitality”. The event brought together again over 2000 attendees for three big days of premier education; 345 exhibit booths displaying the latest in industry equipment, services and supplies; great networking opportunities; strong energy and seeing old and new friends. The SCWA Convention & EXPO also seems to be growing in national recognition with car wash operators attending from 45 states and three foreign countries. The Convention this year was highlighted by the keynote address from former Vice President Dick Cheney. Cheney entertained the attendees with stories covering his 40 plus years in various positions in Washington culminating with his service as Vice President. The popular CEO Forum featured Chick-fil-A’s Arthur Greeno who offered a great perspective on creating an amazing experience for the car wash customer. I know I picked up several good ideas from this session alone. Of course our congratulations go to Car Washings #1 Fan Brian Campbell who was presented the 2020 Lifetime Achievement Award by 2019 recipient Ben Alford. You will enjoy reading more about Brian in the story on page 29. I hope you were able to join us to EXPERIENCE SCWA 2020 and take advantage of all the new ideas, solutions and strategies swirling around the Convention & EXPO. If you missed the event – you really missed a great opportunity to become a better operator and meet the best people in the industry. Many work hard to make the SCWA Convention & Car Wash EXPO a special experience for everyone. To all the 2019-2020 Board of Directors – thank you for your time, energy and your commitment to SCWA and the car wash industry. Our Board Members go above and beyond by giving their time and assuming financial expenses for their participation as Board Members. It is an honor to serve on the Board but also a sacrifice in terms of time and financial resources. I want to thank all the exhibiting companies who made the effort to participate in the 2020 EXPO – a record number. We truly appreciate your partnership with SCWA

and know it will pay good dividends. A special thank you to the 2020 SCWA Sponsors who helped make the events and activities more fun and affordable for everyone. Be sure to check out the sponsors highlighted on page 27 and also on our website. I encourage you to support the companies who support SCWA. Of course to Andrew Zamora, our Immediate Past President – THANK YOU. We all owe you our sincere appreciation for your leadership and guidance this past year. Finally to each of our members – thank you for your continued support and encouragement. As we conclude an exciting 2020 Convention & Car Wash EXPO, I challenge each of you to take the spirit, enthusiasm and energy from this beginning of 2020 and carry it throughout the year in your business. Thank you for allowing me the honor to serve as your President this year. I look forward to continue creating new experiences through SCWA and working with the best and brightest car washers in the industry.

SCWA MEMBERS IN THE NEWS Periodically SCWA members are featured in national publications. Recently SCWA member WhiteWater Express was highlighted in Professional Car Wash & Detail magazine. The Following is a reprint of the WhiteWater Express article, January 2020. Congratulations to WhiteWater Express from SCWA. In whitewater rafting, the strongest team members are usually placed at the front of the raft to determine the pace for the rest of the paddlers. However, it is also the place

you are most likely to get thrown off head-first into the rapids. Being a leader of a raft is like being a leader anywhere else: You set the expectations for others to follow, and when things get bumpy, you’re one of the first to get the blame, simply because you are in a more visible position where others can bring their complaints to you. That being said, there’s nothing preventing the less experienced rafters from sitting in the front, though it certainly helps to have someone up there to guide them. This is, in 3

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ADVANTAGE fact, one of the facets of leadership: being able to train others to become leaders by sharing your own experience. Leadership is also one of the most important aspects for WhiteWater Express Car Wash, according to Clayton Clark, its president/chief operating officer. “WhiteWater Express Car Wash is a leadership-based company that just happens to wash cars,” he says. “Our mission is to make a positive difference in our employees’ lives, not only professionally but in their personal lives as well.”

monikers: Rapid Wash, White Water Wash, Class V Rapids Wash and White Rapids Gold Carnauba Wash. Moreover, on its website and in brochures, the company even provides a map of the tunnel drawn in the shape of a river, detailing for customers which applications they can expect when during the wash. “Customers really enjoy having that knowledge of where the extra services are being applied,” Clark notes. Today, WhiteWater Express comprises 15 locations in four Texas and Oklahoma markets: Houston, Dallas, Austin and Tulsa. The company has nine more locations in development and — through its current greenfield and acquisition pipeline — will have 24 to 30 locations by the end of 2020, with additional units being added.

PUSHING OFF THE DOCKS

Clark has been in the carwashing industry for over 30 years. He started out working at a carwash as part of a high school/college job. For 24 out of his 30 years in the industry, he helped grow Bubbles Car Wash into a 13-store chain in Houston before it sold to Mister Car Wash in June 2013. After the sale, he, along with two other business partners — Steve Mathis and Shane Wilson — believed that they could create a better, faster and higher-quality carwash at an amazing value. Thus, in 2015, they started WhiteWater Express Car Wash, laying the groundwork on a platform that would allow them to build a chain of express exterior washes in local communities that they could grow and replicate in multiple markets.

As for the whitewater rafting theme, the idea came about from Clark’s passion for the outdoors and rafting. “I thought it would be a cool idea to correlate the carwash tunnel similarly to how one rafts down a river,” Clark explains. “It’s easy to remember and plays great for a carwash theme.” The theme has been faithfully carried out at every location and helped create brand recognition. Some of the clever ways in which WhiteWater has utilized the theme are in its raft mascot named Flip and each one of the company’s wash packages, which have the following

PADDLING TOGETHER

It’s clear WhiteWater is one of the conveyor chains propelling itself down the fast currents of growth. Between 2015 and 2018, the company managed to open eight locations in the Houston area. However, to further facilitate its growth plans, WhiteWater partnered with SkyKnight Capital in October 2018. “For us, partnering with SkyKnight Capital has been a no brainer,” Clark says. “They have truly been a terrific partner helping us look at our business and this industry through different optics. Over the next 12 to 24 months, I see our company growing, making smart, prudent and strategic growth decisions. The SkyKnight team has been in the trenches with us every step of the way, and I love how we can pick up the phone and they are there working with us on a daily basis.” In April 2019, WhiteWater acquired Legends Express Car Wash and brought on owner Ronnie Corbin as president of development. Corbin too has spent a slew of years in the carwash industry and previously helped build Boomerang Car Wash into a 29-location platform until it sold to Zips Car Wash in 2016. Having known each other for years, Clark and Corbin spent some time discussing WhiteWater’s quick expansion plans, current infrastructure of corporate staff and offices, and its partnership with SkyKnight. During these conversations, Corbin saw great potential in teaming up with the business. 5

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ADVANTAGE “I cannot tell you how excited we were for the Legends transaction,” Clark intimated. “Ronnie Corbin has been a leader in the carwash industry for years. When the opportunity presented itself for us to add Legends to the WhiteWater family, plus the opportunity to work with Ronnie, it was a win-win.”

using the “Enable Everyone to Lead” approach, several employees who started with the company in beginner positions have been able to work their way up to become general managers. WhiteWater itself is also a leader in its market. Part of the way it distinguishes itself is by caring for its environment — both the people and the Earth. To begin with, the company partners with local organizations, such as chambers, schools and youth groups, to help them become the leaders in their own areas and to give back to WhiteWater’s local communities.

SETTING THE PACE

According to Clark, WhiteWater’s foundation is respect and communication, and the company provides hundreds of opportunities every day to practice those foundational pillars. “At WhiteWater, we believe in the EEL program — Enable Everyone to Lead,” Clark states. “No matter your job title, everyone has the opportunity to lead in our company. We host weekly leadership meetings, and any employee at WhiteWater can host these leadership classes.” In fact, although Clark started out leading these meetings, his employees now head them. Furthermore, by

In addition, all of the company’s locations use half the amount of water than the industry standard, and at 25 to 30 gallons per car, they consume 70% less than carwashes in the Houston area, according to Clark. Each wash uses soft water as well as eco-friendly and phosphate-free chemicals.

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SCWA WELCOMES NEW BOARD MEMBERS The SCWA membership elected new members of the Board of Directors at the Annual SCWA Membership Meeting held during the 2020 Convention in Fort Worth. 2020 SCWA President Jeff Blansit presented the Board Member plaques to the new Board members:

Marcus Kittrell Marc 1 Car Wash Pelham, AL

Lanese Barnett Tommy Terrifics Car Wash Dallas, TX

Paul Kalscheur Velocity Water Works Appleton, WI

Ed Emerson Super Suds Car Wash Abilene, TX

Tyler Greffin Motor City Wash Works Wixom, MI

The SCWA membership presented a “special thank you” to retiring Board of Director Members at the Annual SCWA Membership Meeting held during the 2020 Convention in Fort Worth. 2019 SCWA President Andrew Zamora presented special recognition plaques to the retiring Board members:

Tyler Furney Today’s Car Wash

Eric Warden Mustang Elite Car Wash

Ronnie Corbin White Water Express

Bob Kopko DRB Systems

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NO FEAR OF FLIPPING

WhiteWater’s leadership team also understands the importance of keeping its carwashes state-of-the-art. Part of being a leader in the industry is recognizing that safety is first and foremost at all locations. Every WhiteWater wash makes safety the top priority and is built to be safe for customers, their vehicles, employees and the environment. Of course, market leaders don’t become leaders without providing a great product. Each month, Clark notes, the leadership team meets to develop new ideas and strategies to help separate WhiteWater from its competition. To start things off, WhiteWater offers an unlimited membership club — a must in today’s industry — but it has gone the extra step in having a three-day rain check guarantee on its highest wash package, the White Rapids Gold Carnauba Wash, for single wash purchasers. Furthermore, WhiteWater adds several customer-centric amenities to its post-tunnel experience. Not only does the company provide free vacuuming (with 40-horsepower vacuums), but it also provides complimentary air guns at each vacuuming stall and free wet or dry mat cleaning machines. Each site also has a complimentary towel exchange for customers to use. WhiteWater’s employees also understand the importance of providing an amazing customer experience. Clark relates one particular tale of how a WhiteWater employee impacted a customer’s life. “One of my [favorite

stories] is of a lady who had moved from Nebraska and been in Texas for six months. This was her first time to experience an express carwash. After our employee happily walked her through the process and the benefits we have to offer, the customer shared that our employee was the nicest person she had ever met in Texas since moving here.” Clark believes it is precisely because WhiteWater gives its employees the opportunities to be leaders while practicing the company’s foundation of respect and communication that the company maintains a customer satisfaction score of 4.6 to 4.8 across all review platforms. With such high marks in his company’s favor, it’s no wonder Clark has also served on the board of directors for the Southwest Car Wash Association (SCWA) and as president of the SCWA in 2015. But as far as he is concerned, the raft ride for this company is only just beginning. “I am very excited about the future growth of WhiteWater and the opportunities that growth will bring for our employees and customers,” Clark concludes. “I am also excited about our future M&A pipeline that will bring more operators into the WhiteWater family. I believe our leadership-based company will really change the lives of our employees and customers for years while making a positive impact in our industry.” Meagan Kusek is the Senior Editor of Professional Carwashing & Detailing

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INDUSTRY BRIEFS Carwash employee shot, killed in Texas. Houston, TX– According to a news report from KPRC 2 News, a carwash employee was shot and killed in the business’ parking lot in West Texas recently. At the time of reporting, police were searching for the suspect who gunned down the victim. The victim, who police discovered with multiple gunshot wounds, was pronounced dead at the scene. At the time of reporting, police have not identified a suspect or a motive and the investigation is ongoing. Carwash sued for tip mismanagement. St. Louis, MO– According to www.stltoday.com, a wage dispute against Clayton Car Wash — a 35-year-old institution — was settled in favor of the plaintiff. Robert Pace began working at the carwash in September 2011 just after he had been released from prison after a six-year stint for involuntary manslaughter. Over the next five years, Pace worked up the chain and ended up in the position where he would hand the customer the keys and do a final quality check with the customer, the article noted, but he continued to make what the washers made: $7.10 an hour plus tips. In June 2016, he quit over a wage dispute, in which he claimed he had been shorted a day, but his boss insisted he had not come to work on the day in question. In April 2018, he was listening to the radio when he heard an advertisement for a law firm that represented people with wage issues, and after thinking about it, he decided he had one. The issue involved tips at the carwash: all tips went into a jar, and even if a customer paid by credit card, he or she would write the amount down on the receipt, and the counterman would give him or her cash to put in the jar. At the end of the day, the boss would take the jar into the back office and empty it, and at the end of the week, the boss would divide the week’s tip money among the employees — usually 12 or 13 — depending on how many days each had worked that week. However, Pace, who dealt with customers at the end of the line, had a rough idea of how much they were collecting and was therefore convinced that he and his colleagues were being shortchanged, the article stated. He contacted two of his old colleagues, and the three of them went to see the lawyers and signed on as clients. The attorneys filed three separate lawsuits against Clayton Car Wash, the first of which went to court in October. Under the Fair Labor Standards Act, a plaintiff can go back no more than three years from the date he or she files a lawsuit, so Pace was only able to contend for about two years’ worth of tips, and unlike in a typical civil case, the lawyers would not take a percentage of the clients’ award if they won but rather could seek legal fees instead.

Pace and his former colleagues described the clientele of the carwash as upscale people with fancy cars and said the average tip was probably $5 to $10. Pace provided his tax returns to show how much he received in tips, and he had records from the carwash to show that the carwash washed about 25,000 cars a year during the period in question. Richard Rutledge, owner of the carwash, testified that he had not shorted the workers, but he had no records, claiming he just handed out tips the way it had always been done. In closing, Pace’s lawyer challenged the jurors to do two math problems: one assuming the average tip was $10 — figuring the total, dividing it by 13 to show how much Pace should have received and subtracting the amount from his tax returns — and one assuming the total was $5. The jury ruled in favor of Pace, using the $10 figure, and since the law allows the jury to double the award, they did so, awarding Pace $18,522. “One of the jurors told me they wished they could have given me more,” Pace said in the article. Clayton Car Wash reported that management had now changed its policies on the tip jar and was keeping records. Wiggy Wash joins Mammoth Holdings’. Atlanta, GA – Mammoth Holdings LLC (“Mammoth”) has acquired Wiggy Wash LLC, a four-unit conveyor carwash

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ADVANTAGE operator in Utah’s Utah Valley area, according to a press release. Wiggy Wash’s founders made a significant equity investment in Mammoth and will have executive and developmental roles with the company. Mammoth’s 36-unit multi-brand portfolio includes Marc-1, Wash Me Fast, Swifty, Ultra, Finish Line and now Wiggy Wash, among others. Mister Car Wash acquires 2 locations in Florida. Tucson, AZ – Mister Car Wash has maintained its growth in greater Orlando with the acquisition of two Car Wash Express locations in St. Cloud and Kissimmee, Florida, according to a press release. The acquisition gives Mister Car Wash a total of 16 locations in the Orlando area. With this latest acquisition, Mister Car Wash operates 321 carwashes in 21 states. Aurora, CO. Living Water Car Wash opened its second location recently, just in time to help tackle winter grime, according to a press release. "We are excited to bring an entirely new carwash experience to this community in Aurora. No long lines. Just cuttingedge technology and an amazing experience," said Chad Roach, one of the owners of Living Water Car Wash. With state-of-the-art conveyor technology, Living Water's extra-wide, flat-belt conveyor system makes

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ADVANTAGE ADVANTAGE Arkansas Tax Law Creates Confusion For Carwashes. MARKETING

Little Rock, AR– According to www.nwaonline.com, after receiving feedback from constituents, some Arkansas lawmakers are second-guessing legislative changes approved earlier in 2019 in regards to taxing Insome 1975, the ofFederal Communications Commission types carwashes. (FCC) issued a largely The changes, whichoverlooked both addedruling fees that and allowed reduced earth-orbiting antennas — satellites — to be used for taxes on carwashes, were tacked onto a state law with st . other tax provisions into effectAround on Oct. 1that broadcasting television and overwent large areas. projectedregional that the broadcasting change in the network taxation sameState time,officials a little-known of Home carwashes would(HBO) reduce state revenue by $3.2 called Box Office took notice, and decided million a year (the state general revenue budget totals to use the FCC’s landmark decision to begin distributing $5.75 billion this fiscal year). its own programming via satellite. State Sen. Gary Stubblefield, R-Branch, a meeting HBO’s innovative move would have called a ripple effect of the House and Senate City, County and Local Affairs that would spill over onto the landscape of marketing. com mittees after a constituent called him about "the new Soon, satellite networks proliferated, and with them, tax on water in carwashes," he were said. never premarketers’ abilityusage to target in ways that Stubblefield added, "There is a situation where some viously possible. of these carwash owners had other businesses, such as Since that time, there has been so much technological a [public laundry] or a convenience store, hooked up innovation that marketers are faced with choices beyond with the same meter. In my opinion, there is no way measure. It can be blinding and bewildering for anyone to accurately determine or estimate the water usage in charged with allocating marketing dollars on behalf these carwashes when you have that type of situation, of a business. And, this very issue is what has caused other than putting in a separate meter." marketers awry. This is an the agetaxation of unprecedented Act 822,tothego new tax law, changed of carwashes communications, and yet many still struggle to connect because there was a "tax fairness issue," according to Paul withGehring, one another. an assistant revenue commissioner for the state. But this problem is not the real problem.

Marketing - What has Changed in the Last 100 Years?

THE REAL Some typesPROBLEM of carwashes were subject to the state

The that too many marketers have salestrue tax, problem and someisweren't. recognize that only thingwater has changed in failed to As such, Act 822 imposed one monthly usage fees marketing in the past years: technology. That’s it. Yes, on operators of 100 tunnel carwashes and automatic youcarwashes now have but social and tweets and followers and notmedia on self-serve bays. appsThe andfee branding and re-marketing and analytics and is calculated on eight-tenths of the total focus groupsofand ROI and CRMused and customer number gallons of water during thepersonas month levied four-tenths a cent per gallon tunnel andand digital andatso on. It’s allof certainly true. But,on what has carwashes and two-tenths of a cent per gallon on enabled nearly every bit of it is technology. automatic So prolific iscarwashes. the role of technology in marketing that it In addition to thean water usage fee, Act 822 exempts the has become for some alluring distraction. Panic and peer following from sales and use tax: "tangible personal pressure set in, and organizations pursue the latest and the property, specified digital products, or without a digitaltaking code greatest technology-based marketing tactics by ortotothoughtfully a carwash opera tor for use in an automatic consider a strategic approach. As the time carwash, a carwash tunnel or a self service bay or asput part legendary philosopher and strategist, Sun Tzu once it, of anwithout ancillary service"isas as services to a carwash “Tactics strategy thewell noise before defeat.” operator and ancillary services Marketing must ultimately getby thea carwash product operator. or service The Department of Finance and Ad ministration into the hands of the customer — a real person. Marketers recommended that affected businesses have one water need to realize that it is way too easy to distract ourselves meter for the carwash and a separate meter for the (via technology) away from what is centrally important ancillary business. in marketing: generating a sale to a real person and, However, Wade Dunn, who owns an Eastside hopefully, repeating that process again and again to her convenience store, laundry, deli and carwash in or his delight. Marketing strategy is not so much about a Glenwood and the Charleston Superstop gas station plan, butconvenience a system. Build marketing (including the and store your in Charleston, said that simply sale)installing around aa strategically syswater meterbased, on thecustomer-centric automatic carwash tem,isn't then technology becomes a true and valuable tool, possible. and not a distraction. Training On-Site Training Training Seminars

Site Evaluation Demographic Reports Carwash Market Evaluations Design & Development Modular Building Systems Construction Assistance Site-Plan Design Complete Equipment Installation Financing Preferred Lending Sources Equipment Leasing Programs Marketing Signage Programs Promotional Ideas Advertising Assistance

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43 17

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ADVANTAGE He noted, "Inside the carwash, you have a water softener, [and] in that water softener, they are sending water over here to the manual bay and sending water over here to the automatic bay. You also have a reverse osmosis system that is sending water over here to the automatic bay and sending water over to the manual bay, so it is not simply putting a water meter on one pipe - a $200 water meter on a pipe. It is completely overhauling it, adding a water softener and reverse osmosis system. It is just too complicated." Finance Department officials estimated that they would collect about $1.5 million a year in water usage fees from carwash tunnels and automatic bays. Gehring said carwash operators have submitted about 86 reports for one month of water usage, and the total amount of fees collected during November was about $49,000. About 100 carwash companies - some with multiple sites - have registered to pay the water usage fee. The carwash industry provided infor mation to the department that there are 672 carwash businesses in Arkansas, with 67 carwash tunnels, 484 automatic carwashes and 1,814 self-serve bays. Stubblefield said that in the future, tax increases should be in a standalone bill and not shoved in with tax decreases; furthermore, he plans to propose legislating changing the taxation of carwashes in the 2021 regular legislative session.

Lakewood, CO. Jimmy Suds Car Wash announced the soft opening of its Lakewood location recently, according to a press release. To celebrate, Jimmy Suds welcomed customers with a free "Protect It" carwash (valued at $18) through 2 p.m. on Dec. 24, 2019. Jimmy Suds features automated pay stations, free vacuums and modern technology - all built around an eco-friendly site. As part of its opening specials. Jimmy Suds offered 50% off all gift card and wash book purchases until Christmas Eve 2019 and a "First Month Free" promotion on its monthly Wash Club enrollment. "We are excited to bring a new carwash and customer experience to the Lakewood community," expressed Jim Deak, owner of Jimmy Suds. "With the latest in carwash equipment and automatic pay station technology, we can provide customers with a clean, shiny and dry car in less than three minutes." Jimmy Suds celebrated its official grand opening in January 2020. The carwash is open from 7:30 a.m. to 7:30 p.m. Monday through Saturday and 9 a.m. to 6 p.m. on Sunday. Brownsville, Harlingen and San Benito, TX; Albuquerque and Gallup, N.M.; Vernal, UT. Champion Xpress Car Wash and its sister company Dale Shine opened six locations in the southwest recently.

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CREATING NEW EXPERIENCES

2020 CONVENTION & EXPO

he 2020 edition of the Southwest Car Wash Association Convention & EXPO recently concluded another record breaking event again hosting more than 2000 attendees converging on the Fort Worth Convention Center. According to incoming SCWA President Jeff Blansit, “We are proud of all the positive responses we have had to our Convention & EXPO. “AWESOME Show; Knocked it Out of the Park; First Class in All Aspects; This is now a permanent trip for our group; Best Convention Ever.” As we continue to expand we want all of our efforts to be relevant to our growing attendance.”

“AWESOME Show; Knocked it Out of the Park; First Class in All Aspects; This is now a permanent trip for our group; Best Convention Ever.” The Convention was highlighted by two nationally recognized speakers, Arthur Greeno from Chick-fil-A kicking off the popular CEO Forum on Wednesday. On Thursday, attendees were treated to conversation with former U.S. Vice President Dick Cheney on his 79th Birthday. As one attendee said, “your speakers were fantastic; this was the best lineup of programming I have seen in the industry.” Brian Campbell, Car Washing’s #1 Fan from Tulsa, OK, received the 2020 SCWA Lifetime Achievement Award. The audience was treated to a moving video presentation highlighting Brian’s effect on the Car Wash Industry worldwide. According to Awards Chair, Ryan Darby, “the Lifetime Achievement Award is the highest recognition given by the SCWA and we are so proud to add Brian’s name to our honor roll”. The 2020 SCWA event included an expanding EXPO area with more than 340 booths and over 80,000 square feet of exhibits plus premier education sessions and the popular Quick Talks Stage. As 2019 SCWA President Andrew

Zamora handed the gavel over to Blansit, he noted; “At this year’s Convention & EXPO not only did we have over 2000 attendees but we had attendees, not counting our exhibitors, from 45 states plus three foreign countries — Germany, Australia and Canada.”

The speakers were excellent! We were first timers at the convention and new to the car wash industry so the experience was full and valuable in many ways to us. I now know what the meaning of "networking" is as we ran across many friendly and knowledgeable people who were willing and seemed quite happy to share with us their experiences and their advice. We drove from South Dakota and it was well worth the trip! Food served was delightful. The people who served and took care of us at the event center were great! We are on our way into the car wash world with more knowledge and more confidence and more tools to help us be successful. Thanks to all who made it work! Brenda E.

The event was summed up in a national article by Rich DiPaolo of Professional Car Washing & Detailing magazine, “Congratulations to SCWA for creating another great SCWA EXPERIENCE.” Mark your calendars now for EXPERIENCE SCWA 2021 – February 17–19, 2021 at the Fort Worth Convention Center.

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2020 CONVENTION & EXPO

View more pictures at www.swcarwash.org

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ADVANTAGE

ADVANTAGE 2020 SCWA Lifetime Achievement | Brian Campbell

Brian Campbell was diagnosed with Williams syndrome when he was 6 months old. The genetic condition is characterized by medical problems, including cardiovascular disease (Brian underwent open-heart surgery when he was 5), developmental delays and related learning disabilities. But by the time Brian was 11 years old, he had discovered the car wash industry and was being called a genius in his field of expertise because he displayed encyclopedic knowledge of car washes and car wash equipment. Brian struggled with simple math when he was young and never expressed a desire to learn to read until his car wash obsession was added to the mix. He wanted no part of conventional children’s books. But a stack of car wash magazines and brochures were like Candyland. “Read them to me! Read them to me!” he urged his mother Valerie. “At that point the car wash fascination caused his life to light up,” she said.

Valerie cut pictures out of car wash magazines. She placed the pictures in photo albums, creating “books” to share with Brian. “What do you think this picture should say?” she would ask.

be severely mentally challenged. Valerie said they got this advice: You’re young. Institutionalize your child. Start over. Institutionalizing Brian was not an option they were willing to consider. Complications or not, let’s do this. “They weren’t about to forget about him,” Brian’s grandmother Marilyn Paxson said. “They knew God had a purpose for his life.” Enter the Car Wash Industry. Valerie said people with WS have hypersensitive hearing and, initially, automated car washes terrified Brian. He would hold his ears and cry during trips through a car wash. But as soon as car wash rides were over, he would stop crying and say, “Go again, go again!” From that sprang a love of car washes. “Disabled people, a lot of them like spinning things, like pinwheels or fans or things that just go round and round,” Valerie said, adding that spinning car wash brushes grabbed Brian’s attention. Brian is a Celebrity in the Car Wash World. People in the car wash industry were touched and inspired after learning Brian’s story. In 1993, he attended the ICA Convention in Las Vegas and received a standing ovation when he stepped up to a microphone and sang a song about his love of car washes. Brian attended his first SCWA Convention in 1993 and the rest is history - his heartwarming story has had an impact on all our SCWA members. His story is a true motivation to everyone. Art by Brian Car wash owners like Jimmy Short of Mr. Klean treat Brian to perks worthy of someone who knows virtually everything there is to know about car washes. Brian can glance at any car wash and tell you what kind of equipment is used, what’s good or bad about the equipment and probably where the equipment manufacturer is located. He stays up to date because he subscribes to three car wash publications.

“And he would tell me what it should say, so I would write down his words. Pretty soon he was able to read it because I would point to the words as he would say them and that’s how he learned to read.”

Dear SCWA,

Those afflicted with Williams syndrome (an estimated 20,000 to 30,000 in the United States) tend to be social, friendly and endearing, according to the Williams Syndrome Association, which said parents often say the joy and perspective a child with WS brings into their lives is unimaginable.

You truly are a family to us!!

The WS diagnosis came later. Valerie said she and her husband, Dale, were told that Brian, due to his heart condition, would not live past the age of 10. Bad news came when the Campbells were told Brian would

We can't tell you how much we love & appreciate you!!! Thank you again from the bottom of our hearts for presenting Brian with the 2020 Lifetime Achievemnt award! It meant so much to him!! He felt so special & SO honored!! You are a huge blessing to him & all of us! We love you so much! - The Campbell Family 29

ADVANTAGE

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ADVANTAGE Continued from pg. 19

Dale Shine opened its third location, which was converted from an old Applebee's restaurant, at 2912 Boca Chica Blvd. in Brownsville, Texas. Dale Shine also opened its fourth location in Harlingen, Texas, at 505 Ed Carey Dr. and its fifth location in San Benito at 700 W. Business 77. Furthermore, the second Champion Xpress location opened at 395 Alameda Dr. in Albuquerque, NM. A third under the Champion banner opened at 1060 N U.S. Hwy. 491 in Gallup, New Mexico, and a fourth location in Vernal, Utah, at 1607 W. Hwy. 40.

LEGAL M&R Safety Cards for Employers

Think back to your last vacation. When you boarded your plane, you were instructed to review the airline’s Safety Card on the back of the seat directly in front of you. Monty & Ramirez has taken that same approach and prepared Safety Cards for you. In the next few months, the Social Security Administration (SSA) will begin mailing Employer Correction Request Notices (ECR), formerly known as “No-Match Letters,” to employers who filed 2019 W-2 forms that contained at least one name and Social Security number that did not match the SSA’s records. However, there is no need to worry. Our “No Match Letter” Safety Card provides next steps for you to follow after receiving an ERC and explains how you should manage affected employees. Remember, you are not held to the standard of a document expert, but you are expected to be able to spot obvious signs of counterfeit documents.

NO-MATCH LETTER SAFETY CARD Additionally, since the Form I-9 was introduced in 1987, employers have struggled with which identification documents to accept. With our “Hall of Shame” Safety Card, you will be able to identify the most common signs that indicate a document is fraudulent, such as misspellings or improper photographs, and learn how to comply with Form I-9 requirements.

HALL OF SHAME SAFETY CARD Employers should also be aware that USCIS announced a new version of the Form I-9 (dated 10/21/2019), which you must begin using after April 30, 2020. If you need additional assistance with I-9 compliance or responding to an ECR, please contact Monty & Ramirez. We are here to help you. Jacob Monty, Monty & Ramirez LLP

FINANCIAL Beware Hidden Tax Traps for Married People

The Tax Cuts and Jobs Act of 2017 removed the "marriage penalty'' for many couples. But many others still face a bigger tax bite because they are married. Historically, married couples often had to pay higher income taxes than the same two people would have faced if they remained single. Their combined income pushed them into higher tax brackets. Example: Under the old tax law, two singles who each had taxable income of $90,000 would have been in the 25% bracket. If they wed, their combined $180,000 income would have put them in the 28% bracket. The 2017 tax law reshaped the tax brackets with an eye toward eliminating the marriage penalty-but like past attempts, the new law failed to truly level the playing field for married taxpayers. That's because the marriage penalty is not only a result of tax brackets-it stems from a wide range of details hidden in our complex tax code, many of which remain. Here are various ways in which married people still might have to pay extra at tax time. It's worth knowing these tax traps if you're married or considering marrying or remarrying.

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2020 Wade Welch Memorial Golf Classic

Wednesday – June 3, 2020 – COWBOYS GOLF CLUB 1600 Fairway Drive • Grapevine, Texas • (817) 481-7277 • www.cowboysgolfclub.com

ATTENTION: Car Wash Owners and Vendors Enjoy a day of Golf, Food, Fun and Great Prizes!!

SCHEDULE OF EVENTS TUESDAY, JUNE 2ND 6:30pm

Welcome Reception at Courtyard Grapevine

WEDNESDAY, JUNE 3RD 7:00am

Check In; Driving Range; Putting Contest; Pro Golf Tips

8:00am

Shot Gun Start

1:00pm

Lunch and Awards Ceremony

For Hotel Reservations, Please call Courtyard Grapevine SCWA Group Rate $189 - Deadline is May 12, 2020 2200 Bass Pro Court • Grapevine, Texas • (817) 251-9095

Individual Registration For Team Sponsorship & Registration

• Only Team Sponsors are guaranteed Team Member requests. • Limited to the first 72 paid registrants. • $175.00 per person includes breakfast, green fee, cart, prizes, driving range balls and lunch. Name: ______________________________________________________________________________________________________________ Company: ___________________________________________________________________________________________________________ Mailing Address: _____________________________________________________________________________________________________ City: ___________________________________________________ State ______ Zip ____________ Email: ___________________________ Phone: ____________________________ Fax:___________________________ Handicap: ____________Or Average Score: ______________

Total Golf Fee Enclosed: $ __________________ Player & Team Space is limited and will be confirmed only upon receipt of the reservation form and payment. Mail completed form with payment by Tuesday, May 12, 2020 to SCWA, 4600 Spicewood Springs Road, Suite 103, Austin, Texas 78759

Register & pay by credit card online at www.swcarwash.org or see reverse side. Phone (800) 440-0644 (512) 343-9023 Fax (512) 343-1530.

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ADVANTAGE Continued from pg. 31

Don't assume that tying the knot is a financial mistake, however. Besides reduced living expenses, marriage can have financial benefits in terms of receiving Social Security benefits, pension benefits and more. And some couples will see their taxes fall, not rise, especially when one spouse earns all or most of the money. Ask your tax pre parer about whether these traps should affect your financial decisions, including whether it makes sense for both spouses to work full time.

Besides reduced living expenses, marriage can have financial benefits in terms of receiving Social Security benefits, pension benefits and more. HOW MARRIED PEOPLE ARE AFFECTED

Key tax advantage from investment losses is cut in half. If you're single, the tax code allows you to deduct up to $3,000 in capital losses against your ordinary income. That can be a significant tax savings-with the above example, offsetting $3,000 of income that would have been taxed at the 24% tax rate could reduce a tax bill by more than $700. If you're married, the tax code allows you and your spouse together to deduct up to the same $3,000. That means getting married cuts the amount of capital losses two people can deduct against ordinary income in half.

Social Security benefits still are more likely to be taxed. If you're single, you can have a "modified adjusted gross income" (MAGI) below $25,000 each year without any of your benefits facing federal income taxes. (Up to half of your benefits are taxed if your MAGI is between $25,000 and $34,000 or up to 85% if it's above $34,000.) Those income thresholds increase if you're married-but not by much. For married people, up to half of Social Security benefits are taxed over $32,000 and up to 85% are taxed over $44,000-much less than two unmarried people could together earn without facing these taxes. Example: You, your unmarried brother and your spouse each have a MAGI of $24,000, and all of you are receiving Social Security benefits. You and your spouse will have to pay federal income taxes on most of your benefits, while your brother won't owe any federal income taxes on hiseven though each of you had exactly the same income. It is tougher to deduct state and local taxes. For those who itemize their taxes, there now is a $10,000 cap on the amount of state and local taxes that can be deducted on the federal tax form. The same $10,000 cap applies whether you are single or married. Yet two single people filing separately can deduct up to $20,000 between them. They are less likely to qualify for the earned income tax credit. This credit is intended to help low-income earners, especially low earners who have dependent children. It

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ADVANTAGE Continued from pg. 35

can be significant-as much as $6,557 in 2019. But here, too, the eligibility thresholds are set in a way that often puts married taxpayers at a severe disadvantage. Example: A married couple with three or more qualifying children cannot claim this credit if their earned income exceeds $55,952. (Lower cutoffs apply with zero, one or two children.) For a single person with three or more kids, the credit doesn't phase out until $50, 162-which means a couple that is not married could earn more than $100,000 between them and still both qualify. They are more likely to get caught by the alternative minimum tax (AMT) than if they were single. This complicated section of the tax code is intended to prevent higherincome people from using tax shelters and other loopholes to avoid income taxes. The new tax law greatly reduced the number of taxpayers who will have to pay the AMT, but it's still tougher on married taxpayers than single ones. The AMT exemption-the amount you can earn before this tax comes into play-is $111,700 for married couples in 2019 versus $71,700 for singles. A pair of unmarried people could potentially earn $143,400 between them before AMT taxes become an issue, as long as their income was divided evenly between them. Allen J. Rubenfield, JD, CPA, lecturer of accounting at Eugene W. Stetson School of Business and Economics, Mercer University, Atlanta.

BOARD OF DIRECTORS President: Jeff Blansit Austin, TX (214) 912-1729

President-Elect: Ryan Darby Tucson, AZ (806) 535-7275

Vice President: Mel Ulrich Weatherford, TX (940) 456-1082

Treasurer: Don Witt Dallas, TX (214) 358-2575

Past President: Andrew Zamora Lubbock, TX (806) 543-2775

Vendor Vice President: Tyler Greffin Wixom, MI (866) 362-6377

DIRECTORS John Agnew Fort Collins, CO (970) 485-0287

Ed Emerson Abilene, TX (325) 201-8011

Marcus Kittrell Pelham, AL (205) 966-5931

Robert Andre Tamarac, FL (800) 327-8723

Steve Holcomb Oklahoma City, OK (405) 642-7874

Bobby Story Durant, OK (580) 775-1855

Lanese Barnett Dallas, TX (972) 390-0230

Paul Kalscheur Appleton, WI (920) 636-8463

Shane Weiss Alice, TX (361) 664-8101

Executive Director: Chuck Space • 4600 Spicewood Springs Rd., Ste. 103 • Austin, Texas, 78759 • (512) 343-9023

www.swcarwash.org THE ADVANTAGE is the official publication of the Southwest Car Wash Association. It is published four times each calendar year by SCWA, 4600 Spicewood Springs Rd., #103, Austin, Texas 78759. The officers, directors and members of the Southwest Car Wash Association, as well as The Advantage editors, in accepting advertising for this publication, make no independent investigation concerning the services or products advertised and neither endorse nor recommend or make any claims as to the accuracy and therefore assume no liability thereof. The opinions expressed in the articles are not necessarily the opinions of SCWA and its publisher and therefore makes no warranties and assumes no responsibility for accuracy or completeness of the information herein. (512) 343-9023.

ADVANTAGE

WELCOME NEW MEMBERS The SCWA members listed below have joined SCWA since our last issue. We Appreciate your Support! Dan Bailey

Jeffrey Dyson

Dawson Barksdale

Roger Flores

Two Sigma New York NY Gleaux Car Wash Waco TX

Doug Barnes

Herford Super Wash Farwell TX

Peter Barnett

Kooler Ice, Inc. Byron GA Jolt Lehi UT

Lonnie Folsom

Woodie’s Wash Shack Tampa FL

Benjamin Fox

LAB Kids Los Angeles CA

Realty Income Corp. San Diego CA

Joseph Barney

Andrew Gruenbaum

Crane Payment Innovations Lancaster PA

Andres Bethencourt

Kevin Lowe

Antonio Rubin

Ultimate Carwash Ada OK

Clean N Shine Express Dallas TX

Michael Lucas

Dalton & Kimberly Russell

Arcadian Service Gulf Coast Robertsdale AL

Steven Madden

Masters Car Wash/Oil Change Oklahoma City OK

Bill Martin

Metro Express Car Wash Boise ID

Derek Martin

Russells Car Wash Union MS

Tracy Schmidt

Steward CW Holdings, LLC Katy TX

Matthew J. Scow

Maks Property Real Estate Group McKinney TX

Henry Shine

Stampede Car Wash N.Richland Hills TX

Metro Express Car Wash Boise ID

True Blue Car Wash Scottsdale IL

Clean Streak Ventures Miami FL

Mister Car Wash Tucson AZ

Dave Hail

Brad McCrary

Jamie Smart

Willy Beumer

Matt Harrell

Terry McGowan

Roger & Theresa Spillers

Dutch Car Wash Parker CO

Washpro Indianapolis IN

William Bishop

James Hearty

Bill Blair

James Hearty

Winston Atlantic Savannah GA Blair Ceramics Parker CO

Michael Blatchford

Two Sigma New York NY Two Sigma New York NY

Miguel Heras

Snap Leawood KS

Mosaic Hamilton CN

Nicholas Moore

Badger Wash Lometa TX

Spillers Company Boling TX

Mark Stuart

Hub City Car Wash Robertsdale AL

Independent Financial McKinney TX

Garen Moring

Kenneth Thomas

Whitewalls Express Carwash Kingwood TX

Riley Murphy

Thomas Car Wash Dallas TX

Seth Thomas

Bellino Enterprises Papillion NE

Clean Streak Ventures Miami FL

Rileys Express Car Wash Brooklyn Park MN

Frank Brooks

Panagiotis Iakovidis

Blake Newman

Honolulu HI

Tremarale, LC Winter Haven FL

Kip Bunch

Jason Johnson

Shaun Nordgaarden Waterway Gas & Wash Chestervield MO

Express Wash Company Monument CO

Robert Kearney

Robert Pearson

Lindsay Vanderbroek

Last Leg Investments, Inc. Midland TX

Ryan Carter

J2 Strategies Driftwood TX

Porthaven Partners Tulsa OK

Speedy Sparkle Car Wash Berthoud CO

Taejoon Chun

Andrew Kim

Realty Income Corp. San Diego CA

David Colangelo Inkfish Inspired Tampa FL

David Corbett

Kim Company Milwaukie OR

David Kim

Launch Car Wash Tulsa OK

Nuride Long Island City NY

Robert Pearson

Pearson Family Car Wash Prosper TX

Imran Qadri

Urban Car Wash Lewisville TX

Superior Katy CW & Lube Houston TX

Raymond James Atlanta GA

Bruce K. Koeller, Inc. Lone Tree CO

Bruce Koeller

Mohsin Qayyum

Jay De La Riva

Jim Lanman

Scott Rider

Mark Law

Robert & Peggy Roberts

Mister Car Wash Tucson AZ

Richard DeGennaro Chesterfield VA

Aleisia Dragon

YRC Worldwide Colorado Springs CO

Touch4Wash Normal IL

Let’Er Buck Car Wash Sheridan WY

Kenneth Littrell

Clean Sweep Car Wash Lexington KY

Dr. Car Wash Friendswood TX Rider Group Austin TX

Volcano Express Pearl MS

Triple-B Carwash Heath TX

Jerry Truelove

Xtreme Wash Gear Oklahoma City OK

Jason Van Kooten

Welcomemat Services Atlanta GA

Bill Walker

Bill’s Car Wash Riviera Beach FL

Bryan Weinzimer

Sparkle Adcock, LLC Little Rock AR

Thomas Welter

Clean Streak Ventures Westfield IN

Dave Wills

Let’Er Buck Car Wash Sheridan WY

Travis Wilson

Texas Car Wash Concepts, LLC New Braunfels TX

Robert Rodriguez

Grease Monkey/Monkey Shine Laredo TX

ADVANTAGE

YOUR BEST CAR WASH LOAN Discuss options with your SBA-Capital Expert

Larry Ayres – Owner, All American Carwash and Lube

I had the pleasure of working with SBA-Capital and Hershel Pierce on a $7M restructure loan that replaced Short Term financing with Long Term debt, provided $1.5M for renovation, and reduced my debt service over $20K per month. Give Hershel a call to explore if he can do the same for your company.

PARTIAL LIST OF TOOLS ON SBA-CAPITALS CAR WASH BLOG:

• Renovation Doubles Revenue (video) • Purchase Existing Wash, Renovation, or New Construction • Use existing Equity to Expand or Renovate • Obtain a Financial Car Wash Proforma • Use EBITDA to evaluate your business

EBITDA projections include revenue, operating cost, earnings, cash flow, debt service, and debt coverage ratio.

www.sba-capital.com Since 1982 Car Wash loan Experts 45

ADVANTAGE

Introducing Eight Powerful Solutions. All in One Place, Now Offers Benefits.

With your OneWash ChoiceTM membership, you’ll have unlimited access to the industry’s only complete suite of car wash business solutions.

These are Your OneWash Choice Membership Benefits FREE Annual Audit of your Car Wash KPIs. Invitation to Annual ‘State of the Industry’ Seminar.

Consulting

FREE Unlimited College Course Registrations.

College

$5,000 Annual Credit on any Equipment, Chemical or Controls Hardware Purchase.

Equipment

Vacuums

FREE Annual Turbine Swap or $2,000 Credit on a Vacuum System Purchase.

Controls

FREE Subscription to Incident Tracking and Reporting Suite.

Marketing

$1,000 Annual Credit on any Mr. Foamer® Signage Purchase.

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Parts

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www.sonnysdirect.com/onewash o r Cal l 8 0 0. 327. 8 7 2 3

The Tunnel Experts

IS HIGH.

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If you want to be the best in the business, you need a brush that’s designed to be the same. Gallop Brush Co. manufactures the highest quality brushes. They last longer and work harder than any other car wash product on the market. And we also keep our prices low, meaning you’ll get the most for your money. ®

For more information, visit www.gallopbrush.com or call us at 1-866-242-5567. 47

PRESORTED STANDARD U.S. POSTAGE

SOUTHWEST CAR WASH ASSOCIATION 4600 Spicewood Springs Road Suite 103 Austin, Texas 78759

PAID

AUSTIN, TX PERMIT NO. 1142