CHICAGO - A group of Grand Rental Station and Taylor Rental Center owner-operators affiliated with Chicago-based TruServ is discussing the possibility of purchasing the franchise.
Amid reports that TruServ officials have held talks with two potential buyers of the franchise, the 13 owners have begun a grass-roots effort to acquire it themselves or play a role in the negotiations.
"We want to make sure that if the franchise is for sale, that we're participating in the negotiations or have the right to match other offers," said David Harris, owner of Grand Rental Station, Abington, Mass. "It's widely known that TruServ is attempting to sell the franchise. But they don't have much to sell without the support of the member-owners. It's our future they are selling. It is to everybody's benefit to include us in the negotiations because anybody who is buying us would want to know that if they have 600 dealer-owners on the day of the sale, that they would also have 600 the day after. If half the owners were to leave, they'd have a real problem."
According to industry sources, at least two companies have held preliminary talks with TruServ, one of which is a "consolidator" that would be viewed as a competitor by member-owners. TruServ members own their companies and pay a monthly fee for various services, including discounts on equipment purchases.
The 13 owners have signed a letter to all other Grand Rental Station and Taylor Rental Store owners asking them to participate by sending $100 each to retain a qualified franchise attorney who would ensure that their rights as members of the co-op are protected. The letter also asks whether co-op members should make an offer to buy the franchise and if they would want to remain with the franchise if an industry consolidator buys it.
Joe Rupe of Grand Rental Station, Crystal Lake, Ill., said the group's goal is to keep the franchise intact rather than seek ownership of it unless TruServ is committed to selling it. "We're just trying to preserve the co-op," he said.
TruServ officials have not confirmed that discussions on a possible sale have taken place and could not be reached for comment.
