Background Information for E Squared Workshops
About Chuck
You have been recently informed that your great uncle Chuck passed away a few weeks ago. While both you and Chuck lived in Culpeper, you had not idea that he was your great uncle. Other than being active in helping the community, he basically kept to himself so very few people knew him other than as owner/operator of Chuck’s Auto Rinse (C.A.R.) on the outskirts of town.
His attorney has contacted you. As his only living relative, you are in line to receive his assets which the attorney thinks are valued at more than a million dollars. However, there is a catch. Chuck’s car wash was his passion and he only wants his estate to go to you if you can operate his business successfully for a year. In his will, Chuck defined success as you being able to withdraw $60,000 in salary for yourself and leave the business in sound financial condition with a $50,000 bank balance at the end of the one-year period. The business currently has $50,000 in cash and you may not add additional outside funds except by making a profit. Since his death, the car wash has been closed and you cannot locate any of the employees that worked for him in order to find out how things operated.
Unfortunately, Chuck kept most of his records in his head so very little information about running the business is formally documented. As long as you have owned your car, you have always cleaned it at his facility. Your recollections about how the car wash actually works were very limited as you were only using the facility to keep your “ride” spotless.
From your memory, meetings with Chuck’s attorney and from asking around, you have been able to find out the following:
- Chuck was notorious for keeping accurate business records, albeit, in his head.
- He led a very simple lifestyle and never married.
- He lived in the same house for 40 years.
- Although he accumulated substantial wealth through saving for retirement, he loved his livelihood and never changed his lifestyle.
- He started the business in the mid-1970’s.
- His car wash (as part of his estate) is located just north of Culpeper. The debt-free property, is situated on one acre of parcel of land. Annual property taxes on the site are $5,000.
- Chuck participated in many community events by donating his time in addition to offering free car washes for local non-profit fundraising events.
- C.A.R. is considered to be the best car wash facility in the county.
- As part of a full service car wash, Chuck also sold auto detailing products and prepackaged snacks and drinks through vending machines.