October 28, 2024 // Franchise Times

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For our Top CEOs in Franchising feature in the November/December issue, we identified notable leaders who are guiding their brands through periods of growth, change and, of course, challenges.

From her decades spent in franchising, PIRTEK CEO Kim Gubera’s biggest takeaway is this: “Don’t sweat the small stuff.”

With a background in accounting, that lesson might surprise some. “Sometimes you can get overwrought on the small things,” she said. “Stay focused on the things that matter: customers, your people, your franchise owners. Stay focused on those things and some of the other things will take care of themselves.”

In her 16 years at U.S. Lawns, Gubera saw the lawn care company grow from 50 to 250 locations. She started out in 2000 as an accountant and climbed the ladder, and in 2013, she landed the role of director of finance, a position she held for about two years before making the switch to PIRTEK. She started as a corporate controller for the Rockledge, Florida-based company, and was promoted from chief financial officer to CEO of PIRTEK in January of 2019.

She keeps her leadership philosophy simple: Emphasize the importance of doing things the right way. “I like to have a culture of excellence, but I also like the phrase, ‘Drive with integrity,’” Gubera said. “That’s what I really like doing as a leader, driving the organization but with integrity.”

PIRTEK (pronounced “per-tech”) is a hydraulic and industrial hose replacement, retail and repair franchise. Its customers are primarily industrial and construction companies.

The brand ended 2023 with 679 units, 141 of which are in the United States. The company did $646 million in systemwide sales last year, a 12 percent year-over-year increase. Unit growth was up 8.1 percent, or a net increase of 51 units. All of its units are franchised. The company doesn’t face direct competition from other franchises, with most of its competitors being local shops.

“We’re definitely still in growth mode and have grown this year, which is fantastic,” Gubera said.

PIRTEK started out in Australia and launched in the United States in 1996. Operators own a mobile repair business and a brick-and-mortar warehouse.

The investment required to open a PIRTEK USA franchise ranges from $216,400 to $619,300. The hydraulic hose market was valued at $10.49 billion in 2022, and is expected to grow to $16.27 billion by 2031, according to SkyQuest, a global market intelligence organization.

Private equity firm Princeton Equity Group invested in PIRTEK USA in 2023. The firm also has investments in franchises Bio-One, Card My Yard, Ellie Mental Health and Gotcha Covered. The firm, led by Doug Kennealey and Jim Waskovich, saw PIRTEK as an attractive investment because of its consistent sales growth and its strong leadership team.

“It’s a fantastic business model. In addition to franchisor operations, PIRTEK serves as the primary distributor of products to the franchise system,” Kennealey told Franchise Times earlier this year as part of this publication’s Dealmakers awards program. Kennealey noted stellar unit economics, market-leading position, significant whitespace and an excellent management team among PIRTEK’s other attributes.

“The biggest change that we’ve had is that we have exposure now to tools or companies or initiatives that maybe we didn’t in the past,” Gubera said of Princeton’s involvement. “Now we’ve had our eyes opened to some different services and companies that are out there to assist us.”

PIRTEK has since expanded its team, adding a chief marketing officer, a vice president of franchise development, a vice president of franchise operations and a procurement manager. “We’ve really been able to enhance, ultimately, what are going to be the services to our franchisees.”

Gubera said she and her team have the commitment and passion to help franchisees grow their businesses.

“That’s done with mutual trust and mutual respect. That’s how we run this organization, and that’s the kind of people that we’re looking to add to our organization,” she said. “I attribute that to part of our success, not just that it’s a great franchise model, but that’s the way we run things.”

A softer economy, plus rising labor and insurance costs nationwide led to “a lot of tightening of the belt” among franchisees, she said. “Part of our goal is to make sure that we are addressing, as we can, the profitability of our franchise owners, to make sure that they can sustain that profitability,” Gubera said.

An advantage for PIRTEK is its offering of an essential service to its industrial customers. While a typical consumer could skip their $6 morning coffee to save a couple bucks, hose repairs aren’t an indulgence. But if there’s a slowdown in construction or supply chain issues, as has happened the past few years, that’s when PIRTEK sees a downtick in jobs.

Despite those challenges, PIRTEK is still growing. “It’s really about making sure that we’re providing that world-class service and having strong relationships with our customers and delivering a consistent, high-quality product to them,” Gubera said.

In 2024, PIRTEK surpassed its record for the most unit openings, with 30-plus new locations.

“We have a lot of interest in the business and the franchise model,” Gubera said. “We have, still, close to 500 territories available in the U.S., so expect to see more PIRTEK.”