Automotive Franchise Opportunities, Automotive Franchises For Sale

Trends and Facts About Automotive Franchises

Related Automotive Franchises Articles

Within the automotive franchise industry, service and repair are the most reliable fields. To the right, you'll can read our exclusive study on automotive franchises, which explains in detail why it is a good time to invest in an aftermarket franchise opportunity. Here is some other information on the industry:

1. According to the National Automobile Dealers Association, new vehicle sales dropped by three percent in 2006 with a continuing downward trend in 2007. Consumers are keeping and driving their cars longer, which means they must use more repair services.

2. The automotive services and repair industry employs 2.5+ percent of the US workforce, supplying about 3.7 million jobs. Automotive service delivered by providers other than the original manufacturer is known as the “After Market” and accounts for $247.8 billion in annual sales.

3. It is estimated that industry revenue percentages are divided 60/40 between mechanical repair and body/collision work.

4. According to industry analysts there are about 130,000 US companies whose primary focus is auto services and repairs. Some of the larger and more well-known franchise companies are AAMCO Transmissions, Express Oil Change, Maaco, Rent a Wreck, and Midas Muffler, which was named in Entrepreneur magazine's Annual Franchise 500 as the #1 Franchise in its category for 2004, 2005, 2006, 2007 and 2008. The diverse franchise names show the breadth of variety in automotive services businesses, with most automotive franchises offering specialized services, like glass replacement, oil changes, tire, transmission, or body work. Most automotive repair franchises specialize in a particular area to maximize the efficiency of equipment and specific expertise. The industry is very fragmented – the 50 largest companies serve only 10 percent of the market. Gas stations along with large stores, such as Sears and Kmart, are the main competitors for auto services and auto repair franchises. Profitability for automotive franchises depends on location and good marketing – and marketing and brand recognition is where franchise businesses have an advantage over privately owned, small business operators.

5. A typical repair shop generates annual revenue between $250,000 and $1 million, and franchisees that run multiple locations can realize much higher revenue.