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Automotive Franchise Industry Report 2013: Latest Stats for Potential Franchisees

The fact that the automotive franchise industry is widespread throughout the U.S. in various city areas is no secret.  The industry continues to expand as more consumers drive, require skilled professionals to handle vehicle maintenance, and keep their cars even longer than ever before.  Auto manufacturers have hit a new level of design excellence in recent years, allowing many newer model cars to last longer for their owners.

Franchising in the auto industry is inviting for new franchise investors for this reason: it offers a sustainable business concept opportunity for investors and remains in-demand.  More consumers today than ever before are looking for trained and trustworthy hands to maintain their cars, and this relationship between auto professional and consumer is growing stronger as consumers keep their cars longer and choose to leave repairs to professional auto industry personnel.

Franchise Direct connects potential franchisees of the auto industry with this year’s Automotive Franchise Industry Report, which provides a breakdown of industry developments as well as statistics on potential franchise systems to look into, including 10 specific franchise royalty fee examples.  Comments on how the recession is affecting the industry reveal promising news in connection with consumer aims to keep cars longer.  Maintenance becomes increasingly important, and trusted local auto franchises benefit from establishing relationships with these consumers.

One comment on how important the industry has become in U.S. society: “There are fewer and fewer consumers that have the ‘do-it-myself, do-it-yourself’ mentality,” says Ralph Yarusso of Grease Monkey.  “It’s really a ‘do-it-for-me’-type mentality.  They really are dependent on finding good, quality care facilities and maintenance providers to take care of their vehicles.”

What are franchisors looking for when they select future franchise partners?  The report details some of the qualities that combine well with auto franchising, as well as some of the backgrounds and interests that franchisors are focusing on during their search.  The report also explains the differences between business format and product franchising, two distinct concepts in the auto franchising world that are available to incoming franchisees, as well as some of the ways auto franchises are facing environmental impact concerns with adjustments that comply with local regulations.

How are franchises in the auto industry doing when compared to independently owned businesses?  “[The independent shop owners] don’t have the scale or resources to meet the standards of many of the major insurers,” says David Byers, CEO of CARSTAR Auto Body Repair Experts. “The economics of insurance-paid repairs can put significant margin pressure on an independent owner.”  Through franchise models, owners can retain a measure of independence, “but deliver centralized billing and repair management to the insurance partners.”

To read the report in full and find out more about what’s new in the automotive franchising industry follow the link here.

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