Auto glass franchises mainly perform auto window and windshield repair and replacement services. In addition, they also perform auto window tinting services, auto glass installation, and miscellaneous glass work related to automobiles such as headlight restoration.
Major auto glass franchisors include Glass Doctor, NOVUS Glass, SuperGlass, and Tint World. Franchises within this industry serve a broad variety of client groups, including individual drivers, rental car companies, car dealerships, insurance companies, and government agencies.
The market size of the auto glass repair and replacement franchise industry is around $225 million, according to research from IBISWorld. Demand for auto glass franchise services depends largely on factors that include the number of auto accidents that occur regularly, the total number of registered vehicles on the road, as well as the age and mileage of vehicles.
As for the age of vehicles on the road, many cars on the roadways of the United States aren’t brand-new. The average car in operation in the United States is at a record high of around 12 years old. Combine that with a record number of vehicles that are at least 25 years old on the road, and you have a particularly fertile environment for all auto repair franchises, including auto glass franchises.
In addition, increased highway construction has also emerged as a factor in auto glass repair franchise service demand. As Driven Brands President and CEO Jonathan Fitzpatrick has said, his company is paying attention to the “massive infrastructure building in the United States and all the roadwork and all the construction that’s going to come with that. We do think that there will be some nice incremental tailwinds from that in terms of glass repair.”
The Impact of Driver Assistance Systems on Auto Glass Franchises
Another factor significantly impacting the market for auto glass franchisees is the emergence of driver assistance systems in vehicles.
As safety standards for newer vehicles continues to increase, the number of cars outfitted with advanced driver assistance systems (ADAS) to help prevent crashes is expected to rise. With the increase in these systems comes a greater need for technicians with specialized training. And this is where auto glass franchises are gaining even more of an advantage compared to their independent counterparts.
“Glass repairs are growing as a percentage of auto repairs and repair complexity is increasing due to the necessary calibration,” Fitzpatrick told investors at the beginning of 2022. “Most vehicles since about 2015 have a forward-facing camera mounted on that front windshield, and if you replace that windshield, you have to recalibrate that forward-facing camera, because that really is sort of the central nervous system associated with all the ADAS components on a vehicle.”
For franchisees of an auto glass franchise, receiving training is part of the deal. It helps franchisees stay up-to-date on the latest developments in industry techniques.
For example, NOVUS franchisees and their employees receive four weeks of training to operate their auto glass repair franchise. “NOVUS franchisees have the ability to repair long cracks on windshields that almost no one else in the industry will attempt,” according to the franchise. “Training includes operations, management, sales, windshield repair, windshield replacement, and more. Over 75% of our training is hands-on, doing the work. You and your employees will be confident that you know how to operate an auto glass business after completing our training.”
Warming Pattern Boosts Auto Tint Industry
According to the research from Future Market Insights Global and Consulting Pvt. Ltd., vehicle owners striving to reduce heat and glare has been driving the demand for automotive tinting. The company forecasts that the automotive tinting film market, specifically, is likely to reach a valuation of $5.89 billion by 2032. It has revenue of $3.83 billion in 2022. According to National Oceanic and Atmospheric Administration (NOAA), the nine years from 2013 through 2021 rank among the 10 warmest years on record.
And while the benefits for gas-powered vehicles are well documented, tinting is proving to be even more important for those with electric vehicles (EVs).
According to Turbo Tint, “Tinted windows can be an extremely important safety feature, especially for an electric vehicle. They keep cars cool and help reduce the internal temperature. Window tinting can block up to 80 percent of the sun’s heat. Studies have shown that it greatly reduces interior surface temperatures of a car. Not only can window tinting help reduce the internal temperature of your car, cut down on having to constantly run the air conditioning at full blast, but it can also reduce the strain on your EV's battery.”
The Initial Investment and Opening Costs for Auto Glass Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements for that particular franchise. The initial investment required for an auto glass franchise can range widely, mostly dependent on the level of real estate purchase that will be needed.
In addition, since many auto glass franchises perform service for their customers where they are, you will likely also need to factor in the lease or purchase of one or more service vehicles.
Our franchise profiles will present you with a basic range for the initial investment or minimum cash required to open a franchise. But when it comes to finding out the details of an initial investment, the FDD is the best place to look. Franchisors offer itemized estimates in their FDD based upon their experience establishing, and in some cases operating, units.
Keep in mind these estimates are just that, though—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Ongoing Costs for Auto Glass Franchises
Throughout the length of the agreement there are costs for being a part of the franchisor’s business system. These costs include items such as royalty fees, charges for technical support, and continued advertising/marketing costs.
The most common is the royalty fee. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support. In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees, or costs for additional, non-mandatory, training.
In addition, it’s important to note that while many initial and ongoing costs are detailed in the FDD, there are some costs inherent to business ownership, like employee wages or utility costs, that aren’t.
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