Americans love their cars. Cars represent freedom, and there’s nothing more American than a good old-fashioned road trip, or simply having the ability to cruise at will. To that end, there are more cars on the road in the United States than ever before.
According to recent estimates, over 284 million vehicles are in operation in the United States. In fact, use of public transport such as trains, subways, and buses is still near its all-time lows as (1) many people continue to practice social distancing, and (2) funding for public transport faces stiff hurdles in many places.
Bottom line: Whether they need to travel for their daily commute or take a number of leisure trips, most people are opting for private vehicles (over public transport) since the COVID-19 pandemic. Thus, it makes sense that people want dependable and comfortable vehicles they can rely on.
Further, many cars on the roadways 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 automotive repair franchises.
But all vehicles, regardless of age, need servicing on a somewhat regular basis. And to service all of these vehicles is where the companies that make up the automotive repair franchise industry come in.
Auto repair (and maintenance) franchises are part of the automotive aftermarket industry. The automotive aftermarket includes all products and services purchased after the first sale of an automobile. This includes replacement parts, accessories, lubricants, appearance products, tires, collision repairs, the tools and equipment necessary to perform the work, etc.
Because of that breadth of product and service offerings, prospective auto franchisees have a diverse set of options to choose from. In addition to auto maintenance and repair, franchises can be found in the following service areas and subsets of these areas:
- Auto detailing and car washes
- Auto parts retail
- Auto restoration
- Car rental
- Fleet management
- Gas stations
Specifically, auto repair franchises provide a wide range of mechanical, electrical and engine maintenance and repair services for automotive vehicles. According to market research company IBISWorld, these products and services include:
- Oil change and lubrication
- Mechanical and electrical repair
- Major body and mechanical repair services
- Painting and other body repair services
- Transmission repair
- Other repair services
Collectively, solely franchise outlets with the auto repair and maintenance industry bring in well over $9 billion annually.
Among the biggest auto repair franchise brands are: Meineke Car Care Centers, CARSTAR, 1-800-RADIATOR & A/C, Take 5 Oil Change, Maaco, Jiffy Lube, Midas, Grease Monkey, Tuffy Tire & Auto Service, Honest-1 Auto Care, Merlin Complete Auto Care, Christian Brothers Automotive, Ziebart, and AAMCO.
The Rise of Mobile Service
As mentioned above, auto franchises have a lot of options for prospective franchisees to from, including franchises that can be run without a traditional retail location. Auto glass repair franchises, such as Novus Glass, have long been an option for auto repair franchisees that want a more on-the-go business lifestyle. However, now prospective franchisees have even more options when it comes to providing auto care service to customers where they are.
“Our goal is to make car care as convenient as possible for our customers across the entire vehicle lifecycle,” said says Spiffy CEO Scot Wingo. Originally just a mobile car wash franchise, the company has expanded to offer complete car care services, including disinfection, oil change, tire repair and replacement, and other maintenance services.
What Makes a Good Auto Repair Franchisee?
“A good franchisee is a person that wants to be an owner, understands team leadership, and is enthusiastic about executing a proven business model,” says Michael Riley, senior vice president of Ziebart, a vehicle appearance and protection service franchise.
He continues, “This person desires to be a successful entrepreneur and understands that they need key people to help them achieve their goals. Successful franchisees understand the business environment and the competitive market they wish to own. They are driven, passionate, eager and constantly working to improve themselves, they treat people with courtesy, are empathetic and understanding, always wanting to lead and encourage. The successful franchisee is responsible and understands their financial position and the investment level needed to sustain the business to achieve the R.O.I they desire.”
Notice something missing from that listing of desired attributes? Prior automotive experience isn’t a requirement to be an auto franchisee for most franchise systems.
The Initial Investment and Opening Costs for Automotive Repair 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 repair franchise can range widely, mostly dependent on the level of real estate purchase that will be needed.
In addition, if you decide to go with one of the mobile options in this field or are required to offer shuttle service to and from your physical location, you will need to factor in the lease or purchase of one or more 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 Automotive Repair 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.
You can also check out many more exciting opportunities, such as Automotive Franchises, Car Wash Franchises, and Oil Change Franchises, here on Franchise Direct.