Posted on: 17 December 2021Share
Franchises offer you a way to become a business owner with an already successful business formula. While your efforts affect how well your individual franchise does, you at least have a product or brand that can work, rather than something that only might work. Someone buying a fast-food franchise from a successful chain could still end up tanking the business at that location, but it wouldn't be due to the products or prices.
The same goes for auto franchises. When you buy a franchise from a successful company, you get a blueprint that is known to work. And in the world of auto repair and maintenance, there is always room for another franchisee who can take the blueprints provided by the corporate office and turn them into a trusted neighborhood auto service.
Initial Investment and Annual Royalties
Cost will be your first consideration. Different franchises have different investment amounts and royalty percentages. You may be limited to those franchises whose investments you can afford, and some do have initial investment requirements in the five-digits, rather than the six-digits. But you'll also have to pay royalties, usually monthly, to the main office, and those can be higher for franchises with low initial investment amounts.
Do You Want Repair or Retail?
Auto franchises cover quite a bit of ground. You don't have to do repairs; you can have a franchise that focuses on selling tools and parts to other repair shops, for example. If you envision having just a retail store, that's the path you should go; however, if you want to add repairs, you can find franchises for those, too. And then, of course, you have franchises that are only about repair, with no tool or part sales to other shops or the public.
Getting Really Specific With Services
Let's say you want to have a franchise that focuses on repairs. Now you have to decide how specific to get with those repairs. For example, you might want to work with glass repairs only, or maybe oil changes and muffler repairs. Perhaps tires are the only thing you're interested in dealing with. With auto franchises, you can be pretty focused on just one part of a car.
Start contacting franchisors; stick with well-known, successful ones, especially if this is your first franchise. While it's tempting to go with lesser-known companies, unless you have a track record of turning poorly performing franchises into successes, start with major franchisors first.
For more information on why to buy a franchise, contact a professional near you.