Automotive
Franchises that have product sales, services and repairs for all types of automobiles.
Types of Automotive Businesses
The majority of the automotive franchises are oil change and light mechanical repair stores. There are also car washes, detailing, tires, full body repair, restoration and renewal and auto aftermarket. Almost all of the concepts in this category will have a brick and mortar location. The restoration and renewal options are run from home where there is a technician who drives to the locations of the vehicle(s) and does the work.
Initial Investment
Since most of the options require a physical buildout, the investment is higher for this category. The average is anywhere from $250K - $750K. For the few options that don’t require a physical location, the investment is much smaller between $50K - $100K.
Day In The Life
If you own one location you will be there at the store and overseeing the day to day operations. If you own multiple locations you’ll have multiple store managers and you will oversee those people. Regardless, your role will be focused on customer service, managing your employees, and the operations of the business. Customer service is very important in the auto industry since customers have a variety of competitors to choose from. Making sure they are having a great experience at your location will bring them back.
Ideal Candidate
The ideal candidate has customer service and management skills. The existing owners come from various backgrounds, but most have some sort of passion or interest in vehicles. You don’t need to have automotive experience. A lot of the owners end up opening multiple locations, so someone who wants to grow to multiple locations is a plus.
Why We Like This Industry
The auto industry may be changing a bit, but there will always be a need in this industry. We also like that your customers come from all economic backgrounds. You aren’t servicing one type of customer – essentially anyone who owns a vehicle can be your customer. There is a high chance of having repeat customers if you treat them well and offer a good service. With most of the concepts there are multiple revenue streams allowing you more opportunities to make money. This industry has a mixture of services between some of them being needs and others being wants. If your car needs an oil change you can’t ignore that. If you’re a car dealership with cars that have rips in the seats – you have to get that fixed before you can sell it. On the flip side you’ve got people who are spiffing up their cars adding window tinting, sounds systems, weekly car washes, etc. With some of these concepts you’re able to service both the need and the want.