12 Automotive Franchises


automotive franchises

Are you looking to become your own boss? Maybe work for a company like Christian Brothers or Snap-on tools in the automotive industry? This blog is all about automotive franchises. What are the investment costs, and which ones are best? And everything else that you need to know.

What Is an Automotive Franchise?

An automotive franchise covers a range of different services. Depending on the brand, your customers could request tire services or repairs and sales. Some franchise opportunities even offer things like window tinting.

The point is there is a variety of automotive service choices involved with one of these franchises.

 

The Automotive Franchise Industry in 2022

This type of auto service is always in demand. In this category, auto repair franchise industries like Midas and Meineke contribute over $100 billion every year to the economy.

Break services are another important part of this automotive segment. Here are some statistics and a breakdown by category.

Why You Should Consider an Automotive Franchise

These types of repair services are popular. Automotive franchises are locally owned so they are a great opportunity. However, this kind of business isn’t cheap.

So here are five reasons entrepreneurs will want to get involved in these services.

You Don’t Need Mechanical Skills

Franchisees don’t need to know how to fix the vehicles themselves. This investment needs networking, delegation, and business management skills. It’s not important that you know how to repair a car.

These Franchises Have Lots of Customers

Automotive franchises are a good investment. Because there are lots of cars in the country. Two hundred and eighty-four million vehicles to be exact. And they’ll all need front-end work, an oil change, or even a flat tire fixed at some point in the future.

These Businesses Are Steady

These franchise opportunities operate in good and bad markets. You can offer an oil change and other services on new and used cars. Customers can save on what dealerships charge for service. In a down market, customers want to repair older cars.

These Franchises are Familiar

Everyone knows these companies and what franchises in this industry do. Cars and other vehicles have been around for over a hundred years. And consumers are familiar with the big brand franchises. Some of these franchises are located in residential shopping areas.

Automotive Customers Pay Right Away

This type of investment is a sound financial venture. Automotive franchisees don’t have a big inventory. They order car parts and most companies offer pay-right-away services. There are no accounts receivable.

Read on for a list of the top automotive franchises. This list is about the kind of franchise opportunity offering car care packages.

 

Key Criteria to Drive Success in an Automotive Franchise: Our Methodology

It’s crucial to evaluate various factors to make an informed decision. Here’s a breakdown of the criteria, each rated on a scale of importance from 1 (least important) to 5 (most important):

  1. Franchise Reputation and Track Record (Rating: 5):
    • Evaluate the franchise’s history of success.
    • Gather feedback from existing franchisees.
    • Assess the level of support provided by the franchisor.
  2. Initial Investment and ROI (Rating: 5):
    • Calculate the total upfront investment required, including franchise fees and equipment costs.
    • Consider projected return on investment (ROI) and profitability.
    • Explore financing options and support from the franchisor.
  3. Location and Market Demand (Rating: 4):
    • Proximity to potential customers and target market.
    • Analyze the local demand for automotive services.
    • Assess competitor presence and market saturation.
  4. Quality of Automotive Services (Rating: 4):
    • Evaluate the range and quality of automotive services offered.
    • Ensure highly skilled and certified technicians.
    • Check for affiliations with reputable automotive associations.
  5. Marketing and Branding Support (Rating: 3):
    • Review the franchisor’s marketing strategies and materials.
    • Assess national and local advertising efforts.
    • Gauge the level of brand recognition and customer loyalty.
  6. Training and Ongoing Support (Rating: 3):
    • Investigate the comprehensiveness of training programs.
    • Understand the level of ongoing support from the franchisor.
    • Connect with a network of fellow franchisees for assistance.
  7. Licensing and Regulatory Compliance (Rating: 3):
    • Ensure the franchise adheres to all legal requirements for automotive services.
    • Review the transparency of contract terms and agreements.
    • Check for any history of legal issues or disputes.
  8. Technological Integration (Rating: 2):
    • Explore the use of technology for efficient operations and customer convenience.
    • Assess the franchise’s online presence and digital tools.
    • Understand how technology enhances customer experience.
  9. Flexibility and Growth Potential (Rating: 2):
    • Examine the level of flexibility allowed by the franchisor.
    • Identify opportunities for expansion or diversification.
    • Assess the potential for long-term growth within the franchise.
CriteriaImportance Rating
Franchise Reputation and Track Record5
- Evaluate the franchise's history of success.
- Gather feedback from existing franchisees.
- Assess the level of support provided by the franchisor.
Initial Investment and ROI5
- Calculate the total upfront investment required, including franchise fees and equipment costs.
- Consider projected return on investment (ROI) and profitability.
- Explore financing options and support from the franchisor.
Location and Market Demand4
- Proximity to potential customers and target market.
- Analyze the local demand for automotive services.
- Assess competitor presence and market saturation.
Quality of Automotive Services4
- Evaluate the range and quality of automotive services offered.
- Ensure highly skilled and certified technicians.
- Check for affiliations with reputable automotive associations.
Marketing and Branding Support3
- Review the franchisor's marketing strategies and materials.
- Assess national and local advertising efforts.
- Gauge the level of brand recognition and customer loyalty.
Training and Ongoing Support3
- Investigate the comprehensiveness of training programs.
- Understand the level of ongoing support from the franchisor.
- Connect with a network of fellow franchisees for assistance.
Licensing and Regulatory Compliance3
- Ensure the franchise adheres to all legal requirements for automotive services.
- Review the transparency of contract terms and agreements.
- Check for any history of legal issues or disputes.
Technological Integration2
- Explore the use of technology for efficient operations and customer convenience.
- Assess the franchise's online presence and digital tools.
- Understand how technology enhances customer experience.
Flexibility and Growth Potential2
- Examine the level of flexibility allowed by the franchisor.
- Identify opportunities for expansion or diversification.
- Assess the potential for long-term growth within the franchise.

Top Automotive Franchises

1. Snap On Tools

Snap On Tools is a leader in the franchise industry. There’s a quiz to see if you’d be a good fit for a business. Plus excellent partnership details. Like the fact you can expect to shell out between $175,146 to $411,941 as a total investment. There’s no advertising fee. Snap-on tools also has financing options like Snap-on Credit.

2. Christian Brothers

Any franchise investment in the automotive industry needs credentials for success. Christian Brothers Automotive has them. These professionals have awards from the likes of J.D. Power.

The high-end total investment is $641,000k. The company requires a minimum net worth of $250k. Interested in a Christian Brothers business but don’t know anything about vehicles? A full 85% of people who make an investment have no automotive experience. Another good reason to consider a business with Christian Brothers.

3. Big O Tires

This company highlights good practices with a proven business model. You get a designed franchising territory to sell tires. It’s a good investment with over 465 locations in 25 states. And a respected brand. Big O Tires also offers automotive services on top of tire accessories like wheels.

4. CARSTAR

This is one of the top automotive franchises for auto body repair. This automotive service offers paintless dent repair and 24/7 accident assistance. Here’s the link for CARSTAR franchise opportunity info.

5. MIDAS

Midas is a big name in the automotive industry. They offer a 50% reduction in the franchise fee to first responders and veterans. The franchise fee is 35K and the monthly royalty is 10%. This auto business offers over 100 North American auto repair services.

6. Meineke

The initial investment ranges from $123,000 to 572,000 roughly. This car care franchise offers full-service auto repair with many locations. Meineke entrepreneurs get a KPI dashboard when they purchase a franchise.

7. Mighty Auto Parts

There are different franchise opportunities available. Like service shop specialists, car dealerships, tire dealers, and oil distributors. There are training and franchise fees that range from $22,500 to $57, 500. Mighty Auto Parts franchises come with marketing and other tools.

8. AAMCO.

Franchisees offer a service that includes transmission repairs and other features. The total cost for one of these repair companies ranges from $223,600 to $330,500. The entrepreneur’s investment includes an AAMCO Security Deposit. This brand also offers maintenance and repair services on brakes and air conditioning.

9. J.D. Byrider

This is one of the automotive franchise opportunities that deals with another part of the industry, namely selling vehicles. These businesses finance used vehicles for consumers. Financing can be found in the same location. Professionals invest $50,000 for the first operation. The financial responsibilities include $1,500 monthly for ads. Learn more about this franchising opportunity from the website.

10. Advanced Maintenance.

Looking for a franchising business to specialize in trucks? Advanced Maintenance is the automotive franchise opportunity for you. The investment numbers include a $75,000 liquid cash requirement. They offer emergency repair and maintenance work for trucks. This automotive brand has been in business since 2006.

11. Autolab

Another automotive industry franchise worth looking at. Their catalog has a range of general car services. Autolab finances through a third party. You’ll need an initial investment of $130,750. And they were founded in 1989.

12. Drive N Style

This company reconditions used vehicles. Drive N Style has locations from California to Texas to Michigan. They offer a Veteran Discount of 25% off their franchising fee.

 

How to Choose the Best Franchise to Set Up Your Automotive Business

Making the best decision when it comes to this type of franchising investment is a process. Here are some tips that will help you with your automotive industry choices.

Research the Franchise Business Review

You can request access to a list of the top franchises. The Franchise Business Review also offers insights and resources as well as a buyer’s guide. Plus an academy and other business starting tools. There’s a category for every stage in your journey.

Learn About the Parent Company

Understanding the parent company is a critical part of your investment. Find out when the brand was founded to start. Start looking at their website. They should offer public relations, advertising and marketing support.

Make sure the processes, products and trademarks are explained. Of course, you need details on how much your investment is.

Don’t forget to research their image and reputation. Find out who their target market is. This is another good starting point when you’re thinking about a franchise. Spending a lot of money on that investment is a big deal. You want to be sure you’re hitching your franchise wagon to a reputable place.

Apply

There are a few steps to this process when you’re looking at an auto service franchise. The application process helps you make the right decisions. It starts with an initial inquiry and the first interview. If all goes well, you can move down the list to what’s called discovery day.

Sign A Franchise Agreement

Owning a franchise is about paperwork too. Before you pick out the tools to work on your customer’s tires, you’ll need to request and sign a franchise agreement. This is a legally binding contract. It covers aspects like the royalty and other fees. Other areas include personnel policies and your advertising obligations.

 

How Much Does It Cost to Open an Auto Parts Franchise?

Here are some estimated price ranges by category.

  • Research says you can open a new Midas location for up to $424,000. Or as little as $75,000 to convert an existing shop.
  • Estimates for stating inventory range from $75,000 to $150,000.
  • Franchises America.com puts the total investment for a Snap-on Tools venture at $169,503.

Here are some averages for all the different costs. Overall, startup payments and fees go from tens of thousands to over $1 million or higher. Find out about the cost for employees.

Is an Automotive Franchise Profitable?

Go with a big-name franchise and you’ll pull in an average of $350k yearly. Keep an eye on performance indicators. Like average profits, average sales and the average-sales-to-investment ratio.

Remember to look for one that offers seasonal services. Like brake services for a summer road trip. And heating fixes in the Winter. Plus nonessentials like window tinting.

Which Automotive Franchise Makes the Most Money?

Being the boss at a Big O Tires franchise nets you more money than other owners. The base salary is $78,880 for franchise owners in this industry. A Big O Tires owner takes in $110,289. That’s 28% higher.

These franchises are operated in 25 different states. Request more information here.

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Rob Starr Rob Starr is a staff writer for Small Business Trends. Rob is a freelance journalist and content strategist/manager with three decades of experience in both print and online writing. He currently works in New York City as a copywriter and all across North America for a variety of editing and writing enterprises.

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