Deciding to become a franchisee is one of the biggest – and best – professional decisions you’ll ever make in your life. It enables entrepreneurs to become independent business owners, with the added bonus of having the umbrella of a large company around them.
There are plenty of benefits to automotive franchise opportunities and vehicle franchises, making them among the top franchise opportunities. Launching your own startup is a popular career path; after all, who doesn’t want to be their own boss? However, running your own business can also be a daunting prospect.
In today’s challenging trading climate, it can be fraught with challenges without the appropriate guidance and support structure. One of the key benefits of franchising is providing franchisees with a support network that can make the difference between success and failure.
You have the benefits of being your own boss, while still having support should you need it – effectively providing the best of both worlds.
Why choose an automotive franchise?
The question you should be asking yourself is why are car franchises so popular? A major attraction is the wide customer base that they serve. Whether you’re looking to launch an automotive service centre or a car dealership, there will always be customers.
Most people today own at least one car, while some families have two or more, and most of them use their vehicle on a daily basis. With an estimated 1.4 billion cars on the road worldwide, there are few other consumer products that have such a buoyant market today.
You might wonder why automotive franchises are challenging even food franchises in terms of the most popular new startups. The answer seems pretty simple: while it’s true that everyone has to eat, most people are capable of preparing their own meals, so buying takeaway food isn’t crucial to our existence.
On the other hand, how many people can repair their own vehicles? The answer is less than half, according to research. In fact, only 48% of car owners know how to carry out even a simple bit of car maintenance – which means the majority are reliant on a professional when it comes to vehicle repairs.
This means a good auto service franchise will always have customers. The vehicles themselves will change over time but will remain a key component of our daily life for the foreseeable future. The auto repair industry is in a stable position, so vehicle service centre franchises look set to continue as profitable investments.
It’s also possible for a franchisee to specialise in a particular branch of the automotive industry, such as puncture repair franchises, car washing, or windscreen repair franchises. There’s plenty of scope for establishing your business in different fields.
What are the benefits of auto franchises?
Like every other franchise, it takes hard work – and it also helps if you enjoy the sales process – but you can make money in the automotive franchise business if you’re prepared to put in the hours.
In the case of car dealerships, the franchise model seems to suit the industry perfectly. Vehicle manufacturers are confident their cars are being sold by reputable and responsible salespeople, while consumers know the vehicle they are buying is guaranteed and is being sold by a trusted trader.
Car dealership franchises are located on a welcoming site with sufficient space to house a vehicle showroom, often with enough room for garage repairs and maintenance workshops too. They can be found in convenient locations outside the town or city centre, where there is easy access and ample parking facilities.
A car franchise dealership can make a profit partly through selling the cars and also through offering specialist services for maintenance, for both consumers and businesses who run a fleet of company vehicles.
Many vehicle manufacturers have transferred the focus of their franchises to branding and technology in recent years. The business premises will have a specific look to keep in line with the parent brand.
How does the franchise network help?
Auto manufacturers have a distribution channel for their vehicles, so they can outsource the sales side of their business to franchisees, leaving them to focus on developing new models.
The automotive franchisee has access to a proven and trusted operating system, including computer system, financial system, technology and other support to help make the business successful. When you’re just starting out, this network is particularly valuable – as it is for the growth and life of the business.
New startups will also have the training and technical support to help them climb the career ladder. A car franchise dealership greatly increases its chances of success when backed by the power of a larger company.
Automotive franchises come in all shapes and sizes, so the startup costs can vary. A larger fee can reflect a higher level of support from the franchisor and may also anticipate higher returns. The initial outlay can also depend on the size of the territory.
This is particularly relevant in the car franchise sector, as there will not be too many similar franchises packed into any one area, in order to ensure there’s a large enough customer base for each one.
