Franchising opportunities in the automotive industry
Did you know that franchising opportunities in the automotive industry are some of the most successful business niches currently available?
A recent ADP report found that auto parts and auto dealers were second leading job creating franchises in the United States.
For many years, the automotive industry has been an inviting and lucrative category for potential franchise owners, with many different types of automotive franchises like maintenance, repair, parts, and car rentals. All indications are that the number of franchising opportunities in the automotive industry is expected to increase with the rise in car ownership in developing countries, new car sales, and maintenance and repair of older cars that continue take us to work, vacation, and about town throughout the country.
Sacramento-based franchise consultant and business advisor Andrew Rogerson says that the most successful automotive franchises offer their franchisees the power of an established brand name and reputation, along with opportunities for growth. If you are crazy about cars and would like to run your own business, an automotive franchise in the Sacramento area or in Northern California may be a great match.
Andrew has several different types of franchising opportunities in the automotive industry available, and you can read about them here. Each automotive franchise is somewhat different and will have specific capital requirements, but the typical cost of an automotive franchise can be purchased for $5,000 for an auto detail business to as much as $750,000 for a car rental outlet. As you can see, the cost really varies by type.
Working with a franchise business advisor like Andrew Rogerson will help you learn more about the automotive business, franchisors, the cost involved with start-up, along with the fees to see what type of automotive franchise will work best for you.
Top Automotive Franchises
There are some automotive franchises combine several types of auto services under one business. As a result, many automotive franchises will overlap categories. Here’s a list of the top five automotive franchises based on a Small Business Administration franchise loan default rate list. Goodyear Tire had 0.0% failure rate and was in the top spot. Jiffy Lube and Car-X franchise were next—tied with a 10.0% failure rate.
The best automotive franchise for you will be based on several factors, including your specific business needs and the requirements of the franchisor. Work with an experienced business expert like Andrew Rogerson to thoroughly investigate all your automotive franchise opportunities.
Let’s look at a few more franchises with plans to expand and grow franchisees:
- Midas: for decades, the “Midas touch” has been known to millions of motorists and car owners who work on their own vehicles. Midas reports that a new eight-bay garage franchise location could cost a potential franchisee about $425,000. However, they point out that if a business owner uses an existing garage and converts it to a Midas shop, it may cost as little as $75,000.
- Big O Tires: this well-known tire supplier has about 400 franchise locations in 19 states. Along with tire sales, Big O Tires franchise owners realize up to 40% of their store’s sales from other types of car care needs, such as basic repairs. Big O reports that 25% of its franchise generate over $2 million in annual sales.
- Another of the more recognizable names in the auto industry, these automotive franchises provide a full range of services, including all types of auto repairs. Meineke says that it’s seeking franchise business owners—even those without automotive experience. In addition, Meineke offers incentives for franchisees who open multiple locations. The initial franchise fee for a Meineke auto shop is $30,000, and owners are required to have liquid assets of at least $110,000.
Don’t buy into franchising opportunities in the automotive industry without a totally unobstructed view of all aspects of the business. Whether you’re considering a franchise in the automotive industry or another business service, Andrew Rogerson can help you find the industry and business model that match your interests, level of investment, and preferred type of franchise.
Andrew is a business expert and has worked with franchisors and franchisees in cities throughout the Sacramento Region, like Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills, and Cameron Park. Andrew can help you with deciding on an appropriate franchise, your location in Sacramento, competitive intelligence, financing, in addition to providing answers to all your questions.
Take the time to speak with Andrew about buying a franchise or determining how to franchise your business. Please visit our website. You can also get in touch with Andrew via email or call him at (916) 570-2674.