Automotive Service Franchises Vs. Independent Automotive Businesses

Automotive Service Franchises vs. Independent Automotive Businesses

Curious about the auto service business? This article will help you understand how automotive service franchises compare to independent automotive businesses.

Automotive Service Franchise Vs. Independent Automotive Business – Which One Is Cheaper To Start?

One important thing to realize right away is that whether you want to buy an automotive service franchise or start an independent automotive business, you’re looking at making a significant investment. Starting almost any business is going to cost a lot of money, but automotive businesses particularly require quite a bit of investment. You need a lot of space for an auto garage, a lot of equipment, and a lot of replacement parts.

This is OK, because automotive businesses often bring in a lot of revenue, and you can finance a lot of your costs. But you should still have significant resources, like a net worth of half a million dollars and at least $150,000 in liquid assets. There are many variables, such as size, location, and staff, that will affect how much it costs to start your automotive business, but all things being equal, an independent business might be moderately cheaper to start because you wouldn’t have to pay a franchising fee.

Automotive Service Franchise Vs. Independent Automotive Business – Which Brings In More Revenue?

The total initial investment needed to start an automotive service business is somewhere between $200,000 and $500,000. At Tuffy Tire and Auto, we charge a $30,000 initial franchising fee, which might be less than a tenth your total investment. And for that modest fee you’re much likelier to bring in more revenue. We have 88 franchise locations that have at least 6 bays and have been operating at least 2 years. Based on their numbers, the average gross sales for one of our franchise locations is over a million dollars.

Automotive Service Franchise Vs. Independent Automotive Business – Which Is Easier To Market?

A big reason why automotive franchises bring in more revenue is because they’re easier to market. Drivers may not know you personally, but if they recognize and respect the brand under which you operate, they’ll trust you with their vehicle.

Automotive Service Franchise Vs. Independent Automotive Business – Which Is Better?

Everybody has to make the right choice for them. For the vast majority of candidates, an automotive service franchise is safer, easier, and more lucrative.

Tuffy Tire & Auto Service

If you think an automotive service franchise might be right for you, you should contact Tuffy Tire and Auto Service. We offer some of the best automotive service franchises in the industry and we are always happy to hear from people interested in becoming one of our franchise partners. To learn more, please contact us via our website or call (800) 228 – 8339.