Do Tire & Auto Franchises Make Good Money?
One of the main questions entrepreneurs and potential franchisees have before buying into an industry is, “Will this franchise make me money?”. Of course, that’s a natural question; it’s the whole point of owning a business. There are hundreds of potential franchises you could buy, so why should you buy a tire and auto franchise? Do tire and auto franchises make good money?
Let us first begin with what kind of investment you’ll need to make to acquire a tire and auto franchise in the first place. It only makes sense that you should know what you’re getting into. A tire and auto franchise are not like a cleaning franchise where perhaps all you’ll need is a van and some cleaning supplies. You’re going to have to acquire a location big enough for a garage and then get all the equipment and then get all the parts, so there’s a fair amount of capital you will have to invest.
At Tuffy Tire & Auto Service, our franchises require an initial investment of between $224,000-$413,500, with $66,000-$163,500 of that being liquid capital. That’s the kind of money you’ll have to spend to make any money in the tire and auto franchise game.
Is That a Lot?
Those figures may look big and perhaps even intimidating on paper, but you must consider what you’re getting for it. If you own a sandwich shop, you will probably have some regulars but most of your customers will just be folks popping in off the street occasionally. If you own a tutoring service, you might lose your client as soon as he passes ninth grade math. And if you own a video rental store, then you’re in real big trouble. But a tire and auto franchise have two big advantages.
Two Big Advantages
The two big advantages of a tire and auto franchise are: a wide customer base and immense potential for repeat business. There were an estimated 268.8 million vehicles registered in the United States in 2016. That’s a lot of vehicles. And all those vehicles need to be serviced and will need to be repaired at some point. That’s where tire and auto franchises get their business. And if you do an excellent job at servicing and repairing those vehicles, you’re likely to get repeat business. All vehicles need to be serviced whether it’s putting or taking off the winter tires or repairing the muffler, so there’s a lot of work out there for tire and auto franchises.
So, Do They Make Good Money?
A tire and auto franchise will make good money if it is strategically located, the franchisee works hard, and the franchisor will support the franchisee in every way it can (e.g.: marketing support, training, a protected area, a preferred vendor program, etc.). At Tuffy Tire & Auto Service, the gross sales of our franchisees in 2017 ranged from $286,434 on the low end to $2,155,196 on the high end, based on the 96-franchised stores that had been in operation for at least 2 years and have at least six bays.
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To learn more tire and auto service franchises, please contact us today.