Does Location Affect Automotive Franchises for Sale?

Does Location Affect Automotive Franchises for Sale?

“Location, location, location.” This phrase has been the maxim of the real estate industry for about century or maybe even longer. But it applies to other industries as well. After all, all businesses need be located somewhere. Brick and mortar retail businesses might be struggling in the age of the internet, but you can’t get your car repaired online. Even so, automotive franchises need to be placed correctly if they’re going to succeed. So, before you buy an automotive franchise for sale, what should you know about location?

Finding The Right Spots

You want to pick the right location for your automotive franchise for sale. As with any business, you want to be in place with a lot of traffic. Somewhere people will pass by in large numbers. You don’t want to be way out in the middle of nowhere. But high traffic areas usually cost more. It’s all about finding the right balance. Especially if you are opening a multi-unit automotive franchise as these cover a large area.

As you go through the process of opening an automotive franchise for sale, you should talk to the automotive franchisor about location. Successful automotive franchisors know the best places to locate a franchise for it to be successful. But they don’t necessarily know your area as well as you do. If you have an idea for the best spot, make sure to mention it. And make sure you’re comfortable with the location before you finalize the purchase of the automotive franchise they’re selling.

Different Markets, Different Costs

Everything we have discussed about location is on the micro level. On a macro level, location will affect automotive franchise for sale a lot. Principally, they affect the cost. Automotive franchises sell for very different amounts in different areas. The franchising fee should be the same, but other costs vary wildly. Think about it: real estate costs a lot more in a place like Chicago, Illinois, than in Topeka, Kansas. The same is true for advertising. Things generally cost more in population dense areas.

Tuffy Tire & Auto Service Franchise For Sale

At Tuffy Tire and Auto Service, we understand the importance of location both on the micro and macro levels. And this is reflected in our cost and criteria charts. For example, it is possible to buy an automotive franchise for sale by Tuffy with as little as $66,000 and with a total investment as low as $224,000. But most locations will require more investment. So how much can it cost to buy an automotive franchise for sale? Tuffy automotive franchises can require as much as $163,500 in liquid capital and $413,500 in total investment. As you can see, this is a significant variance. But the more expensive automotive franchises for sale have the potential to bring in more revenue because they are in densely populated areas.

Get In Touch

If you would like to know more about our automotive franchises for sale, or know more about our location selection process, please get in touch with Tuffy Tire and Auto Service today.