What Are The Advantages Of Automotive Service Franchises?
If you’re interested in owning a business in the automotive repair sector, why is it better to buy an automotive service franchise than to start your own independent business?
It’s Often Easier To Secure Financing With An Automotive Service Franchise As Opposed To An Independent Automotive Business.
One important thing to note right away is that whether you buy an automotive service franchise or start your own car repair business, you’ll need to make a significant investment. Starting almost any business requires investing a lot of money, but automotive service businesses cost an especially large amount. Auto garages are large, you have to buy a lot of equipment, and you need a lot of replacement parts. It adds up quick.
The cost alone shouldn’t deter you from entering the automotive service industry, though, because these businesses often generate a lot of revenue, much more than less expensive franchises. Furthermore, you can usually finance a lot of your costs. But financial institutions often see loaning money to somebody who wants to start their own business as far riskier than loaning to somebody who’s buying from an established franchisor. Furthermore, some franchisors have connections and they can set you up with a third-party financier.
Do Automotive Service Franchises Make More Money?
The total initial investment required to buy and start up an automotive service franchise is typically in the range of $200,000 to $500,000. At Tuffy Tire and Auto, we charge a $30,000 initial franchising fee, which could end up being less than a tenth your total investment. So, while $30,000 is a lot of money in many respects, as a business investment it is comparatively paltry.
More importantly, you can expect to make that money back and then some. We have 88 franchise locations that have at least six bays and which have been operating for at least two years. Based on their numbers, the average gross annual sales for one of our franchise locations is over a million dollars.
Automotive Service Franchises Are Easier To Market.
A major reason why automotive franchises bring in more revenue than independent auto shops is because they’re easier to market. Drivers need their cars and they won’t trust their service to just anybody. If they recognize and trust the brand under which you operate, however, they’re far likelier to trust you.
Tuffy Tire & Auto Service Has Automotive Service Franchises For Sale.
If you’re interested in owning one, you should get in touch with us. At Tuffy, we work with our franchise partners to give them every opportunity to succeed. To learn more, please contact us via our website or call (800) 228 – 8339. You can find out where our available markets are here.Back