What Is An Automotive Industry Franchise?
What Exactly Is An Automotive Industry Franchise?
When we talk about automotive industry franchises, we don’t mean car dealerships, gas stations, or rental car companies, though one could argue they are all technically franchised businesses within the automotive industry. But as an industry term, this label applies to businesses that service, maintain, and repair automobiles.
How Does A Franchised Business Work?
In case you’re not entirely clear on how franchised businesses operate, let’s go through a quick overview. First, you have the franchisor. This is a person or group of people who own the whole franchised company or who govern it on a board of directors. They decide to whom they will sell franchise rights and where.
Their franchise partners are the franchisees who purchase the rights to operate an automotive repair shop under the branding of the franchisor. This requires paying a franchise fee to the franchisor to start up and royalty fees. With a successful, trustworthy franchisor, these fees are typically quite low and only represent a relatively small fraction of a franchisee’s total expenses.
What’s The Benefit Of Owning An Automotive Industry Franchise?
Why pay those franchising fees even if they are modest? Why not start up your own automotive business? The reason so many entrepreneurs prefer to buy an automotive franchise is because it greatly increases their chance of success. People’s cars are very important to them. They need those cars every day. They’re not going to trust their automotive service to just anybody.
These potential customers may not know you, but if they recognize the brand of your auto shop, they know they can trust you. Furthermore, franchisors can help their franchise partners in a number of ways. They can help them start up their business, train them to repair vehicles and learn about best business practices, help them with marketing, and loop them into their important network of industry contacts.
How Much Money Is In The Automotive Aftermarket?
A lot. About $721.2 billion globally, according to Precedence Research. And that number is expected to grow to about $950.1 billion by 2027. With the right automotive industry franchise, you could reap some of those financial benefits.
Tuffy Tire & Auto Service Has Great Automotive Industry Franchises Available.
If you’re interested in owning an automotive industry franchise, you should contact Tuffy Tire & Auto Service. 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