What Makes Automotive Shops Great Franchise Opportunities?
Franchise opportunities are not hard to come by. The franchising model can work great for everybody involved, from franchisors, to franchisees, to customers, so it makes sense that many businesses are using that model. Good franchise opportunities? They’re not as plentiful. And great franchise opportunities? They are much rarer. So how do you find them? What makes a great franchise opportunity a great franchise opportunity?
Great Franchise Opportunities
First, let us stipulate that there is no such thing as a universally great franchise opportunity. What might be great for you may not be great for some. What makes a great franchise opportunity for you might depend on your experience, your knowledge, your interests, your financial capabilities, and where you live. However, all variables being equal, an automotive shop generally makes for a pretty great franchise. But why?
For some people, great franchise opportunities must be low cost opportunities. If you don’t have a net worth of at least $500,000 and at least $150,000 in liquid capital, then an automotive franchise isn’t a great opportunity for you. At least not yet; you may want to save up or buy another franchise and hope to earn enough with that one in order to buy an automotive franchise in the future. Because, even though automotive franchises are not the cheapest franchises available, they do present perhaps the greatest of opportunities. That is because automotive franchises can furnish their owners with large revenues without much risk or instability.
There are roughly 276 million vehicles in operation in the United States. That is a truly staggering number and all those vehicles will require service at some point, almost certainly multiple points, of their lifespans. This means you have a huge pool from which you can draw your customers. And vehicles, though they may be changing, show no signs of going away. People need their cars, and this guarantees that there will be business out there for auto repair shops for the foreseeable future.
But it’s not just the amount of vehicle’s on America’s roads that make automotive shops great franchise opportunities. The average age of the American vehicle is at 11.5 years old, an all-time high. Why does this matter? Well, think about it: which vehicle is more likely to need the services of an auto shop? An old one or a new one? Well, the old one of course. And all these older vehicles mean more business for automotive franchises. And this makes automotive shops a great franchise opportunity.
Automotive Shops Are Great Franchise Opportunities
Still not convinced that automotive shops are great franchise opportunities? Well, there are a few more stats to back up the claim that they are. Automotive franchises are part of the automotive aftermarket; a big part of that market, in fact. And that market is comprised of all transactions concerning vehicles after their initial sale. The value of the automotive aftermarket is about $7 billion, globally, right now and it’s growing. It’s expected to reach the $1 trillion mark by 2022. Whenever you’re presented with owning a franchise in an industry that generates that kind of money, you’re looking at a great franchise opportunity.
Tuffy Tire & Auto Service
To learn about some of Tuffy’s great franchise opportunities, please contact us.Back