What Makes for A Great American Automotive Franchise?
Running an automotive franchise has been many American’s path to great rewards, both financial and otherwise. After all, automotive franchises help people, often in their time of need. And that feels good. What also feels good is the remuneration you can receive for helping people. The best performing automotive franchises in the U.S.A. have franchise locations that make, on average, over $800,000 a year in gross sales. (Among franchise locations that are at least two years old and of a certain size.) How are these American automotive franchises able to succeed to such a degree? And how can you identify these high performing U.S. automotive franchises?
Automotive Franchises In The U.S.A.
Automotive franchises are doing very well in the United States of America right now. The automotive aftermarket consists of all the transactions concerning automobiles after their initial sale to the public. Most of these transactions involve vehicle maintenance, service, and repair. As such, automotive franchises are a pillar of the automotive aftermarket. And the automotive aftermarket is huge. And growing.
In the United States, the automotive aftermarket was worth about $213 billion at the start of the last decade. By 2018, that number was almost at the $300 billion mark and by 2022 it’s forecasted to achieve a value of about $238 billion. What accounts for these huge numbers and growth? There are two main factors. First is simply the number of people. There are more Americans than ever before and most American families own at least one vehicle, ergo, there are plenty of vehicles out there that need service. But beyond that, the average age of these vehicles is higher than ever before. Americans are holding on to their vehicles for longer and older vehicles need repairs and maintenance at higher rates than newer vehicles.
Attributes Of The Top Automotive Franchises In The U.S.A.
The market is primed for automotive franchises to succeed in the U.S. right now. But not all of them will. What separates the wheat from the chaff when it comes to automotive franchises? There is an old saying, sometimes attributed to a Chinese proverb, that states that the best time to plant a tree is . . . 20 years ago. That way, you could be basking in its shade now. The second-best time to plant a tree is right now. The proverb is meant to make people think ahead and act instead of procrastinating. For you personally, you can use this proverb to spur you into finally buying an automotive franchise and becoming your own boss. For other automotive franchises, however, it basically means they are out of luck.
That is because most successful automotive service companies in the U.S. today have been around for decades. They know how to service automobiles, they know how much they should spend on advertising, they know how to grow their company, and they know how to handle changes in the automotive industry. Over their history, most have built up equity in a respected brand name. If you’re looking for an automotive franchise to buy, go for one of these.
Tuffy Tire & Auto Service
Tuffy has much more to offer our automotive franchisees than just our history. Contact us to find out more.Back