What You Need to Know About Automotive Repair Franchises for Sale
Automotive repair franchises for sale represent opportunities. They represent an opportunity for a stable career. They represent an opportunity to take control of your own life and your own work. They represent an opportunity to make a lot of money. Well, at least some automotive repair franchises for sale represent these opportunities. Others, not so much. Because not all automotive repair franchises for sale are equal. You have to make sure you pursue the right opportunity if you’re going to be successful. And to do that, you have to know what you’re getting into. This article will go over what you need to know about automotive repair franchises for sale.
1. They Require A Significant Investment
There are some great low cost franchises for sale out there. A low cost franchise might offer a great return on your investment, but it’s still unlikely to match the revenues you can make with a good automotive franchise. Buying and supplying the startup costs for an automotive repair franchise is not a cheap process. It could cost you over $400,000 in some markets (though it could be as cheap as almost half that in some others). In order to do this, you need both money and the ability to secure financing. We’re talking at least $150,000 in liquid capital and a networth of at least $500,000.
The reason automotive repair franchises for sale cost so much is because: A) they’re big, and B) they require a lot of equipment and many replacement parts. But you usually get what you pay for. Once they’re established in their region, average automotive repair franchises operating under successful brand names usually make at least $800,000 in gross sales. The top ones can gross over $2 million. Successful and honest automotive franchisors know this and they’re not going to try to sell franchises to people who don’t yet have the financial capabilities to buy and operate them. So be honest with yourself about what you can afford, and don’t let yourself get hoodwinked by an unscrupulous franchisor trying to make a quick buck.
2. Preferred Vendor Programs Are Key
Remember those expensive replacement parts and equipment we just talked about? They represent the biggest recurring expenditures for most automotive repair franchises. Anyway you can save money in this area would be great. But you can’t sacrifice the quality of the parts otherwise your business will fail. That is why franchisors who offer preferred vendor programs with their automotive franchises for sale are ideal. By leveraging the buying power across all their franchise locations, they can get reduced prices and top quality parts for their franchisees.
3. Protected Territories Are Key
The same is true for protected territories. Perhaps even truer. Simply put, don’t buy an automotive repair franchise for sale that doesn’t come with a built-in protected territory. You can’t afford to let your franchisor grant a franchise license to somebody else in the same area as you because it will cannibalize your business.
4. Contact Tuffy Tire & Auto Service
To find out what you need to know about our automotive repair franchises for sale, please get in touch with us at our website or call us at (800) 228-8339.Back