Why Auto Service Franchises are Popular Among Franchisees
A franchisee could be somebody who has worked hard their whole life to save up enough money to buy a business in order to be their own boss. While franchise owners still must answer to franchisors in some respects, they’re effectively their own bosses, and that’s very appealing to a lot of people. Who doesn’t want to be their own boss? But some franchisees are business people who have large portfolios. Some people own two, three, ten, or more franchises.
But whether they’re affluent business people or blue-collar types who have worked hard in order to buy their first business, franchisees are routinely attracted to the auto service franchise opportunities. But why? What is it about the auto service business that attracts franchisees of all different types? This article will go over some reasons as to why auto service franchise opportunities are as popular as they are.
The Auto Service Industry
The auto service industry is popular among investors and franchisees primarily because it is so steady. The auto service industry has been around for over a century but even though it is old it’s hardly grown stale. The auto service industry is still growing, and, in fact, it is showing signs of more growth now than it has in decades. It just keeps getting better.
Even as the automobile industry faces questions over how quickly they can or should transition to hybrid and electric powered vehicles, all the economic forecasts for auto repair shops are remarkably positive. Internal combustion engine vehicles still dominates the market. But in the more distant future, there’s no reason not to think that the auto repair business will not adapt to repairing and servicing more hybrid and electric vehicles. The auto repair business has evolved along with automobiles time and time again over the past century so there’s not much cause for concern there.
Some Numbers on The Auto Service Industry
In economic terms, the auto service industry is classified under the umbrella of the automotive aftermarket. The automotive aftermarket is made up of all the transactions completed that concern a vehicle after its initial sale to the public. As you can imagine, the auto service industry makes up a huge portion of this market. And this market is performing very strongly, and this trend looks set to continue.
Globally, the automotive aftermarket is expected to reach a valuation of $722.8 billion by 2020. What accounts for this massive amount of money? Well, the typical automobile on the road in the United States today is a record-high 11.5 years old, according to a IHS Automotive survey. Older vehicles require more repair and service. And this means more business for auto service franchises. And this means auto service franchise opportunities are becoming increasingly popular among franchisees and aspiring franchisees.
Auto Service Franchise Opportunities
This does not mean that all auto service franchise opportunities are equal. Some are bound to be better than others. Here are some of the qualities you should look for in an auto service franchise opportunity:
- Ongoing training and support
- Guidance with initial advertising
- Protected areas
- A preferred vendor program allowing franchisees to get parts and equipment at reduced prices
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