An auto garage franchise can be a profitable investment, but there are some things to consider. Moran Family of Brands outlines the pros and cons so that you can make an informed decision.
The American love for automobiles is embedded in our culture. Ever since the Model T rolled off Henry Ford’s assembly line in 1913 and made cars an affordable luxury, owning a vehicle has become a status symbol in this country. At least 73% of Americans love their cars, and 69% take pride in their vehicle, according to a survey of 2,385 people conducted by Cars.com.
Americans rely on their vehicles for work, travel, and play. Despite a rise in ride-sharing, cars remain the most popular form of transportation in the United States, and 76% of Americans drive to work. Keeping their cars in tip-top shape is a priority despite the ups and downs of the economy.
The aftermarket auto industry in the United States is forecast to reach $497 billion in 2023, according to Hedges & Company. With 284.4 million cars on the road and the average American spending nearly 11 hours in their car each week, the market for car repair is strong. If you are interested in pursuing a future in the auto repair field, opening a car repair franchise provides an option with limited risk and high potential rewards.
Moran Family of Brands franchises six brands in the aftermarket auto and window tinting industry, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. To understand if an auto garage franchise like one of our brands meets your financial and lifestyle goals, learn the pros and cons of auto repair franchises.
- Financing resources. Having the backing of a respected business can enhance your ability to obtain financing. Many auto garage franchises have financing resources and guidance to help new business owners get started. Moran has a partnership with Key Commercial Capital to provide a variety of funding options to meet your needs.
- Reliable support. One of the advantages of investing in a car repair franchise is access to reliable support. Most franchisors work closely with new owners as they get their businesses up and running. They provide consultation services for securing real estate, purchasing equipment, and hiring.
The best auto repair franchises also provide ongoing support. The automotive industry is evolving as the rollout of electric car options increases. Having a resource to stay abreast of the latest service guidelines and technology developments will ensure you have the knowledge and tools you need to make repairs and provide high-quality customer service. Our technology department offers online resources that franchise owners can access 24x7 to keep up to date on industry developments.
- Financial guidance. Franchises are legally required to file a Franchise Disclosure Document, or FDD, annually. The FDD outlines the terms of the franchise agreement and provides a financial overview of select locations. Having access to potential earnings projections alleviates guesswork and makes it easier to formulate a business plan.
- Training. Another benefit of auto garage franchises is the pre-opening training and ongoing education. Most franchisees are required to spend time at the company’s headquarters to familiarize themselves with procedures, technology, and marketing. We provide three weeks of intensive training online, at our corporate headquarters, and in the field at an existing location.
- Limited creative potential. Many entrepreneurs balk at franchising because they have to follow established procedures and may not have the creative freedom they desire. We believe in the value of partnership and rely on our team to provide feedback to improve the system. During the pandemic, Greg Goodman, a longtime Moran franchisee, had a vision for a new concept featuring one-hour window tint. Goodman worked with us to make his vision a reality. Our Turbo Tint brand now has at least four locations and plans in place for more than 30 additional units.
- Startup costs. Starting a turnkey business requires an initial investment. Our initial investment ranges from $118,219 to $296,767, depending on the brand or co-brand you choose. At one time, car repair shops required prime, high-price-tag locations to drive business. Navigation technology now allows owners to attract new customers by relying on robust marketing services and reputation to lower startup costs. As the baby boomer generation divests their businesses to enjoy retirement, new entrepreneurs can reduce costs by purchasing a garage resale.
- Ongoing fees. Franchise owners are required to pay a royalty fee for access to the company’s brand and services. The royalty fee is typically a percentage of your revenue. Moran gives its franchisees a six-month grace period before they start to charge royalty fees to give new business owners a chance to gain their footing.
- Reputation. Franchises benefit by opening a business with a familiar brand. However, poorly performing locations can have an impact on your business. We have more than 33 years of experience in the aftermarket auto industry. Our franchise validation process helps new owners gauge the quality of the franchisees in its system.
The Moran Advantage
If you think the pros of a car repair shop outweigh the cons, a franchise business consultant for Moran Family of Brands can guide you on the steps required to pursue a future in the aftermarket auto industry. Visit our website to request information and schedule a time to talk.