Owning an Auto Repair Shop Franchise: Common Pitfalls To Avoid

Whether you are someone who enjoys working on cars in your free time or an investor searching for a profitable business opportunity, understanding the common pitfalls to avoid when opening an auto repair shop franchise will ensure your new venture in the aftermarket auto industry is a success.


Rising new car costs and limited inventory are helping fuel demand for auto repair shop franchises. Profits at automotive franchises grew 1.3 percent in 2020, and sales at oil change franchises rose 7.3 percent to $3.7 billion, Franchise Times reported. The global automotive aftermarket size hit $390.10 billion in 2020 and is forecast to grow 3.8 percent annually through 2028, Grandview Research revealed.


In addition, there were nearly 20 auto repair franchises that landed a spot on Entrepreneur magazine’s 2021 ranking of the top 500 franchises. Franchising in the auto repair industry allows entrepreneurs to open a business with a proven history and brand recognition. Having a guide and systems to follow helps reduce risk and allows owners to generate profits quickly.


Choosing a franchisor that meets your goals and shares your values can be challenging. Moran Family of Brands has 100-plus years in the auto repair industry and is the franchisor of six different brands, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. With Moran, you receive the keys to an automotive franchise that offers a wide variety of repair services, parts, and accessories; and a one-stop-shop for customers in your local community. As an essential service, auto repair shops are a pandemic-resistant business opportunity that can create a legacy for your family.


While the auto repair market is flourishing, starting any new business can be challenging without the right support and guidance. Before selecting an auto shop repair franchise, it’s important to understand the common pitfalls to avoid when opening a new business.


Pitfall #1: Opening Without Proper Training. Having a solid understanding of what happens under the hood of a car can be helpful for auto repair shop owners, but being a good mechanic is not the key to your success. Owning a business requires entrepreneurs to be top-notch customer service providers, marketing gurus, back-office administrators, and human resource leads. Entrepreneurs with drive, confidence, and commitment can flourish in the aftermarket auto industry. While no mechanic experience is required, having a history of sales and managerial experience is a plus.


Moran offers in-depth on-site and classroom training to make sure its franchisees are ready to launch their business. The company also offers pre-opening support services, including business planning, site selection assistance, lease negotiation, and financing. Once your location is open, Moran makes it a priority to provide ongoing operational assistance and technical support.


Pitfall #2: Overcharging. Two out of three Americans do not trust mechanics, primarily because of overcharging, recommendations for unnecessary services, and poor past experiences, according to AAA. Yet, nearly 64 percent of Americans have one auto shop they trust. Providing trustworthy customer service will help your auto repair shop franchise become a fixture of your local community.


Moran offers customers a car care solution. Moran’s focus on co-branding allows franchisees to offer customers the most complete automotive repair shop in the industry, with multiple revenue streams and profit centers. Co-branding encourages frequent repeat business and higher average ticket prices due to offering more high-level services.


“Customers rely on you to help and are dependent upon your knowledge to assist them,” said Lowell Hester, a Mr. Transmission franchise owner in Sandy Springs, Georgia. “It is paramount to keep yourself and your employees apprised of the ever-changing makeup of today’s automotive industry. Moran Family of Brands provides a constant flow of information and expertise to keep us up-to-date and in the know. This is how we have maintained such great relationships with both our customers and peers.”


Pitfall #3: Failing to Invest in Marketing. One of the biggest reasons auto repair shop franchises fail is lack of customers. It’s important for any small business to implement a strong marketing strategy designed to add new customers and bolster recurring visits. Combining email marketing, direct mail, and local advertising is key to success. Moran has technology partners in place to provide its franchisees with internet marketing and website support programs to help add customers.


Learn More About Moran

To learn more about owning a profitable essential business with a franchise business partner with the knowledge and experience to help you avoid common pitfalls, click here to request information and schedule a time to speak with a franchise business consultant.



They consistently follow our company’s vision and mission, and fulfill their responsibilities in that role.


People who are polite and well-mannered toward their customers and employees, who go out of their way to make sure others are being treated well.


They uphold the highest standards in ethics and authority, ensuring that the customer’s interests come before their own.


These individuals always look to the future, seeking out ways to improve both themselves and the franchise they run.


They enjoy the work they do and the mission and vision of our company.

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