Auto Shop Franchise Cost and Profitability: A 2030 Outlook

As we look toward 2030, the automotive industry is experiencing a sea change, making it an opportune time to explore auto franchise opportunities with Moran Family of Brands. Learn about auto shop franchise fees, auto shop profitability, and how a franchise can boost your shop's success.

The auto repair industry is poised for significant shifts. The rise of electric vehicles (EVs) and autonomous driving technologies will redefine auto repair needs. The sale of EVs hit a record high in 2023, and the number of autonomous driving vehicles is expected to reach 126,000 by 2030. Americans bought 1.2 million EVs last year, according to Cox Automotive. Auto repair shops that adapt to these changes, offering specialized services for EVs and advanced driver-assistance systems, will find themselves at the forefront of the industry. Investing in an auto shop franchise can position you to capitalize on these emerging trends.

“Moran Family of Brands allows me to be an independent owner when I need to be but provides the guidance and direction needed when I’m evaluating my business. Their advice and guidance have allowed me to grow my business in a changing economy,” said Jim Mitchell, a franchisee in Madison, Tennessee.

Benefits of an Auto Shop Franchise
Being part of a franchise network provides access to industry insights, trends, and innovations, ensuring your business remains at the cutting edge. To stay abreast of the latest industry developments, Moran has a technology team devoted to keeping its local owners updated about the latest diagnostics and service bulletins to provide high-quality service to customers.

We franchise six brands in the aftermarket auto and window tinting industry, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. Our focus on co-branding is also helping propel our franchisees forward. By giving franchisees the option to operate two brands under one roof, we enable them to become a one-stop shop for customers. In addition to taking advantage of economies of scale, they can build lasting customer relationships and capture loyal customers. Cobranding helps drive repeat business, and our franchises generate higher average ticket prices due to offering more high-level services.

If you already own an independent auto repair shop, transitioning to a franchise model can be advantageous. Franchises come with a powerful brand identity, proven marketing strategies, and a network of support that can significantly enhance visibility and customer trust for both new and seasoned entrepreneurs. Brand leverage can drive sales, as customers are more inclined to visit businesses already recognized for quality and reliability. Franchisors often negotiate favorable terms with suppliers, reducing the cost of parts and equipment. These savings can improve profit margins or be passed on to customers to enhance competitiveness.

Cost of Auto Shop Franchising
Before partnering with a franchise to launch an auto repair shop, it’s important to have a clear picture of the initial investment. Franchise fees, the upfront cost paid to join the franchisor's network, vary widely but are a critical first step. These fees grant access to the franchisor's brand, proprietary knowledge, and ongoing support. Beyond this, royalties — a percentage of your weekly or monthly revenue — fuel the continuous support and resources provided by the franchisor, including marketing, training, and operational guidance. You’ll also need to purchase equipment, signage, and initial inventory to get started. The initial investment for one of Moran’s auto shops is $118,219 to $296,767. You’ll also need to have a net worth of at least $250,000 and available cash of $65,000 to $90,000. Our franchise fee for a single location is $50,000.

Profitability: The Core Objective
Auto repair shops, particularly those under a reputable franchise brand like Moran, benefit from higher consumer trust, which can translate to steady business flow. The key to unlocking profitability lies in harnessing the brand's established systems, marketing prowess, and operational efficiencies to attract and retain a loyal customer base. The average gross sales for 76 of our Milex Complete Auto Care or Mr. Transmission locations was $854,976.90 in 2022.*

Moran Family of Brands: A Competitive Edge
We have a diverse portfolio of brands catering to various auto repair and maintenance aspects. Each brand under the Moran umbrella is designed to meet specific market needs, providing comprehensive services to vehicle owners. Some of our top brands include:
 

• Mr. Transmission: Specializes in the repair and maintenance of transmission systems for both manual and automatic vehicles. Mr. Transmission is known for its expertise in diagnosing and fixing transmission issues to keep vehicles running smoothly and efficiently.
   
• Milex Complete Auto Care: Offers a wide range of automotive repair services, from routine maintenance like oil changes and tire rotations to more complex repairs involving engines, brakes, and electrical systems.
   
• Turbo Tint: Focused on automotive window tinting, Turbo Tint specializes in quick and professional services. We offer a variety of tint shades and materials, catering to customers' preferences for appearance, privacy, and UV protection. In addition to automotive tinting, Turbo Tint provides paint protection and architectural tinting. Each of our locations is equipped with a welcoming waiting room featuring comfortable seating, free Wi-Fi, and complimentary beverages.

Our commitment to innovation and staying abreast of industry trends means franchisees are always prepared to meet evolving customer needs, from traditional repairs to servicing the latest electric and hybrid vehicles. Our forward-thinking approach positions our franchisees as leaders in the auto repair sector, ready to cater to a broad spectrum of automotive services. At the same time, our emphasis on training and development ensures franchisees are proficient in the latest automotive technologies, making them the go-to experts for future automotive repairs. We also have strategies for franchisees to attract talent with apprentice programs and partnerships with various trade schools.

Join the Moran Family
As the auto industry evolves, having a supportive franchisor puts you in a position to thrive. Become a franchisee with Moran to start achieving your entrepreneurial dreams.

*This is a historical representation of what some of Moran’s franchised agencies earned, as described further in Item 19 of the FDD.