Choosing an automotive franchise can be overwhelming. Compare the various types, requirements, and profitability to make sure you make the right investment.
The aftermarket auto industry is on track to reach $172.12 billion in 2023, according to Mordor Intelligence. The industry continues to gain ground amidst rising inflation. Growth is fueled by a rise in the average age of vehicles on the road, an increase in the number of miles driven per vehicle, and higher road safety awareness.
Types of Automotive Franchises
To meet consumer demand, there are several different types of franchise options in the auto industry. Some require large retail footprints, while others are mobile. If you are a car aficionado and interested in pursuing entrepreneurship, a car repair franchise may be a good fit. Let’s explore the different types of automotive franchises to help narrow down your search.
Quick lube. A quick-lube franchise specializes in offering fast oil changes and basic maintenance services, such as changing windshield wipers and filters. Being able to get an oil change in a matter of minutes with no appointment is appealing to people who are busy trying to juggle work, life, and childcare. Convenience helped drive the growth of the quick-lube industry in recent years and locations are cropping up on street corners across the country. In addition to fast service, quick lube shops require few employees and minimal training.
Despite the popularity of quick-lube franchises, offering a small number of services and focusing on oil changes limits their customer base. High gas prices and affordability caused electric vehicle sales to skyrocket. As manufacturers debut family-friendly electric vehicles, their popularity will continue to rise and may put a damper on the quick-lube business.
Mobile car repair. Starting a mobile car repair franchise is a low-investment way to gain a foothold in automotive repair. Checking minor car repairs off the to-do list while customers are at the office or working at home is convenient. They offer personalized service without requiring an appointment. Mobile car repair franchises can also provide emergency services to help customers in a bind.
While mobile car repair is an affordable option for entrepreneurs, the number of services is limited because you have to rely on the equipment that fits in your van. As part of your franchise deal, you will gain access to customers in a specific territory, which may hamper long-term growth potential.
Car wash or detailing. A car wash franchise can be a lucrative investment in certain markets. People take pride in their vehicles and strive to maintain their appearance. In some climates, getting a car wash can help prevent damage from salt or other debris. Car wash employees do not need advanced education or special degrees to be successful, which can make it easier to find reliable staff. But car washes are a seasonal business and are impacted by weather conditions. They also have many moving parts. If one part breaks, you may have to shut it down until it gets fixed.
Full-service auto shop. Full-service auto repair franchises typically provide a range of automotive services, such as oil changes, brake repair, tire replacement, engine repair, and other mechanical services. Offering a wide variety of services enables an auto care franchise to be a one-stop-shop for all its customers’ car care needs. They also generate a higher average ticket price and become trusted members of their local communities.
Comprehensive Auto Repair
Moran Family of Brands is the franchisor of six brands in the aftermarket auto repair and window tinting industry, including Mr. Transmission, Milex Complete Auto Care, and Turbo Tint. With Moran, you’re given the keys to a full-service auto repair franchise that offers a wide variety of repair services, parts, and accessories that all customers need and want. We provide training and support to franchisees, including marketing guidance, ongoing training, and access to proprietary technology and systems.
To help generate high average ticket prices and drive repeat business, Moran focuses on co-branding. Co-branding is a powerful tool for franchises to increase their visibility, reach new customers, and achieve their business objectives. Opening two brands under one roof helps franchise owners attract new customer segments or markets and create a more robust service experience for customers. Co-branding gives our franchisees a competitive advantage by offering unique products or services that competitors cannot replicate.
Our franchisees have a track record of maintaining ethical behavior in high-pressure situations and are always on the lookout for new ideas to make their locations better. For an initial investment of $118,219 to $296,767, you get the keys to a turnkey business with the support of industry leaders.
Pros and Cons of Automotive Industry
Despite a push for ride-sharing, public transportation, and new technology, Americans remain loyal to their cars, and demand for auto repair is strong. We depend on our rides for work, errands, and play. The average American spends nearly 11 hours in the car per week, and 32.5% of households have at least one car in the garage. A business in auto repair is recession-resistant and has year-round opportunities.
The need for mechanics and services is in high demand as auto repair shops continue to have long waiting lists for car services. Automotive franchises are closely watching industry developments and changing consumer standards to continue to thrive. Here are a few hurdles facing automotive repair shops.
Evolving technology. The automotive aftermarket industry is also grappling with evolving technology as it adds services to cater to electric vehicles and software-driven cars. As cars become more advanced, with more computerized components and systems, it becomes increasingly difficult for aftermarket companies to keep up with the changes. Staying abreast of new technology requires significant investment in research and development, which can be expensive. On the plus side, the growth of electric vehicles opens up a new market for auto repair shops. While electric vehicles require less maintenance than traditional automobiles, they still need service.
Intellectual property. Many of the components and systems used in cars are protected by patents or other forms of intellectual property, which may force customers to pay a visit to the dealer.
Regulation. The aftermarket auto industry is subject to a range of regulations, including environmental regulations and safety standards. Compliance with these regulations can be expensive and time-consuming.
Automotive franchises are ready to face challenges in the years ahead as technology advances and customer trends change. Having the support of a strong franchise system, such as Moran, will ensure your auto repair business withstands the test of time and creates a legacy for your family.
Get Started with Moran Today!
With more than 32 years of experience in the auto repair business, Moran has a strong history of service and success. As you narrow down your choices in the automotive market, find out more about the benefits of partnering with Moran. Request information and connect with a franchise business consultant.