If you are considering turning a passion for cars into an entrepreneurial endeavor with a car wash franchise, Moran Family of Brands suggests considering a profitable, year-round alternative.
Car wash franchises provide a unique investment that will always be a valuable customer service. There are nearly 277 million registered cars in the United States, according to the Bureau of Transportation Statistics. While the average American only gets their car professionally washed once per month, that’s still a lot of cars to clean. The global car wash service market size was valued at $33 billion in 2018 and is slated to grow 3.2 percent each year through 2025, according to a report from Grandview Market Research. There are 62,668 car wash locations in the United States, with 220,000 full- and part-time employees at retail stores and more than 15,000 in car wash equipment, chemical, and service providing companies, the International Carwash Association reported.
If you take a drive into town, it’s likely you’ll see new car wash franchises that seem to be popping up on every corner. The services they provide vary from detailed hand washing to drive-thru, express cleans, but in the end, they are all designed to protect your vehicle and make it shine.
Cons of Car Wash Franchises
Given the statistics, car wash franchises offer a great opportunity for an entrepreneur willing to invest their time and resources in starting a business. For most Americans, their cars are one of their biggest investments. To protect their investment and help retain their vehicle’s value, car owners are putting in the effort to keep their cars in tip-top shape. Car wash franchises can offer high profit margins, affordable marketing, and limited inventory.
As with any business, a car wash franchise has limitations that are important for business owners considering the new venture to understand. Here are a few of the downsides to car wash franchises.
- Car Washing is Seasonal. Despite providing an indispensable service to the community, car washes are often a seasonal business. The weather can have a huge impact on your car wash business. In climates with a lot of snowfall, customers frequently pull in to wash the salt off their vehicles. Yet, business at self-service car washes declines in the winter months as customers are too cold to wash their cars themselves. Customers who live in rainy climates get their cars washed less frequently. Any new car wash owner needs to adapt to the cyclical nature of the business in their area.
- High Employee Turnover. Unlike a repair shop, car wash franchise employees do not need special training and typically earn a minimum wage salary. As an owner, that means you will be spending a large chunk of your day hiring and training employees. Customer service will be key to the success of your business, and putting in the time to make sure your employees get the job done is essential.
- Expensive Repairs and Maintenance. Take a spin through a car wash, and you’ll see a lot of moving parts. While car wash franchises are environmentally friendly and get the job done, they often run into equipment problems. Repairing specialized car wash equipment can be an expensive proposition for a new business owner. Plus, one broken sprayer or faulty brush can shut your business down until it is fixed.
Consider an Auto Repair Franchise
Moran Family of Brands believes owning an auto repair franchise offers more opportunities and potential profit for business owners than a car wash franchise. New car sales took a hit this past year. Research reveals people are opting to keep their cars longer. The average age of cars on the road is nearly 12 years. As vehicles age, customers need reliable auto repair shops to keep their cars running.
Moran Family of Brands puts you in the driver’s seat of your future by offering an unbeatable combination of exciting concepts. For the same price as a car wash franchise, car enthusiasts can operate a Milex Complete Auto Care franchise, which provides car owners with the necessary repairs and maintenance to keep their cars on the roads. The company also is the franchisor of Mr. Transmission, Turbo Tint, and Alta Mere. Moran offers co-branded options to provide customers with a one-stop-shop for all of their car-care needs.
In addition to having a variety of reputable brands, Moran prides itself on providing its franchisees with the support, training, and marketing they will need to operate successfully. Our prospective franchisees do not need to have experience in the automotive industry. We seek candidates who have a background in management, marketing to customers, and sales. Our proven business model allows franchisees to hire skilled mechanics who become lifelong contributors to the success of the business.
Not sure how to pick a franchise? Check out these 5 tips. If you are questioning your decision to open a car wash franchise and are ready to consider a future in the aftermarket auto repair industry, contact Moran Family of Brands to learn more about our portfolio of brands and the benefits of franchising.