If you are interested in pursuing a pandemic and recession-proof business opportunity, automotive franchises offer security and provide a stable investment, Moran Family of Brands believes the future of franchising is bright for automotive franchisees.
The outbreak of COVID-19 in 2020 sent the economy into a tailspin. Non-essential businesses were forced to close to comply with stay-at-home orders, corporate employees had to telework, and children attended school from desks in their bedrooms. The pandemic permanently closed more than 200,000 businesses across the United States, according to a report in The Wall Street Journal.
Businesses that managed to stay afloat relied on government subsidies, reduced operating hours, and furloughed employees. The franchise industry took a hit during this unique season. In 2020, franchise employment declined by 11.2 percent to 7.5 million and lost approximately 940,000 jobs during that unprecedented time, the International Franchise Association revealed.
Masks, social distancing, and climbing vaccination numbers are helping give Americans the confidence they need to return to business as normal. IFA forecasted government assistance programs and the vaccine rollout are making it increasingly likely that the franchising industry will make a full recovery in 2021. Franchising is projected to open more than 26,000 locations, add nearly 800,000 new jobs, and contribute $477 billion to the U.S. GDP, IFA reported.
Despite the unique business challenges last year, several industries flourished during the pandemic. Franchises in the home services sector thrived as more time on the home front spurred Americans to tackle home improvement projects they had put on the back burner. Americans are now completing approximately 511,345,000 home service jobs each year, or about 16 jobs per second, according to Angi, an online company that connects homeowners with contractors. The real estate, retail, and business services sectors of the franchise community also fared well last year, IFA revealed.
At the outset of the pandemic, automotive franchises were dubbed essential businesses. They weathered the hardships of 2020 with few disruptions and are poised to continue to flourish in the future. Here are a few reasons why an automotive franchise will provide a profitable future for entrepreneurs.
1. High Cost of Buying a New Car. The price of new vehicles is reaching record highs. The raw materials needed to build cars cost more, which ups the price tag for consumers. Manufacturers cut costs by scaling back production, which led to delays for buyers. The average cost of a new car jumped to $37,000 during the first quarter of 2021, up 8 percent from the same time last year, J.D. Power revealed. The rising cost of new cars is prompting Americans to keep their cars longer and delay trading up for a new model. The average age of cars rose to 12.1 years, according to research conducted by IHS Markit, a market research firm.
As cars on the road age, auto maintenance and repair franchises will reap the benefits of helping Americans save money by making repairs versus replacement. Proper car maintenance is key to increasing the longevity of a vehicle. Moran is helping people pursue their passion for cars and their drive to succeed. The specialist in aftermarket automotive repair franchises six different brands, including Milex Complete Auto Care, Mr. Transmission, Turbo Tint, and Alta Mere.
2. Co-Branding Helps Boost Service Opportunities. Our co-branded opportunities allow business owners to provide customers with a one-stop-shop for all their repair needs. Co-branding allows you to have two franchises under one roof. It enables you to capitalize on multiple revenue streams and profit centers while becoming the first place your customers call when they need repairs. Franchise owners that start with a single brand can always expand their business with co-branding later as their business grows.
3. Honesty and Integrity Help Drive Sales. Moran franchisees strive to create long-term relationships with the people in their community. We encourage our franchisees to become community leaders while they keep residents safe on the road. Our ideal franchisees have a hands-on attitude and are committed to providing superior customer service and building a successful legacy for the future.
If you are ready to pursue a bright future that offers a profitable career while contributing to your local community, an automotive franchise can help you achieve your goals. To learn more about owning a Moran franchise, request information and connect with one of our franchise directors.