How much do franchise owners make? Learning franchisee profitability in the aftermarket auto industry may surprise you and can help you determine if a future in auto repair or window tinting is the right path.
The franchise industry is booming. During the pandemic, many companies slashed their white-collar workforce to cut costs. The move caused many hard-working Americans with management experience to search for new opportunities and explore business ownership. Time on the home front and lack of job security sparked increased interest in franchising, Entrepreneur reported.
Although complying with government shutdown orders and new safety guidelines caused the franchise industry to take a hit in 2020, it rapidly bounced back and is slated to generate $501 billion, up 5.7% from last year. A speedy rollout of the vaccine, government stimulus, and a strong economy is helping the industry surpass pre-pandemic levels, according to the International Franchise Association. Franchises in home services and personal services are on an upward trajectory as the housing market remains strong and people resume spending on fitness, beauty, and health.
Auto Repair Industry Remains Vibrant
While many sectors of the franchise industry are still recovering, the aftermarket auto industry remains strong. The pandemic-resistant industry is in high demand as rising car prices continue to make people cautious about turning a car in for an upgrade. The number of cars on the road continues to climb. At the end of 2021, there were 284 million vehicles on roads in the United States. A whopping 91% of American households have at least one car, and the average person spends 101 minutes in their vehicle each day.
Franchise Industry Offers Transparency
While any entrepreneur’s success is based on a wide variety of factors, including location, ongoing product development, and training, one of the benefits of franchising is having financial information at the ready. A Franchise Disclosure Document provides financial projections to give prospective owners an idea of how much they can expect to earn. For example, a quick analysis indicates aftermarket auto franchises generate gross receipts between $600,000 to $1 million annually. In comparison, franchise owners in food service generate a median annual income of $70,000, according to a survey conducted by Franchise Business Review.
Moran Franchise Owners Net Profitable Future
A Moran Family of Brands aftermarket automobile repair or window tinting franchise helps entrepreneurs achieve financial freedom. Moran franchises six different brands in the auto repair and window tinting industry, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. The company is one of the largest automotive aftermarket franchisors with seven different brands spread across the United States and internationally in Africa and debuting soon in Canada. While Moran brands provide high profit potential, they do require an initial investment. Moran franchisees should expect to invest at least $118,219 to get their business up and running.
“For me, the road to becoming part of the Moran family was a long, well-studied one that included a variety of business enterprises. Among the 30 or so options I considered, about five were different automotive franchise groups,” said Roman Combs, a Mr. Transmission/Milex franchisee in Oklahoma City, Oklahoma. “Moran represented to me the type of family-oriented company that would truly partner with me in my attempt to carve out my niche in the small business world.”
Here are just a few reasons Moran stays ahead of the competition and helps its franchisees meet their financial goals.
Multiple Revenue Streams. To generate higher average ticket prices and to be a one-stop shop for customers, Moran implemented co-branding. Franchisees can take advantage of having two brands under one roof to maximize their franchise fee and generate strong repeat business.
Recession-Resistant Brand. During a recession, customers tighten their purse strings and hold off on making big purchases. To ensure customers keep their cars in good condition, auto repair shops often offer maintenance plans or focus on warranties. Moran’s brands are trusted members of the local communities they serve. By focusing on customer service and building relationships, Moran’s brands keep sales steady during lean times. In addition, unlike other sectors of the franchise community, aftermarket auto shops were dubbed essential businesses during the pandemic, allowing them to stay open to serve customers.
Profitable Partnership. Moran strives to build a strong partnership with its franchise owners by fostering open communication and offering strong support. The company’s Turbo Tint brand is the brainchild of Greg Goodman, one of Moran’s longtime franchisees. Goodman saw a market for a new concept featuring online ordering and quick installation. He worked with Moran to turn his vision into a reality. The Turbo Tint brand currently has four locations serving customers in Florida and Oklahoma and another 35 stores in development.
Comprehensive Training Program. Moran provides in-depth training, which covers topics such as site selection, marketing, operations, and hiring. Every new franchise owner participates in one week of online training, an intensive one-week classroom training program at the company’s headquarters, as well as a third week of training in the field at an existing location. To help franchisees ramp up profits, the company assists them with the development of an advertising strategy and provides designs for the development of marketing materials, including business cards, flyers, brochures, point-of-sale materials, and other promotional items.
Ongoing Support. The automobile industry is evolving. High gas prices and upgrades in technology are helping raise the popularity of electric vehicles, and today’s cars come equipped with high-tech computers to increase safety and improve the customer experience. Staying abreast of new developments requires diligence. Moran has dedicated corporate staff to do the heavy lifting. They implemented an online university where franchisees can access training videos, service bulletins, and other useful information 24 hours a day. The company also makes it a priority to stay on top of current events impacting the aftermarket auto industry.
Find Out More About Moran
If you are ready to discover a profitable future and create a legacy for your family, Moran Family of Brands can help you achieve your goals. To learn more about pursuing a business opportunity in the aftermarket automobile and window tinting industry, click here to request more information and connect with a franchise business consultant.