Automotive Franchise
Automotive Franchise
First of all, you need to decide if you are interested in running a full service establishment, one that is fully automated and offers everything from car washes to waxing and drying? Or, do you want a partially automated operation, hiring workers to fill in some of the gaps? Bringing extra people on board your team will undoubtedly add an extra dimension to your management plan. Do you have the leadership qualities that are required to lead and motivate a crew of employees? Do you have the resources you need to train your workers; and what about if you experience a high turnover rate? Would a fully automated shop in the end be cheaper?
Next, you need to consider where you want to set up shop? If you want to work close to home, but you live in a low-traffic area, is that wise? Does your city get a lot of snow, during which time people might be more concerned about just keeping snow off the font windows than having it professionally cleaned? Are you prepared for the times or seasons when business might be low?
Buying and operating an automotive franchise can be an expensive venture. First, there is the initial franchise fee, a one time payment that can range from $1,000 to more than $100,000 depending on the company you join. While the average startup fee is somewhere between $20,000 to $30,000, many are often non-refundable, so you better be sure about your decision before you sign any papers and make it official.
If you have managed to scrounge up the capital for the initial fee, you aren’t finished yet. Next comes the monthly royalty fee, which is typically between three to six percent of your gross monthly sales. Some companies even maintain a monthly minimum payment, which can be quite damaging for franchises during their low seasons.
While those are the two major costs associated with such a venture, there are always the less subtle costs that tend to creep up on franchise owners. You might need to purchase equipment for your business, including cash registers or the cleaning fluid itself. You will definitely need some bright and attractive signs to make drivers aware of your off-road presence. Also, you should make sure to read the fine print to see if there are any funds you will be required to the company’s headquarters on top of that which you already do, such as for national advertising campaigns.
Don’t let the expenses associated with owning an automotive franchise scare you away. It can be a lucrative business with the right person in the driver’s seat.
Automotive Franchise - To learn more about this author, visit Cynthia Gleeson's Website.
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They have been called a proven cash business, and with the right person behind the wheel, they most definitely can be. If you are passionate about cars and you have the time and energy to devote to running a business, an automotive franchise could be the right way to go for you. Whether you are interested in opening a car wash or a car repair shop, a franchise will let you buy into an already well established business. You won’t have to start from scratch, but you will nevertheless have to keep some things in mind.
First of all, you need to decide if you are interested in running a full service establishment, one that is fully automated and offers everything from car washes to waxing and drying? Or, do you want a partially automated operation, hiring workers to fill in some of the gaps? Bringing extra people on board your team will undoubtedly add an extra dimension to your management plan. Do you have the leadership qualities that are required to lead and motivate a crew of employees? Do you have the resources you need to train your workers; and what about if you experience a high turnover rate? Would a fully automated shop in the end be cheaper?
Next, you need to consider where you want to set up shop? If you want to work close to home, but you live in a low-traffic area, is that wise? Does your city get a lot of snow, during which time people might be more concerned about just keeping snow off the font windows than having it professionally cleaned? Are you prepared for the times or seasons when business might be low?
Buying and operating an automotive franchise can be an expensive venture. First, there is the initial franchise fee, a one time payment that can range from $1,000 to more than $100,000 depending on the company you join. While the average startup fee is somewhere between $20,000 to $30,000, many are often non-refundable, so you better be sure about your decision before you sign any papers and make it official.
If you have managed to scrounge up the capital for the initial fee, you aren’t finished yet. Next comes the monthly royalty fee, which is typically between three to six percent of your gross monthly sales. Some companies even maintain a monthly minimum payment, which can be quite damaging for franchises during their low seasons.
While those are the two major costs associated with such a venture, there are always the less subtle costs that tend to creep up on franchise owners. You might need to purchase equipment for your business, including cash registers or the cleaning fluid itself. You will definitely need some bright and attractive signs to make drivers aware of your off-road presence. Also, you should make sure to read the fine print to see if there are any funds you will be required to the company’s headquarters on top of that which you already do, such as for national advertising campaigns.
Don’t let the expenses associated with owning an automotive franchise scare you away. It can be a lucrative business with the right person in the driver’s seat.
Automotive Franchise - To learn more about this author, visit Cynthia Gleeson's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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