The automotive franchise business is the preferred means of transport for 60% of Spaniards to travel in summer. The outstanding advantages of this means are the freedom of transport. The car offers and the time savings that it means not having to take other means of transport. For example, the plane eventually has long waits between transfers.
Furthermore, this study reveals that two-thirds of Spaniards have ever traveled abroad with their car. As we can see, the use of the car in the USA is very widespread. And it is one of the elements that should receive the most care.
Statistics clearly show that the franchise model is safer since it involves. Like training, constant technical advice, how to do that business. That is what leads the entrepreneur to success. It is starting one of his own with the risks assumed by the investor, commented the president of the AMF.
Top automotive franchise business
List of the automotive franchises
Midas Franchise: Midas has one of the largest networks of mechanical workshops globally, with more than 2,000 centers distributed throughout 19 countries around the world. It is one of the oldest and most relevant franchises in the sector.
Spyder Rent Group Franchise: Company dedicated to the rental, sale, and promotion of motor vehicles mainly intended for tourism. They have a great diversity of vehicles, which is one of the keys to the success of their brand.
Alvatowash Franchise: The products used by the AlvatoWash Franchise in its centers are respectful of the environment as they are 100% Ecological. And they have passed the most demanding quality tests.
Detail car Franchise: Car cleaning service. The investment required to open a Detailcar center is less than 7,000 Euros. They have more than 10 years of experience, and their centers are located in some of the best shopping centers and car parks to offer the best possible user experience.
Motos Motor Franchise: This is a new concept of motorcycle renting, aimed at both individuals and companies, managing to save costs. Motos Motor only works with leading brands, and they are currently immersed in the process of expansion.
Limpo Franchise: Eco-friendly car cleaning service that does not use water. They are specialized in cleaning, disinfecting, and sanitizing vehicles and all their interior parts. They are unique in that they do not need water to function.
What is an Automotive franchise business?
Automotive franchises participate more and more in the USA. There are automotive services, car rentals, insurance, among others.
According to the official directory of the AMF, 31 brands operate in our country, which represents just over 7 percent and employs nearly 100,000 people, thanks to significant investments.
Automotive franchises have grown from 15 to 20 percent and are found throughout the country.
Roberto Ramos commented: “The automobile industry has a lot to do with franchises. We must remember that of every buck spent in the USA, 15 cents goes to a franchise.”
Among the advantages of participating in a system like this are several. They deliver a business that is already approved, with a positioned brand. We give training. We teach how to carry out the business. How to get to success easier? A brand positioning is given that is important to give the consumer security. Besides, it is to constant advice during the business course.
As a disadvantage, the investor loses a bit of creativity because you must follow certain guidelines and rules within this business model. However, it is a fact that consideration has to be paid initially. That is the initial fee for the knowledge of the payment of this brand. And the business, as well as a constant royalty, is a percentage of the monthly sale.
The investment is different regarding the automotive sector since they are varied ranges. That is from small, specialized workshops, for express services such as an oil change, to large workshops that offer different services. So it is not possible to speak of a specific investment.
Ramos Weckmann pointed out that the automotive service market is changing with franchises, as the service is more professionalized. By having a quality standard, and a positioned brand. That forces the business to maintain quality of service.
“The franchise model is helping the workshops to become efficient in their work, more professional, to take care of the customer so that at the same time the brand and the business as such are taken care of, which is giving them a better positioning.”
Small providers at a disadvantage?
We see large auto parts franchises as opportunities and not as a disadvantage for small suppliers. We see all the globalization that we are experiencing in the whole world as an opportunity, not as a threat. The opportunity to be better, to grow, to make alliances is what suppliers have to do.
Those companies that manufacture auto parts will have to raise their quality standards and improve their service, logistics, and distribution. All the production of its auto parts to compete and remain leaders in the national market.
In addition, those small ones who cannot be in the entire Republic have the opportunity to join the large structures when a brand arrives that meets all the needs at the national level. They can enter those companies to grow their business.
The first thing that a small supplier must carry out to participate in a franchise is approaching the brands. The AMF has statistics and the names of the already operating companies and those interested in entering the country.
The challenge of the automotive franchise business
The biggest challenge for national suppliers is raising their quality standards to meet the franchises’ standards. The main attraction is increasing sales and getting on a national network. “When I do not have the capacity as a company to provide service at a national level, that is my great potential: to increase my sales by mounting a new structure, without having to invest on my own.”
Here the interesting thing about being a provider of a franchise is that many times they can reach a negotiation with the same franchise; Long-term contracts where if I have to invest in my business to be able to provide a product, the franchises support me or sign contracts that guarantee that investment.
How are franchises divided?
Of the franchise universe, 24 percent offer services: 23 percent restaurants, 21 percent retail sales, 14 percent education, 8 percent personal care, 5 percent entertainment, and 5 percent various money orders. Of 24 percent, 10 percent corresponds to automotive workshops.
The franchise market expects growth this year of 17 percent, with 100 new brands incorporated into the national market generating 80 thousand new jobs and another 7 thousand business points, to reach more than 50 thousand.
Among these, the president of AMF pointed out that they expect three or four new brands to enter the automotive sector in the remainder of this year and next.
Impact on traditional auto shops
The president of the AMF said that franchises positively impact traditional auto workshops because they react by providing a better service and product for their customers. And negatively when they stay with their traditional ways of doing business and do not move. “That is like in any other business.”
The advantage here is having a quality standard in your products and services; this will increase your clientele and the possibility of growth. An accelerated expansion through the franchise will imply better income possibilities for any company.
Economic data of the sector
According to data released by the consulting firm Tormo Franquicias Consulting, the sector of the best automobile franchises has 35 brands that, in turn, have more than 2,500 establishments distributed throughout our country. It is one of the busiest sectors in our country, with a total turnover of 579 million Euros, has invested 152 million Euros. In addition, it stands out as one of the sectors that generate the most employment, with a figure close to 8,000 employees.
Within the best car franchises sector, we find six different subsectors between which the different brands of the same are divided according to their type of activity. We find differentiated market segments such as vehicle rental, driving schools, car washes, everything related to motorcycles and bicycles, car services, or mechanical workshops.
The automotive industry represents more than 7% of them
The franchise sector’s growth during 2004 was 19.5 percent above the growth estimates for the official sector, which was around 5 percent. Sixty-eight percent of these are USA brands. The rest are mainly from the United States, Spain, Canada, and other countries.
The franchise operating model has proven its strength, as 95 percent of these companies are still alive after the fifth year of life when 60 percent of independent businesses do not even exceed the second year.
What Is 5S?
5S is the management model that has proven profitable for those looking to expand their business. It allows rapid growth and good brand positioning and works with capitalist partners and franchisees who operate their units.
This management model has proven profitable for those looking to expand their business. It allows rapid growth and good brand positioning and works with capitalist partners and franchisees who operate their units.
FAQ on Top automotive franchise business
How much does it cost to set up a mechanical workshop in the United States?
How much money do you need to open a machine shop? This type of negotiation requires an important translation. Acquire with the financing portal Take Care of Your Money will need at least 100,000 dollars after acquiring the necessary equipment.
How much does a mechanic shop earn per year?
The average mechanic shop manager salary in Mexico is $ 144,000 per year or $ 73.85 per hour. Entry-level positions with an income starting at $ 96,000 per year, while more experienced professionals earn $ 216,000 up to a year.
How are the franchises of the security?
In insurance with excess works, the insured assumes paying a certain amount when the loss occurs. And the insurer assumes the cost of everything that exceeds that amount. That is to say: the most franchise, the most descriptive in the first place.
Conclusion on Top automotive franchise business
All these franchises will have to work overtime during the summer due to the great activity that the sector suffers, from the vehicle and motorcycle rental, cleaning stations to clean the dust that rises in beach areas, workshops were to revise leaving on a trip, service stations or driving schools for those who want to take advantage of the summer to get their license. In either case, the best car franchises will help you have a happy vacation.