A Look At Automotive Franchise Opportunities
Stephen Romero - August 10, 2020
If you’re interested in getting into automotive franchise opportunities, then you’ll want to read this article. Specifically in this article we’ll discuss franchise opportunities as they relate to the automotive industry, how to evaluate which one is right for you, and give you some points to consider. Follow the information in this article, and you’ll make sound business decisions.
There are several different automotive franchise opportunities — auto parts stores, oil changing services, specialized automotive insurance, and even repair businesses such as windshields or brakes. How do you know which one you should invest in?
First, there are several things you need to consider. Is your passion for automobiles higher than your passion for profit? You have to analyze how important money is compared to enjoying running your business. Also, if you’re very passionate about the franchise, that means you can work with a long-term strategy, instead of a short-term profit model. Things to consider — most automotive franchise opportunities involve a busy atmosphere, a lot of interaction with other people, and specialized knowledge.
Second, the range of initial investments for different automotive franchise opportunities is all over the board. Naturally, how much money you are willing to invest has great impact on what kind of franchise opportunities you can get into. For example, if you purchase a franchise as a GPS distributor, you can get into a franchise agreement for under $10,000.
While the franchise fee for being a GPS distributor may seem low, you should look at the overall picture. Will investing in a low cost franchise help you reach your financial goals, or will you be forced to buy more units, possibly even get back into the corporate world? If you cannot afford to buy a franchise that will allow you to enjoy life outside of working at your location, then you should consider waiting until you have the cash liquidity to do so. I’d rather see a franchisee wait an extra 5 years and open a full service automotive repair shop that profits the franchisee over 100k a year rather then him being out of business by buying into a low cost franchise that promised him the dreams.
Finally, if you’re going to get into any franchise in the automotive industry, you must analyze the franchise agreement before accepting it. The best thing to do here is to get a franchise lawyer, to make sure your rights are protected and the agreement is reasonable. In the agreement, you’ll learn what franchising fee you’re required to pay, what products you are allowed to sell, where you can locate your store, sometimes even down to the hours required to be open and operated.
In conclusion, picking the right automotive franchise opportunity comes down to what you want out of the business, where your expertise lies in, and how much money you have to invest and what kind of agreements you can strike. A little research goes a long ways — do the needful to enjoy a good franchise investment.
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