“A business like an automobile, has to be driven, in order to get results.” — B. C. Forbes
From repairs to maintenance, personalization to EV technology, the auto industry is one of the world’s largest and most influential markets. Americans’ love affair with cars has remained stable in recent years, but technology changes and environmental innovations are rapidly increasing. As a result, auto-related franchise opportunities are shifting and existing businesses must learn to adapt to new challenges.
If you have an entrepreneurial spirit and a love of cars, a car-related franchise might be something to consider. With the potential for change coming to this century-old industry, you could be at the forefront of the upcoming auto revolution!
Hitting the road
Cars generate big money. U.S. car and automobile manufacturing will make $104.1 billion in 2023, about 3% of America’s GDP. Like many industries, autos took a hit during the pandemic, but the signs of recovery are strong with increased demand. Car sales are forecasted to increase by 5.1% this year and 3.3% in 2024. In all, more than 91% of households in America own a car.
Meanwhile, it’s not just gas-powered cars driving that demand. Electric vehicles, or EVs, are growing in popularity. A reported 1.9 million electric vehicles
are currently on the road, which is expected to increase to 28.3 million by the next decade.
As a result, a whole new need is arising for charging stations, battery refurbishers and EV-focused repair shops. As innovations come along, expect even more opportunities to open up. Entrepreneurs who enjoy being on the cutting edge of tech changes will have a lot to be excited about in this arena in the coming years.
Service-related franchise opportunities
Beyond franchises that sell cars, there is a world of opportunities for owning your own car-related business. Perhaps the most obvious are repair-related. These can range from body shops that fix dents and dings to garages that work on transmissions, engines and more. Then there is a range of quick-oil change options. Let’s not forget the ongoing need for new tires or to fix cracked windshields. While most Americans love the freedom that comes with car ownership, they know that it comes with many ongoing maintenance needs that they must keep on top of to stay on the road.
Americans, on average, keep their cars for 12 years. Only some make it through that time without needing repair work to keep their vehicle running and reliable. IBIS World reported that the auto mechanics industry’s market size, measured by revenue, exceeded $76 billion in 2022.
The business of auto customization
Beyond repairs and new tech, there are multiple opportunities in customization and restyling. Window tinting is one example of this space, part of a $10 billion industry. Black Optix Tint is an upscale franchise option with proven scalable systems and processes that keep customers returning and has allowed them to maintain a strong reputation. The brand has been built on a firm foundation of efficiency and great customer service when it comes to tinting and auto styling.
Black Optix Tint offers interested entrepreneurs a business with reasonable overhead and affordable start-up costs. They provide a solid ROI, with an above-average return by the end of the second year in business, and sound marketplace positioning, thanks to their decade in the industry.
Financially, Black Optix Tint requires a franchise fee of $49,500, included in the estimated minimum initial investment of $173,100.
The brand’s royalty fee is 6% of gross sales. Black Optix Tint values operators with discipline and integrity. Anyone who enjoys leading by example and possesses strong communication skills may be a good fit. Other qualities Black Optix Tint looks for in franchisees include an optimistic attitude, sales forecasting experience and excellent time management skills.
Beyond tinting, franchise systems are also available in alarms and after-market accessories. Some even specialize specifically in truck accessories. Other car-related service options include car washing and detailing franchises.
Selecting the best option for you
Numerous business opportunities exist when it comes to America’s love of vehicles. The hard part may be picking just one!
If an auto-related industry sounds appealing, the next step is to do some homework. Investigate the franchises that interest you to learn more about their history, the level of support they provide franchisees and the terms of their franchising deal. The benefit of pursuing a franchise business is the proven model you will be getting and the ongoing support. So make sure that your chosen franchise offers you the help you need to succeed.
Consider the strengths you bring and your level of commitment. Some franchisors require more hands-on effort from franchisees, while others allow you to step back into a purely managerial role. Be honest about which works best for your strengths and lifestyle goals before entering any deal. Of course, it’s essential to consider your budget. Consider what is needed in your area, too. These are just the basic questions to consider when starting your franchise search.
Think that an auto-related franchise could be the engine that drives your professional future? Learn what opportunities are available, and you can speed up your entrepreneurship dreams today. Contact Seth Lederman at Frannexus to discuss your options and discover how to become your own boss.
About the Author
Seth Lederman, CFE, a Franchise Acquisition, and Development Specialist, is a multi-faceted entrepreneur with over 30 years of experience in small business success, including ownership and sale of his business enterprises. He is a frequent contributor to The Franchise Journal and is on the exclusive Forbes Business Council. Contact Seth at seth@thefranchiseconsultingcompany.com.
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