Vehicles break down and need fixing, so why not provide an in-demand service with an auto repair franchise? Helping a stream of customers with brake repairs, new exhaust systems, headlight restoration, and door ding removal generates a steady income. Moreover, you don’t need to be a car expert, just a hands-on person willing to learn new skills. Researching the market will help you decide if auto repair work is for you.

Overview of the Market

When looking at which industries are most likely to franchise, observe trending markets. Research shows the global auto repair industry will grow by $134.9 billion at a CAGR of 5.21% between 2023 and 2028. More good news: at least 283.4 million vehicles are registered in the United States. Over time, these vehicles may show mechanical wear and tear or breakdowns. They also need regular maintenance to keep them running smoothly.

The road freight transport market is also growing as more companies use road transport to move their goods. And vehicles regularly going long distances need reliable maintenance and repair services. These trends also mean good news for an auto parts franchise or an auto glass repair franchise.

There is no shortage of services and products you can offer your customers. Here is a snapshot of what you can repair:

• General repairs like engine or transmission repairs. See also a transmission repair franchise.
• Brakes, including replacements for pads and rotors.
• Tires – i.e., balancing them, rotation and supplying new ones.
• Oil changes. See also an oil change franchise.
• Exhaust system repairs and services.
• Dent removal and auto painting.

Independent Business Versus Auto Repair Franchise

Opening an auto repair shop takes careful financial and practical planning. You can do it by yourself or partner with a franchise. Here are the pros and cons:

Independent Business

• Lower startup costs than the more expensive auto repair franchises that ask for at least $800,000 initial investment. If you want to keep startup costs under control, investigate low cost franchise opportunities.
• You decide where you want to open your repair shop. I.e., you’re not restricted by franchise territory agreements.
• Local customers may prefer supporting a small independent business over a franchise chain. However, you must organize your marketing and advertising from scratch.
• A downside is not having the backing of an established franchise brand, including training and ongoing support. If you don’t want to miss out, see franchise opportunities.

Automotive Repair Franchise Opportunities

• As with all automotive franchises, assess the brand’s fit with your goals and budget.
• Higher startup costs. However, it might be easier to secure a startup loan. Lenders often see franchises as less risky if they have a proven business model.
• Franchisors have relationships with parts suppliers, so you can often buy parts at discounted rates. These savings can lead to higher profit margins compared to independent shops.
• Customers trust a recognized brand, so you can attract business right from the get-go. Bear in mind, if the franchise performs poorly, your business could suffer as a result.
• A downside is ongoing royalty fees can eat into your profits.

Other Factors to Consider

Running an auto repair business is hands-on work and a big investment. You must be passionate about car care and be super organized to make your business work. Other factors to bear in mind include:

• Think about your target customers. For example, fleet repairs and maintenance can be lucrative if you secure large contracts. Franchises like Advanced Maintenance target vehicle fleets like trucking companies, construction firms and delivery services.
• The popularity of electric vehicles (EVs) can impact your business. EVs don’t have traditional parts like exhaust systems, clutches, or fan belts. I.e., common repair jobs in gas-powered vehicles.
• To stay ahead of the competition, you must keep up with trends and technological advancements. For instance, advanced diagnostic tools and 3D-printed auto parts can help you run a more efficient and profitable business.
• Build relationships with reliable suppliers for aftermarket parts. Competitive pricing is critical for boosting profits.
• Decide if you want to focus on general auto repair or specialize in areas like collision repair. A niche business can help you thrive in a competitive market.

Automotive Repair Franchise Opportunities and Franchise Cost

Established franchises should be able to offer the benefits of a strong brand name and ongoing support:

• Midas has franchised throughout the states since 1956 and has international franchising The company recommends having nine employees to run this type of business. Visit the company website to see the opportunities in your local area, including priority markets identified as high potential for growth. The total initial investment is $209,000 to $885,000.
• Carstar specializes in auto collision repair. If you already own your collision center, you could partner with this brand and upgrade and grow your business. It offers access to its network and resources, including introductions to insurance carriers and fleet programs. The brand’s message is to “enrich your collision center, not take over.” The initial investment is $298,000 to $804,000.
• Christian Brothers Automotive welcomes newcomers and existing business owners into the fold. The company claims at least 85% of its franchisees have no automotive experience before opening their franchise. It also has franchise opportunities for veterans. Military skills often translate well to franchise business ownership. The initial investment is $530,250 to $645,400.
• Precision Tune Auto Care has been repairing cars for more than 45 years. To get your business off to a great start, make the most of its turnkey advertising and marketing programs. If you buy an existing center, it offers in-house financing for qualified candidates. The initial investment is $134,000 to $310,000.
• Bumper Doc is one to consider if you’re looking for an affiliate program over a franchise. Its business model focuses on helping your business attract more customers and repeat clients. You pay an upfront license fee to use its branding, logo, marketing materials and training tools. It offers a licensing model starting at $495.00 per month, with a $1995 start-up fee and a 12-month license contract with no renewal fees. Or check out cheap franchise opportunities.
• Colors On Parade offers mobile paint repair services. So, if you prefer a niche business, this is an option. The company specializes in scratch and dent repair and paintless dent removal using eco-friendly technology where possible. The initial investment is $21,000 to $98,000. If you’re interested in a business that can be run from home or a mobile unit, see car wash franchise opportunities.
• Advanced Maintenance is a truck repair franchise opportunity. You’ll work on a variety of commercial fleet vehicles, including Department of Transport (DOT) maintenance. You don’t need experience in the trucking industry, but you must have business experience to get the most out of your franchise experience. The initial investment is $132,000 to $185,000.

When calculating costs, remember that the numbers depend on the size and location of your franchise. Also, you’ll need to invest more if starting from scratch instead of converting an existing auto repair services business. Depending on your schedule and commitment, you can also research absentee owner franchises or a work from home franchise.

Additional Ways to Boost Profits

If you want to grow your auto repair business and maximize profits, there are several ways to do this:

• Build a relationship with a car rental franchise or a car dealership franchise. Companies that lease or sell vehicles need regular repairs and maintenance to keep their fleets in good condition.
• Electrical vehicles (EVs) still need services and maintenance. Therefore, investing in training and equipment for EV repairs can capture a new customer base.
• Sell higher-margin add-ons, such as wiper blades or premium oil upgrades.
• How about extending your shop’s hours to attract customers who need repairs outside traditional business hours?
• Promote routine maintenance services like oil changes, tire rotations, etc.
• Offer auto detailing.
• Encourage repeat business with a loyalty program that offers discounts.

Conclusion

To sum up, auto repair franchise opportunities are plentiful. So, if you’re passionate about cars, you can jump straight into a trending market showing impressive growth for the next 10 years at least. However, entering a competitive industry has its challenges, too. You must work hard to build a loyal customer base; otherwise, they’ll go elsewhere.

Think about auto repair franchise costs, too. You can easily spend half a million investing in an auto repairs franchise. If you want to spend much less, consider automotive licensing agreements and become an affiliate.

Alternatively, seek out affordable automotive franchises. For example, DetailXPerts is an industry leader in mobile auto detailing and commercial cleaning. Using minimal water, our steam cleaning technology deep cleans vehicles, buildings and public spaces. And it’s an eco-friendly business that taps into the lucrative green market.

Download our Business Model Overview to discover more about a profitable franchise opportunity.