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Transmission Repair Franchise vs Car Detailing Franchise – Which Is a Better Investment for You?

Transmission Repair Franchise vs Car Detailing Franchise

Transmission Repair Franchise vs Car Detailing Franchise – Which Is a Better Investment for You?

The automotive aftermarket industry generates billions of dollars annually and offers a stable opportunity for seeking entrepreneurs. With a wide variety of options, business owners can select the best choice for them. Utilizing a franchise system helps make the process smooth and easy. Two of the most popular markets is the transmission repair franchise and auto detailing.

Future Growth

Both niche industries are projected to grow over the next five years. However, an auto detailing franchise has more potential with a growth rate of 2.4%. In 2017, the market generated $11 billion in the United States. With vehicles lasting for longer periods of time, drivers take better care of their cars.

Due to the recession, the transmission repair franchise industry decreased. However, the market is expected to begin growing 2.0% annually. In the United States, repair businesses generated $8 billion in 2017. This shows a steady increase from previous years.

Costs to Enter Transmission Repair Franchise

The transmission business produces a large amount of revenue due to the nature of their services. Car repairs are more expensive for drivers wanting to maintain and upkeep their vehicles. However, for a potential business owner, this means that the cost of opening the company costs more as well.

Starting a transmission repair franchise runs anywhere from $115K to $350K. Due to the nature of the shop, the business owner has to buy equipment, tools, building space, etc. This is what causes the initial price to start high.

Cost to Enter Auto Detailing Franchise

With a smaller cost for start-up, auto detailing businesses cost around 30K-130K depending on the type of company. Mobile detailing requires less equipment and doesn’t need a physical location, but has limitations without a stand-alone business. Working from a shop costs more at the beginning, but has a better chance of growing.

The main difference between the two businesses is the start-up cost and the revenue you generate. Auto detailing costs less but is a cosmetic approach to cars. A transmission repair franchise requires more money to invest but is a necessity for many drivers.

Location of Business

Allowing the shop to have ample space is important when deciding where you want to be located. Whether you choose to open the transmission shop or the detailing, both of them will need bays to work from. Select an area that has heavy traffic flow for potential customers but still allows plenty of space for you to use/build.

Different Audiences

Despite both businesses falling in the aftermarket industry, the clientele for each one varies. A transmission repair franchise attracts clients as needed. If someone experiences issues with their car, that is when they will visit. However, with an auto detailing company customers frequent the business when they need their vehicle cleaned.

Both of the shops focus on all car owners as their audience but service them in different ways. These two types of businesses can even partner and choose the same area due to the nature of their work.

Additional Income

Transmission shops generally focus on servicing and repairing transmissions only. However, most places will hire mechanics to perform the work, which means they are trained in other areas of repair as well. These businesses have a better opportunity to expand and offer more services. Engine repair and other mechanical issues are a great way to generate more income.

With auto detailing, focusing on additional features that enhance a vehicle helps produce more revenue. Headlight restoration, window tinting, and a variety of other services are avenues to explore for the technicians.

Transmission Repair Franchise

With over 50 years in the industry, AAMCO ranks as the top performing store for a transmission repair franchise. The brand is well-known throughout the United States as a trusted service. This company also offers total car care to their customers. AAMCO looks for dedicated business owners to open a franchise.

Auto Detailing Franchise

Patent-pending, steam cleaning technology sets this car detailing business apart from the others. DetailXPerts, an eco-friendly, mobile auto detailing company, focuses on triple bottom line philosophy: people, planet, and profit. Recruiting the best entrepreneurs, this company accepts elite individuals into their family. Check out franchise opportunities worldwide today.

Interested in exploring the unique franchise opportunity that DetailXPerts offers? Sign up for our monthly newsletter to stay updated on all things franchise!


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