Franchised Auto Repair Shop Business Plan and SWOT Analysis

Franchised Auto Repair Shop Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Franchised Auto Repair Shop Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Franchised Auto Repair Shop business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Automotive repair is in demand in all economic climates given that most people do not have the ability to repair the vehicles. One of the most popular business models that is used for the development of a new automotive repair shop location is the use of a franchise. There are a tremendous number of benefits for an entrepreneur that is looking to develop a franchised automotive repair shop. Foremost, these entrepreneurs are able to use the brand name of the franchising business. Given that many of the firms in this market have had histories in well in excess of 50 years, customers place a strong level of trust with these businesses when it comes to rendering services.

Of course, this does translate into a higher startup costs given a franchised automotive repair shops do charge a substantial upfront fee to the entrepreneur that is looking to establish this type of business. However, this fee is almost always justified given the fact that the branding reputation will ensure that customers comes a location from the onset of operations. In terms of business failure rate, franchise automotive repair shops have some of the lowest failure rates in the United States.

The cost associated with developing a new franchise automotive repair shop can vary although the startup costs typically range anywhere from $250,000 to $500,000. These costs may be higher especially in the event where a piece of real estate any building development are going to be done in conjunction with the launch of the franchises operations. The gross margins generated from services are very high with most reports showcasing a 90% gross margin rate. Part sales typically carry gross margins of 40% to 60% depending on the type of part in the car being serviced.

A franchised automotive repair shop business plan should absolutely be developed in the event that the entrepreneur is going to seek capital from a private investor or financial institution. Almost all lenders are willing to provide a substantial amount of capital support to these types of businesses given the fact that it is a franchise coupled with automotive repair which always generates revenues despite a negative change in the economy. As with all business planning documents a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page should be included as well. For the industry research portion of the business plan, these businesses accurately generate about $8 billion per year among 10,000 franchise locations. The industry employs 70,000 people.

Almost all lenders and private investors are going to want to see a thorough demographic analysis completed that showcases the population size, population density, percentage of people owned vehicles, the types of vehicles owned, any amount of money spent annually on automotive repair. An analysis pertaining to the annual household income and annual family income should also be included within this section the analysis. Of utmost importance to the strategic marketing section of the business plan – an overview of all competitors – both franchise and independent – should be included within the business plan as well. This is going to be one is to be seen by all lenders.

A franchised automotive repair shop SWOT analysis should be produced as well. At first rents, these businesses enjoy very high visibility from the Onset of operation given the fact that they can use an established brand name in conjunction with automotive repair services. The barriers to entry are moderately high given that these businesses do require substantial amount of upfront capital in regards to it being a small business. The gross margins are high, and revenues are immune from negative changes in the economy.

The biggest weakness associated with these types of businesses is the fact that there is always a substantial amount of competition from both franchise and independently owned and operated repair shops. As such, these businesses need to find a number of ways especially as relates to pricing in order to obtain a competitive advantage. There’s really nothing that can be done about this given that many of these businesses are highly established within the respective markets.

For opportunities, these businesses are able to expand by simply establishing new locations. The extensive franchise agreements required by the parent company typically allow that owner-operators can create additional units in conjunction with their operations. It is very important that the owner operator review the franchise disclosure document (or “FDD”)  in conjunction with their attorney so that the complex terms can be easily understood.

For threats, the biggest change it is going to impact this industry is that the technology that is used in conjunction with vehicle repair is continually changing. Additionally, electric vehicles are becoming much more common and as such mechanics must be hired to have an understanding of how these motors are to be serviced. This is really going to be the only major threats of this industry moving forward.

A franchised automotive repair shop marketing plan also needs to be developed and will most likely be asked for by a bank or private investor. Foremost, the benefit of developing a franchised location is that the parent company will typically handle almost all marketing. This is due to the fact that a royalty fee typically ranging anywhere from 5% to 10% of aggregate revenues is demanded by the franchising company in exchange for use of their name and systems. While this does seem expensive, the high-impact national and regional level marketing campaigns that are undertaken by the franchising company substantially reduce the amount of time and money that needs to be allocated towards maintaining a local marketing campaign. The franchising company typically maintains an expansive website that showcases each location and all relevant information to finding it when services are needed. This is the primary benefit associated with a franchise automotive repair shop.

Franchised automotive repair shop circuit continue to be one of the most major industries within the United States. People are always going to require appropriate care for their cars, trucks, recreational vehicles, and other motor devices that need regular tune-ups, inspection, and repair. These can be highly lucrative businesses for an owner operator that has extensive experience as a mechanic or is seeking to capitalize on a very economically stable business.