Getting a car fixed and operating is an essential service. The auto repair industry can be incredibly lucrative and profitable. That leads many entrepreneurs to search for an automotive shop for sale. Still, independent business ownership can be difficult, even in the best circumstances. That’s where franchising with AAMCO can help. In fact, in 2020, the average annual gross sales for AAMCO centers was $713,092, which is 30% higher than general repair shops.
Looking into an Automotive Shop for Sale? Interested in Franchising?
If so, find out what you should consider first and be sure to ask these questions before you buy.
Where would your shop be located?
This is a critical question. As the saying goes in real estate, it’s all about location, location, location. Ensuring your shop is in a high traffic spot near an area in need of your services will make your business successful and profitable. You should also inquire if the franchisor will help you find a location. They often have more resources to research the needed and best locations in markets.
How many others are in or near your territory, and can you expand?
Adding on to the question above, you’ll need to know what the market saturation is like in your area. If you’re wanting to open more than one automotive franchise, you’ll need to make sure that is possible with the franchise model, how much that will cost, and if it will be lucrative depending on how many are already in your area.
What is the total cost to own a franchise
One of the first questions you should ask when looking to purchase an automotive shop for sale is the total cost. The company may have asset and income requirements for the purchaser as well. You wouldn’t buy a car without knowing the price and if you can finance it, so don’t sign up to fix them without know the cost of doing so first.
Are there weekly, monthly, or annual additional fees or royalties
In addition to your initial purchase of an automotive shop for sale, you’ll pay royalties and/or fees. These are usually to allow the franchise owner access to assistance, the company brand/logo/reputation, and other help. Find out how much, and how often, these fees are come around so you can financially plan the success of your business.
What kinds of financial support is there for franchise owners?
See if the business you’re looking to buy offers any kind of financing options or financial support for new franchise owners. What they offer may decide if you can afford to start your business now or later.
What support is there?
Most franchise businesses offer training programs and support to keep owners successful. If you’re successful as a business, the company is as well. In addition to education and ongoing support such as marketing and technology, AAMCO offers training to your staff as well.
Who can and should attend training?
You may want your spouse, business partner, or a few employees to attend these trainings with you. Each franchise will have a different protocol on who can come, if there are extra fees for extra participants, and more. AAMCO University is a state-of-the-art training facility that ensures your technicians can confidently handle the complex car care services that make AAMCO such a trusted brand.
What do royalties provide?
When you’re looking to buy an automotive shop for sale, keep in mind the royalties and other associated fees. These are typical and standard across all franchises, but what the fees and royalties can provide can vary. It’s important to understand this breakdown and the value of what you’re paying for.
What sales goals need to be reached to sustain the business?
The auto repair industry has plenty of room for success, but careful planning and realistic expectations are essential. You’ll need to know how much in sales you’ll need to do to stay afloat, and if there are minimum product purchases or sales that need to be met. Then, you can weigh your options on if you think these goals are possible to meet and something you want to strive for.
What are the marketing budgets?
You’ll want everyone to know about your automotive shop, and marketing is the way to do that. See if the franchisor has marketing budgets and goals for your area and nationally. Also inquire on if they help you with any marketing campaigns locally.
If you’re ready to buy that automotive shop for sale and start your own business, request more info to learn about franchising with AAMCO.