Best Cars Franchise Opportunities to Buy in 2023

 

When you buy a franchise, you not only acquire a well-known brand identification; but you also get a slew of advantages that put you ahead of enterprises that start up without the knowledge and assistance of an experienced partner. When you buy a franchise, you get its logo and branding, which gives your business instant curb appeal. You invest in a trade brand that is instantly identifiable with a business that your future clients already know and trust. Cars franchises can prove to be a perfect franchise option for you. They are simply a portion of the increasing car industry in which the automobile aftermarket business value is estimated to reach $828.6 billion (globally). 

What is the best Car franchise business?

If you want to step away from the rat race but lack any prior experience running a business, franchising is a practical method to become your boss.

Car franchises do not simply take your money and disappear; they have a reputation to sustain. As a result, most franchise partners offer world-class training to ensure that your business can deliver the level of excellence that consumers have grown to expect.

In addition to training, most automobile franchises include HR functionality, which will assist your new firm in complying with complex financial, employment, and safety standards.

Automotive franchises provide a wide range of services, such as automotive goods retail, maintenance services, valeting services, car washes, automobile sales, and rental enterprises. Most automotive franchises are focused on after-sales services, or offering products and services to existing automobile owners. As the demand for car services grows, so do the possibilities in the franchise market.

How much is the cost to start the best car franchise?

The average royalty for a car franchise is 6.8%; which is significantly more than the 5% royalty for a food and beverage franchise. A typical vehicle franchise will cost you between $300,000 and $400,000 to open. Thousands of loans have been made available to franchisees in the automobile business. 

Because of the pandemic, few new cars are being sold. There are many used cars. Used cars and their prices have risen by over 30%, with well-exceeding inflation. As a result, there are far more people driving cars today than ever before.

 

Why Start a Car franchise business?

There are also many technological improvements, and there has never been a moment when there have been more electric automobiles, and electric car markets in the United States are rising by double digits. So, while vehicle maintenance may look favorable in the coming years, it may be a different story in 5 to 15 years, especially since electric automobiles require less vehicle maintenance.

As a result, there are several good possibilities in the automobile business for vehicle franchises. However, before you jump in, understand that this market is changing and that it is best to research franchise opportunities before investing in them.

The average royalty for vehicle franchises is 6.8%, which is significantly more than the 4% royalty for food and beverage franchises. A typical vehicle franchise will cost you between $300,000 and $400,000 to open. We also examined thousands of loans made to franchisees in the car market. The rate of default is quite high.

Pros and Cons of Cars Franchise

 

Pros of Cars franchise opportunities

• You Do Not Have to Start from Scratch
• Instant Name Recognition
• Easier Access to Financing

Cons of Car franchise opportunities

• Abiding by the franchisor’s rules and brand guidelines
• High Startup Costs

 

Which is the best Cars franchise to own?

There are several franchise opportunities in the Car sector. Some are better than others for various reasons. 

Here are 15 of the best car franchises in the United States and Canada.

1. Matco Tools Franchise

• Started in: 1946
• Franchising since: 1993
• Royalty fee: varies

Matco Tools caters to both professional mechanics and car enthusiasts. They also have 19 years in a row of being ranked in Entrepreneur Magazine’s Top 50 Franchise 500.

Matco also has some of the most interesting marketing collaborations, such as Universal Studios and the TV Brand Muscle Car.

This car franchise business offers multi-unit franchise prospects as well as business opportunities. This company offers one of the greatest support systems for franchisees, the Matco Business System Training Program, with such a customized growth path for your investment.

2. Snap-on Tools 

• Started in: 1920
• Franchising since: 2991
• Royalty fee

The Snap-On Tools name is so well-known among auto mechanics that it’s easy to overlook the fact that it’s franchising.

They have maintained the top quality of their instruments since 1921, making them the industry’s most reliable and trustworthy brand.

Snap-On Tools offers free advertising and initial training to franchisees in addition to being a low initial franchise. They are also adaptable in terms of how you conduct your business; whether it is a mobile unit or a permanent location is totally up to you.

3. Valvoline Instant Change Oil Franchise

• Started in: 1866
• Franchising since: 1988
• Royalty fee: 4-6%

Valvoline Instant Change Oil has been delivering routine maintenance services in communities around the United States for over 25 years.  They give a variety of opportunities for people interested in starting their car franchise.

One feature enables an independent automotive service shop to include the brand in its existing lineup, giving the franchisee greater freedom. 

Because of their extensive expertise in the auto servicing sector, they can provide their franchisees with a one-of-a-kind Talent Management solution.  The system makes it simple for franchise owners to recruit, assess, and grow their personnel to give the best possible service to their clients.

4. Jiffy Lube Inc. 

• Started in: 1979
• Franchising since: 1979
• Royalty fee: 4%

Jiffy Lube Inc. is the most popular national company and franchise chain in the car sector. Not only is it the best at what they do, but it is also the most popular. Not to add that it is indirectly controlled by one of the world’s largest oil firms, Shell Oil.

If you want to invest in Jiffy Lube, you will sign up for Jiffy Lube Connect, a communication platform for all firm franchisees; this means you will learn from those who have achieved success and will gain knowledge and advice from them.

5. Big O Tires

• Started in: 1962
• Franchising since: 1982
• Royalty fee: 5%

Entrepreneur magazine ranked Big O Tires first in the Wheel and Tire category for 2020. Aside from servicing and selling tires, the company also provides typical maintenance and repair services like oil changes, lube and change, brake repairs, and air filter replacements.

Big O Tires franchisees may be confident that they will receive high-quality training and a dependable supply chain network because of their established business plan. The organization also provides the ability to acquire a multi-unit franchise, which is an excellent choice for more aspiring business owners.

6. Glass Doctor 

• Started in: 1962
• Franchising since: 1977
• Royalty fee: 5-7%

Glass Doctor, founded in 1962, provides total glass care, repair, and replacement, as well as window tinting on any car. They have lately expanded their offerings to include residential and commercial glass. The company currently operates more than 150 sites in the United States and Canada, with an additional 13 locations worldwide.

One of the most significant advantages of joining Glass Doctor is that it is part of the larger home services organization Neighborly. This means you will get top-tier training and support, as well as accessibility to their scheduling and billing tools.

Furthermore, the Glass Doctor vehicle repair franchise is well-known and has a proven track record, with over 150 existing facilities in the United States and Canada.

7. Carstar

• Started in: 1980
• Franchising since: 1989
• Royalty fee: 1.5%

Carstar has fully branded as well as independently owned collision center businesses. Carstar is one of North America’s largest MSO networks, with 53% of their North American locations part of an MSO group.

They are also known for their countrywide customer warranty, which demonstrates their continual high-quality car repair services.

Carstar is the only company that has a committed purchasing staff that negotiates with suppliers directly on behalf of their franchise owners. As a member, you will have access to great discounts across over 50 partners in the network.

8. The Hertz Corporation 

• Started in: 1918
• Franchising since: 1941
• Royalty fee: 7-9%

Hertz is the world’s leading airport vehicle rental company and one of the greatest and most well-known car rental companies. They provide franchising opportunities in the United States, Canada, and across the world.

Hertz provides their operators with one of the most comprehensive lists of strategic partners, including airports, hotels, and other businesses that will constantly bring in customers. Furthermore, franchisees can take benefit from the parent company’s more than ten marketing channels.

9. Tommy’s Express Car Wash Franchise

• Started in: 1969
• Franchising since: 2016
• Royalty fee: 4%

Tommy’s Express is a multi-award-winning car wash that has been in operation for many years. They operate car washes across the country and are well-known for providing high-quality car maintenance services.

To ensure franchisees have all the opportunities to excel, the company has updated and upgraded its franchising structure for optimal growth in each carwash territory.

With no expiry dates, cheap labor costs, and outstanding industry support from conception to opening day, you may be confident that your automobile franchise business idea is in capable hands.

10. Super Wash 

• Started in: 1982
• Franchising since: 2001
• Royalty fee: varies

It is a family-owned and run business that has been America’s leading specialist in self-service and touchless type for over forty years. They guarantee quality care for every vehicle with 280 stations from coast to coast.

This locally-owned carwash provides an all-inclusive comprehensive solution that includes everything from site selection and zoning permits through building, installation, and administration.

Even after your car wash is up and running, they will continue to give excellent support as part of their ongoing dedication to their partnership.

11. Avis Budget Group 

• Started in: 1946 
• Franchising since: 1953 
• Royalty fee: 7.5% 

The Avis Budget Group, which comprises brands such as Payless Car Rental, AVIS, Budget, and Zipcar, is a globally recognized brand. Their business concept provides franchising opportunities at varying levels of investment.

The initial investment cost differs according to the country, the number of clients, and the brand in which you invest. Avis Budget Group is pleased to report that the average franchisee relationship lasts 23 years, demonstrating the franchise’s success. The company also fosters close ties with its franchisees by providing ongoing training, a marketing library, and website maintenance.

12. DetailXperts

• Started in: 2002
• Franchising since: 2008
• Royalty fee: 6%

DetailXperts franchising is a wonderful option for vehicle wash business owners who wish to keep on top of auto wash services and technologies.

DetailXperts not only provides outstanding car cleaning services, but they are also committed to sustainability and environmentally responsible methods. Their patent-pending method ensures consistently excellent carwashing results.

Their unrivaled franchise assistance includes more than 40 hours of complete classroom training, on-site advice and education, and sophisticated marketing plans with resources for referral tools.

13. AAMCO

• Started in: 1962
• Franchising since: 1963
• Royalty fee: 7.5%

They have serviced over 45 million automobiles since its inception in 1962, and they have over 700 franchised sites in North America. Their legacy brand is still going strong. Entrepreneur magazine has repeatedly placed them as a top choice among franchise opportunities in its annual Franchise 500 rankings.

For almost 50 years, AAMCO has been known as the world’s biggest transmission repair franchise. AAMCO facilities now provide complete vehicle care, which means more return business for franchisees. AAMCO franchisees employ a team to execute the servicing work, so no prior experience is required. 

14. Autolab

• Started in: 1989 
• Franchising since: 
• Royalty fee

Auto-Lab Total Car Care Centers, a Michigan-based firm that has been in business since 1989, is a developing car repair franchise business that focuses on being the dealer’s complete car care option. In Michigan, Indiana, Iowa, Florida, and Texas, the company now operates 27 franchised and corporate locations.

Their catalog includes a variety of general automotive services. Autolab obtains funding from a third party. An initial investment of $130,750 is required. 

15. Drive N Style

• Started in: 1985
• Franchising since: 1993
• Royalty fee: 7.5%

They have an initial investment requirement of $74,810-86,370 and a franchise fee of $45,000 for a potential franchisee. Drive N Style allows businesses to establish a scalable business with unrivaled lifestyle options. 

If you’re a passionate automobile enthusiast wishing to turn your passion into a business, contact Drive N Style. In automobile dealerships, warranty businesses, and rental car agencies, they are the industry leader in vehicle appearance and reconditioning. They refinish used cars to make them look new again. 

Drive N Style has agreements with third-party financing institutions that provide funding for the franchise fee, accounts receivable, startup expenditures, equipment, inventory, and payroll.

Top and Best Cars Franchise in the USA in 2023

 

Best Upcoming Cars Franchise Opportunities in 2023

1. Snap-on tools 
2. Jiffy Lube Inc 
3. Glass Doctor 
4. Carstar 

 

Best Cars franchise opportunities under 50K

1. Fibrenew
2. Novus Glass
3. Fleet Services                       

Best Car franchise opportunities in terms of Net Worth 

1. Glass Doctor 
2. Snap-on tools
3. Hertz
4. Ziebart International     

 

Which is the Most Profitable Cars franchise 

1. Snap-on tools
2. Carstar
3. Jiffy Lube
4. AAMCO

 

Best Car franchise opportunities in terms of the Rankings

1. Snap-on Tools
2. Matco Tools
3. Valvoline Instant Oil Change
4. Jiffy Lube
5. Cornwell Quality Tools
6. Big O Tires

 

Best Cars franchises opportunities in terms of the Franchise Deck Ratings

	Cars franchise	Franchise Deck Ratings
1.	Snap-on Tools	4.1/5.0
2.	Carstar	3.9/5.0
3.	Matco Tools	3.9/5.0
4.	Big O Tires	3.7/5.0
5.	Jiffy Lube	3.7/5.0

How to select the best Cars franchise for sale in 2023

When it comes to a franchising investment, making the optimal selection is a process. Here are some pointers to help you make decisions in the car franchise sector. 

1. Investigate the Franchise Business Review

You can ask for a list of the most successful franchises. The Franchise Business Review also provides insights, resources, and a buyer’s guide. In addition, there is an academy as well as other business-starting resources. Every stage has its category.

2. Discover More About the Parent Company

Understanding the parent business is an important component of your investment. To begin, find out when the company was created. Begin by visiting their website. They should help with public relations, advertising, and marketing.

Make certain that the procedures, goods, and trademarks are all discussed. 

Remember to look into their investment, image, and reputation. Determine their target market. When considering a franchise, this is another fantastic place to start. It is a big thing to spend a lot of money on that project. You want to make certain that you are attaching your franchise wagons to a reputable location.

3. Apply

When looking for a car service franchise, there are a few steps to consider. The application procedure assists you in making sound decisions. It all starts with an inquiry and the first interview. If everything goes smoothly, you can continue down the list. 

4. Sign A Franchise Contract

Owning a franchise involves paperwork as well. Before you can begin working on your customers’ tires, you must first obtain and execute a franchise agreement. This is a legally binding agreement. It addresses issues such as royalties and other payments. Other topics to consider include advertising responsibilities and personnel policies.

 

Are car franchises profitable?

According to research, you may open a new store for as little as $424,000. Alternatively, converting an existing shop could cost as little as $75,000.

Inventory valuations range from $75,000 to $150,000.

Startup payments and fees range from tens of thousands to more than a million dollars.

Choose a well-known franchise and you will earn $350k each year on average. Maintain an eye on key performance metrics. Average earnings, average sales, and the average sales-to-investment ratio are all examples. Keep in mind to opt for one that provides seasonal services. For example, brake services for a road trip. In the winter, heating repairs are. Also included are non-essentials such as window tinting.

Conclusion: Are the Cars Franchise a good choice?

If you adore vehicles, comprehend them, or truly enjoy watching others drive them, you are already halfway to a successful road trip. The other half is the thriving vehicle repair market, which has been unaffected by the slowdown in other industries. With so many car franchise opportunities available, you might realize your ambition of being your boss. There has never been a better moment to enter the world of car franchises, even if you have no prior automotive knowledge.

There has never been a better moment to enter the world of car franchises, even if you have no prior automotive knowledge. Contact a free franchise expert who could assist you in locating the best car franchise investment for you.  Your consultant will assist you in finding the best vehicle franchise for you based on your region, associated talents, and financial commitment.

You can explore the Car franchise categories can look at 

1. Big O Tires
2. Matco Tools Franchise
3. Mister Car Wash Franchise
4. Cornwell Quality Tools Franchise
5. Tidal wave car wash franchise
6. Mr.Clean Car Wash Franchise
7. Midas
8. Autolab

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