Every year, the number of cars on the roads of our country is growing at a tremendous pace, so the car repair and maintenance business is a very promising investment. However, the start of a car service is fraught with a large number of problems, therefore, in order to avoid the many mistakes that many novice entrepreneurs make, the best option would be to purchase a car service franchise. This is very convenient, because you immediately get ready-made business processes and business technology, as well as assistance in opening.
There are quite a few franchise options on the market today, so choosing the best one is very difficult. This article will discuss how to run a ready-made business, about all kinds of pitfalls and nuances, as well as which car service franchise is better.
Buying a franchise: advantages, disadvantages and associated risks
To open a car service yourself, you need not only the availability of special equipment, but also knowledge of the technical aspects and nuances of doing business. In addition, the market for vehicle repair and maintenance services is oversaturated, and a novice businessman will have to wage fierce competition with federal networks, which is difficult to survive in. Therefore, the best solution is to purchase a franchise. In addition, before starting to do business, it is worth exploring the automotive market in order to choose the right niche for yourself.
The car service franchise, reviews of which are rather contradictory, provides the entrepreneur with the following advantages:
- you get a turnkey business with a calculated business plan and clear figures for reaching the payback level;
- the use of the name of a famous brand contributes to a greater flow of customers;
- the possibility of purchasing spare parts and consumables at wholesale prices;
- professional training from the franchisor;
- specialized diagnostic equipment and software;
- assistance in the advertising campaign and promotion of the enterprise.
Despite the rather impressive number of advantages, alas, it was not without drawbacks. Among those, we can distinguish:
- you are forced to work within a strict framework and cannot independently influence the functioning and development of the business;
- opening a car service on a franchise is more expensive, because you are forced not only to buy everything you need for your money, but also to pay a lump-sum fee;
- you will be forced to give part of the monthly revenue to the franchise owner;
- you must agree with the franchisor all technical issues when opening.
Regardless of whether you start a car service on your own or on a franchise, you need to take into account the high competition in this industry, so reaching a break-even level and developing a business can take quite a long period of time. One should be prepared for this and when planning a business, it is necessary to consider even the most pessimistic forecasts. As practice shows, payback occurs in two to three years with the correct introduction of automotive activities.
Franchise Acquisition Terms
One desire to purchase a franchise is not enough, because each franchisor has a number of requirements for franchisees. In order for a transaction decision to be positive, you must meet a number of criteria. It:
- experience in this segment of the business;
- the availability of premises for the opening of a car service that meets all the requirements of the franchisor;
- positive credit history and lack of debts;
- availability of start-up capital.
If you meet all these criteria, then the likelihood of a successful purchase of a car service franchise increases significantly.
Features of the launch and promotion of car service
For a car service to flourish, money alone is not enough. You need to have a clear idea of the features of the region in which you plan to start a business. When marketing market research, the following factors should be considered:
- The purchasing power of the population is one of the most important indicators on which the success of a business depends. The thing is that if the population does not have money, no matter how magical the car service franchise may be, no one will use your services.
- The presence of competitors and potential demand. In some regions of the country, the demand for car services significantly exceeds the real supply due to the greater number of people with private vehicles and fewer service stations.
- Location car service. In major cities, a car service will bring significantly greater revenues than in the provinces.
All these criteria are a key to the success of a business; therefore, they are mandatory for strategic planning of an enterprise’s development and preparation of a business plan.
Financial planning
Starting a franchise business requires a fairly large start-up capital, because, in addition to royalties, you will need to buy or rent a room, as well as purchase all the necessary equipment. Cost items include many items and consist of the following:
- Purchase of equipment: the most expensive item of expenditure, requiring about one million rubles. For the normal operation of a car service, you need professional equipment for the diagnosis of cars, lifts, workbenches and tools.
- Marketing and promotion: for your service station to know, it needs advertising. Holding an integrated marketing company will cost approximately 200,000 rubles.
- Registration of the enterprise and receipt of all necessary documents. You can do this yourself or contact any company specializing in these services. In the first case, you will spend about 50 thousand, and the company's services will cost significantly more.
To start a car service from scratch, with the purchase of a car body service franchise, an average of about 6 million rubles will be needed. In addition, each month you will have to spend about 500 thousand rubles to rent a room, pay employees and purchase supplies.
Which franchise to choose: Russian market overview
To date, a lot of franchises from Russian and foreign companies are represented on the domestic market, so it is very difficult to choose the best. Next, we will consider the most attractive offers that provide the most comfortable working conditions.
"Wilgood"
In order to acquire the Wilgud car service franchise, you must make a contribution of 1 million rubles, as well as pay the company monthly 3.5 percent of the profits. In addition, the franchisee must meet the following requirements:
- initial starting capital for the launch of a car service in the amount of 70 percent of the design estimate;
- at least a year of experience in this industry;
- passing compulsory two-week training;
- opening of service stations in the city with a minimum population of 200 thousand people;
- the minimum number of car service posts is 3.
If you do not meet at least one of the criteria, then you will be refused a franchise.
Benefits of working with Wilgood
Buying a Wilgood car service franchise, you get a number of advantages compared to starting a business on your own, the main ones are:
- fully standardized business processes;
- modern quality control system;
- full operational support for the management of service stations and business;
- access to corporate Internet resource;
- access to the company's information base;
- assistance in advertising and promotion.
The advantages include a high level of payback. The Wilgood franchise, a car service that has only positive reviews, fully pays for itself during the first 12 months of operation, and the profitability level is about 20 percent.
Bosch
The second company that provides the opportunity to purchase a turnkey business is the German concern Bosch. The company works in several directions, which allows the client to choose the most suitable type of business for himself. Today you can buy a Bosch car service franchise that allows you to repair power units, as well as servicing cars or trucks.
Terms of cooperation
To be able to open a service station under the Bosch brand, you must fulfill the following conditions:
- equip the car service with special equipment and software;
- have experience in the automotive industry;
- take compulsory training;
- re-equip the car service premises with strict company standards;
- pay royalties of € 1,400 annually;
- open a Bosch branded auto parts store in the workshop.
Starting a Bosch freight car service franchise is troublesome, but the benefits are more substantial. To date, this franchise is the most sought after.
What benefits does the customer receive when purchasing a Bosch franchise?
Despite the high cost of the franchise, it provides the following benefits:
- the opportunity to work under the name of a world famous brand;
- assistance in promoting the company;
- the possibility of free advanced training for employees;
- full maintenance of all equipment.
It is worth noting that a self-service car service, a franchise of which Bosch also offers, despite its high cost, pays for itself quite quickly. You will be able to fully return the invested funds in just a year and a half, which by modern standards is a very acceptable term.
"White service"
The franchise for opening a car service from this company is in greatest demand, because it was based on many years of experience of the largest European company Kwik Fit, which has been engaged in car repair and maintenance around the world for half a century.
To become a partner of a company, you must meet a number of criteria. It:
- lack of contracts for the sale of cars with car manufacturers;
- the area of the station is at least 250 square meters;
- obligatory presence at the car service of a descent disorder stand, two lifts and modern equipment for diagnosing automobiles.
In turn, from cooperation with the company you receive the following benefits:
- modern effective business model;
- proprietary software;
- discounts on spare parts and consumables;
- the possibility of free staff training;
- assistance in drawing up a business plan;
- preparation of an effective marketing program and its implementation.
Reaching the level of profitability, according to information provided by the manufacturer, takes only 12 months.
Fit service
The Fit Service car service franchise is the best solution for those entrepreneurs who have little experience in this field and limited financial capabilities. By purchasing it, you get the opportunity to use the name of the company and work on an effective model of automotive service management. The company offers the opportunity to work in three directions, each of which is determined by the area of the room in which the car service will be located.
The opening of one post will cost 75,000 rubles, but the minimum investment should be half a million rubles. Unlike the options considered earlier, the Fit car dealership franchise has the smallest royalty, the amount of which is only 5,000 rubles plus two and a half percent every month from the turnover.Opening a full-fledged automotive franchise service for this company will require an investment of about 600 thousand rubles, which you can fully repay in just a year of work.
Never be afraid to start your own business. The most important thing is to get serious. And then everything will work out.
