Franchise WheelGood - new technologies in car service

Advantages and disadvantages of opening a car service center

The number of cars on Russian roads is constantly increasing. At the end of the first half of 2020, the share of used cars in sales of Russian dealer holdings increased by a third and reached 34%. Car owners often prefer used cars due to their more affordable cost. However, such vehicles require special maintenance, which only professionals can provide. Therefore, car service services will be relevant in the coming decades.

However, this business cannot be called easily accessible: it will require equipment, qualified personnel, and it will have to develop in conditions of fierce competition. Therefore, before investing money in your own car service, it is worth weighing the pros and cons of such a startup.

Pros:

1. A popular area of ​​work is that the number of car owners will grow, which means the customer base and potential income will increase every year.
2. High cost of services and large average bill. Even a small service can earn 400 thousand per month in net profit.
3. Independence of the season - vehicles require maintenance throughout the year.
4. Possibility to choose a specialization. For example, a cargo car service or a self-service car service. This will help you stand out among competitors and quickly occupy a niche in your region.

Minuses:

1. Location dependent. The service center should be located in a busy, driver-friendly area. Finding and renting one is not as easy as it seems at first glance. Most of the “grain places” are already taken.
2. Increased requirements for the quality of services and qualifications of employees. Not only the reputation of the service, but also the lives of clients depends on the professionalism of the employees.
3. Parts and components for foreign cars will become more expensive, that is, service costs will also increase. At the same time, client income has not grown for the 6th year in a row.
4. Developed competition. The market is saturated with various kinds of services for cars; it is problematic for a beginner to break into this area.

Opening a car service center under a franchise will require several million rubles.

Initial capital for opening

Costs of opening a car service:

1. Rent of premises from 250 sq.m. From 100 thousand rubles.
2. Car lifts, 2-3 pieces. From 70 thousand rubles per unit.
3. Automobile compressor. From 3 thousand rubles.
4. Wheel alignment stand. From 700 thousand.
5. Press, power tools and other additional equipment. The total cost is from 200-300 thousand rubles.
6. Consumables. About 100 thousand.

If the service is opened as a franchise, a lump sum fee must be added to the initial costs. Monthly income will be 3-7% less due to royalties - a mandatory payment to the franchisor.

Payback period

Opening a car service center - independently or as part of a franchise network - in any case will require millions of expenses. A million is enough for small garage-type service points; full-fledged services with a dozen lifts and 20-30 employees will need 10-15 million.

Such a large amount of investment contributes to long-term payback. If catering establishments and shops pay for themselves within 1 year, then 2 years will be an excellent indicator for car service. For investments over 10 million rubles, a more realistic period is 3 years.

Franchise cost

The cost estimate for the project includes:

• lump sum payment;
• royalty is the amount that the owner of the service station transfers to the company monthly. Under the terms of the franchise, the standard royalty is 3.5% of profits. For cities with a population of over a million, this amount is 5%;
• investments in project development.

The lump sum fee is tied to the location of the service station. If the service is located in a city with a million people, the franchisee pays 750 thousand rubles. For other cities - half a million. If a business is opened in the capital or St. Petersburg, the contribution increases to 1 million rubles.

Additional attachments:

• rental of premises; Maintenance;
• set of equipment - rent or purchase;
• setting up units and mechanisms;
• purchase of consumables, diagnostic tools, tools and devices;
• furniture and office equipment;
• personnel wage fund;
• other expenses.

How much exactly you will have to invest in a business depends on a number of factors:

• region of the country;
• project format;
• the financial capabilities of the franchise owner and willingness to expand.

If we talk about average figures, then to open a car service center you need capital in the amount of 5-5.5 million rubles.

Review of the best franchises

There are several companies on the Russian market that are developing franchise networks in the area of ​​car service services. Cooperation with them can be beneficial for those who want to make money in the auto business, but do not have the necessary knowledge and are afraid to act independently. The help of professionals will help you avoid many mistakes and quickly reach the level of net profit.

WheelGood

The VilGood franchise has already opened 128 services in 50 cities in Russia and neighboring countries. The company has a goal: to open 1,000 points by 2023, so it is as open as possible to cooperation with franchisees in different cities and countries.

The franchisor promises to open in 2 weeks. To do this, we use a proven 10-step plan: from receiving detailed information by email to training and testing readiness for launch. WheelGood's instructions are so detailed that they eliminate the need to make any decisions on your own. The franchisee receives not just a personal manager: 54 employees from 12 departments of the main company will simultaneously help him open.

There is no freely available information about the lump sum fee, royalties and start-up investments: a potential franchisee will receive them when he fills out an application on the website. In 2020, the one-time contribution was 350 thousand rubles, royalties were 2.5% of turnover, and the total launch costs ranged from 1.5 to 8 million rubles, depending on the scale of the project. Payback within 2 years. The company offers franchisees an integrated approach and ready-made solutions in the field of marketing, strengthening customer loyalty, accepting orders and service.

The franchisor will help you choose a location for the service, install equipment and organize the supply of consumables

Fit service

The Fit service company promises its franchisees an income of 288 thousand rubles per month. Motorist service points have already been opened under the franchise in 11 cities in Russia. Available in 3 formats:

1. Garage. Starting investment 4.3 million rubles, monthly profit 288 thousand, payback in 22 months, profitability 16%.
2. Express. Investments 7.6 million, average profit 476 thousand, profitability 17%, payback in 31 months.
3. Standard. Starting investment is 14.7 million, profit is 867 thousand per month. Profitability 20.4%, payback in 36 months.

The franchisor promises:

• a strong brand known for its customer-oriented approach;
• support at all stages;
• supply of spare parts at wholesale prices;
• auto service automation system;
• assistance in marketing and advertising.

The company does not impose strict requirements on the experience and education of future partners. It is enough to be willing to comply with Fit service standards, develop and actively manage your business.

Bosch Auto Service

The Bosch service station network was created back in 1921 and over almost 100 years of operation has earned the trust of customers around the world. The franchisee receives:

• set of diagnostic equipment;
• catalogs of spare parts and favorable partner prices for them;
• fast deliveries of components from regional warehouses;
• training;
• technical and documentary support.

The total investment in opening one station will be 150 thousand euros (11 million rubles), and the partner will pay 80 thousand (5.8 million rubles) as a one-time contribution. Royals - 1,400 euros (102 thousand rubles) per year. Payback will take 1.5 years.

Kia

The initial payment for a Kia franchise depends on the franchisee’s plans and ranges from 200 thousand to 1 million rubles. The total starting investment will be equal to 2-3 million rubles, and royalties will be 2% of revenue every month. The franchisor promises a payback period of 12-18 months.

EuroAuto

The EuroAuto car service franchise offers the launch of your own service point in 30 days. The business is available to both beginners and owners of existing services who want to reformat their business. The franchisee is required to:

• area from 200 sq.m;
• location in a residential area, near a metro station or shopping center;
• readiness for a client-oriented approach;
• 1.5 million rubles for opening.

EuroAuto offers:

• own IT system;
• assistance in personnel selection and training in service standards;
• Outsourced warranty claims specialist;
• work through the federal contact center;
• ready price list for services.

The opportunity to work under a popular brand allows you to attract more clients

Benefits of a car service franchise

By purchasing a Vilgood franchise, you:

1. Become part of a well-known and well-promoted brand, whose name is associated with high quality work and an excellent customer service system.
2. You use a profitable business model with clearly structured and streamlined business processes.
3. You quickly receive a turnkey car service, since employees of the franchisor company help you at all stages of its creation.
4. You connect to the innovative IT platform of the Vilgud company, which makes it possible to effectively manage a service station and scale your business in a short time.
5. You get the opportunity to use the services of the company’s single call center, marketing department and other departments, which significantly saves money - you don’t have to hire additional specialists, and the flow of customers and advertising campaigns starts from the first day of the service station opening.
6. You can undergo training and internships that Vilgud regularly organizes for partners and staff.
7. Minimize possible risks.

How to choose a franchise

Buying a car service franchise requires spending millions, so you will have to approach its choice with special attention. Here are some tips to help you find the most profitable franchisor.

Recommendations for choosing a car service franchise:

1. Assess how well you meet the company's requirements for partners. Does he need entrepreneurial experience, knowledge about cars, or property?
2. Compare the cost of the franchise, total investment and royalties to your capital. Are you ready for such expenses?
3. Determine how active the franchisor's role will be in the opening and operation of the service. The more help and services he offers, the better.
4. Read reviews from current franchisees. Only positive (or simply fictitious) opinions about cooperation with the franchisor are published on company websites. Find entrepreneurs operating the franchise you are interested in through social networks and get first-hand information.

Conditions for purchasing a Wilgood franchise

The Vilgud federal network franchise cooperates only with those entrepreneurs who meet the company’s requirements. Let’s take a closer look at what these conditions are.

Requirements for franchise buyers

To become a partner of a company, a candidate must meet the conditions stated by its management:

1. Discipline - a businessman must understand that he will have to work within the framework of a model regulated by a franchise. The entrepreneur is ready to coordinate all his actions with brand specialists - financiers, analysts, marketers;
2. It is necessary to adopt the principle of a corporate approach to work . The main condition for cooperation will be trust between the franchisee and the franchisor;
3. The entrepreneur must be ready for further training and have practical experience in the service sector as the owner or executive manager of a service station.

Note! Becoming an official Vilgood partner is not easy. The company rejects more than half of the applications. A common reason for refusals is financial insolvency. One of the management’s conditions is the availability of start-up investments in the amount of at least 70% of the total cost estimate for the project.

A businessman must be prepared for the fact that he will have to spend from 2 to 8 million on rent and equipment for a service station.

In addition, the company will provide a franchise for opening a car service center in cities with a population of at least 200,000 people.

Premises requirements

In addition to the franchisee, the company’s management also sets conditions for the premises of the car service:

• useful area - from 300 square meters;
• location - first or second line;
• number of lifting mechanisms - from 3 pieces. In addition to them, there is a stand for checking wheel alignment;
• it is necessary to equip a technical sink;
• you also need to zone the premises and allocate an area for clients;
• the surrounding area and façade of the facility should look presentable, clean and well-groomed;
• Internal work on service station equipment is carried out in accordance with the company’s corporate regulations. Any deviations from the standard are not allowed.

Procedure for opening a car service center

Stages of opening a franchise car service:

1. Franchisor selection.
2. Establishing contact with the franchisor, clarifying the details of cooperation.
3. Concluding an agreement to purchase a franchise.
4. Search, repair, re-equipment of premises. Concluding a lease agreement or purchasing space.
5. Purchase and installation of equipment.
6. Preparation of necessary documents.
7. Search and training of personnel.
8. Starting a car service.
9. Attracting and servicing clients, paying royalties.
10. Reaching the break-even point and net profit level.
11. Project payback.