Open your own car business as a franchise
Automotive business brings in a lot of income. Products and services of the auto business are in demand among people with different levels of income, and every year they are replenished with new fashionable, progressive and creative niches.
On video: Auto business. How to make money now, business ideas and what outbids are doing now
According to statistics, as of January 1 of this year, the total number of freight, passenger and bus transport was about 50,000,000 units.
Russia ranks 4th among the five largest European countries in terms of the number of vehicles sold.
To protect yourself from the risk of losing investments and the trust of partners, it is more profitable for a beginning businessman to buy an auto business franchise and enlist the support of experienced franchisors than to promote his startup in an unstable economy.
Auto franchise "Body parts"
An auto franchise for an auto parts store, a company that opened in 2012, is an offer to get a monthly turnover of up to 300,000 rubles from just one outlet. The average check is 20,000 rubles. With a lump-sum initial contribution of 200,000 rubles, the franchisee can count on a payback period for investments within one quarter - half a year.
Having launched a franchising program in 2014, the company offers a franchise with a royalty condition of RUB 20,000. and a total investment of 50,000 rubles, as well as the opportunity to receive marketing planning aimed at increasing the number of sales and providing consultations. The staff training process is provided and assistance is provided in terms of achieving self-sufficiency.
Franchise car business
In the context of the crisis that has swept our country in recent months, the issue of increasing profitability has become a real headache for many businessmen. Automotive businesses were no exception. One of the most successful options for developing and expanding your business is a franchise business. The trend of entrepreneurs uniting around one recognizable brand has not gone unnoticed by our magazine. We decided to launch a series of articles in which we will try to understand what advantages for a businessman the decision to purchase a franchise of a large chain brings, and what problems he will have to solve when choosing this path of development.
What is a franchise?
The word “franchise” is now on everyone’s lips, and this is not surprising - franchising is considered one of the most comfortable and secure business options for small and medium-sized businesses. A franchise is a certain set of benefits provided by the franchising company. This could be a brand, a trademark, a business model, a business method, an advertising strategy, and so on. A businessman buys a franchise for a certain amount, while fulfilling a number of conditions of the franchisor, and becomes a full member of the franchise network.
Both owners of an existing business and those who are starting their own business from scratch can join the network. For the former, buying a franchise means giving up promoting their own brand, carrying out rebranding and some changes in work, and as a result, in most cases, reaching a new level of business. For the latter, a franchise is a real chance to start a successful, operating business under a well-known, “promoted” brand.
According to rough estimates by experts, by 2020, about 10% of independent single services will remain on the market, the rest will become part of some network. Experts are sure that it is very difficult and expensive to compete alone with the big sharks of the auto business; it is much easier to become a partner of a large network and earn money using all the advantages of a “promoted” brand. Of course, “single” service stations will remain on the market, but, most likely, they will account for certain types of work that service stations simply will not undertake. There is already a tendency on the market to do certain types of work only by trusted specialists on the market today - as a rule, these are craftsmen who have a detailed understanding of any complex repairs on a certain brand of car.
Network conditions
Currently, several large federal car service networks are successfully developing and operating in Russia - F!T Service, BOSCH Auto Service, White Service, Evrikar, RazDvaIGotovo!, as well as various regional networks. In addition, the franchise car business is not only about car services. In Russia, a huge number of spare parts and auto electronics stores, stationary car wash complexes and mobile car washes, styling studios and detailing salons, car dealerships selling used cars and car rentals operate under a similar scheme. In other words, there are many opportunities for opening a franchise business, and all a potential franchisee needs is to choose a suitable network.
However, the decision to join one or another online brand is not enough. As we said above, in order to join the network of car service stations, the owner of the service station, in addition to the direct purchase of the franchise itself, will have to fulfill a number of certain conditions that the franchisor company puts forward for the premises of the car service station, its equipment, the level of qualifications of the staff, and so on. Different networks have different requirements for potential partners. We asked representatives of various networks a few questions about their offers to understand what future franchisees will have to go through on the way to joining the network.
Bosch Auto Service network of service stations
Bosch is a global leader in the automotive industry. The company's scope of activity includes not only the production and supply of high-quality auto parts, but also multi-brand car service. The Bosch Auto Service franchise is international - currently more than 15 thousand Bosch car services are successfully operating around the world. The brand, recognized all over the world, ensures a high level of customer loyalty to the service, Bosch’s own range of spare parts satisfies the needs of the vast majority of serviced cars, and Bosch diagnostic and garage equipment allows you to service any car at a high level. A car service franchise includes not only the brand, spare parts and equipment, but also marketing support, staff training in its own training center, as well as personal service support and an emergency technical assistance line to resolve difficult situations related to car repair and maintenance.
The Bosch Auto Service network puts forward quite strict, but quite feasible conditions for its potential partners. First of all, the service center must correspond to the level of the network - it should not be a small garage workshop with self-taught mechanics. At the same time, by the time the application is submitted, the station must have been operating in the car service market for at least a year. There are no special requirements for the organizational form of the enterprise, as well as for the form of ownership of the premises, the main thing is that the premises itself meet certain criteria. It is necessary to have a “reception” area, a service area sufficient to accommodate at least four posts, a customer rest area, parking and a warehouse. Any Bosch car service center is also a store selling auto parts, so it is also necessary to have a showroom to display Bosch products in the windows.
Another important requirement is a wide range of services provided. Stations with highly specialized specialization will have to expand their staff and acquire the equipment necessary to carry out most repair work. The required set includes equipment for mechanical and diagnostic work, including a wheel alignment stand. The only exception is body work - it is desirable, but not required. The personnel should include four repair area specialists (or more depending on the number of stands), a receptionist and an auto parts specialist. In addition, all employees of the future car service must undergo technical training at the Bosch Training Center.
Network of post-warranty service stations F!T Service
F!T Service is a well-known, well-established federal network of post-warranty car service stations, the brainchild of Rossko, the largest auto parts retailer in Russia. The main requirement for a potential partner is the desire to change, focusing on the needs of clients. Based on the capabilities of the future partner, F!T Service offers a choice of three different franchise formats.
The Garage format is an interesting offer for those who do not have a large amount of finance for initial investment. Small contributions allow you to open a station in a short time and quickly bring the project to payback. This franchise format provides a set of all express operations, the need for which arises almost daily, and is ideal for placement near a residential area. The Express format optimally combines compact service space and a wide range of services provided to clients. At the same time, the service is maintained - a high level of service and comfort for the client. The business plan for this proposal provides for moderate investments and a fairly quick payback. The Standard format is a full-cycle service station. The offer includes the maximum range of necessary service and repair services. The key competitive advantage is modern diagnostic lines that allow you to quickly determine the amount of work required. The profitability of all three options is about 20%.
“Speaking of a franchise as a line of business, you need to understand what model the franchisor company uses,” says the head of the network, Danil Soloviev. – The set of benefits for franchisees directly depends on this. When the F!T Service project began, we pursued a single goal - to create a large network with uniform standards of customer service quality. This automatically began to mean choosing the classic version of the franchise, that is, a franchise where we prescribe absolutely all the regulations - from the appearance and internal routine of the station to the dress code of the craftsmen and the maintenance regulations for each car. Thus, a client coming to any F!T Service can be sure that at each station he will receive a smiling receptionist, a comfortable waiting room, delicious coffee, quality service and a guarantee on work. Starting from the very beginning, a whole group of people works with a potential franchisee, who calculates the business plan, helps with the search for premises, designs a new building or calculates the redevelopment of the current one, searches for contractors and monitors the compliance of their work with our brand book. At the same time, we begin training the personnel of the future station; all employees take courses at our F!T LAB training center and receive the necessary knowledge on car maintenance, working with customers, personnel management and working with our software. In parallel with these processes, the advertising and marketing departments are planning an advertising campaign for the opening of the station. Even after the opening of the station, we do not forget about our franchisee, continuing to help in personnel management, providing technical support, and conducting advertising campaigns. At the same time, our franchisees are not competitors to each other, they are rather friends or partners who actively communicate with each other and can discuss some pressing issues simply because all clients are common and no one “pulls the blanket over themselves.”
Fast&Shine car washes
Fast&Shine is a professional mobile car wash service. The undoubted advantage of this type of business is the simplicity of its organization and the minimum requirements for potential partners. The fact is that washing is organized not in a specially designated room, but “on the road”, anywhere in the city. A specialist can come to the client’s home, or organize a stationary mobile washing station somewhere in the parking lot of a shopping and entertainment complex or business center. Washing is carried out in a “dry” way - using special auto chemicals. Thus, setting up a business does not require a special room or stationary car wash equipment - everything needed to provide the service fits into a specialist’s backpack. As a result, no complex or impossible requirements are put forward to the future franchisee, and starting a business does not require significant expenses, while the quality of the services provided is guaranteed by our own certified production of dry wash products and a line of related auto cosmetics.
The franchise includes a corporate identity and logos, a ready-made business plan, a brand book (layouts for business cards, stickers, plastic cards, booklets), detailed instructions for organizing a business and constant support from the franchisor company. In addition, partners receive an automated order management system Fast&Shine, an Internet page for promoting on-site car washes, as well as a full set of tools necessary for carrying out their activities - detergents and polishes, nano-polishing, tire ink, glass and wheel washing liquids, professional sprayers, workwear, as well as mobile terminals for accepting payments via plastic cards.
Currently, the company operates in 160 cities in Russia and neighboring countries. Wide geography and high quality of services have provided the brand with recognition and a great deal of trust from customers. There are two franchise formats. The “Dealer” franchise package gives the right to operate under the Fast&Shine brand, and the “Exclusive” package provides for exclusive ownership of the brand in the territory of one city and the nearest regional centers. The company’s partners working under a “dealer” agreement purchase consumables from the owner of the “exclusive” package at partner price list prices.
Online auto parts store “One Hundred Details”
Selling auto parts via the Internet is one of the most promising vectors for the development of retail sales in Russia at the moment. The auto parts market is characterized by its huge capacity and stable growth, while organizing an online store does not require the cost of opening a retail space or setting up a showroom. In addition, warehouse space is often not required, since parts are delivered from the store supplier's warehouse. The “One Hundred Details” auto parts store franchise includes a ready-made online storefront of a well-known online store with a huge customer base and good positions in search engines, a large assortment of spare parts at wholesale prices, advertising and consulting support, as well as website maintenance.
By signing a franchise agreement, a partner becomes a representative of the Hundred Details store in his city. The store website is the same for all franchisees, but store visitors from different regions see different contact information on the site. The franchisee acquires the right to process orders from customers of the Hundred Details store in their region. It is he who will communicate with the client and make a profit from fulfilling his order. To join the network, an initial payment of 50 thousand rubles is required, as well as monthly deductions. In addition, the volume of monthly purchases starting from the 3rd month of cooperation must be at least 100 thousand rubles.
To sum up today's research, I would like to say that the market for modern franchises is extremely diverse, and they all differ from each other in conditions and requirements. Such diversity only benefits potential franchisees - they have the opportunity to choose the most optimal options for themselves. When choosing a franchisor, a businessman must rely on such indicators as his own resource base, the client base he is counting on, and the geographic location of the future enterprise. However, you should always remember that due to certain circumstances, the franchisee may lose its partnership with the franchisor company. To prevent this from happening, you will have to make a lot of effort to fulfill all the conditions for successful development within a large network.
Auto tech franchise
A young and actively developing auto franchise is an opportunity to purchase a high-quality product that functions individually. The main advantage of the franchise offered to beginning and experienced entrepreneurs is an effective and powerful business system, covering such components as software, technology, marketing and management systems, and a number of standards.
The required initial, lump-sum contribution is 1,000,000 rubles. Investment limits are from 1,000,000 to 8,000,000 rubles. The royalty percentage is 3.5%. The payback period for investments is from 12 months.
There are more and more cars every year, which means that the demand for goods and services related to automotive topics is growing every year. In this section you will find the best car franchises that will allow you to open your own business and start working for yourself in the shortest possible time.
We select only the most promising, in our opinion, auto franchises for this category. For example, the “Autodevice” franchise of automobile accessories will allow you to open an inexpensive and very profitable business, since auto accessories are very often bought as a gift. And the Fast and Shine car wash franchise is a great way to make money without any additional investments related to renting premises.
Please check out the video reviews of auto franchises:
Auto franchise catalog
"Mos-Lombard"
The company was founded in 2012. Mos-Lombard franchise first appeared on the market The company owns 1 of its own outlets and 2 operate as franchises. The lump-sum payment amount is 550 thousand rubles (turnkey - 750 thousand rubles). advertising fee . royalties . Investment amount from - 250,000 to 1,000,000 thousand rubles. The payback period for investments is from 4 to 6 months. Monthly profit - from 180,000 to 1,000,000 rubles. The minimum size of the required room area is from 10 square meters. meters. Regions of work : Moscow and Moscow region. Yu.a. : Zelenograd, building 349, room 2, rooms 1-4 Offices : Moscow, 2nd Western Prospect, 1, building 1, office 212. Ogorodny Prospect, 16, building 17 Phone ;. Email Website : https://www.mos-lombard.net/#!—1/cjqu
"Autoloan"
The company was founded in 2012. Sales of auto business franchises began in 2014. The company has 2 of its own customer service points and 4 franchised ones. The amount of the lump sum contribution is from 100,000 to 1,500,000 rubles. Advertising fee is determined individually. royalties . The amount of initial investment is from 300 to 1,000,000 rubles. The payback period is from 6 to 12 months. Monthly profit depends on the amount of investment. The minimum size of the required area is from 15 square meters. meters. Regions of work - Rostov-on-Don Contacts : Rostov-on-Don, st. Beregovaya 8, floor 10, office 1013-2, business Phone
Driving school "AUTOINLINE"
The company was founded in 2020. Driving school franchise sales start in 2020. Number of own schools - 2, franchised - 34 Lump sum fee - no. Advertising fee is determined individually. royalties . Initial investments - from 300 thousand rubles. Payback period : from 3 months. Monthly profit - from 100 thousand rubles. The minimum size of the required area is from 50 square meters. meters Regions of work - Russia, Kazakhstan, Belarus. Address : Kirov, Uritsky street, 24 Phone : +7 (8332) 64-6-64
Tire center VIANOR
Year of foundation : 1999. The first Finnish tire center in Russia was opened in 2005. The year the tire center franchise sales began was 2005. The company has 498 own centers and 319 franchised ones in Russia. The amount of the lump sum contribution is 60 thousand rubles. advertising fee . Royalty - 25 thousand rubles. Initial investments - from 500 thousand rubles. Payback period - from 1 year. Monthly profit - from 50 thousand rubles. The minimum size of the required area is from 200 square meters. meters. Regions of work : European countries, USA, CIS, Russia. Central office: Nokian Tire LLC / Nokian Tires LLC 188640, Russia, Leningrad region, Vsevolozhsk, Industrial zone "Brick Factory", block 6. Phone : +7 812 336 9000 Fax : +7 812 336 9595 E-mail Website : https://vianor.ru
Tire.
The company was founded in 2004. The tire sales franchise was launched in 2011. The number of enterprises in Russia is 146. The lump sum contribution is 250 thousand rubles. advertising fee . Royalty - 10 thousand rubles. Initial investments - from 500 thousand rubles. Payback period - from 1 year. Monthly profit - from 50 thousand rubles. The minimum size of the required area is from 120 square meters. meters. Regions of work: Moscow and Russian cities with a population of more than 200 people. Address : Moscow, Mira Avenue, 114 A Phone E-mail Website : https://koleso.ru
Tire.
The company was founded in 1999. The amount of the lump sum contribution is discussed individually. Advertising fee - discussed individually. Royalties are discussed individually. Initial investment - from RUB 3,000,000. Payback period : from 9 months. Monthly profit - from 300 thousand rubles. The minimum size of the required area is from 50 square meters. meters. Regions of work: Moscow, Yekaterinburg, Rostov-on-Don, Kazan and other cities of Russia. Address : St. Petersburg, Lensovetovsky village, Moskovskoe highway. d.231. Telephone ext. 1103 e-mail Website : https://www.petromaster.ru
Tire
The company was founded in 2004. The franchise was launched in 2004. The company has 3 of its own points and operates more than 100 franchises. The amount of the lump sum contribution is determined individually. Advertising fee is determined individually. Royalty is determined individually. Initial investment - from $30,000. The payback period is from 12 months. Monthly profit - from 100 thousand rubles. The minimum size of the required area is from 120 square meters. meters. Regions of work: Russia, European countries, Kazakhstan, Belarus, Armenia, Azerbaijan, Moldova, Ukraine. Address : Moscow, st. Pravoberezhnaya 2-B. Telephone . E-mail Website : https://tyreplus.ru/auto/contacts/index.wbp
