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Best Car And Automotive Franchises For UK Franchisees
The service sector in the UK has perhaps been the biggest beneficiary of the franchising revolution, and quite justly so. It makes all the sense for a service sector business to expand by distributing franchise units, instead of investing heavily in an effort to enter new territories.
Car and automotive franchises are a very good example of this phenomenon. From garage businesses to car hire businesses, nearly every segment in this industry has been successfully franchised so far, meaning that there are quite a few options for franchisees to pick from. We have curated and compiled leading car and automotive franchise opportunities on this page.
Automotive Franchises Are Popular – Here’s Why
Building a brand-new automotive business – whether it’s a small garage or an on-call tyre repair service – is expensive. Moreover, it takes a great deal of marketing muscle to get noticed. Therefore, an average investor usually finds it very tough to break into this space.
This problem is solved by franchising. In a country like ours where over 3 million new cars are licensed every year, this quick-fix has been proven to be a shot in the arm for the service-sector automotive businesses.
How Much Do Car And Automotive Franchise Opportunities Cost?
The minimum initial investment required to get started with a car franchise UK is entirely subject to the type of the business.
There are two major types to consider – purely services-based franchises (car customisation businesses, for example) and product-based businesses (tyre retailers, for example).
Our survey of dozens of car franchise opportunities revealed that the minimum initial investment in this sector lies in the £20,000-£75,000 range.
The Importance of ‘Territorial’ Presence
Most franchisors in this sector offer dedicated, exclusive territories to their franchisees. This means that you won’t have to worry about having to compete with the same brand.
This, in the long run, is an immensely important point to consider, as it can impact your revenue significantly.
Aligning Your Skillset With The Requirements
Running a successful car franchise is all about onboarding new customers while retaining the existing ones. Of course, in most cases, your role will mainly be of a managerial nature. So, if you bring on board a relevant set of skills and experience, you’ll have little trouble driving your business towards the break-even point, and beyond.
Many car franchise report that they break even within 12-18 months of trading.