ex per t advice
Rick Bisio | Franchise Coach | FranChoice
Auto Repair Franchises Offer
Consistent Demand for Business Anyone who owns a car knows the need for maintenance and repair on a vehicle doesn’t wait for a convenient time or when the economy is good. As an industry, automotive repair has been considered recession-resistant exactly for this reason. Regardless of the economic climate, auto repair is a necessity and was considered an essential service during the pandemic. One of the longtime calling cards of the auto repair industry was always having a demand for their services, which is a tremendous benefit for an automotive franchisee. Car repair services have always been and will continue to be in high demand. We have also seen that play
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out over the past year and a half. While some industries suffered greatly, the need for auto repair continued and may have experienced an increase in business. In a down economy, there is an even greater need for vehicle maintenance. That is because people are less likely to buy new cars when things get tight. The older a car gets, the more mechanical issues come with it. Right now, the average age of a car is 12.1 years. Older cars on the road, prone to breakdowns, equate to good profit for car repair shops. It also means solid investment for entrepreneurs looking to buy into a high demand industry. Manufacturing shortages at the onset of the pandemic, shutdowns and recent computer chip shortages have slowed the pace on the production of new cars. It is certainly affecting new car sales. According to J.D. Power, new vehicle sales are down 14 percent from this time last year, and down 25 percent from 2019.
The Traits of an Auto Repair Franchisee It is important to know that an auto repair franchisee doesn’t need to be a mechanic or be able to fix cars themselves to be an owner. Certainly, they will need to have an interest in cars and know the basics behind how a vehicle works and the ways to fix them. Over the past 10-20 years, there has been a shift in which franchisors are now looking for operators with business acumen and management skills. Much of the physical work in repairing vehicles will be done by others, so franchisees need to be able to attract, hire, manage, retain and motivate employees. It is not easy to find the right employees in any economy, but especially right now. A good owner needs to be able to identify those individuals and connect with them to the point they like working for the franchisee. A franchise owner in auto repair will
