Wrenching Decision

Wrenching DECISION

Should you consider an auto-services franchise?

by Mary Vinnedge

Shade-tree mechanics are a rare breed. Most people don’t even change their oil or rotate their tires themselves, and those are among the easiest, lowest-tech tasks. Because today’s cars, trucks, and SUVs are heavily computerized, very few people have the equipment and skills to handle complicated maintenance or trouble-shoot problems in their vehicles. And there are a lot of horses out there under those hoods. Some 278 million vehicles are on the road in the United States, according to the Automobile Aftermarket Industry Association, with the average age of each nearing 12 years. The Automotive Aftermarket Suppliers Association says there’s a $381 billion—yes, billion with a B!—market for after-sales parts and accessories. Tires alone offer tremendous income potential: Modern Tire Dealer Magazine reported last year that the replacement tire market for cars and trucks exceeds $39.6 billion a year.

What do these numbers add up to? Older vehicles need millions of replacement tires, batteries, filters, belts, and fluids as well as major repairs to engines, transmissions, air-conditioning, and electrical systems. That’s a huge opportunity knocking for owners of automotive-service franchises.

On a Roll

Profiting from an ever-expanding market

BIG O TIRES® MADE A HUGE SPLASH THIS YEAR WHEN IT WAS RANKED the No. 1 franchise in the Wheels & Tires category of Entrepreneur magazine’s Franchise 500 list. What’s behind that? Well, franchisees applaud the company’s New Franchise Orientation, a primer that teaches them how to make every customer interaction an excellent one. Big O also offers franchisees—who do not need experience in the automotive industry—online training via 400 catalogued courses.

Statistics document the huge opportunity for Big O owners. According to the Automobile Aftermarket Industry Association, the nearly 279 million American vehicles now on the road are approaching an average age of 12 years. This means motorists need multiple sets of replacement tires and regular vehicle maintenance before moving on to their next ride.

Founded in 1962 as a cooperative to obtain volume pricing on tires, Big O has become one of North America’s largest retail tire franchisors, with nearly 450 independently owned and operated locations in 25 states. The stores provide a wide range of automotive services in addition to quality tires, wheels, and accessories.

In 1996, Big O Tires became part of the TBC Corporation, a major marketer and distributor of tires and other products for the automotive replacement market. Big O’s reach and resources broadened again in 2005, when Sumitomo Corporation of Americas acquired TBC. Michelin North America joined the team in 2018 by acquiring a 50 percent interest in TBC Corporation through a joint venture with Sumitomo.

To learn more, call 800-365-0007 or visit www.bigofranchise.com.

Golden Opportunity

As cars age, Midas® grows its happy base of customers

MIDAS® TREATS CUSTOMERS LIKE ROYALTY, ACCORDING TO NEWSWEEK, which crowned the company No. 1 in the publication’s 2019 customer-service ratings.

In its early days, the 63-year-old company sold mufflers with a national warranty “for as long as you own your car.” This was unheard of at the time and helped Midas become a trusted brand.

Fast-forward to today, when the Automobile Aftermarket Industry Association reports that Americans have nearly 279 million cars, trucks, and SUVs on the road. Those vehicles averaged 11.7 years of age in 2018, and the need for repairs obviously accelerates with age— creating a market of about $40 billion a year.

So, as customers rack up more miles and keep vehicles longer than ever before, Midas has evolved into a one-stop shop for total car care. This means that Midas attracts franchisees with, pardon the pun, consumer-driven demand.

Midas, with more than 2,100 locations worldwide, has been owned by TBC Corporation since 2012. As a marketer and distributor of tires and other products for the automotive replacement market, TBC ambitiously expanded Midas through additional service lines such as tires and through strong national advertising campaigns. The elite brand’s reputation— underscored by its iconic “Trust the Midas Touch” slogan—is reinforced with marketing that harnesses TV advertising, mailers and fliers, indoor displays, the company’s state-ofthe-art website, and a strong social media presence.

To learn more, visit www.midasfranchise.com or call 877-890-5874.