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Automotive Franchise Snapshot – What’s Available Today?

The automotive franchise remains to be one of the top categories in the franchising world, owing to an ever fluctuating economy and an increased consciousness to environmental sustainability.

With over 260 million cars on American roads today driven by owners who are holding on to their vehicles longer. At some point, these rides will need repair and maintenance.


Automotive Franchise: 5 Types

Franchise Direct lists down five main automotive franchise opportunities, namely:

  • Aftermarket Parts and Accessories
  • Maintenance and Repair
  • Cosmetic and Paint
  • Car Washes and Detailing
  • Rental Agents and Dealers

1. Aftermarket Parts and Accessories

The aftermarket parts and accessories automotive franchise is comprised of businesses selling tires, wipers, side mirrors, and so on. It is considered the most successful of all automotive franchises due to consumers need to replace vehicle parts and accessories.

Why is it a viable business opportunity?

According to Franchise Help’s Automotive Industry Analysis 2017 – Cost & Trends, the value of the repair/replacement market for vehicles 0-4 years old is $20.7 billion, but the value of the aftermarket for those 8 or more years old is a whopping $77.3 billion.

What you should know

One issue that has plagued this automotive franchise category is the misconception that their products are substandard and thus, should not be used by consumers lest their vehicle’s warranty be voided by the manufacturer. This has long been addressed by the Magnuson-Moss Warranty Act which keeps manufacturers in check by preventing them from conditioning consumers’ minds. Be aware, however, of some issues that manufacturers use to deny warranty.

Cash requirements for this type of franchise range from $25,000 to $250,000.


2. Maintenance and Repair

Do you love to tinker with cars and get your hands dirty? This automotive franchise type might be the best one for you.

Why is it a viable business opportunity?

Aside from earning from basic vehicle repair, you can up your income from an array of specialized services like transmission, muffler and body repairs. The good news is, according to the Automotive Industry Analysis 2017 – Cost & Trends, fewer cars are being taken off the road. There’s a decrease in unregistered, abandoned, or junked vehicles. To a maintenance and repair franchisee, this spells huge earnings, since Americans are holding on to their vehicles longer, and these (vehicles) will need upkeep after a few years or so.

Like the Aftermarket Parts and Accessories franchises, Maintenance and Repair franchises have issues too. Most customers prefer individually-owned shops due to lower labor costs and automotive parts.

Cash requirement for this type of franchise is anywhere from $60,000 upwards.

Initial investment is from $33,000 to $802,000.


3. Cosmetic and Paint

This type of automotive franchise specializes in making cosmetic repairs to vehicles and repainting them, usually after collisions that damage their paint or surface. Repairs are also done on damages caused by natural elements like sunspots, stone chips, and hardwater spots, to name a few.

Why is it a viable business opportunity?

According to a report by, this industry can expect a job growth of 6% from 2014-2024. It based this projection from the U.S. Bureau of Labor Statistics. In may 2015, automobile repair and maintenance painters earned a mean wage of $45,420.


Vehicle paint and related products contain harsh chemicals that can affect the health of the painters and damage the environment. Make sure that your franchisor follows the OSHA Standards to prevent problems with the authorities later on.

Initial financial requirement is $60,000 upwards.

4. Car Washes and Detailing

What used to be a very small business done by anyone who was willing to get paid for cleaning cars has become a giant biz opportunity. As stated above, more and more vehicle owners want their prized possession to last longer. They are now aware that one of the best ways to extend the life of their vehicles is to keep it clean.

Why is it a viable business opportunity?

Car washes and detailing franchises offer several options with unlimited earning opportunities both from basic services to professional detailing. You can choose from automatic car washes to eco car washes that offer a multitude of services from hand car wash exterior detailing to engine steam cleaning.


The effect of chemical runoff from car washes and water wastage have been the most predominant issues surrounding the industry. Thanks to science and technology, these are being addressed by car washes that use less water and eco-friendly cleaning products.

Initial franchise cost is $10,000 upwards.


 5. Rental Agents and Dealers

Rental agents and dealers earn from the commissions they get from manufacturers. Not to mention that they can offer other profitable business opportunities, from selling tires to branded lifestyle items.

Why is it a viable business opportunity?

Tourists and travelers opt to rent vehicles rather than take their own, especially when it’s cheaper and easier to do so.Some business people rent flashy vehicles to impress their target customers. And of course, rental trucks and vans are needed for relocation.


According to, volatile demands and interest rates are the critical issues surrounding this industry, while other business challenges are: dependence on car manufacturers, vulnerability to trade disputes, competition for services, periodic shortage of workers, and changed roles of local dealers.

The initial financial requirement is $68,000 upwards.


Seriously considering an automotive business? Check the DetailXPerts opportunity as our franchise system is one of the most promising ones on the market of automotive franchises.

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