The auto parts industry brings in $58 billion in revenue with an expected annual growth of 1.6%. Basically, this means if you invest in an auto parts franchise, the outcome looks good! All these numbers mean you have a consistent increase in revenue every year. When taking the leap into any franchise company, it is smart to take a look at the industry’s statistics. If the annual growth is decreasing in an industry you are interested in, you might want to reconsider. When you pay money for a business, you want to make sure you earn the money back!
The bright yellow sign is hard to miss, and most Americans are familiar with the well-known brand name, Midas. With over 60 years in the business and 2,100 shops worldwide, this company isn’t going anywhere anytime soon. Considering the amount of time they have been open, the business model speaks for itself. If the business wasn’t successful, they wouldn’t still be around.
However, with such a famous brand, the cost needs to be taken into account. The initial investment for buying a franchise is $125,000. This includes the proper training and support to get the business rolling. Midas will hire and train your staff, promote the new location among the community, and give you the tools to succeed. Continued support is provided throughout your time as a franchise owner, with helpful resources available.
1972 in Houston, Texas. That was the first location of Meineke, and it has since grown to over 1,000 locations. This brand is known for their trustworthy services and affordable pricing. Their business model focuses on having a diverse array of services along with high-quality parts.
$692,042 is the average revenue for a franchise location in 2016. The start-up cost of the franchise is high, however, with investments anywhere from $125,000-$573,000. The benefit of joining Meineke: thorough training. For example, if you don’t know anything about the automotive industry or how to run an auto parts franchise, they will teach you! The company prides itself on their detailed training for their owners and provides support during the process of start-up.
Popular due to “no franchise fees”, NAPA slides into 3rd on our list. Lots of franchises have fees monthly, or yearly, that a franchisee must pay to the company. However, NAPA doesn’t charge a franchise fee. They have a detailed step-by-step guide available for potential franchisees to view, allowing them to see the process before they commit. The training they provide is extensive, stretching for 3-6 months.
With the initial investment from $75,000-$150,000, this franchise is on the lower end of cost. NAPA is very hands-on with their new franchise process, working with you every step of the way. They make sure you are well-educated in the industry you will be working in and succeed in your goals for the company.
Doing things the MIGHTY way! This particular company stands out because they found a niche in the auto parts franchise industry. Focusing on wholesale-only sales, the company has inventory that is prepared for the future. Instead of waiting until needs call for it, Mighty has the supplies on-hand and ready. With a location in nearly every state, they are a well-established brand.
With a specific business plan centering around wholesale-only, Mighty is different from their competitors. The initial start-up cost is average for this industry, running anywhere from $134,000 – $303,000. This covers the set-up of your warehouse and the training needed to run the business knowledgeably. The company also has national and regional meetings to support current owners and to share best practices.
A highly-specialized shop, Big O Tires snags the last spot in our countdown. As the name gives away, this company focuses on providing tires to consumers. However, they have other parts and services available that adds to their revenue as well. The goal of their business is to create lasting relationships with their clients. Tires need to be replaced fairly often, which is why they want to build a relationship so that people come back to them every time.
Big O Tires has a budget laid out for the range of costs for everything to get your business started. They suggest the low prices, as well as, the highest price you might pay. Thus, this causes their initial investment to look particularly costly from $259,000-$1,182,000. However, if you can buy things on the lower end of the price range, it doesn’t cost much more than any of the other franchises.
Not sold by these options for an auto parts franchise? Consider joining DetailXPerts franchise instead, a leader in the car detailing franchise industry.