Is Franchising a Better Business Model for an Auto Shop Business? | Auto BoardzIs Franchising a Better Business Model for an Auto Shop Business? | Auto Boardz| Auto Boardz
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Franchise or Independent: Which Is Better for an Auto Shop Business?

Auto supplies storeAn automotive business serves as a good way for those who want to make money out of their love for cars, but planning to set up a shop requires more than just enthusiasm.

Choosing between a franchised business and sole proprietorship is one of the several things to consider for aspiring auto shop owners. Another thing to consider involves finding the right supplier of equipment, such as a Baileigh tube bender for sale from JMC Equipment.

Business Models

A well-known franchise such as Jiffy Lube or Midas would involve fees costing between $200,000 and $400,000. If cost is your deal breaker, then going for an independently owned business is a better option. Even if you can afford the franchising fee, you would need to pay a recurring 3% royalty charge.

However, the benefits of an auto franchise include an established customer base. This allows you to divert your attention away from marketing since people will readily recognize the brand as a trusted product or service provider. The city where you live will also be a factor, especially if you plan to open a new business in 2018.

Best Cities

An analysis of 182 large cities showed that Oklahoma City ranked as the best city in the US to start a business. The City of Austin in Texas ranked as the best place in terms of business environment, while Boston has the best access to resources.

Those who live in Springfield, Missouri, will likely pay the cheapest business costs. If you plan to set up a business in Salt Lake City, you will have more options for financing than most cities in the country.

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You should weigh the pros and cons of starting a new business or deciding to pay for a franchise. Whichever you choose, consider the importance of having access to a reliable supplier of automotive equipment.

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