Ask the Expert:

How Do I Evaluate an Automotive Maintenance Franchise Opportunity?

MODERATED BY JOHN WALSH

Q: What does the future have in store for automotive maintenance franchises?
A: According to the International Franchise Association, automotive maintenance businesses are expected to be some of the fastest-growing franchises over the next few years. Also, automotive maintenance is a virtually recession-proof service. No matter how the economy is performing, people will still need to get their cars repaired.

Q: Would I enjoy owning an automotive maintenance franchise?
A: It is essential that you are interested in cars if you want to purchase this type of business. You will be working around cars all day, and you need a basic knowledge of car repair procedures to make sure that your employees are doing quality work.

Q: How can I tell if an automotive maintenance company might make a successful franchise?
A: The company's history is a good indicator of its future. If the company has been losing stores in the past several years, you should think hard before investing your money. Also, if a company has been expanding very, very quickly over the last few years, this should raise some red flags. Expansion is important, but you should make sure that the company's fast growth does not mean that its resources for franchisees are being spread too thin.

Q: How important is name recognition?
Name recognition does matter in the automotive maintenance industry. Consumers must trust the people who repair their cars, and name recognition is one way of gaining that trust. Buying a franchise with a well-known company such as AAMCO can give you a built-in customer base.

Q: What else can I do to ensure that I pick the right automotive maintenance franchise?
A: You can talk to people who already own the franchises you are considering. They can fill you in about their experiences in starting their business. Be sure to ask about the support that the parent company provides franchisees. Do franchisees have a place to seek help for their concerns both as the franchise is opening and as the business becomes established? If the franchisees have great things to say about the company, chances are good that you will have a positive experience as well.

Q: How much would I have to invest to purchase an automotive maintenance franchise?
A: Automotive maintenance business franchise fees can range from $15,000 for a car detailing service to $600,000 for a car wash. An AAMCO franchise runs $183,100 to $192,500.