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There seems to be one type of business everyone knows about and that is the automotive industry. It has a strong stance in American history and had a turning point in the industrial revolution with Henry Ford’s assembly line, amongst many other economic changes.

The automotive industry has been the backdrop of the American economy since it was first developed and it continues to have a lasting impact each day. In fact, US car sales generate 7.1 million a year, while 95 per cent of American households own a car.

For those interested in gaining a profit from the All American business, franchising would be the best consideration. Most of the car brand names and operations are available through a franchise option that is well established and organized.

The automotive industry works on a very large scale, from parts to production and manufacturing; a franchise allows you to start a business in connection to all of those operations with ease, while also providing high end marketing and advertising. Although these franchises have a high buy in, they nearly always guarantee a profit which is mainly provided by the franchisor’s many supports.

Though one of the main focuses of the 2008 US recession was the auto industry, it has made a smooth recovery and has grown with the economy. Consumers now have a different approach to driving and car ownership; though each household in America has 1.1 cars on average, people are holding onto them a lot longer. In 2015, the average age of registered vehicles in this country was 11.5, a number that has been increasing since the recession.  Though people are buying cars, they are waiting a long time in between purchases and all these numbers must be considered when becoming an investor in the industry.


For those of you who have a great passion for vehicles, a car sales franchise is a great opportunity to be a part of an industry that you truly enjoy. A lot of people are car nuts but it’s an expensive interest; a franchise allows a profit while being surrounded by all your favorite toys. Be sure to consider your favorite brand names and dealers, while also considering the support from the franchisor.

A lot of car industries have all resources within the country, which could be more convenient but may cost more or maybe getting parts from overseas costs more. All the details about shipping and receiving can likely be answered by a franchisor but a lot of the processes should be considered before an investment.

People are holding onto cars a lot longer, but people never stop owning cars. However, a sales franchise would be in direct competition with used sales dealerships. You should research your area and territory for used dealerships before investing in a franchise as such.

Someone with a background in car sales would be beneficial but not necessarily, as well as someone with an understanding in business.  It would be best to try and discuss your options with other car franchisors to get a personal perspective of your expectations.


This field of automotive service hits a broad range of offerings. Since more people are holding onto their cars for a longer time, there are more people seeking services.  There are lube franchises, repair services, car washes and collision repair. The list is endless for vehicles - they tend to run into trouble and need a professional’s help.

Investing in a service franchise allows an investor to be immediately connected with a well-known brand name. However, when it comes to auto repair, this may not necessarily be beneficial.

A lot of communities have a comfort service, a local small business that treats them properly and provides cheap, fast and great service. Researching on the ground for completion would be extremely beneficial to those interested in the automotive service franchise.

While a franchise would provide consumers with a reliable branding, its small business competition may dampen a success rate that the franchisor had not considered. This would likely only be discovered through word of mouth and talking directly to local consumers and businesses.

Of course, someone well versed in automotive repair would benefit a franchise of this sort, but it’s not necessary as the franchisor provides support and training.

The service industry has a wide span of choices, outside of simple repair:

Car rentals: Though the industry took a hit during the recession, the car rental industry’s revenue has been growing in the last couple of years, with an annual growth of 2.7 per cent and a $38 billion revenue in the country.

Glass Repair:  Some franchises remained focused on one area, including glass repair. Of course, some franchises offer other services besides repair, which a franchisee should consider in their research. They should also look a a services retails sales in the last year.

. According to Auto Glass Repair and Replacement Franchises Market Research Report in 2017, this industry has been losing business to DIY repairs and auto body shops that offer multiple services. A business of this type would be competition with direct car dealerships and service shops offering plenty of services. However, a glass repair franchise may be worth considering on a small scale. The same report stated the industry brought in $144 million in revenue annually, therefore an investor would have to research whether or not that is beneficial to them.

Oil change and lube: Again this field has competed with the do-it-yourself method, but with people keeping their cars for longer than ever before, they want to trust the professionals to keep them lasting long. This is worth a review for potential franchisees to see if they are interested in a lower scale form of automotive franchising.

The automotive industry is wide ranged and is not simply limited to car sales, however those are the heavy hitters in the automotive economy. For a franchisor passionate about cars, it’s a great franchise investment with a lot of return, but also a lot of initial research and networking to ensure the proper decision and direction has been taken. It will take time and money at the initial investment, but the pay back will be worth it.


ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.