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Wednesday, 30 May 2018 17:14

Franchises in the automotive industry - is it worth starting a business in this industry?

Everyone, at least once in their lifetime, at some point thinks of opening up their own business. Many people dream about being their own boss and not having to worry that someone will be taking advantage of them. However, then a moment of reflection usually comes - being an entrepreneur isn’t cheap.

First you need to have a lot of money and above all a great idea for a business. And what if it fails? Therefore, if you want to establish your own business, but you’re worried about entering the market with a new brand, you may be interested in the possibilities which franchises can provide.

 

What is a franchise?

Opening a franchise is the answer for those who want to start their own business, but are afraid of entering the market with a new brand or immediately want to cooperate with a large business partner who valued on the market.
The new entrepreneur, i.e. the franchisee, receives from the franchisor the possibility to use his logo, knowledge and sales methods - he buys a license under a franchise agreement. This allows to use the marketing opportunities of a leading brand - you will avoid advertising expenditures, which are usually a fairly large part of the cost of running your own business.

The risk that the business will fail is significantly lower. In addition, the entrepreneur enters the market with a well-known and valued brand, which allows to build customer confidence.

Which industries offer the greatest opportunities for franchise development?

Franchises are most often associated with brands of well-known restaurant chains or beauty and hairdressing salons. However, as it turns out, also other industries provide great development opportunities, and thus revenue. It’s worth taking a look at practically any franchise offer from the automotive industry (cars franchise).

One of the most popular forms of earning a franchise connected with cars is running a petrol station under the logo of a well-known brand of a fuel producer or a chain of petrol stations. But that’s not all. You can start cooperating with an automotive or car parts manufacturer by opening your own repair shop, becoming an authorised partner or a franchisee of the brand. Another idea is to open a car dealership or accessories store under a popular automotive brand, or even a car wash.