Autobody and Contractor Franchise Startups
Top Franchises for Contractors and Auto Body Shop Owners
Out of the gate, this is misleading because most of the included franchises have much greater total franchise investments.? The low figures are the out of pocket cash requirement which does not factor in-house and third party loans required to get busy.
We are not saying that opportunity does not exist, we are just identifying that it is a VERY SERIOUS proposition and anyone looking to go into it should tread carefully.
The Franchise Opportunity ? What do they offer?
- Questionable Profits ? Many times the profit margins given to the prospect are before expenses, which is pretty useless and make it hard to understand actual net profit potential.
- High Start Up Costs ? non-refundable initial franchise fees, required furniture, signs, equipment etc?? These items can be very expensive since there?s NO COMPETITION on these resources.
- Encroachment ? Franchises like Line-X and other automotive franchises do not guarantee a locked radius.? So, when business is good, the opportunity to open another franchise in the area is irresistible to the franchisor.
- Limited Independence ? With a franchise, remember you are buying the business plan as well as the marketing and materials.? So, if you want to improve on your business model there is often no room to make adjustments without breaking your franchisee agreement
- Restrictions on post term competition ? When signing the franchise agreement, the business owner is many times signing away his/her rights to operate in competition with the franchisor for a number of years (5-7).? So, don?t think of going independent once you go down this road.
There is HOPE Keep Reading or go straight to the list of franchises
The difference between franchise agreements
The Noose Business
Enough Rope to Hang Yourself ? Product Franchise
Build Your Business and Succeed
Why franchises fail
- Location selection
- False expectations
- Poor business decisions
- Poor understanding of what the franchisee is responsible for
- Unclear understanding of ROI
- Poor franchisor selection
Expecting a substantial return on investment without a time to mature and expected sweat equity will guarantee failure.
Sweat Equity
Let’s Get to the Review
From material costs to total loan amounts that are not included in the minimal cost figure displayed.? For example, AAMCO states that the startup fee is $39,400.? However, the franchise investment required is about $250,000 dollars.
Aamco
Total Investment: $232,000 ? $299,000
As soon as you become an AAMCO franchisee, they offer:
- Market development and site selection
- Extensive new-franchisee orientation and training
- Proven national advertising along with local marketing campaigns
- Established business systems, operations support and recruiting assistance
- Multi-unit growth and real estate acquisition opportunities
Flooring and Coating Franchises
Non-Franchise Start Ups that make Money
Concrete Technology Inc
Focusing on beautification of old and/or damaged outdoor floors with Acrylic concrete solutions. A CTi Dealership is backed with stocking inventory and comes with CTi’s proven business plan that can make anyone successful.
Notice the broad startup capital required?. You cannot start up for under $50,000 effectively.
Location : Tampa, FL
Global garage floor and design
Cash required: $50,000 cash
What They Do
As one of the premier garage refinishing and coating companies in North America, Global Garage Flooring? and Design offers complete garage makeover solutions from custom industrial strength concrete floor coatings to top of the line cabinetry. A secondary component of our business entails a focus on commercial and industrial flooring applications.
Three Lines of Revenue Stream;
- Garage Floors
- Commercial Floors
- Cabinet & Storage Solutions
Full Training and Support
- We walk you through your initial equipment, office, business and storage area set up
- 4 Days of training at a successful Global Garage facility
- Additional 4 Days of training at your location using your equipment
- Manufacturer flooring training
- Manufacturer cabinets training
- Ongoing coaching, newsletters, meetings, etc. It?s this ongoing Motivation & Support that makes the difference!
Novus Glass Repair
Cash Required: $14,000
Investment Range:?$22,975 – $206,800
Business Type:?Franchise
SBA:?Yes
Financing:?In House
NOVUS is Proud to Announce Our New Company-Based Finance Program!
In this challenging economy, which has made it difficult for some qualified candidates to obtain bank financing, NOVUS has developed its? own finance program. You can now own your own NOVUS franchise for $14,000 (New Repair /Replace Franchise). This down payment will be paid on your first day of training. This finance program is available to all accepted candidates. There are no pre-pay penalties if you decide to pay off your loan in full.
“While the rewards of business can be great, success is never guaranteed. We made the conscious decision to buy a franchise because we wanted the best name recognition?the best business services?and an established national reputation. NOVUS? offered all these things and more”.
– Bob & Linda Brendal, Missouri
Operations
- A proven business model
- Business Operations Reference Manual
- Franchisee-to-franchisee consultation and support
- The industry’s highest quality products and resins
- National warranty program
- NOVUS Research & Development Innovation
- Preferred provider program – Glass tool advertising buy programs.
- Instant Credibility
- National and international brand recognition
- 25 Million+ satisfied customers
Paint Bull
Cash Required: no minimum required
Investment Range:?$5,000-$45,000
Business Type:?Business Opportunity
SBA:?Yes
Financing:?3rd Party
Paint Bull Business Programs
Paint Bull offers a variety of Business Programs for becoming a Paint Bull Certified Affiliate.
- Paint Repair Business Program:
From Stone Chips to Key Scratches, Scuffed Bumpers and even damaged Rims- the Paint Repair Business Program shows you how to profit from any type of paint and clear coat damage you will ever see. - Paintless Dent Repair Business Program:
We’ve added basic Paint Touch Up and Clear Coat Polishing to traditional PDR Techniques to complete our unique Paintless Dent Repair Business Program. - Interior Repair Business Program:
Car Dealerships, hotels, restaurants, marina…the list of potential customers fixing damaged seats and furniture is endless. The Interior Repair Business Program; “it’s not just for car dealers anymore!”
In Summary
Franchises do work in the right environment.? However, if you are an existing body shop or contractor looking to set up your future by growing your existing business be careful and do your research.? From what I can tell, if you have less than 50k to invest in a business, a franchise is a risky deal.? Look into product based businesses and opportunities that offer to expand your existing name locally.? This is the key to getting a return in your first year. ?Inflated costs and extra fees and royalties associated with franchises may drown you.
Also, be ready to work your ass off for the first one to five years.? It?s a reality with any business, and if you already own one then you are already onboard.
So, get out there, do your research and make some money.
Non-Franchise Business Opportunity
Spray-Lining Truck Bed liners, Floors, and Coatings
Cash required: $3,000 – $10,421
This is a non-franchise, product based business with local marketing for your business.? They sell high quality polyuria, polyuria hybrid, poly-hybrid based products to add to your existing contracting or auto business.? If you are in the construction or repair industry you can make good solid income with this opportunity.? The cost is not that much and the potential jobs range from a few hundred to tens of thousands.? There is never a guarantee for profitability, but this is one of the better choices when it comes to NOT failing.
see http://www.bodyshopbusiness.com/police-raid-houston-area-body-shop/?eid=285031763&bid=1401475 A great Spray-Lining Coating Review of Gonzalez, a convicted criminal who abused Spray-Lining name with Line-X & Rhino Linings’ also.