It’s no secret secret that Americans love cars.
While many Europeans still view trains as the optimal way to navigate, the American automotive fervor has only grown. The United States is now the second largest market for vehicle sales and production. In 2018, U.S. vehicle sales topped 17 million units for the fourth year in a row. Furthermore, auto-repair, autoparts, and automotive companies support more than 400,000 jobs jobs.
Entrepreneurs have been quick to jump on automotive franchise opportunities in recent years due to strong and sustained industry growth. There are many franchises that have either sprouted up in the past decade or have been around for over half a century! Automotive franchises offer car enthusiasts, motorheads, and everyone in-between an opportunity to partner with an established brand without having to deal with the trials and tribulations of starting your own business.
Our picks for the top 5 automotive franchises for 2020 are listed below:
Initial Franchise Fee: $10,000 – $30,000
Startup Costs: $181,650 – $459,587
Established in 1959, Midas (Muffler Installation Dealers’ Associated Service) has cemented itself as a leader in the auto-repair industry. The Florida based repair company offers a wide range of services including brake repairs, oil changes, air conditioning repairs, steering, suspension, lights… the list goes on.
Midas also prides itself on community outreach. Midas’ Project Spark initiative seeks to repair 1,000 vehicles owned by veterans and first responders. The automotive franchise has also partnered with 1-800-Charity Cars to give away cars for families in need.
As one of the largest automotive franchises in the world, Midas currently operates more than 2,000 company owned outlets and franchise outlets across 13 countries.
2. Maaco Auto Body Shop
Initial Franchise Fee: $40,000 – $228,000
Startup Costs: $362,250 – $567,250
As one of the leading autoparts franchises, Maaco offers everything from paint services to tune-ups. Anthony A. Martino founded the company Martino, Anthony A, & Co. (Maaco) with a few business partners in 1972. The company quickly grew from there and now operates over 500 franchises across the U.S. and Canada.
Maaco prides itself on service. Service centers that provide top quality restoration are given the distinction “Macco Certified”. Maaco also offers a lifetime warranty on all structural repairs. Over 20 million customers have had their cars serviced by Maaco since 1972, a number that doesn’t seem to be slowing down anytime soon.
3. Merlin 200,000 Miles Shop
Initial Franchise Fee: $30,000
Startup Costs: $236,200 – $398,000
Since 1975, Merlin 200,000 Miles Shop has prided itself on making sure its customers’ cars last over 200,000 miles. Merlin’s Drive For 200,000 program offers regular inspections, maintenance, and preemptive repairs. Merlin also operates under a “regular-repeater” customer mentality by striving for long-term customer relationships.
Merlin currently has approximately 30 franchise outlets in operation in Illinois and Wisconsin with more projected openings for 2020.
4. Tread Connection
Initial Franchise Fee: $37,500
Startup Costs: $98,600 – $162,200
With an approximate 272 million cars driven in the U.S. as of 2019, the need for new tires is ever-present. Founded in 2016, Tread Connection automotive franchises provide each customer with a quick and efficient tire change, whether it’s a mid-size sedan or high-performance super car.
When a driver experiences a blowout/flat tire or needs a new wheel, a Tread Connection technician will rapidly respond. As one of the first mobile, tire installation franchises, Tread Connection has quickly expanded to eight states in four years.
5. Tuffy Tire and Auto
Initial Franchise Fee: $30,000
Startup Costs: $224,000 – $413,500
Founded in 1970, Tuffy Tire operates automotive specialty centers around the country.Tuffy Tire provides a wide range of automotive services including engine diagnostics, steering, and brake repairs. The Ohio based franchise also provides state vehicle inspections and guarantees a free year of roadside assistance to every customer.
For each purchase, Tuffy Tire also guarantees a national warranty of 24 months or 24,000 miles – whichever comes first. Tuffy Tire currently operates an estimated 175 franchise outlets in 20 states.
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