Automotive Franchise Information and Franchise News

Automotive Franchise

According to a study paper titled “Economic Impact of Franchised Business” from the International Franchise Association,the automotive franchise industry generates $25 billion worth of sales every year and provides jobs to more than 175,000 people.

Automotive franchises encompass a variety of business enterprise from supply stores to motor vehicle parts sellers. Automotive repair, rental, and leasing can also fall under this category. Aftermarket service establishments are notable in the industry because of its size and scope. It includes purchases related to the vehicle after the original sale. Everything from appearance products, accessories, and replacement parts can be franchised. Overall, businesses engaged in this sector contribute a lot to the US economy.

The Automotive Aftermarket Industry Association (AAIA) data shows that the aftermarket industry in the United States employs 4.5 million workers and is valued at $285 billion. The franchises that were included in this data include:

Paint and Body Repair Franchise

Oil change franchise

Car wash franchise

Transmission franchise

Auto glass franchise

Tune-up franchises

Auto-detailing institutions

Interior auto maintenance establishments

Motor vehicle parts and accessories companies

The growth of the automotive industry relies heavily on a number of factors such as: number of vehicles used, age of the vehicles, number of miles driven per vehicle every year, and the advanced technologies of newer models. There are other factors that contribute to the potential of automotive franchises including increased used car purchases, increased purchasing power of women, and the demand for fuel efficiency.

In the United States, the number of vehicles remains high and it grew by 25% from 1997 to 2007. This means that there is a huge potential in the aftermarket sector because there are more than 240 million registered users in the country. Drivers are also using their vehicles longer so there is higher demand for replacement parts and service. It is predicted that the current trend will continue for several years and automotive franchisees stand to benefit from it.