More and more people are deciding to purchase a car. Therefore, opening a car service center will always be a profitable business. The profitability of such a business is ensured constant flow clients. They require both repairs and technical inspection.
The difficulties in opening are obvious. Firstly, there is a lot of competition in this area. Secondly, there are a lot of nuances that should definitely be taken into account when starting out. Therefore, a car service franchise is a very profitable offer that can quickly pay for itself.
The main advantage is that you purchase a ready-made model with a developed marketing program. Even if you are going to sew car seat covers, a ready-made model has advantages over starting a business from scratch.
Features of the car service business
This type of business will not lose popularity for a long time. You can open a narrow-profile service for tire fitting or body repair, or you can do painting, as well as installation of accessories, car covers or additional equipment. You can think about .
One of the main problems of this type of business is. Finding a professional employee is difficult, and competition is high. Guaranteed income can only be ensured by a high level of service and quality work.
Therefore, auto business franchises are popular. In most of them, the central company helps train and select employees, and also monitors their qualifications. An auto franchise can be not only a service station, but also the production of car covers or an enterprise for processing tires into crumbs.
Review of the conditions of the 5 largest franchises operating on the Russian market: Vilgud, Bosch car service, Kia, White Service, Fit Service
A car service franchise with a recognizable brand in Russia is one of the entrepreneurial ideas. To determine business efficiency, you need to find out the market capacity services during a crisis and the peculiarity of the emerging partnership with the franchisor.
According to a marketing study conducted by the analytical agency "AUTOSTAT" for 69 large regions of the Russian Federation, in which more than 97% of the fleet is located passenger cars, market capacity amounted to 524.2 billion rubles. The market potential was also calculated (141.9 billion rubles), which means car repair and maintenance work (performed personally by car owners or private mechanics) in in monetary terms.
The statistics presented show that there are opportunities for entering the car service market - it has not yet reached its ceiling.
In order to minimize risks the best way entry into the market will be the purchase of a franchise of a well-known car service center.
A franchise is work under a brand famous brand with payment of a certain remuneration (royalty) to the franchisor company, implying uniform high standards service.
Review of the top 5 popular franchises in Russia
Let's look at popular companies that provide their franchise services in the auto repair industry. Analysis of franchise offers on specialized websites made it possible to make a comparative description of the main requirements for franchisees.
| Name | Room size | An initial fee | Total investment amount | Payback |
|
|---|---|---|---|---|---|
| 1 million rub. (for Moscow 2 million rubles) | 4-8 million rubles. | 3.5% per month | |||
| Bosch car service | 150,000 euros | 1400 euros per year | 1 year 6 months |
||
| 300,000 rub. - 1 million rubles. | 2-3 million rubles. | 2% per month | |||
| "White service" | from 50,000 - 400,000 rub. | 1 million rub. | 2% per month | 5-6 months |
|
| from 1 million rub. | 4-15 million rubles. | 5,000 rub. from one work post + 2.5% of total revenue | 22-36 months |
Most inexpensive franchise, suitable for a novice entrepreneur would be the White Service franchise. Bosch car service and Fit Service will require investment significant funds.
Let’s analyze the terms of cooperation for each of the franchises included in the TOP 5 in more detail.
Wilgood
Auto service center Vilgud, who came to Russian market in 2012, relies on the quality of the service stations it opens, and not on their quantity: the franchise network consists of 48 branches and 6 of the company’s own car service centers. The easily recognizable logo in the form of a white and red inscription catches the eye from afar.
If the franchisee starts a business based on an existing auto repair shop, the costs will amount to no more than 1 million rubles; if from scratch, the entrepreneur’s expenses can amount to 4-8 million rubles.
| Mandatory conditions for franchisees | Discovery stage | Final launch stage |
|---|---|---|
| Starting a business is possible only in cities with a population of 200,000 or more inhabitants | assistance in organizing and drawing up a business plan |
|
| Automotive service experience required | personnel search | personnel training in Moscow |
| Availability of personal capital in the amount of 70-80% of the project cost | inventory support | signing agreements with partners for the supply of spare parts and auto chemicals with maximum discounts |
| Franchise training - up to 2 weeks | attracting customers through outdoor and online advertising | Purchase of equipment and inventory within the agreed standard budget |
Bosch car service
15,000 branches international company franchisor Bosch auto service speaks about the company's leadership in the field of providing auto services. The Bosch logo is a tall blue pillar with a white arrow and a red and blue name: Bosh Service. The well-known concern in Europe offers 3 main areas of franchising activity.
Depending on the planned volume of investment, a businessman can choose one or another segment of the car service.
In addition to training franchisee employees, Bosch offers:
- business plan;
- software for computer maintenance of automobiles;
- special branded clothing.
Bosch sets quite strict requirements for its partner company - the presence of premises required by company standards: repair and customer areas, spare parts warehouse, store, workshop, reception of vehicles for servicing. The total size to satisfy all requirements must be at least 450 m². The annual royalty payment is RUB 90,000. per year (1400 Euro). On the territory of the service station in Bosch Shop, the annual sale of spare parts from the franchisor in the amount of at least 18,000 Euros must be carried out.
Kia
The Korean automobile concern KIA, whose cars have gained wide popularity in Russia, following car sales, is launching its own line of car services to service its equipment. A car service center connected to a franchise network has the right to count on the support of a single call center, the possibility of centralized purchase of spare parts with discounts affiliate program and assistance in selecting specialized equipment.
The basic requirements for a car service center planning to purchase a franchise are as follows.
Initial investments start from 1 million rubles. with a monthly payment of 2% to the franchisor of total revenue.
Opening a KIA car service center is possible in conjunction with obtaining the status of an official dealer of the automaker.
White service
Cooperation with the White Service company is suitable for a novice entrepreneur, since opening a workshop will require smaller starting investments - the initial payment can be 400,000 rubles.
The aggressive, red logo with white letters and a waving flag will attract the attention of car enthusiasts. By 2017, the company has 60 car service centers in 37 cities of Russia and continues further active development.
For the franchisor, the organization offers a whole range of benefits, the main of which are:
- providing access to the OLA IT platform, which allows you to select the necessary spare part, set pricing and upload data to 1C;
- supplies of spare parts from global manufacturers on preferential terms;
- possibility of online registration for the service;
- advertising support at the federal level;
- training of personnel in standard company technologies.
| total area car service | |
| Customer service area | |
| Parking | At least 3 seats |
| Availability of special equipment | wheel alignment stand for small and basic service station formats, diagnostic scanner BOSCH (LAUNCH), equipment for antibacterial cleaning of the Wynn’s air conditioning system, installations for cleaning fuel systems Wynn’s FuelServe and for refilling the air conditioner, balancing stand, tire stand. |
| Number of lifts | for mini format - 2, small - 3, main - from 4 to 6 pcs. |
| Minimum ceiling height | — from 3.5 meters |
Fit Service
The specialization of the last car service under consideration in post-warranty service determined its availability in value terms - entry into the market under a franchise starts from 300,000 rubles, if a service station is being re-equipped with a basic set of repair units. The organization has branches in 19 major cities of Russia. The positioning is for a car service “at home”, allowing motorists to quickly carry out minor repairs or replacement of necessary parts.
How to choose a franchise - what we pay attention to
To choose the right franchise, you should focus on several indicators.
The main ones will be:
- brand recognition. It is best to purchase a franchise from an organization included in the TOP 10. This will allow you to count on guaranteed profits and a proven standard program for integrating your business into franchising;
- terms of purchase. The franchise price should be comparable to the profit you expect to receive after using it;
- payments. The amount of payments must be acceptable to the franchisor, otherwise the economic meaning of such cooperation is lost;
- conditions for termination of the contract. It is necessary to determine in advance the escape routes if the franchise business is unsuccessful.
The correct approach to analyzing these indicators will allow you to choose the best offer.
Every year the traffic flow in Russia increases by 10-12 percent. Therefore, business related to transport maintenance is becoming very popular among entrepreneurs. Not every car owner can independently repair his “iron friend” due to lack of time or skills; car services come to his aid. Car service services are in stable demand all year round, so many businessmen are thinking about occupying this niche. However, opening a car service center from scratch is not an easy task: high competition, expensive advertising, lack of professional personnel. The solution to this problem could be opening a franchise car repair service. Let's analyze several options popular franchises car service center in Russia and choose the best offer.
A car service franchise has a number of advantages compared to own business. Let's look at the advantages that a franchise provides:
- the franchisor provides instructions on how to conduct and develop a business; each stage of development is spelled out in them;
- the entrepreneur receives a complete set of software for computer diagnostics of the car;
- a recognizable brand, customers will be loyal to the representative office of the car service network existing in Russia;
- franchisees purchase equipment, auto chemicals, and car parts at reduced prices thanks to the chain’s corporate discount;
- training and advanced training of personnel at the franchisor's base.
However, in addition to the advantages, opening a car service as a franchise has its disadvantages.
- lump sum fee, the entrepreneur needs to pay for the right to use the brand;
- royalties, almost all franchises require monthly fixed fee or percentage of the company's turnover;
- restrictions on the choice of equipment and premises; franchisors monitor the selection of equipment and location of the service. Sometimes a businessman has to spend additional money in order to rent a room in a favorable location, or buy equipment of the required brand;
- strict adherence to the franchisor's instructions, the franchise buyer has virtually no opportunity to implement his own ideas.
Basic conditions
To become a partner of a well-known car service network, you must meet certain company requirements. The list of conditions is usually the same for all franchisors. These include:
- the entrepreneur has a positive credit history and no debts; the company will not allow a person who has debts to banks to purchase a franchise, as this may negatively affect the brand’s credibility;
- experience in business, novice entrepreneurs rarely get the go-ahead to purchase a franchise, as they do not have the necessary skills in negotiation, management and promotion;
- own or rented premises that meet the requirements of the franchisor. For a car service center, you need a room with an area of 80 square meters, with a ceiling height of at least 5 meters, located on a busy highway or at the entrance to the city;
- availability of the full amount for investment and lump sum, the franchiser may require bank statements.
These are standard conditions for an entrepreneur who wants to purchase a car service franchise. If a businessman meets all the conditions, then, most likely, he will have the opportunity to open his own business under the auspices of a well-known brand.
Franchise analysis
Let's look at several popular car service franchises and analyze them to identify the most profitable terms cooperation.
| Franchise | Terms of cooperation | Investment size | What does the franchisee get? | Project payback |
| Auto service "Vilgud" | Premises from 300 square meters; Location on the first or second line; Availability of 3 lifts and wheel alignment, technical washing; Equipped client area and presentable appearance. | From 1 to 8 million; Royalty - 3.5 percent of turnover. | Instructions for doing business; Complete software for car service; 24/7 call center; Posting on the company website; Training. | 12 to 18 months |
| "White service" | Premises from 250 to 400 square meters; The minimum ceiling height is 4.5 meters; The minimum number of posts is 4 + wheel alignment. | From 1 to 3 million; Lump sum contribution - 300 thousand rubles; Royalty - 2 percent of the company's turnover. | Franchisee training in Moscow; Required documentation; Instructions for business development and staff motivation; Supply of motor oils and necessary parts at competitive prices. | From 12 months |
| "Bosch Service" | Installation of display shelves with Bosch auto parts; Premises from 200 square meters; Usage service equipment"Bosch" Equipment of a convenient client area; More than 1 year of experience in a similar niche. | From 4 to 6 million rubles; The lump sum fee and royalty amount must be clarified with the franchisor. | Car service under a brand known all over the world; Training; Branded workwear for employees; Instructions for business development; Hotline technical support for a brand representative; Car service software. | From 18 months |
Which option is more profitable?
Let us determine which of the analyzed franchises will bring the greatest benefit to the entrepreneur. Based on the financial component, then the most profitable option There will be a “White Service” franchise. The size of the investment is on the same level as the Vilgood service, but the royalty rate is lower (2 versus 3.5 percent of turnover).
If the wealth of an entrepreneur allows him to spend from 4 to 6 million on opening a franchise, then the representative office “ Bosch” would be a good option. This company has a world-famous brand, provides branded workwear, exhibition auto parts for sale, and advertising support at the federal level.
Bosch car services are known all over the world for their branded equipment and level of customer service. Prospects and risks
Despite a competent franchise business plan, an entrepreneur is not protected from troubles that may arise during the course of work. This is due to high competition in this niche. Car enthusiasts most often turn to trusted services where their cars were repaired by friends or themselves. Prices for services in such a car service will be higher than average, since the entrepreneur needs to justify his investment.
On the other hand, the entrepreneur offers services in a professionally equipped room, and not in a garage, which will attract wealthy clients. The franchisee receives auto parts and chemicals at competitive prices, this will allow them to receive additional income from the sale of these goods. Representative offices are equipped with the necessary software, which allows you to diagnose cars. Regular advertising of the network at the federal level will attract a flow of customers to franchisees.
Opening a franchise car service - great option investments for an entrepreneur with investments of 1-6 million. Diagnostic and maintenance cars are in demand throughout the year. The franchiser’s work experience and brand recognition allows for the development of a representative office according to a well-thought-out system, which increases the likelihood of success.
Every year the number of cars on the roads of our country grows at a tremendous pace, so the business of repairing and servicing cars is very promising investment money. However, launching a car service is associated with a lot of problems, therefore, in order to avoid many mistakes that many novice entrepreneurs make, the best option will be the acquisition of a car service franchise. This is very convenient because you immediately receive ready-made business processes and business technology, as well as assistance in opening.
There are quite a few franchise options on the market today, so choosing the best one is very difficult. This article will talk about how to run ready business, about all sorts of pitfalls and nuances, as well as which car service franchise is better.
Buying a franchise: advantages, disadvantages and associated risks
To open a car service yourself, you need not only the availability of special equipment, but also knowledge of the technical aspects and nuances of doing business. In addition, the market for repair and maintenance services Vehicle is oversaturated, and the novice businessman will have to fight a fierce competition With federal networks, which is quite difficult to survive in. Therefore, the best solution would be to purchase a franchise. In addition, before starting a business, it is worth studying the automobile market in order to choose the right niche for yourself.
A car service franchise, reviews of which are quite controversial, provides the entrepreneur with the following advantages:
- you receive a ready-made turnkey business with a calculated business plan and clear figures for reaching the payback level;
- using the name of a well-known brand contributes to a greater flow of customers;
- the ability to purchase spare parts and consumables at wholesale prices;
- professional training from the franchisor;
- specialized diagnostic equipment and software;
- help in advertising campaign and promotion of the enterprise.
Despite a fairly impressive number of advantages, unfortunately, there are also some disadvantages. Among these are:
- you are forced to work within strict limits and cannot independently influence the functioning and development of the business;
- opening a car service center as a franchise is more expensive, since you are forced not only to purchase everything you need with your own money, but also to pay a lump-sum fee;
- you will be forced to give part of your monthly revenue to the franchise owner;
- When opening, you must coordinate all technical issues with the franchisor.
Regardless of whether you start a car service yourself or through a franchise, you need to take into account the high competition in this industry, so reaching break-even and growing your business can take quite a long period of time. You should be prepared for this and even the most pessimistic forecasts must be considered when planning your business. As practice shows, payback occurs in two to three years with the correct introduction of automotive activities.
Conditions for purchasing a franchise
Desire alone is not enough to purchase a franchise, since each franchisor makes a number of requirements for franchisees. For a transaction decision to be positive, you must meet a number of criteria. This:
- experience in this business segment;
- availability of premises for opening a car service center that meets all the requirements of the franchisor;
- positive credit history and no debt;
- Availability starting capital.
If you meet all these criteria, then the likelihood of successfully purchasing a car service franchise increases significantly.
Features of launching and promoting a car service
For a car service to flourish, money alone is not enough. You need to have a clear understanding of the characteristics of the region in which you plan to start a business. At marketing research market, the following factors should be taken into account:
- The purchasing power of the population is one of the most important indicators on which the success of a business depends. The thing is that if the population does not have money, then no matter how magical the car service franchise may be, no one will use your services.
- Presence of competitors and potential demand. In some regions of the country, the demand for car service services significantly exceeds the actual supply due to the greater number of people with personal vehicles and fewer service stations.
- Automotive service location. In large cities, car service will bring significantly big income than in the provinces.
All these criteria are key to the success of a business, so they are mandatory when strategic planning development of the enterprise and drawing up a business plan.
Financial planning
Opening a franchise business requires a fairly large start-up capital, since, in addition to royalties, you will need to buy or rent premises, as well as purchase everything necessary equipment. Expense items include many items and consist of the following:
- Purchase of equipment: the most expensive item of expenditure, requiring about one million rubles. For normal operation of a car service center, you need professional equipment for diagnosing cars, lifts, workbenches and tools.
- Marketing and promotion: in order for your service station to be known, it needs advertising. Conducting a comprehensive marketing campaign will cost approximately 200,000 rubles.
- Registering a business and receiving all necessary documents. You can do this yourself or contact any company specializing in these services. In the first case, you will spend approximately 50 thousand, and the company’s services will cost much more.
To start a car service center from scratch, with the purchase of a body shop franchise, you will need an average of about 6 million rubles. In addition, every month you will spend about 500 thousand rubles on renting premises, paying employees and purchasing consumables.
Which franchise to choose: overview of the Russian market
Today, there are quite a lot of franchises from Russian and foreign companies on the domestic market, so choosing the best one is very difficult. Next, we will consider the most attractive offers that provide the most comfortable working conditions.
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