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How many of you are franchise owners?


Joe Marconi

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I was wondering how many of you are franchise owners and can you tell us about your experience being part of a franchise system.

 

I think it would be interesting to independents to see the differences in a franchise, as opposed to creating and developing your own company.

 

Thanks in advance!

 

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Joe, I thoroughly explored both options in opening our shop and met with top CEO's of two large franchise chains. I will write an extensive article on this in this future, if it helps.

 

Wes, that would be great. When I expanded and built another facility I contacted many franchise companies to gain information. I also visited auto franchise stores to get an idea of how those model differs from independendts like myself. If you could give us information that would be great. I think we can all learn and share knowledgde.

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Here is my take on franchises. If you know how to run a shop and are successful to join a franchisee would be to give up profit and is not something I would advise. However, if you are inexperienced a franchise can help you learn the ropes and get started. In some markets certain franchise brands are strong. Some franchises are better than others. Some franchises make their money by selling franchises and don't really care if you sink or swim. We had a guy open a franchise in this market. He invested all of his 401k money and bought and refurbished a building. It was a very nice set up with good equipment. Trouble was he bought a building at the end of a street with no visibility or traffic. Our corporate franchise management would have taken one look at that location and rejected it. Anyone who knew anything about the business knew he wouldn't make it there as a new business with no traffic and no existing customer base. He lasted less than a year and had to go back to his old job minus about $250K in 401k money. The franchisor walked away with his $40K franchise fee.

 

This is interesting information. Running a repair shop today is so vastly different that back when I started. I see your points, both good and bad. I think the key is, if you are an independent, is to have a plan and know the "mechanics of business". And, getting involved with a franchise that does not have a vested interested in the success of the franchisee, could be the kiss of death?

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  • 7 months later...

I have been running my shop for 5 years now. I have a part time secretary and part time tech. Business is good. Not afraid to say we did 450 thousand last year. Wondering if I should keep going or if a franchise might help move me into the next level. Goodyear in the next town over is frustrating me. There customers are coming to me when they sell them Kelly Springfield tires at Goodyear prices and they have a shimmy from the tires

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I have been running my shop for 5 years now. I have a part time secretary and part time tech. Business is good. Not afraid to say we did 450 thousand last year. Wondering if I should keep going or if a franchise might help move me into the next level. Goodyear in the next town over is frustrating me. There customers are coming to me when they sell them Kelly Springfield tires at Goodyear prices and they have a shimmy from the tires

If you don't mind me asking, what's your aro and car count?

Are you a specialty store? I see you do tires, with that few of people has the tire business effected your ability to get big work in and out?

 

Sent from my SCH-I605 using Tapatalk 2

 

 

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I am not a specialty shop. I will pretty much try anything that comes in my door. A couple weeks ago I did head gaskets on a Toyota avalon. This past week I did radiator on a rear engine motor home. I have gotten bit on some jobs. But it has opened me up to a lot more customers. Long hours and a understanding wife. My customers appreciate my honestly. I think that's why they are a little flexible when things may take an extra day. Plus a couple of good loaner cars just in case of emergency

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  • 1 month later...

We are a franchisee of The Hybrid Shop. Definitely a profit center, primarily for Prius - not so much for Honda. Margins for Prius battery conditioning are great. THS is a fractional franchise. They don't try to muck around in my business. They trained us and sold us specialized equipment. We pay them fees for the batteries we condition. The batteries have brought us a stream of income for other hybrid maintenance. as a sideline we became a used car dealer specializing in hybrids. Webuyuglyhybrids.com

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  • 5 months later...

No franchise here, they wouldn't take me anyway too low of a population. Monro muffler closed down 2 stores in my county, all the coupons in the world can't make up for population density. Plus I feel if I follow someone else's program they win, if I follow my plan I win.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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