Wednesday, 01 August 2018 20:24

Opening a franchise in the car industry - an idea for your business

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Most families have at least one car. It often happens that all the adults in the family have one. Sometimes they even have two cars - a private one, and one for work. Therefore, if you are considering opening a business, it is a good idea to invest in developing a company in the automotive industry. Have a look at what your options are.

New brand or franchise?

It would seem that entering the market with a new company in the automotive industry is doomed to fail due to the very high competition. However, there is a solution that will allow you to open a new company in this industry without any risk - consider a . What does it involve? A franchise is a system under which the sale of goods, services or technology is offered, based on the cooperation of two independent entities (entrepreneurs), one of which is a franchisor and the other a franchisee.

The franchisor grants the franchisee permission to use his brand, and therefore also his prestige and reputation, which often extend beyond the borders of his home country. The largest franchise networks are known and appreciated all over the world. Frequently, a franchisee may also use the expertise and know-how of the franchisor. Of course, you also need to remember that the franchisee has to pay the appropriate fees - most often it is a basic fee for joining the brand and a part of the profits from the business.

What business can be opened as part of a car franchise?

There are a lot of opportunities for opening a business as part of a car franchise. One of the most popular examples is opening a gas station under the name of a well-known fuel brand - customers who trust it will also trust your company and refuel at your station. Another interesting idea might be to open a store with car accessories - these can include, for example, spare car parts, as well as car tuning products. It may also be a company specialising in the sale and servicing of tires, or a car repair shop dedicated to specific car brands.