Cars appear as single units, but in reality contain thousands of parts. When any of those parts break or require replacement, people turn to auto parts stores for help.
An auto parts franchise is an excellent investment option whether you’re starting up on your own or expanding an existing auto repair shop.
1. Recession-Resilient Industry
Recession can have a severe negative impact on business, leading to decreased job creation, inflation and diminished trade activity across a country. While no company is entirely recession-proof, some industries tend to flourish regardless of economic circumstances: fast food outlets, discount retailers, grocery stores selling consumer staples as well as specific repair services tend to remain successful during an economic downturn.
Money constraints often lead consumers to hold onto their current vehicles longer and choose maintenance and repairs over buying new ones, providing steady income to companies specializing in automotive repair, auto parts sales and home improvement projects like plumbing, roofing or HVAC work.
Similar to groomers and boutique accessories franchises, pet-related franchises such as groomers typically perform well during economic downturns. Although it’s impossible to predict when the next recession will strike, Lang believes it will impact discretionary purchases such as accessories and reduce overall aftermarket product growth by over 80% from its strong rebound in 2021.
2. High Profit Potential
Car parts franchises provide entrepreneurs looking for an effective business opportunity with lucrative returns. By keeping vehicles working efficiently, these franchises help people keep them mobile.
While vehicles appear as single units, each vehicle contains hundreds of individual parts that may become defective over time and need to be repaired or replaced – hence why car parts franchises remain so in demand.
NAPA Auto Parts’ franchise program reports an estimated average franchise revenue between $405,000 and $3,553,000 per unit. They offer extensive support to new franchise owners including technical and sales training, initial store setup, marketing programs, brand building materials, pricing guidelines and strategies, technician VISA rewards and consumer rebates; as well as exclusive territory protection and third-party financing of initial franchise fees, startup costs and equipment purchases (and may waive it in cases involving military veterans).
3. Multiple Income Sources
Cars contain hundreds of components that require replacement every so often, which creates an opportunity for smart entrepreneurs who can supply these vital components to an otherwise hard-to-reach market.
Parts stores provide various revenue streams for franchise growth potential, such as retail sales, wholesale pricing and internet sourcing. To maximize franchise success and ensure its growth potential, owners of parts store franchises should understand how to create and monitor an in-depth business plan, with analysis of industry, supplier costs and inventory turnover rates.
Mighty Auto Parts offers financing solutions to cover startup costs, equipment purchases, supplies inventory and payroll; this enables prospective franchisees to open an automotive business without having to come up with all their investment upfront. In addition, Mighty Auto Parts helps its franchisees grow their businesses with marketing and branding tools as well as brand building materials, point of sale materials pricing strategies regional and national account development plus technician VISA Rewards rebates as additional tools of growth support.
4. Extensive Training
Auto parts franchises present an opportunity to build a trusted and well-recognized brand, and companies will provide extensive training for new franchisees so they are equipped for success in this competitive industry. Branding plays an invaluable role in customer trust and buying decisions; therefore, company support for success in this regard is of vital importance.
No matter the state of the economy, most Americans rely on vehicles for transportation purposes and maintenance needs that necessitate parts replacement. This makes a car parts franchise an extremely recession-resistant business opportunity for savvy entrepreneurs. Modern cars contain advanced features that can make repairing them a complex task requiring special education and equipment, which is why increasing numbers of people seek help from car parts franchises as a one-stop solution to all their vehicle repair needs, from bumper repair and dent removal to window tinting and paint refinishing needs.