Top 12 Car Franchise Opportunities (2024)

Car Franchise | Franchise Coach

With the rising cost of car purchases, car owners are increasingly prioritizing vehicle maintenance. Consequently, the automotive industry, including the car franchise opportunity, has experienced growth throughout 2023.

The automotive sector in the United States has exhibited consistent growth over the years. In the 1st quarter of 2023, EV sales have more than doubled compared to the 1st quarter of 2021 and increased over 5-fold from three years ago.

According to CleanTechnica, pure electric vehicle sales now account for 7.1% of total US auto sales in the 1st quarter of 2023.

This growth in the automotive industry underscores the franchise opportunities available in the car business.

12 Car Franchises in The U.S.

As the industry expands, numerous automotive franchise opportunities have emerged in the United States. Below, we highlight some of the most automotive franchises to consider in the country in 2020.

1. Car Wash

Car wash | FranchiseCoach

The US car wash industry had a worth of $33.1 billion in 2022, and experts predict it to grow at a CAGR of 3.85% from 2023-2030. This underscores its importance in the automotive franchise industry.

If you’re considering starting a car wash business, it’s crucial to determine what business model will work best in your area. A high-traffic location with ample potential customers is more likely to yield profits than a remote or rural location.

Which car wash business is most profitable?

Self-service car washes are budget-friendly, allowing customers to control costs while offering quick cleaning. Automatic car washes save on labor with 24/7 operation, boosting profitability.

With low overheads, mobile car washes offer convenience, attracting customers willing to pay more.

Evaluating overhead costs is crucial for overall profitability, and lower overhead can contribute to a more lucrative business.

2. Car Rental

Car Franchise Rental Service | FranchiseCoach

The car rental industry is booming, attracting most people to busy cities and scenic vacation spots.

Locally owned businesses lease cars for short-term needs like weddings, vacations, or even going on a road trip. Consider a franchise investment for expansion opportunities.

To make a profit in this business, there are certain factors to consider, such as:

To get your automotive franchise off the ground, you can expect to invest between $250,000 and $750,000.

3. Auto Service

Auto Repair Franchises | FranchiseCoach

This automotive franchise business represents a substantial venture with an initial investment ranging from $125K to $450K. Beyond acquiring costly equipment, a dedicated space is required specifically for the retail sale of lubrication oils. 

This area could also facilitate the following:

Starting under a well-known parent company not only generates higher revenue than new ventures but also leverages the trust customers have in established brands for automotive services.

Moreover, top automotive franchises provide valuable training and support to their franchise owners, significantly simplifying the overall business operations.

So how do you get started?

4. Collision Repair Center

This type of automotive repair franchise provides a meticulous process of restoring a vehicle to its pre-accident condition following damage from a collision.

Here are some aspects in specialized automotive services including:

Before delving into this automotive business, it’s crucial to assess factors such as population size, competition levels, cost of living, and the local economy

States with a higher population density may experience an increased frequency of car accidents, thereby creating a heightened demand for collision repair services.

Additionally, it’s essential to consider adopting a franchise system that comes with established relationships with insurance partners.

The symbiotic relationship between a collision repair franchise and insurance partnerships significantly influences the overall success of the business. 

Understanding and leveraging these dynamics contribute substantially to the performance and viability of your collision repair enterprise.

5. Auto Detailing

Auto Detailing | FranchiseCoach

Before venturing into auto detailing, it is essential to assess the demand to ensure its sustainability. The increasing desire among car owners to extend their vehicles’ lifespan has led to heightened demand for detailing services.

Car detailing proves to be a lucrative venture, with the industry valued at $13 billion, according to Statista.

Furthermore, Grand View Research projects a global market size growth of approximately 3.2% from 2019 to 2025, emphasizing the industry’s potential for expansion.

For those considering an investment, the initial cost for this car franchise business typically ranges from $120K to $250K. This covers expenses such as the franchise fee, chemicals, technology, and licensing.

6. Charging Station

Starting an electric vehicle (EV) charging station business appears to be a promising venture in the United States.

The projected significant rise in profitability is driven by the increasing demand for electricity to power zero-emission passenger vehicles. By 2030, an estimated 28 million charging ports will be needed to meet this demand.

This indicates substantial growth potential in the EV charging station franchise industry, underlining its lucrative nature, particularly as it aligns with the expanding adoption of zero-emission vehicles.

Before exploring this turnkey franchise business, familiarize yourself with its various types:

Level 1 Charger

Suited for standard wall outlets, ideal for overnight charging at residences or low-mileage driving. One hour provides around 5 miles of range, catering to plug-in hybrid vehicles with smaller batteries.

Level 2 Charger

Operating on 240 volts, suitable for fast charging in public spaces or homes. Perfect for commercial opportunities, offering considerable returns on investment with multiple chargers.

DC Fast Charger

The fastest type, providing 250 miles of range in just one hour. Often used by specific outlets for premium charging, though compatibility issues with certain EVs may limit its viability for an EV charging station franchise.

Ready to Be Your Own Boss?

Let's unlock your potential together!

7. Oil Change

An automotive oil change business provides oil change and lubrication services for a variety of vehicles.

As of 2022, the US oil change industry was valued at $7.48 billion, experiencing modest growth over the previous years, and is expected to grow at a CAGR of 5.3% from 2023 to 2030

As people resume normal activities post-pandemic and increase their car usage, the demand for oil changes is expected to rise.

Additionally, there is a notable industry trend towards the use of synthetic oils, which are more environmentally friendly and contribute to increased fuel efficiency.

Investing in this car franchise opportunity could be worth considering, given the industry’s positive growth trajectory, the anticipated increase in demand, and the eco-friendly shift towards synthetic oils.

8. Automotive Accessories

Car Accessories | FranchiseCoach

Embarking on an automotive accessories franchise business holds promise for entrepreneurs in search of a small yet profit-stable venture. This concept typically involves low initial investments and doesn’t require substantial time commitments.

Additionally, this automotive franchise can enhance existing automotive businesses, providing an avenue for extra income. These accessories are often bundled with automotive services such as:

The automotive accessories sector presents a range of concepts and opportunities. If you’ve chosen to venture into this segment, opting for a brand with a strong market reputation is pivotal for ensuring success.

9. Mobile Mechanic

Mobile mechanic franchises offer a distinct advantage in the automotive repair industry due to their ability to provide greater convenience and flexibility.

By bringing the auto repair shop directly to the customer with fully stocked trucks or vans, mobile mechanics make the entire process more accessible and efficient.

On-call auto repair services bring the newest and greatest advancements in the auto service industry.

Apart from that, this car franchise business model requires a lesser initial franchise fee, making it an ideal choice for car mechanics looking to become franchise owners.

10. Window Tinting

Car Franchise (Window Tinting) | FranchiseCoach

One automotive franchise opportunity is offering window tinting services to vehicle owners.

Applying a thin laminate film is the popular way to customize a vehicle and can be done:

Consider exploring tinting franchises if you’re interested in acquiring an already established business. You don’t need to possess any prior expertise in this field to become a franchisee.

This sector of the automotive aftermarket industry offers franchise company owners long-term demand, recurring revenue, and resilience in the face of recession or pandemic, while also providing a healthy work-life balance.

11. Car Battery Center

It’s advisable to consider replacing your car battery after three years as it becomes increasingly unreliable after four or five years. This can cause safety and reliability issues, making car battery replacement centers in high demand.

Starting a franchise in this industry requires an initial investment ranging from $100,000 to $400,000. To maintain access to the brand, training, and support, franchisees pay ongoing fees to ensure the franchise’s continued success.

These fees are critical for marketing efforts and ongoing support to franchisees.

12. Brake Repair Shop

Maintaining the metals used in brake systems is crucial to prevent rust and corrosion. Timely servicing will ensure they function optimally and have a longer lifespan, giving you the confidence you need when braking.

Typically, brake pad replacement is the most common brake repair. However, on older vehicles, brake shoe replacement may be necessary.

Whether you are an experienced mechanic or a budding entrepreneur, opening an auto brake services shop can be a rewarding and lucrative venture.

Final Thoughts

If you love cars, franchising can be a great opportunity to become your own boss.

Automotive franchises provide a wide array of options, including car washes, rentals, repairs, and tools.

Whether you have prior experience or not, reach out to a free franchise consultant who can help narrow your search to top automotive franchises. And guide you in choosing the right automotive brand for you.

Investing in a car franchise opportunity could be the key to unlocking success in 2024 – why wait? Start exploring today!

CHANGE YOUR LIFE

I use my skills and experience to guide you from the beginning to the end of the franchise investing process