Tuesday, March 06, 2007

 

Oil changing franchises

Some things in life are pretty tedious and uninteresting, but necessary, with changing the oil in one's car up there with the best of them.

And while many people will consider such dull tasks beyond them, there are others who see this as a perfect marketing opportunity.

All cars need to be serviced and checked regularly, meaning many changes of oil and lube to make sure they are running smoothly. While this can often be done at the garage or during an MOT, this is not always practical and many motorists resent having to book in and visit the garage during their weekend for a simple necessity.

Mobile oil change facilities are often the answer. And franchising in the US and UK is perfectly suited to this style of enterprise, allowing customers to pay for the privilege of having a mobile oil changer come to wherever they are to change their oil for them.

Of course many of these oil change services offer several extras rather than a simple oil change, with brake repairs, tune-ups and windscreen repairs among the add-ons supplied.

Other firms are not mobile, but offer even more to the consumer, acting more as a garage and providing full checks and services for commercial and personal vehicles.

However, in terms of franchising opportunities, the smaller the operation the cheaper it becomes for the initial investor and franchisee. For example, a mobile franchising unit could be set up for as little as $25,000 – and with a $15 billion industry, there is plenty of room for a return on invested cash.

And franchisees are able to make the most of the expertise, equipment and support offered by national franchising companies, meaning areas such as national marketing, training and commercial accommodation is often catered for as part of the franchise deal.

But anybody hoping to take advantage of this huge potential market needs to be aware of the financial and personal demands on a franchisee.

A 2004 study by NatWest and the British Franchise Association found that most franchisees undertake a huge amount of research before taking the plunge into their chosen field.

But most people sought advice straight from their bank, proving the concern many have over the financial aspect of the business. Nevertheless, the survey found that the majority (95 per cent) of franchises in the UK were profitable businesses – with oil changing franchises among those chosen by new franchisees.

Copyright Adfero Ltd 2007

http://www.franchisedirect.com

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