How a lot it prices to purchase a car-related franchise like Midas, InspectaCar, Supa Fast or Auto Magic
- Motorists spend R37 billion on automobile components and companies annually, a lot of which passes via established automotive franchises.
- There are dozens of choices out there, a lot of which don’t require technical data about automobiles.
- Right here’s how a lot it prices to open a model identify panel beater, workshop, automobile tyre or battery fitment centre, used automobile dealership, or aftermarket components franchise in South Africa.
South Africans spend a staggering quantity on fixing up their autos annually. Some reports counsel it’s as a lot as R37 billion, on elements and servicing alone – with as much as 18,000 small and medium enterprises working within the aftermarket area.
With the current victory for the right-to-repair campaigners, and a few 3,458 completely different automobiles throughout 55 manufacturers, the aftermarket trade is barely set to develop additional. And one of many best methods to faucet into that is via a longtime franchise.
The trade contributes 6.5{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a} to the nation’s GDP, and automotive aftermarket franchises make up around 7{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a} of the South African franchising image.
Most automotive franchises don’t require enterprise house owners to have technical data of autos; this normally comes with workers coaching as a part of the franchise. And there are alternatives out there in a number of worth brackets and varied area of interest subcategories, from panel beating to spares.
The price of car-related franchises due to this fact varies wildly relying on the character of the enterprise, however you’ll be able to anticipate to pay something between R50,000 and R2 million in startup charges.
Right here’s how a lot main car-related franchises price in South Africa.
Midas
Midas claims to be the most important automotive aftermarket components franchise in South Africa. The shop primarily sells automobile components, equipment, and associated way of life gear throughout a number of manufacturers. Midas has a nationwide footprint, and there are presently greater than 300 franchisees within the nation.
Midas franchise price: A Midas franchise requires an upfront payment that begins at R50,000, relying on measurement and placement. The franchisor solely supplies complete ongoing monetary commitments on software. Established and worthwhile Midas franchises often come up on the market for upwards of R5 million, together with inventory.
Auto Magic
Auto Magic is a automobile physique restore, panel beating, fitment, and spray-painting franchise that’s been in enterprise for over 19 years. The corporate has an intensive community of brokers and franchisees specialising in most auto physique repairs. Though franchisees don’t want particular vehicle-related {qualifications}, Auto Magic will help branches in hiring workers with the related expertise. As a substitute, based on the franchise website, the best candidate has ambition, dedication, and capital.
Auto Magic franchise price: Franchises price roughly R3.5 million, of which 40{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a} have to be out there as unencumbered capital. Auto Magic doesn’t stipulate ongoing advertising and administration charges.
Battery Clinic
Battery Clinic began as a battery reconditioning enterprise known as Steve’s Battery Clinic in 2006. The corporate has since expanded to 10 shops providing reconditioned and new automobile batteries. They’re accepting purposes from franchisees in South Africa who need to enter the battery sale and refurbishing trade.
Battery Clinic price: Battery Clinic requires a complete funding of R700,000, after which franchisees pay 10{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a} for ongoing advertising and administration.
Battery Centre
Battery Centre sells Raylite batteries and different associated automotive companies from a nationwide community of franchises. 100 fifty branches in South Africa promote and match batteries for many makes and fashions of autos. The enterprise is open to franchisee applications from “dynamic entrepreneurs” who’re captivated with customer support.
Battery Centre price: A brand new Battery Centre franchise requires an preliminary payment of R150,000, plus an institution price of R511,200. With a working capital of roughly R200,000, franchisees can anticipate their preliminary funding to be just below R1 million. Battery Centre doesn’t stipulate ongoing advertising and administration charges.
Motolek
Motolek is a sequence of 35 impartial auto electrical workshops positioned all through South Africa. The enterprise belongs to the Africa Automotive Aftermarket Options and claims to have established a reputable and dependable community of execs who concentrate on auto electrical and associated companies.
Motolek price: A brand new Motolek franchise requires an upfront payment of R25,000 and prices R250,000 to R350,000 to determine. With a really helpful working capital of R250,000, the estimated complete funding is between R500,000 and R800,000. Motolek doesn’t stipulate ongoing advertising and administration charges.
Automotive Service Metropolis
Automotive Service Metropolis is a full-service workshop for automobile repairs. They provide prospects minor and main companies, real substitute components, and financing choices. Franchisees don’t require servicing or mechanical data, with technical assist and workers coaching coming from a head workplace stage. They presently have greater than 70 RMI-accredited workshops all through South Africa and are accepting purposes from new franchisees.
Automotive Service Metropolis price: New Car Service City franchises begin at R1.2 million. Franchisees should pay ongoing advertising and administration charges that complete 7.5{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a}.
InspectaCar
InspectaCar is an automotive franchise that basically sells used autos. The enterprise is licensed by WesBank, which supplies franchises “a fame of integrity that’s troublesome for a non-branded used automobile dealership to realize”. InspectaCar head workplace connects franchisees to producers and rental businesses and provides group shopping for advantages and entry to coaching.
InspectaCar price: InspectaCar requires an preliminary becoming a member of payment of R200,000 for a brand new dealership or between R800,000 to R1 million to transform an current dealership. Further charges for the dealership launch, web site, promotional materials, software program, uniforms, and stationery can price upwards of R100,000. Additionally they suggest new dealerships have at the least R3 million for automobile inventory. For every automobile bought, franchisees should pay a R300 advertising contribution.
Supa Fast
Supa Fast is a nationwide franchise that sells and suits tyres, batteries, exhausts and shocks. They’ve greater than 200 fitment centres in South Africa however are open to new franchisee purposes in areas not presently serviced.
Supa Fast price: In response to franchise documents, the setup prices of a Supa Fast franchise vary between R1.5 million and R2 million. Franchisees will need to have 50{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a} of this in unencumbered money. Franchisees require cash for working capital, varied setup prices, water and electrical energy, gear deposits, an preliminary franchise payment of R65,000, and a reception space of R90,000. After this, they cost a 1{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a} month-to-month license royalty and a 2.5{702b3e23bee4a2ea2d927dcfcd3d484d470fba472fc2bd09b3257ae4868cc71a} month-to-month advertising payment.
