- Motorists spend R37 billion on automobile components and providers every year, a lot of which passes by established automotive franchises.
- There are dozens of choices out there, lots of which don’t require technical data about vehicles.
- Right here’s how a lot it prices to open a model title 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 every year. Some reports recommend 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 totally different vehicles throughout 55 manufacturers, the aftermarket trade is simply set to develop additional. And one of many best methods to faucet into that is by a longtime franchise.
The trade contributes 6.5% to the nation’s GDP, and automotive aftermarket franchises make up around 7% of the South African franchising image.
Most automotive franchises don’t require enterprise homeowners to have technical data of autos; this normally comes with employees coaching as a part of the franchise. And there are alternatives out there in a number of value brackets and varied area of interest subcategories, from panel beating to spares.
The price of car-related franchises subsequently varies wildly relying on the character of the enterprise, however you’ll be able to count on 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 biggest automotive aftermarket components franchise in South Africa. The shop primarily sells automobile components, equipment, and associated life-style tools 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 price that begins at R50,000, relying on measurement and site. The franchisor solely offers whole ongoing monetary commitments on utility. Established and worthwhile Midas franchises sometimes 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 employees with the related expertise. As a substitute, in accordance with the franchise website, the best candidate has ambition, dedication, and capital.
Auto Magic franchise price: Franchises price roughly R3.5 million, of which 40% have to be out there as unencumbered capital. Auto Magic doesn’t stipulate ongoing advertising and marketing 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 retailers providing reconditioned and new car batteries. They’re accepting functions 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% for ongoing advertising and marketing and administration.
Battery Centre
Battery Centre sells Raylite batteries and different associated automotive providers 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 price of R150,000, plus an institution price of R511,200. With a working capital of roughly R200,000, franchisees can count on their preliminary funding to be slightly below R1 million. Battery Centre doesn’t stipulate ongoing advertising and marketing and administration charges.
Motolek
Motolek is a sequence of 35 unbiased auto electrical workshops situated all through South Africa. The enterprise belongs to the Africa Automotive Aftermarket Options and claims to have established a reputable and dependable community of pros who specialize in auto electrical and associated providers.
Motolek price: A brand new Motolek franchise requires an upfront price of R25,000 and prices R250,000 to R350,000 to ascertain. With a beneficial working capital of R250,000, the estimated whole funding is between R500,000 and R800,000. Motolek doesn’t stipulate ongoing advertising and marketing and administration charges.
Automotive Service Metropolis
Automotive Service Metropolis is a full-service workshop for car repairs. They provide clients minor and main providers, real alternative components, and financing choices. Franchisees don’t require servicing or mechanical data, with technical help and employees coaching coming from a head workplace stage. They presently have greater than 70 RMI-accredited workshops all through South Africa and are accepting functions from new franchisees.
Automotive Service Metropolis price: New Car Service City franchises begin at R1.2 million. Franchisees should pay ongoing advertising and marketing and administration charges that whole 7.5%.
InspectaCar
InspectaCar is an automotive franchise that basically sells used autos. The enterprise is licensed by WesBank, which provides franchises “a repute of integrity that’s tough for a non-branded used automobile dealership to attain”. 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 price of R200,000 for a brand new dealership or between R800,000 to R1 million to transform an present dealership. Further charges for the dealership launch, web site, promotional materials, software program, uniforms, and stationery can price upwards of R100,000. In addition they suggest new dealerships have at the least R3 million for car inventory. For every car bought, franchisees should pay a R300 advertising and marketing contribution.
Supa Fast
Supa Fast is a nationwide franchise that sells and matches tyres, batteries, exhausts and shocks. They’ve greater than 200 fitment centres in South Africa however are open to new franchisee functions in areas not presently serviced.
Supa Fast price: In keeping with franchise documents, the setup prices of a Supa Fast franchise vary between R1.5 million and R2 million. Franchisees should have 50% of this in unencumbered money. Franchisees require cash for working capital, varied setup prices, water and electrical energy, tools deposits, an preliminary franchise price of R65,000, and a reception space of R90,000. After this, they cost a 1% month-to-month license royalty and a 2.5% month-to-month advertising and marketing price.
