How a lot it prices to purchase a car-related franchise like Midas, InspectaCar, Supa Fast or Auto Magic
- Motorists spend R37 billion on automotive components and companies every year, a lot of which passes by established automotive franchises.
- There are dozens of choices accessible, lots of which don’t require technical information about automobiles.
- Right here’s how a lot it prices to open a model identify panel beater, workshop, automotive tyre or battery fitment centre, used automotive dealership, or aftermarket components franchise in South Africa.
South Africans spend a staggering quantity on fixing up their automobiles every year. 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 latest victory for the right-to-repair campaigners, and a few 3,458 totally different automobiles throughout 55 manufacturers, the aftermarket business is simply set to develop additional. And one of many best methods to faucet into that is by a longtime franchise.
The business 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 house owners to have technical information of automobiles; this normally comes with workers coaching as a part of the franchise. And there are alternatives accessible 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 possibly can 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 biggest automotive aftermarket components franchise in South Africa. The shop primarily sells automotive components, equipment, and associated life-style 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 price that begins at R50,000, relying on dimension and site. The franchisor solely supplies complete 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 automotive physique restore, panel beating, fitment, and spray-painting franchise that’s been in enterprise for over 19 years. The corporate has an in depth 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, in keeping with the franchise website, the perfect candidate has ambition, dedication, and capital.
Auto Magic franchise price: Franchises price roughly R3.5 million, of which 40% should be accessible as unencumbered capital. Auto Magic doesn’t stipulate ongoing advertising and administration charges.
Battery Clinic
Battery Clinic began as a battery reconditioning enterprise referred to 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 wish to enter the battery sale and refurbishing business.
Battery Clinic price: Battery Clinic requires a complete funding of R700,000, after which franchisees pay 10% 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 automobiles. The enterprise is open to franchisee applications from “dynamic entrepreneurs” who’re enthusiastic about 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 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 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 concentrate on auto electrical and associated companies.
Motolek price: A brand new Motolek franchise requires an upfront price of R25,000 and prices R250,000 to R350,000 to determine. With a advisable 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 car repairs. They provide prospects minor and main companies, real substitute components, and financing choices. Franchisees don’t require servicing or mechanical information, with technical help and workers coaching coming from a head workplace degree. 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 administration charges that complete 7.5%.
InspectaCar
InspectaCar is an automotive franchise that primarily sells used automobiles. The enterprise is licensed by WesBank, which supplies franchises “a status of integrity that’s troublesome for a non-branded used automotive dealership to attain”. InspectaCar head workplace connects franchisees to producers and rental businesses and presents 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. Additionally they advocate new dealerships have a minimum of R3 million for car inventory. For every car offered, 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 functions in areas not presently serviced.
Supa Fast price: Based on franchise documents, the setup prices of a Supa Fast franchise vary between R1.5 million and R2 million. Franchisees will need to have 50% of this in unencumbered money. Franchisees require cash for working capital, varied setup prices, water and electrical energy, gear 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 price.
