Iconic American auto repair franchise benefits from the booming franchise industry
As one of America’s first franchise systems, AAMCO is pleased to report that the franchising industry has never been better. The International Franchise Association (IFA) recently published its annual overview of the franchise industry, Franchise Business Outlook: 2016, and the numbers are overwhelmingly positive. The IFA reports that the franchising industry has never been stronger and “will once again grow at rates that exceed non-franchise business growth in 2016.”
The record growth that the franchising industry is experiencing in 2016 isn’t likely to slow anytime soon. The IFA reports that, “the past five years, the average annual job growth in the franchise sector was 2.6 percent, nearly 20 percent higher than all businesses economy-wide. Over the last five years the franchising sector has added nearly 1 million jobs to the economy.”
“We are forecasting that for the sixth consecutive year, franchise businesses will grow at rates that exceed the economy-wide growth of industries where franchises are concentrated,” says IFA President & CEO Robert Cresanti, in a news release. “Franchise businesses are showing tremendous capability to provide new jobs for working families and new businesses for first-time business owners across all sectors in local communities, despite the fact that franchisees are facing many new regulatory threats at all levels of government.”
The Franchise Business Outlook: 2016 is full of highlights that showcase the strength of the industry overall and detail how much stronger franchising is when compared to the rest of the economy:
- Franchise businesses will have 3.1 percent growth in jobs, adding 278,000 direct jobs to the economy this year for a total of 9.1 million.
- The number of establishments will grow this year by 13,359, or 1.7 percent, to 795,932.
- The IHS Economics forecast of output growth in nominal dollars for franchise businesses will increase this year by $52 billion, 5.8 percent, to $994 billion.
AAMCO thrives in the booming franchising industry
AAMCO is the rare, time-tested legacy brand that remains committed to innovation and trusted in the eyes of the American consumer. The franchise industry has taken notice: 2016 began with Entrepreneur magazine naming AAMCO to its prestigious “Franchise 500” list of top franchise opportunities. Then Franchise Rankings placed AAMCO at No. 5 in its Top Overall Franchises, in addition to naming it the No. 1 automotive franchise.
What is the secret to our success? Our unwavering commitment to driving value for the AAMCO franchisee, to simplifying the business model, to ensuring that our owners and their employees are highest-skilled in the industry, and to leveraging our expertise in transmission repair to become the premier brand for Total Car Care nationwide.
AAMCO’s commitment to its franchisees stems from the fact that several members of the AAMCO corporate team were franchisees themselves. Before joining the iconic auto repair franchise, AAMCO CEO and President Brett Ponton was CEO of Heartland Automotive, the largest Jiffy Lube franchisee in North America, operating nearly 575 units.
“We create value for franchisees primarily by doing two things: 1) Helping them improve bottom-line results, and 2) Helping them create long-term enterprise value in their businesses and in the investment they made in our brand by creating a team environment,” Brett says. “We wrap ourselves around the franchisees. We’re talking about operational support, marketing support, administrative support, recruitment help — because our mission in life is pretty clear. We need to support the people on the front lines of our business — the auto repair franchise owners who are operating the business every day — who have the fortune of serving the millions of consumers AAMCO has the pleasure to take care of year in and year out.”
Bring the iconic auto repair franchise to your community
With nearly 700 centers across North America, AAMCO is actively seeking single- and multi-unit operators who are passionate about the brand and committed to providing the highest-quality service. Interested candidates should have a minimum net worth of $250,000 and liquid assets of at least $65,000 per unit. Depending on the real estate site selected, franchisees can expect the total investment to be approximately $227,400-$333,000 with a $39,500 initial franchise fee. Reduced franchise fees are available for honorably discharged veterans.
“Our principal job as a franchisor is to provide a business model that is financially viable and successful for franchisees,” Brett says. “For the AAMCO brand to remain successful going forward, we need engaged owner-operators who are excited and passionate about this business. It is extremely important in the Total Car Care marketplace, which is our space, to have very customer-focused owner operators who love to build teams and are passionate about our great national brand. Our auto repair franchise owners find success in making our national brand feel very local as they serve the communities around their stores.”