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Because I have a Ford dealership with no room for an auto body and paint repair center, I chose the independent route. No matter what franchisors tell you, independent auto body shops can be just as profitable as franchised facilities. There are franchises available through
BumperDoc and
Maaco, however, if the franchise opportunity seems right for you.
The Independent Auto Body Repair Shop – Independent shops can be a corporate entity or a sole proprietorship. The largest challenge of the independent auto body and paint repair shop is obtaining a spot on insurance company’s recommended repair facility lists. Franchised shops often, but not always, have the upper hand at this because of national recognition. One advantage to opening an independent repair shop is the start-up costs. There are no franchise fees to pay and no franchisor to report to. The second advantage of the independent is if you have a true love for the auto body and paint industry, as an independent, you have the time to excel at your work without harsh time schedules. Independent repair shops, unless they are very large, often do well in smaller cities and towns where loyal customers come back time and time again. A downside to independent shops is most likely you will have to search for a building to rent that is in a commercially zoned area or purchase a building on your own.
The Franchised Auto Body Repair Shop – Because franchised auto body shops are nationally recognized, insurance companies are more likely to designate them as recommended repair facilities. Franchisors will require you to sign agreements and give you guidelines to follow. Most likely, you will not only pay franchise fees at inception but depending on the franchisor, monthly, quarterly, or annual fees to the franchisor may be required. If you choose the franchise route, you do have the national name behind you as well as access to industry knowledge, training seminars, equipment leasing, and paint inventory access. You will also be connected to vendors and suppliers recommended by the franchisor and because the franchisor stands behind you, often, no credit reports are needed for you to obtain vendor supplies. Franchisors also help their franchise owners find a space to rent or purchase without the hassle of finding it on your own. Franchisors often require their franchises be a corporate entity.
In either case, the independent or franchise shop, most technicians, whether they are body or paint techs are required to have their own tools or at least a small collection of tools. Find good techs that have effective tools or ones that are willing to work with Snap On Tools, a supplier for technicians of all kinds.
