Looking to find out how much you need to invest in a automotive franchise? In fact, it can seem confusing, with several different numbers between each research source.
However, here you will see exactly how much a franchise costs, the amounts involved and fees. This way, you can plan and make the best decision easily.
So, without further ado, let's get down to business and understand how much you need to invest in an automotive franchise!
How much do you need to invest in an automotive franchise: understand what the costs are
Before we talk about numbers and find out how much you need to invest in an automotive franchise, it is important to know the costs involved.
As mentioned, the franchise model is basically a license agreement to use the franchisor's brand and intellectual property. Thus, we have two main categories of costs:
- Franchise Fees: charged by the franchisor, generally has an initial amount that must be paid upon signing the contract and other monthly fees, such as for advertising;
- Initial capital for opening: this value refers to the investment necessary to get the business off the ground, such as working capital, furniture, renovation of the store, among others.
In general, franchise fees are the same between the models that the franchisor offers. On the other hand, the initial capital required varies depending on the size and business model chosen.
For example, a mobile unit requires much less initial capital compared to a commercial location. However, in both models the franchisee will pay the same fees.
Main Automotive Franchise Fees
The main fees you need to know to find out how much you need to invest in a franchise are:
- Franchise Fee: this is the initial fee, paid upon signing the contract and which gives the right to use the brand and establishes the rights and duties of the parties;
- Publicity: It is common for franchisors to charge a fee to invest in marketing the entire network;
- Systems and other fees: Depending on the business, there may be exclusive fees for using software and other services.
Opening costs of a franchise
As stated, franchise fees are constant between automotive franchise models. However, depending on the model and size of the business chosen, the opening will have very different prices.
After all, to launch your business you will need to invest in:
- Construction, renovation and furniture;
- Inaugural marketing;
- Systems and equipment;
- Working capital;
- Initial inventory.
Values vary from region to region, from business to business. To better understand how much you need to invest in an automotive franchise, simply contact the brands, as they know the average cost. Below you will see how much it costs to invest in an automotive franchise Strike Brasil!
Check out the models and how much you need to invest in an automotive franchise
How much you need to invest in a franchise will depend on several factors. As seen above, there are several costs involved and each franchisor is free to define them.
Furthermore, rates and values are different based on the model and size of the business. After all, a mobile business will have very different fees and initial costs than a exclusive store with hundreds of m².
Therefore, the Strike Brasil offers different models for our franchisees, with different levels of initial investment, check out:
Strike Brasil Authorized
Versatile and very flexible model for those who are starting out or do not want to have a permanent store. With the Authorized franchise, you will have a personalized mobile unit, serving 100% of our portfolio within the white areas.
- Initial investment: from R$110 thousand
- Advertising fee: R$1.350/month + 1,5% on revenue
- Franchise fee: from R$35 thousand
- Return on investment: from 12 months
Strike Brasil Express
already have a automotive store? So, this is the ideal model, being able to couple products and services Strike Brasil to your business and increase your profits!
- Initial investment: from R$150 thousand
- Advertising fee: R$1.350/month + 1,5% on revenue
- Franchise fee: from R$35 thousand
- Return on investment: from 18 months
Strike Brasil Full
Finally, we have the most complete model, in which a new exclusive point will be opened for you to offer all the products and services of Strike Brasil. In this model, your investment will be:
- Initial investment: from R$170 thousand
- Advertising fee: R$1.350/month + 1,5% on revenue
- Franchise fee: from R$35 thousand
- Return on investment: from 24 months
Financial viability plan: why it is important
By understanding how much you need to invest in an automotive franchise, you can start creating a Financial Viability Plan.
This document is a report calculated based on the business's expenses and potential profits. This way, it is possible to estimate the return on investment (in time and money) and its attractiveness.
Therefore, ask the franchisor for data and information before making the investment. This is essential to assess whether you have the investment capacity and time to dedicate to the business.
Change your future for the better with Strike Brasil
In addition to correctly calculating how much you need to invest in a franchise, it is essential to choose a franchisor with a strong, recognized brand and great growth potential.
That's why anyone who wants to change their life chooses Strike Brasil! We are the biggest reference in automotive performance in Latin America that grows by leaps and bounds!
A Strike Brasil, in the middle of the pandemic, grew 72% along with a 33% growth in number of units. Are you going to miss this opportunity to have your own business with a strong brand?
Register today and talk to our consultants, see how your future can change with Strike Brasil!
