Category Archives: Automotive

Adding Services to Your Automotive Franchise: Electronics

By Terrance Straker

One of the most active trends in today’s automotive industry is the electronic sales and installation sideline business. Some of the more popular add-on products have included Global Positioning System (GPS) displays, satellite radio receivers, MP3 player and smart phone docks and improved audio systems.

Other options include car security technology, remote starters and even marine systems for boats. All of these require an investment in inventory, testing and installation equipment, technical training and a suitable display and sales area, but the returns can more than justify the expense.

The installation business is very technical in nature, but electronic service technician and certification training is widely available. It is important to both display and demonstrate the systems in question, so you will need a suitable retail area in your shop, along with knowledgeable, personable sales staff. While some new customers may stop by specifically for installation service, in most cases this add-on business is an opportunity to upsell to your existing customers.

Read the full article: Adding Services to Your Automotive Franchise

Fine Details’ Mark Shannon talks shop

By Peter Saunders

Mark Shannon, franchisor for Fine Details. Photo courtesy Fine Details.

When Mark Shannon was growing up in Sudbury, Ont., he expressed an early enthusiasm for working on cars. His first part-time, after-school job was at a Texaco service station, where his duties included changing tires. As a young driver, he also built a reputation that would foreshadow his future career with Fine Details, a car-cleaning franchise system.

“Everyone knew me back then for having a meticulously clean car,” he says, “to the point where my friends would tease me!”

After working in the construction and heavy equipment business, handling sales for manufacturers like Caterpillar and John Deere, Shannon bought a Fine Details franchise in 2004 near Square One Shopping Centre in Mississauga, Ont.—and then bought the entire company the following year, becoming the franchisor. His wife, Michelle, whom he had met in the heavy equipment industry, became vice-president (VP).

Read the full article: Meet the Franchisor: Mark Shannon, Fine Details

Your Guide to Running a Collision Repair Franchise

By Lisa Mercanti-Ladd

Photo courtesy CARSTAR Automotive Canada

Today’s business environment presents many difficult challenges to independent collision repair store owners, including changing consumer trends and issues relating to insurance providers. As such, many of these owners—particularly the newer generation—have decided to join franchise networks to gain a competitive edge and to find greater safety than in going it alone.

Through a franchise relationship, collision centre owners gain access not only to the parent company’s brand awareness, marketing resources and business relationships, but also to its industry expertise and systems. These tools provide added value to ensure their facilities are financially sustainable. Additionally, franchisees have access to the support and knowledge of their peers throughout the network.

In these ways, joining a franchise system helps create a sense of stability for small business owners.

Read the full article: Running a Collision Repair Centre

Unlocking Opportunity with Pop-A-Lock’s Pete Crouse

By Pete Crouse

Photo courtesy Pete Crouse

After I recently ended my career in the consumer packaged goods industry, I immediately explored the possibilities of franchising. As I learned more about the Pop-A-Lock system of mobile locksmith services for vehicles and buildings, my ambitions quickly grew from multi-unit to master franchising. Today, I am leading the company’s expansion efforts in Canada.

Early days
I was born in Trenton, Ont., in 1963, but I spent most of my childhood in Brampton, Ont., where we moved two years later. I played a lot of hockey growing up.

When I went to the University of Waterloo from 1982 to 1986, I studied environmental science while continuing to play hockey. At the same time, I met students in other fields and learned about opportunities in business. Working at the Keg Steakhouse & Bar in those days also introduced me to the notion of franchising.

I was drafted in 1985 to try out for the New York Rangers. I did so in 1986 after finishing my degree, but I didn’t make it. I was offered the chance to play in the minor leagues, but decided not to go that route.

There also wasn’t much in the way of opportunities in environmental science back then, so I ended up getting into the consumer packaged goods business. Beginning in 1987, I worked in sales at Quaker, calling up grocery stores and going in with various merchandising displays. My initial territory was Barrie, Ont., but it wouldn’t be for long.

Read the full article: Unlocking Opportunity

Adding Services to Your Automotive Franchise

By Terrance Straker

Only a few automotive franchises are busy for the entire day. In most scenarios, their shop space, personnel and resources are occasionally available to be used for other purposes, which could lead to more profits. The question many franchisees today face is: which purposes?

For some franchisees, a partnership with a specialized professional in another area of the automotive business has proven effective. An outsider can bring instant expertise in a specialized service area—and new customers—to the table.

Another popular and proven option is to open the door to a strategic co-branded offering with another franchise group. By doing so, you can capitalize on another’s successful efforts, adding their complementary products or services alongside your own, under the same roof or banner.

These are not the only ways to diversify your franchise’s format and add to your bottom line, however. You can instead offer additional services and products yourself, without the branding and methodology of a partner. These related, complementary offerings are simply referred to as ‘add-ons.’

Many existing automotive franchisees have already increased their revenue through add-on programs. Some of these programs fall into the low to medium investment range, while others are more expensive and some require additional certification.

Read the full article: Adding Services to Your Automotive Franchise

Hiring in the Automotive Sector: Be optimistic—and realistic

By Glenn Root

While certain hiring suggestions and strategies can help you greatly as you start your franchise journey, don’t forget that the picture is not altogether rosy. Automotive service franchisees operate in a highly competitive market, so making sure your shop has skilled technicians is a key consideration for any would-be franchisee. The point to remember is that not all shops share equally in the pool of quality human resources. Well-run franchises get to pick and choose first; mediocre businesses, on the other hand, are stuck with the leftovers.

As a prospective automotive franchisee, the best thing you can do to mitigate any concerns you have about hiring the right staff is to find the right franchisor. By concentrating your search on franchisors with comprehensive programs, you can find a system that is not only geared to your needs, but also to those who will ultimately make your business a success—your technicians.

Read the full article: Hiring in the Automotive Sector

Finding Success with a Speedy franchise

By Mike and Jackie Ouellette

We’ve been together for 16 years, but only recently began working as a team with our new Speedy Auto Service franchise, specializing in while-you-wait repairs, maintenance and inspections. The business model fits our skill sets and our family’s needs.

MIKE
I was born here in North Bay, Ont., and had a fun childhood. My hobbies when I was young included hockey and coin collecting, but I was not interested in cars!

After I graduated from high school, I worked at a restaurant. I started out washing dishes and eventually became the kitchen supervisor. I stayed there for nine years. I was very dedicated to my work and didn’t have a lot of side interests. The way my mom and dad raised us, when you’re done school, you have to work.

When I left the restaurant, a good friend got me a job at an automotive repair franchise, though I had no previous automotive experience. In my family, I was the second youngest among four boys and we had one sister. One of my older brothers, Mark, was very into automotive work, fixing engines as a hobby with his friends on weekends.

I started right at the bottom, sweeping floors. I didn’t like the boss and only stayed there for one year before switching to another automotive franchise and installing mufflers, which is where I really learned the trade. My parents were surprised, as I was the last person they thought would work in this business, but they backed me 100 per cent.

Read the full article: Finding Speedy Success

Hiring in the Automotive Sector: Attracting employees

By Glenn Root

Part of the appeal of joining a franchise system is the instant brand recognition franchisees enjoy. While this advantage will clearly help you attract potential staff (and customers), franchisees in the automotive sector cannot rely solely on a recognized brand to help with recruitment. If you plan to enter this industry, you must look for more than an established reputation from your prospective franchisor.

Look for franchisors that provide equipment programs to help make sure your business (and your technicians) have the right tools and machines, along with industry-recognized repair standards. A top-notch franchise organization will have a national (and, in some cases, North American) equipment-buying program for both its franchisees and technicians. You should also look for a strong field staff; these are the people who will help you choose the right equipment.

That said, the responsibility for hiring technicians ultimately rests with you, the franchisee. Your approach to recruitment will vary depending on your specific situation. For example, if you are taking over an existing establishment, you might retain the current staff, pending recommendations from the previous owner. If you are starting the location from scratch, you will have to do more legwork. Thankfully, there are several options open to you, the majority of which can be found online. Websites such as Kijiji, Craig’s List, justcarjobs.com and even the Human Resources of Canada website can be quite helpful. Of course, there is always the tried and true method of simply putting a ‘help wanted’ sign outside your shop. Your franchisor may also offer individualized websites for all stores, on which you can post job ads (though these tend to yield far fewer leads than other websites).

Another long-term recruitment strategy that could serve you well is to hire a couple of young, promising, inexperienced general-services mechanics and then work with them to develop their skills. You can start these candidates out with simpler services and gradually help them advance to more complicated work. In addition, most high schools have co-op programs that allow you to ‘test drive’ the candidates at little or no cost. Even in a skill-heavy sector like automotive service, sometimes it is best to hire for attitude—you can develop the technical skills later.

Once you’ve found the right candidates for the job, your franchisor should be able to advise you on other key employment factors, such as pay plans and how to identify good candidates. Also remember, when you join a large and successful franchise organization, you get the opportunity to talk with hundreds of fellow franchisees. Odds are many owners will have encountered the same challenges you will face and can offer invaluable advice.

Read the full article: Hiring in the Automotive Sector

Hiring in the Automotive Sector: The value of a skilled worker

By Glenn Root

The key to attracting skilled automotive technicians is being in a position to give candidates the types of opportunities they are looking for—specifically, those that offer a competitive salary, plenty of cars to work on and the chance to grow professionally in a pleasant, clean, well-organized workplace. In short, factors over which individual franchisees have great influence.

As a prospective automotive franchisee, you need to remember that auto technicians are highly trained professionals, and as such, have justifiably lofty standards. These men and women typically make a strong commitment to their profession, undergoing extensive education and training, including five-year apprenticeships. Good mechanics will have tools valued at least $40,000 and often upwards of $80,000, which they constantly upgrade to keep pace with industry trends and innovations. Auto technicians also tend to take great pride in what they do. As a result, they want to work for organizations that demonstrate professionalism and similar pride in a job well done. When these skilled individuals enter the job market, they will gravitate toward shops they feel will help fill their need for growth and where they feel they will receive respect.

In short, good technicians—the kind you want working for your franchised business—are picky. As such, if you are looking into purchasing an automotive franchise, you should limit your business search to franchisors that will fully support you and help you offer gifted technicians what they are looking for. This includes everything from an attractive store with top-notch equipment to well thought out operational processes and procedures to open and frequent communication.

Technicians will also be drawn to jobs that give the opportunity to grow through a comprehensive training program. Franchisors with online education programs, which allow technicians to improve their skills at any time, are far more attractive to potential employees. These courses have the added benefit of allowing you to test a technicians’ skill sets before you hire them, which is particularly helpful if you do not have a background in the automotive business.

Read the full article: Hiring in the Automotive Sector

Patrick Dyer talks about the future of Practicar

By Peter Saunders

In 2007, Practicar was acquired as a wholly owned subsidiary of Franchise Services of North America (FSNA). This corporate umbrella also encompassed the U-Save Car & Truck Rental, Xpress Rent A Car, Peakstone Financial Services, Auto Rental Resource Center (ARRC) and U-Save Car Sales brands, along with Rent-A-Wreck of Canada.

“After the takeover in 2007, we re-evaluated our system and consulted with our franchise advisory council (FAC) in 2008,” says Patrick Dyer, the company’s director of marketing, development and operations. “I had provided consulting on sales, development and franchising in earlier years, but this was a new challenge, with multiple purposes.”

Perhaps ironically, the ‘new’ branding ended up reflecting the company’s roots. The Practicar name, used in a corporate sense since 1976, would finally become familiar to the public.

“Older customers know and continue to rent from our older brand,” says Dyer, “while many other locations are using the same rental model but under the Practicar name. Rent-A-Wreck’s not going away.”

The local advantage
The rebranding was also an opportunity to consider how Practicar differed from other care rental brands in a crowded market.

“While business travellers are an important segment of our customer base, we’re not in airports,” Dyer explains. “We’re more like a series of independently owned neighbourhood stores.”

That independence has helped fuel Practicar’s competitive advantages in the market, as each franchisee can respond to the local community’s service needs.

“As the franchisor, we offer different packages, not just our car rental and sales program,” Dyer says. “We provide national marketing, promotions and web-based services, but there are often significant differences on a regional and provincial basis. One of the biggest factors, for example, is insurance in different provinces. Those programs affect the nature of the services we can offer, in terms of insurance-supported replacement car rentals.”

No end in sight
Dyer studied law and economics for his undergraduate degree at Carleton University in Ottawa, then crossed the border to earn his MBA in Illinois at the University of Chicago. His subsequent career involved consulting related to development, sales and franchising.

Today, in his current role, he is based at the company’s head office in Calgary, a city he has called home since the mid-1990s. Alberta has become one of the company’s major markets and is still growing, along with British Columbia and Ontario, especially the Greater Toronto Area (GTA).

“Over the past two-and-a-half years, we’ve added 25 franchisees,” says Dyer. “It’s been the beginning of a frantic pace and I’m expecting the same rate of growth in 2012 as last year. While we have many locations across the country, there are large pockets of Canada we’re missing entirely, including Manitoba and Saskatchewan. I see no end in sight.”

Read the full article: Meet the Franchisor

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