For those interested in auto service and taking care of cars, finding an entrepreneur opportunity with a tire franchise can provide the perfect career path. Tire franchises often provide car owners with a variety of helpful services, including tire services (e.g., repair and alignment), as well as some basic autocare (e.g., taking care of fluids). These types of businesses are needed from New York to California, so those interested in car care will find that this field offers ample opportunities in nearly every geographical area.
If you are interested in owning a tire franchise, here is what you need to know about these types of franchises and what you can do to get your business started off on the right foot.
Why Should You Consider a Tire Franchise?
Many people find themselves interested in cars from the time they can walk. They appreciate proper car care and understand the importance of providing qualified, customized care to the cars that they come across. When that interest in cars combines with business understanding, it can be a perfect opportunity to start a franchise.
With the franchise business model, you do not have to worry about certain aspects of starting a business, such as branding yourself and running marketing campaigns. Instead, with franchising, the main business will take care of this aspect of business growth. The franchise owner pays a fee to the franchisor regularly and, in exchange, can just focus their efforts on their work.
For many people interested in owning their own business, this can sound like a highly attractive arrangement. Let's explore the steps you can take to get yourself started on the right foot.
How to Find the Right Franchise
When you evaluate the different franchise options, you will want to consider a variety of factors that will help you choose the one that works best for you.
- The financial arrangement: You will want to look at the franchise cost. Different tire franchise options will have a different setup that dictates how much you have to pay in your initial franchise fee and how much you will owe throughout the partnership. It is not a question of choosing the cheapest but rather the best deal. Often, franchises offer different services in exchange for that initial investment, such as specialized training or support for new franchises.
- Real estate: You also want to look at location options for your business. Know what other types of franchises are near you and what services they provide. You want to find a key target audience that you can appeal to. See how many options customers have for finding new tires in your area. Check that the cost of the real estate will fit into your target investment range.
- The overall partnership: You also want to look over the Franchise Disclosure Document (FDD), which will outline the business opportunities in front of you. You will see not only the fees you pay and what you get in return but also how the entire relationship will work, such as how much control the franchise has over day-to-day operations. Look this over with a lawyer to make sure the terms are fair.
- The services: Different franchises will also offer different tire brands, such as Goodyear or Michelin. They might also differ in the types of services they provide. Knowing the type of audience you want to target and the services you would ideally have at your shop can help you further evaluate tire franchise options.
Franchise Opportunities to Consider
Tire companies will find that there are some success stories that really shine a light on the potential of a business owner with a strong entrepreneurial spirit. Discount Tire Company (discounttire.com), which was founded by Bruce T. Halle, is the largest independent tire and wheel retailer in the country. It expanded from a mere six tires in Ann Arbor, Michigan, moved to Arizona, and has since expanded to thousands of stores. It also goes by the name America's Tire in some locations. Despite not being a franchise, this store can help new franchise owners see how customer service and high-quality care can help them propel their own business.
Some franchise names you might come across as you begin your search include:
- Big O Tires
- RNR Tire Express
- Tuffy Tire & Auto Service
- Meineke Car Care Centers
Research the franchising opportunities offered by these and start to evaluate which one will work best for you.
What Does It Take to Succeed as a Tire Franchise Owner?
Once you select the franchise you would like to work with and succeed in getting approved, you want to make sure you prepare yourself to excel as a tire franchise owner. You want your tire store to stand out as an excellent place to receive automotive care, helping you cast yourself as a franchisee that truly benefits the brand.
We will explore some key traits that can help you start to achieve this desired result.
Understanding the Automotive Tire Industry
To thrive as an owner of a tire business, you want to make sure you have a solid understanding of the automotive industry. You do not want to make the assumption that this store will be easy for someone not familiar with the industry. You should understand the different tire brands you offer, what makes them unique, and when customers should use them. As the owner, you should also know the basics of auto repair and oil changes, especially if your franchise offers any of these services on your menu. You also should know when a customer should take their car back to the dealership for a level of service that you cannot provide.
You want to make sure your customers trust you to know how to help their car and its tires. You also want your employees to look to you as a leader and someone who can guide them as they manage the customers and day-to-day operations. A solid working knowledge of the car industry will help you get started.
Great Customer Service
As any Forbes columnist will tell you, a tire dealer also needs to offer excellent customer service. When customers come to you as a tire retailer, they want someone that thoroughly understands proper tire repair but also knows when new tires are needed. Customers want to trust that their tire dealer offers quality advice that is designed to help them (and not just get them to spend more).
You can earn this level of trust for your tire shop through hard work and quality care. Genuinely listening to customers so you understand their needs and personal situations can go a long way. Helping customers understand your recommendations, particularly if they do not have tremendous car knowledge themselves, can also help you thrive as a wheel retailer. Guiding customers to be sure they understand their warranties, the differences between different tires, and what factors impact their unique situation will all help you demonstrate worthwhile leadership.
People remember great customer service. For many people, their car is one of the biggest investments they will make and they want to take care of it. When you help them accomplish that goal, you can build customer loyalty and encourage them to come back anytime they need help with their tires or basic maintenance.
Business Insight
As a business owner, however, you also want to build your business insight. You have to understand how business accounting works and what will impact the total investment you have to make to run your franchise. This includes your monthly bills and your supply fees and how that will compare to your revenue.
As you prepare to buy your franchise, taking time to research bookkeeping so that you understand the principles of accounting can help you tremendously when running a business. You will know precisely how your business performs at a given time so you are ready to invest in your growth and run a successful store location.
How Skynova Can Help
For business owners, accounting can present an obstacle for success if they do not understand the principles of keeping track of their finances. Bookkeeping can feel overwhelming for those who have not learned it before.
Fortunately, a platform like Skynova makes it easier for business owners, such as those who own tire franchises, to track their expenses and revenue. It has never been easier for business owners to see exactly how their business performs at a given time.
This proper understanding of accounting will help you in a variety of ways as a business owner. When tax time rolls around, you will have your information ready to file. When your franchisor wants to review your books to gauge your success, you will have the appropriate data to offer them so they can see what makes you such a good fit as a franchise owner.
Come and see how straightforward Skynova can make accounting for business owners like you.
Notice to the Reader
The content within this article is meant to be used as general guidelines regarding tire franchising and may not apply to your specific situation. Always consult with a professional accountant to ensure that you're meeting accounting standards.