The auto-related franchise industry has been growing steadily as more and more autos are sold in the United States. Auto numbers have doubled in the last 20 years. Photo courtesy of clipart.com

Cars might not immediately jump to mind when thinking about franchising – the dominant flavors being coffee, burgers and sandwiches – but the automotive franchise industry is racing ahead and franchisors have developed different approaches to cutting through the concept clutter and inking new franchisees.

The Warren, Mich.-based Automotive Franchise Systems LLC, which owns three automotive franchise concepts, focuses on using franchise consultants to find new franchisees.

Jo Gonzalez, Automotive Franchise Systems’ director of public relations, said that each of the company’s brands suits some unique qualities in franchisees, and by using franchise consultants, the company can ensure these qualities are present.

“[Franchise consultants] know our business,” she said. “They do the research [on potential franchisees]. They meet with them and find the right fit.”

Automotive Franchise Systems’ three auto-related concepts are AutoQual, DriveNStyle and Collision on Wheels.

AutoQual is a mobile automotive interior reconditioning business specializing in recondition and seat repair for new car dealerships with used car departments. Services also include deodorizing smoke in cars, fixing cigarette burns and a weekly refresh program that keeps cars in “ready to sell” condition. AutoQual was founded in 1998 and has approximately 100 franchises in the United States and Canada.

DriveNStyle is a mobile automotive company specializing in creating special edition aftermarket packages for new car dealers. The brand was founded in 2000 and has eight locations in the United States and Canada

Collision on Wheels is franchise business focusing on mobile minor collision and paint repair. The chain was founded in 1999 and has 60 locations in the United States.

In addition to the work put in by franchise consultants in recommending franchisees, Gonzalez said Automotive Franchise Systems also runs a program to make sure that franchisees are a good fit. “There are certain things within our process that we know, if they can’t get past it, they won’t cut it as a franchisee,” Gonzalez said.

She does not see her company’s emphasis on a good fit as different from most franchisors. “The good franchisors are looking for a long-term relationship with franchisees and they will screen and screen hard,” she said.

Automotive Franchise Systems puts faith in franchisees who are personable, outgoing, have good management skills and demonstrate an ability to follow the system, according to Gonzalez. “If you follow the system you will succeed,” she said. “There is a learning curve, but once you get it down and follow the system it starts to click in.”

She added that auto-related experience is not required and, in fact, 90 percent of the company’s franchisees had no automotive background.

Automotive Franchise Systems does not actively pursue franchisees, relying only on consultants. “We don’t need to,” Gonzalez said. “The consultant network is so good at helping us find the right fit that it is worth it to us.”

Automotive franchise company Moran Industries Inc. utilizes a number of different outlets to recruit new franchisees to its brands.

According to Pete Baldine, vice president of franchise development for Moran Industries, the company utilizes franchise Web sites, franchise industry trade journals and consultants to find franchisees.

In particular, Baldine said there are some very good franchising Web sites that Moran Industries advertises on to generate interest. The shifting nature of the Internet and changing traffic necessitates monitoring and using different sites, but he believes the Web provides a significant ad outlet. “We will evaluate [our Web advertising] and we will mix if up from time to time, but we buy ads on the Internet [and will continue to do so],” he said.

Moran Industries is a franchisor of automotive aftermarket auto centers. Brands include Mr. Transmission, Dr. Nick’s Transmissions and Multistate Transmissions, which focus on auto transmission repair. The company also franchises Milex, an automotive repair center specializing in tune-up, brakes and air conditioning, and AltaMere, which provides window tinting, security and convenience add-ons, as well as audio and video accessories.

Moran Industries was founded in 1956 to oversee the Automatic Transmission Service brand and is headquartered in Midlothian, Ill. Moran Industries acquired Mr. Transmission in 1990 with 65 franchise owners.

Baldine finds that the potential growth for the automotive aftermarket industry attracts plenty of interest, especially once someone sees the numbers. As he points out, in the last 20 years the number of automobiles in the United States has more than doubled to 232 million. In addition, people are keeping their cars longer – approximately 10 years – so the need for auto maintenance services is growing.

“For somebody that is looking for a business that is a good place to be, a good place to make money, you cannot ignore the automotive aftermarket industry,” he said.

According to Baldine, Moran Industries is also able to generate franchisee growth from within because the nature of its different automotive concepts allows centers to be co-branded, offering both Mr. Transmission services and Milex services, for example.

“We find that once prospects find Moran Industries … most prospects want to co-brand,” said Baldine. “The additional cost to co-brand isn’t that much, indicative to what you get.”

Moran Industries requires its franchisees to have a hands-on approach to running their locations and according to Baldine this is a key facet to success. “We want a commitment from the individual that they are going to be an owner/operator,” he said. “In the automotive business, we find that absentee owner/operators don’t work that will.”

Otherwise, Moran Industries shoulders the brunt of the responsibility for franchisee success. “To be successful in the automotive aftermarket you have to have a good line of support from a technical aspect,” Baldine said, adding that Moran Industries provides this support to its franchises, as well as helping to negate other challenges such as site selection and hiring and retaining good employees.

“We try to take the hurdles out from in front of the franchisees so they can keep pace,” he said.

ProntoWash USA has used many of the previously mentioned methods to grow its franchise business in the last two years – advertising on the Web and hiring consultants and brokers – but the company has also relied heavily on referrals and interest generated from customers.

The Miami-based ProntoWash provides hand car wash and detailing services in mobile and temporary locations such as at malls, corporate buildings, office complexes and strip shopping centers. On site at these locations, the company washes a car with less than a quarter gallon of water. The wash service is based on technology that allows for a low-pressure spray mix of water and no-foam detergents and a step-by-step cleansing method that results in a completely environmentally-friendly wash, according to the company. ProntoWash USA is part of ProntoWash International, which has locations in 20 countries. ProntoWash started franchising in the United States two years ago and has 50 locations in Florida, California, Arizona, Nevada, Georgia and Texas.

Marcelo Villena, chief marketing officer of ProntoWash USA, said the experience of visiting a ProntoWash location is a great sell for potential franchisees.

“It is not all about how you wash a car. It is about the whole customer experience – from the image of ProntoWash to how customers are treated,” he said. “It is all important.”

According to Villena, the experience emphasizes a focus on in-the-field, hands-on leadership and many referrals from franchisees are for individuals who were attracted to this type of business – which suits ProntoWash just fine.

“The job is not at a desk. It is in the field,” Villena said. “They don’t have to wash the cars, but their job is in the field.”

“They have to be involved in the business it is not a passive investment – it is a hands on investment,” he added.

Villena views ProntoWash’s solid growth in the United States, in just two years, as fuel to continue expansion because more locations will provide greater exposure and bring in more potential franchisees.

“We are very happy with our growth. We are very happy with our opportunity and taking our business plan to as many location as we can,” he said.