How much it costs to buy a car-related franchise like Midas, InspectaCar, Supa Quick or Auto Magic

  • Motorists commit R37 billion on car or truck parts and companies each year, considerably of which passes by established automotive franchises.
  • There are dozens of solutions offered, many of which really don’t call for technological information about automobiles.
  • This is how much it expenditures to open a brand name title panel beater, workshop, motor vehicle tyre or battery fitment centre, applied car or truck dealership, or aftermarket components franchise in South Africa.
  • For far more tales go to www.BusinessInsider.co.za.

South Africans shell out a staggering quantity on correcting up their autos each 12 months. Some stories counsel it’s as much as R37 billion, on parts and servicing by itself – with up to 18,000 compact and medium enterprises operating in the aftermarket space. 

With the new victory for the proper-to-repair service campaigners, and some 3,458 distinct vehicles throughout 55 makes, the aftermarket industry is only established to grow further. And a single of the easiest ways to tap into this is by way of an established franchise. 

The industry contributes 6.5% to the country’s GDP, and automotive aftermarket franchises make up all over 7% of the South African franchising photo.

Most automotive franchises will not require company house owners to have technical expertise of vehicles this typically will come with staff members education as aspect of the franchise. And there are selections offered in many price brackets and many market subcategories, from panel beating to spares.

The cost of car or truck-related franchises hence may differ wildly relying on the nature of the business, but you can count on to shell out just about anything involving R50,000 and R2 million in startup costs.

Midas

Midas statements to be the biggest automotive aftermarket components franchise in South Africa. The shop generally sells automobile pieces, equipment, and related lifestyle equipment throughout several models. Midas has a countrywide footprint, and there are at this time much more than 300 franchisees in the state.

Midas franchise charge: A Midas franchise needs an upfront payment that starts at R50,000, relying on measurement and site. The franchisor only offers overall ongoing financial commitments on software. Set up and lucrative Midas franchises at times occur up for sale for upwards of R5 million, together with inventory.

Car Magic

Automobile Magic is a car or truck physique fix, panel beating, fitment, and spray portray franchise that’s been in small business for over 19 a long time. The enterprise has an intensive network of brokers and franchisees specialising in most auto entire body repairs. While franchisees will not need to have specific automobile-linked qualifications, Vehicle Magic will help branches in selecting personnel with the related practical experience. As an alternative, in accordance to the franchise web-site, the ideal applicant has ambition, dedication, and funds.

Automobile Magic franchise expense: Franchises value close to R3.5 million, of which 40% should be available as unencumbered funds. Car Magic does not stipulate ongoing promoting and management fees.

Battery Clinic

Battery Clinic started off as a battery reconditioning enterprise named Steve’s Battery Clinic in 2006. The firm has given that expanded to ten stores giving reconditioned and new car or truck batteries. They are accepting purposes from interested franchisees in South Africa who want to enter the battery sale and refurbishing business.

Battery Clinic value: Battery Clinic requires a whole expenditure of R700,000, immediately after which franchisees fork out 10% for ongoing advertising and marketing and management.

Battery Centre

Battery Centre sells Raylite batteries and other linked automotive providers from a countrywide network of franchises. One hundred fifty branches in South Africa promote and suit batteries for most would make and styles of vehicles. The business is open to franchisee apps from “dynamic entrepreneurs” who are passionate about purchaser support.

Battery Centre value: A new Battery Centre franchise involves an initial price of R150,000, moreover an institution price of R511,200. With a functioning cash of about R200,000, franchisees can be expecting their first investment decision to be just beneath R1 million. Battery Centre does not stipulate ongoing marketing and advertising and administration fees.

Motolek

Motolek is a chain of 35 unbiased car electrical workshops located during South Africa. The organization belongs to the Africa Automotive Aftermarket Solutions and claims to have established a credible and trustworthy network of industry experts who specialise in vehicle electrical and associated expert services.

Motolek value: A new Motolek franchise needs an upfront charge of R25,000 and fees R250,000 to R350,000 to build. With a proposed doing the job funds of R250,000, the approximated full financial commitment is concerning R500,000 and R800,000. Motolek does not stipulate ongoing marketing and advertising and management costs.

Vehicle Assistance Metropolis

Automobile Service Metropolis is a whole-assistance workshop for car repairs. They offer shoppers insignificant and main expert services, authentic substitute components, and financing solutions. Franchisees do not need servicing or mechanical expertise, with technical support and workers teaching coming from a head place of work level. They presently have far more than 70 RMI-accredited workshops all through South Africa and are accepting apps from new franchisees.

Motor vehicle Provider Metropolis expense: New Vehicle Support Town franchises start at R1.2 million. Franchisees should pay ongoing marketing and advertising and administration charges that total 7.5%.

InspectaCar

InspectaCar is an automotive franchise that in essence sells applied vehicles. The organization is licensed by WesBank, which presents franchises “a reputation of integrity that is tough for a non-branded employed car dealership to reach”. InspectaCar head workplace connects franchisees to producers and rental agencies and features group buying rewards and entry to education.

InspectaCar expense: InspectaCar calls for an original joining charge of R200,000 for a new dealership or in between R800,000 to R1 million to transform an present dealership. Supplemental expenses for the dealership launch, internet site, promotional product, application, uniforms, and stationery can value upwards of R100,000. They also advise new dealerships have at least R3 million for vehicle inventory. For just about every motor vehicle bought, franchisees must pay back a R300 promoting contribution.

Supa Quick 

Supa Speedy is a countrywide franchise that sells and matches tyres, batteries, exhausts and shocks. They have extra than 200 fitment centres in South Africa but are open up to new franchisee programs in parts not presently serviced.

Supa Brief value: In accordance to franchise documents, the setup prices of a Supa Brief franchise range between R1.5 million and R2 million. Franchisees should have 50% of this in unencumbered dollars. Franchisees call for money for doing the job money, different setup fees, drinking water and electrical energy, devices deposits, an original franchise payment of R65,000, and a reception region of R90,000. After this, they demand a 1% regular license royalty and a 2.5% every month marketing and advertising fee.