Life in the fast lane

The train's just arrived 15 minutes late (again). The carriage is more akin to a cattle truck, on top of which, beleaguered customers pay exorbitant prices for the 'privilege'. It's little wonder that more people regard their cars as the transport of delight. And automotive franchises do their bit to make motoring so pleasurable.

Lloyd Evans, chief executive of ChipsAway and PCC, believes franchising will fare well during the recession. "Those who have long cherished an ambition to be self-employed seem often to choose periods of economic uncertainty to 'take the leap'," he says. "This is probably due to reduced sense of security in employment and an impulse to take control of their own destiny. Some are made redundant and decide to invest in their own business rather than risk being made redundant again. For a number of good reasons - a large, self-replenishing marketplace, resilience to recession, good cash flow, job satisfaction, independence and flexibility of hours - automotive services franchises do particularly well."

There are many advantages to franchising, as opposed to starting a business from scratch. Mr Evans says that these include the presence of an established brand name (customers are more likely to select a name they recognise and trust), a proven business model with a track record of success, and the ongoing support of an experienced, professional management team behind you. "Research undertaken by NatWest and the British Franchise Association bears this out," he says. "Success rates for franchises are significantly higher than those for lone start ups."

Although the news from car manufacturers and retailers may be gloomy, with new sales substantially down, the current economic outlook presents a positive opportunity for the automotive services sector. "Automotive services, such as paintwork/alloy/interior repairs or providing a protective coating as part of a valet, enhance the value and therefore extend the life of vehicles, as well as keeping them looking good," Mr Evans explains. "As customers err towards keeping their vehicles longer in these straitened financial circumstances, rather than replacing them, automotive services become increasingly in demand."

However, change is inevitable, and the prospect of an improvement in the economic climate lurks around the corner. This is still good news for the automotive services sector, though. "Growing volumes of cars on the road and concomitant congestion leads to increased incidence of minor damage to paintwork and increased demand for repairs," comments Mr Evans. "For the automotive services sector, it's a win-win outlook!"

Car Medic's managing director, Andy Hack, agrees. "The credit crunch is having a very positive effect on the profitability of our already very 'investable' franchise packages," he says. "Each one of them offers innovative, convenient services to the end customer as well as massive savings versus the traditional alternatives. This means that all operators are offering something to the public that is getting extremely hard to find - high quality at a low price."

Two of the most popular automotive franchise sectors relate to valeting and SMART repairs. SMART (Small to Medium Area Repair Technology) technology enables franchisees to make invisible repairs to minor scratches, bumps and scuffs to car bodywork - the bonus is that this work is done quickly and cost effectively. This means a golden opportunity for potential franchisees, as - due to the current economic crisis - automotive sales have been affected.

"The automotive market, particularly car sales, is going through a tricky time with the recession," says Mark Llewellyn, managing director of Revive! "We have noticed that the more savvy dealers have welcomed our new marketing ideas, bringing more profit and customers back to the dealerships. We have noticed a significant upturn in work for the general public." He says that this can be attributed to people keeping their cars for longer instead of buying a new one.

He believes that there is going to be enormous growth in the SMART repair sector in the next couple of years. "Our goal is to be regarded as the best within our industry," he says. "We will do that through bringing on quality franchisees and continuing to produce innovative sales strategies. I feel that we are making great strides to achieve that."

One advantage of the SMART repair system is that it helps to protect the environment, as parts are repaired instead of replaced, thus saving huge amounts of time, money and materials.  "I saw the outstanding potential of these services right back when the company began in the early 1990s," says Car Medic's Mr Hack. "Our R&D team is dedicated to sourcing and creating franchise packages which work in all economic climates and will profit the franchisee and the customer.

Nationwide, Car Medic's operators have seen a 20% increase in demand for repair services during the turbulent economic period. Many operators are booked up to four weeks in advance. "In fact, many operators have more work than they can possibly handle alone and in the midst of the UK's redundancies and bankruptcies galore, are actually recruiting more staff! The group has sold more franchises in the quarter to December 2008 than ever before."

It's enough to make you want to get in your car and take a leisurely drive...

Revive!

Revive! was created in 2004 following a management buyout of a Canadian master franchise. The directors of the business created the brand and invited existing franchisees to rebrand. Mark Llewellyn is managing director and Terry Mullen recruitment director. There has been considerable growth in the business concept since the rebrand took place -the network currently comprises 50 franchises and 75 vans.

Revive! is looking for business-minded individuals who want to grow a business rather than a man in a van. This concept is carried throughout the franchise model: Revive! says the training is longer, territories larger and franchisee support closer and ongoing. The whole franchise package costs £17,500 + VAT, although franchisees will still need a van and working capital.

Ideal franchisees have drive and determination to persevere. Franchisees must also follow the business system - those who will work hard and trust in their franchise model tend to be the most successful.

Since Revive! is a van-based, mobile business that can be run from home, this means that the overheads are generally low and profitability can be very high.

Chipsaway

One of the major players in SMART repairs, ChipsAway boasts a widely recognised, market leading brand name and has a strong reputation for delivering high quality repairs, professional customer service and unbeatable value for money. Operating costs are low and return on investment is rapid - franchisees start to make money from day one.

ChipsAway International is the dominant brand in the SMART (Small to Medium Area Repair Technology) repairs sector. The ChipsAway system, first developed in the US and introduced to the UK 15 years ago, enables franchisees to provide high quality cosmetic repairs to minor automotive paintwork damage - such as scratches, scuffs and chips - in a matter of hours and at a fraction of the price of a traditional body shop repair.

Currently there are more than 350 successful ChipsAway franchisees across the UK, with a growing network of master franchises worldwide. Franchisees have the option to operate either from a strikingly liveried vehicle, customised as a mobile workshop, or from a static ChipsAway CarCare Centre.

A growing number of franchisees develop their business to the point where they have a CarCare Centre and also provide a mobile repair service. In either case, ChipsAway franchisees enjoy a comprehensive training course, including a specialised sales and marketing module, as well as one-to-one mentoring by a business developer (an experienced ChipsAway franchisee). ChipsAway co-ordinates and supports a professionally organised business launch and franchisees can also expect ongoing support both from the National 24/7 Call Centre, which passes sales leads to franchisees, as well as from the dedicated franchise support team at head office.

The franchise cost is from £22,500 + VAT. ChipsAway franchisees tend to be proactive, practical and self-confident people, determined to build a successful business. Franchisees come from all walks of life and different age groups - no previous experience is required, as the system is easy to learn and use.

PCC

Professional Car Cleaning (PCC) was launched by the ChipsAway management team in 2006 and has become the fastest growing mobile valeting franchise in the UK. Operating from a smartly liveried, fully equipped VW van, PCC franchisees provide professional car valeting services to a huge marketplace, using a comprehensive range of high quality products that have been developed exclusively for PCC. Potential customers include private individuals as well as corporate clients, creating the opportunity for franchisees to build a regular, repeat order customer base and so enhancing the value of their investment.

PCC franchisees are highly trained, professionally presented and equipped with a market leading product range exclusive to PCC. Franchisees benefit from the experience of the ChipsAway management team and from association with the high quality brand and established network of its sister franchise.

PCC franchisees receive a comprehensive training course - including a specialised sales and marketing module and individual support on their territory in the early days from an experienced member of the PCC management team. Again, in common with ChipsAway colleagues, a telephone helpline is available to all franchisees and a 24/7 Call Centre is available to gather new business leads and pass them to local franchisees.

Starting at only £9,995 + VAT, PCC is one of the most accessible and best value franchises available in the automotive services marketplace. PCC franchisees are hard working, self-motivated people who take great pride in a job well done. They are friendly, personable and enjoy working out and about. As with ChipsAway, no previous experience is required.

Car Medic

Car Medic was founded in the early 1990s and is still run by Andrew Hack. The first package was the group's flagship smart repair franchise package - Car Medic, making it the longest established independent smart-repair franchise in the world.

The group now has over 300 individual franchisees in Britain and a large, constantly expanding network of master franchisers and operators all over the world.

The Car Medic International Group has been bringing profitable business ideas to the global franchise market for more than a decade. "Our R&D team are dedicated to searching the world for gaps in the automotive markets," says Mr Hack. "The field of cosmetic repairs has been proven to carry a huge demand for a faster, more cost effective alternative to expensive traditional repair methods. We are continually looking for the next advance in technology so our operators can add another string to their bow."

He explains the 'secret' to the group's success: "I expect the operators trading under the Car, Air, Bike, Tyre and Caravan Medic names to provide the best possible quality repairs, coupled with a truly memorable personal service. I try to lead by example: my team and I put a mammoth effort into researching and developing what we believe to be the best franchise packages in our sector. I meet all potential franchisees personally, and discuss whether Car Medic is right for them, and whether they are right for Car Medic. And my involvement doesn't end at the purchase stage - I am available to any franchisee who needs my help or guidance - even years after they buy."

The Car Medic group operates using a 'try before you buy' policy and invites potential franchisees to attend a free, no obligation, one-on-one demonstration day at head office in Leighton Buzzard, Bedfordshire where they can have a chat with Mr Hack, see each franchise system in action courtesy of a demonstration from one of the fully qualified training team and try all the repair systems for themselves.

All the franchise packages from the Car Medic International group include all the repair systems, equipment, training, promotional material (including vehicle graphics, stationery, flyers, advertising and clothing) and support needed to launch a business.

All packages come complete with every repair package available - no add-ons at extra cost.

The group is the only repair franchise that offers comprehensive unlimited and open-ended training. Operators can stay for as long as they like for their initial training and come back as often as they feel is necessary at no extra cost.

There are five different packages in the Car Medic group, as well as Car Medic itself. Caravan Medic is the most recent of these (it was launched in March 2008) and is already a success. The system repairs internal and external damage to all shapes and sizes of caravans and mobile homes including a brand new 'never been possible before' textured panel repair which is exclusive to Caravan Medic in the UK. With only 100 franchises available in the UK, Caravan Medic is in high demand.

Bike Medic uses the same smart repair principles as Car Medic with specialist inks, dyes and lacquers for motorcycles. Air Medic, a mobile air conditioning franchise, can be operated as a standalone business or integrated into another of the Car Medic group franchise packages, while Tyre Medic provides a permanent puncture protection service.

All the franchises from the group are designed as van-based packages and, although they work equally as well as static businesses, this is where they thrive.