06 Franchise Shop

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Table of Contents

Industry Overview & Trends

When entering the automotive service industry, there are many different shop types to choose from. This course covers six shop types to help inform a person entering into the industry the strengths and weaknesses of each type. Those that plan to enter the industry should do the research and choose a career path that best matches their personal strengths, weaknesses, and expectations.

The US automotive repair and maintenance industry is huge with combined annual revenue of about $115 billion and about 160,000 service locations. Approximately 8,500 (5.3% market share) of the locations are franchises.

Organizational Chart


While this lesson will focus on the franchise model, it also includes the company-owned model. These two models are virtually identical except for the upper management as shown in the two charts below.

Franchise Model

Typical Franchise Model
  1. The local franchise owner may, or may not, have any significant experience in the industry.
  2. The local franchise owner may have multiple locations (typically in the same geographical area).
  3. Most franchises have a manager that runs each location on a daily basis.
  4. The front end staff will be determined by the type of franchise and the size of the operation.
  5. The back end staff will be determined by the type of franchise and the size of the operation.

Company-Owned Model

Typical Company Owned Organizational Chart
  1. In the company-owned model, almost all business decisions and policies are made at the corporate level. Based on the size of the franchise (mainly the number of locations) the corporate group can become rather large and somewhat bureaucratic.
  2. In the company-owned model, the local franchise owner is replaced by a local manager.
  3. The front end staff will be determined by the type of franchise and the size of the operation.
  4. The back end staff will be determined by the type of franchise and the size of the operation.

Major Automotive Franchise Locations

CompanyType of
Valvoline Instant Oil ChangeQuick Service817756
Jiffy Lube InternationalQuick Service1842165
Big O TiresTire / Service43432
Grease MonkeyQuick Service194246
Midas InternationalAuto Repair9730
Tuffy Tire & Auto ServiceTire / Service11746
AAMCO TransmissionTransmissions54910
Christian BrothersAuto Repair2530
Precision TuneAuto Repair18948
SpeeDee Oil ChangeQuick Service8911
Take 5 Oil ChangeQuick Service173558
Meineke Car Care CentersQuick Service7000
Data is for USA Locations at the end of 2022 – Data provided by Entrepreneur Media

Training Program

With the franchise and company-owned model, the work and services performed are very specific which makes technician training much easier. Most franchises deliver in-house training for the front-end staff and back-end staff.

Some of the points that should be addressed when evaluating a shop as a potential employer.

Training Plan

  • Does the potential employer have a plan (preferably written) on how to keep the shop’s technicians trained on emerging technologies?
  • It is ultimately the shop owner’s responsibility to set the policy on training and a serious commitment to ongoing training should be in a written training plan.

Training Budget / Funding

  • Does the shop have a plan to fund upgrade training?
  • What costs is the shop willing to pay for?
    • The cost to enroll in the training
    • The cost to travel to attend the training
    • The lost wages while a tech attends training

Fringe Benefits

Fringe benefits in the automotive service industry shouldn’t be much different than other responsible employers in the technical services industry. In reality, the automotive repair industry is in competition with more than just the other shop down the street. They are ultimately competing with other transportation and service-related careers such as:

  • Heavy Equipment / Diesel Technician
  • Aircraft Mechanic
  • Wind Turbine Technician
  • Industrial Machinery Mechanic