The Pros And Cons Of Oil Change Franchise Opportunities
Today, most automobile owners rely on a mechanic for oil changes and other types of maintenance. That said, rather than bring the car to a traditional mechanic, many prefer the convenience associated with oil change specialists. As an example, a person can go to Jiffy Lube, and have their car serviced in less than an hour. Therefore, if you decide to buy into an oil change franchise, you are likely to enjoy having a large number of customers.
On the other hand, there are some disadvantages to taking part in this type of investment. Among other things, you will have a great deal of competition from neighborhood mechanics, as well as other franchise outlet owners in your area. Even if you locate your store next to a hotel, chances are you will find an outlet from another oil change franchise nearby.
In addition, sometimes you will find that customers are very loyal to their existing mechanic. Typically, if they are satisfied with the repairs performed, they will not be interested in trying the services offered at your new facility. That said, if you can manage to build up a customer base, you are also likely to enjoy a loyal following.
In order to start and build an oil change facility, you may also need to make sure that your site is in an appropriate zone. As an example, in some areas you may not be able to locate near a daycare center or golf course. Unfortunately, the zoning restrictions are not the same in each area.
Because your facility will be taking in a great deal of used motor oil, you will also have to comply with EPA and OSHA guidelines. This includes ensuring safe disposal of the oil, as well as creating policies that will not violate the right of your employees to work in a safe environment. You may also find that your business will be subject to special taxes and licensing fees.
It is also very important to realize that an oil change facility cannot be easily converted into another type of store. At the same time, you will need to purchase some very expensive equipment, including special lifts, and commercial quality mechanic tools. While some franchise owners may provide this type of equipment for you, chances are the acquisition price will still be very high.
Unfortunately, an oil change franchise can incur a number of different types of lawsuits. Among other things, consumers might complain that one of your mechanics caused damage to your car. In addition, if one of your employees gets hurt on the job, they may be able to sue for worker's compensation benefits.
Even though an oil change facility provides a vital service to the community, it may not be the best of opportunities for an entrepreneur. Among other things, you may find that the cost of building the facility, and equipment purchase may be difficult to finance. Because the business cannot be easily converted to another product, you may also find it is difficult to get a startup loan. |