To Franchise or
NoT to Franchise.
That is the Question
by Paul Mathewson
T
his is the first of a series of twin tracks for transmission shop suc- Manual that comes with the franchise
three articles that will consider cess: agreement provides clear and unalter-
the role of franchising in the able directions about every aspect of
transmission repair industry. AAMCO, A. Development and manage- starting and running a successful fran-
Mr Transmission, and Lee Myles are ment of the business model. chised shop.
examples of big names as franchi- B. Technical competence. I bought a transmission franchise
sors. They’ve been around since the for the above reasons. I owned a four
transmission specialty shop came into ATRA Transmission Expo high- bay Shell Canada diagnostic center
existence. Their names draw lots of lighted these twin tracks in Las Vegas where we did all kinds of general auto
customers. They have some happy and recently. The entire program of training repairs including transmission. I real-
prosperous franchisees. Today we’ll had two divisions: Management and ized that the transmission part of our
examine both the benefits that franchis- Technical. There were two very large business was the most profitable, so I
ing brings and some of the problems. rooms full of people anxious to learn. decided to sell the general repair busi-
Just like Fox News, “We’ll report; you One room listened to the “Track A” ness and open a transmission shop. I
decide”. professionals who inspired managers to needed a business model and I needed
In the next article we’ll review the “get with” the evolving market, to mon- protection from out-of-town warranty
merits of the Independent Shop. Unlike itor and measure results, to employ new rip-offs. The franchise offered to pro-
the cookie cutter image of the fran- advertising and promotional ideas, to vide both.
chised shop, this category includes a focus on business planning, in short to
wide range of business models. Unlike strengthen the business model “track” Questions, Questions,
his franchised brother, each Independent that their shop runs on.
Questions
has his own story, his own market Meanwhile hundreds of transmis-
niche, his own personality, and his own sion technicians in another room spent Here are the questions that ran
focus on the future. We’ll look at some two full days listening to “Track B” through my mind as I contemplated
successful examples of Independents. professionals. They learned about diag- owning/operating a transmission shop:
In the third article we’ll try to nostic procedures, common faults in
draw some conclusions. In that article newer transmissions, fixes that others • Where should I locate?
I will propose a plan that may forge had found, interchange parts informa- • What kind of a building is best for
a new way, a “third way”, of creat- tion, news about the next generation a transmission specialty business?
ing extraordinary transmission shops. of transmission technology, in short all • What specialty equipment will I
The future is born out of the past, kinds of “stuff” to strengthen the tech- need?
but future plans are conceived by the nical “track” that their shop runs on. • How will I attract customers?
entrepreneurial spirit. Advertising? Signs? Grand
Opening Event?
The Franchised • How will I solicit referrals from
Twin Tracks:
Transmission Shop
other auto repair shops and from
The Essentials
fleets?
The franchised shop is first focused • What are the industry standards
Transmission shops run on twin on track A, the business model. A fran- for transmission overhauls?
tracks just like a railroad. Those that chised transmission shop is born out of • How will I price the jobs?
have learned this secret are enjoying the successful business model that the • Who are the industry parts suppli-
success. Those who have not learned franchisor has created and molded with ers and who are the best?
this secret are in trouble. Here are the time-tested results. The Operations
48 GEARS January/February 2010
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