How to Franchise an Auto Dealership

Franchising is usually the next step when auto dealerships have done well in their local markets and are looking to upgrade to the next level. It may take some time and research to franchise an auto dealership but the results is usually worth it.

• Look closely at what your auto dealership has to offer.  Determine if your dealership fulfills a need that may be missing from other auto dealerships.

• Do extensive research on other franchised auto dealerships.  Figure out what your auto dealership can offer that is not being done by others. Take notes and develop a strategy to fulfill what’s missing from other franchised auto dealerships.

• Meet with your attorney and discuss laws such as zoning laws and state laws. Discuss licensing and insurance requirements with your attorney. Ask your attorney about the franchising fees. Obtain a copy of a franchising agreement to have your attorney read over. Ask as many questions as you can during this meeting.

• Research all fees involved with franchising an auto dealership. Survey the national market of how many people are buying cars in various areas.

• Meet with a marketing advisor to develop a business franchising proposal. Discuss all the information from your research.  Figure out a total amount needed to franchise an auto dealership. Include in the business proposal information on the market and a projected time-frame of a profit potential.

• Obtain any licenses needed required by the state.

• Present business franchising proposal to bankers or potential investors with your marketing advisor. Collect your investment money.

• Pay your franchising fees. Complete and sign the franchise agreement.