Is a Body Shop Franchise a Good Investment?

Body shop franchise concepts can offer a uniquely lucrative investment opportunity because automotive services are needed year-round. With nearly 287 million vehicles on the road in the U.S., the demand for cars, car services and car accessories is big business. Plus, now that the economy is rebounding, consumers are expected to treat themselves to new cars this year, which could mean increased demand for the automotive aftermarket industry.

In general, automotive franchises in body repair offer a proven method for driving brand recognition, optimizing marketing and streamlining distribution methods. Many body shop locations also combine other services for a co-branded franchise opportunity, which can result in a much larger return on investment. Plus, many auto franchises are built for hands-off ownership, allowing experienced franchisees to expand their portfolios with new units in a massive segment without having to learn a new trade. 

Initial investment costs will vary depending on the concept, but franchisees should expect to spend at least $100,000 to get their body shop up and running. However, this number could potentially rise. For example, the initial start-up costs associated with opening a new Jiffy Lube center range from $207,000 to $422,650, excluding land. When it comes to profits, the average gross sales for MAACO Centers in 2019 was an impressive $1.15 million, according to their website.

Some of the best body shop franchise concepts include: Detail Garage, Grease Monkey®, SpeeDee Oil Change & Auto Service®, Midas and Big O’ Tires. Check out our full list of the best automotive franchises to buy in 2021 here.