Thursday, March 30, 2006

Franchise Model for Automobile repairs

Specifically for India, franchise format development for automobile repairs is a money spinning idea. Standardize the offerings and rates: like puncture repairs, towing, body work, tyre replacement, engine/gearbox repairs etc, and come up with a standard prices for repairs. Offer a standard toolkit to the franchisees. The potential franchisees would be numerous car mechanics in the country. Charge them a fixed support fees of 7% of their entire sales. In return guarantee them customers, marketing support, and latest methodology.
The following infrastructure would have to be created:

1. National call center to arrange mechanics be sent to site of breakdown
2. Methodology and price list
3. An allocation software
4. Legal Contracts
5. National Advertisement and marketing program
6. Revenue sharing mechanism
7. Company website
8. Quality Management programme
9. A schedule for listing the host franchise company in NSE and BSE

The actual investments would be put up by franchisees. Collect a non-refundable joining fee of from them.So with a minimum capital investment, an extremely scalable business model can be created. This will have a very high visibility. Franchises are an under-developed concept in India, and stock markets would love it.

P.S. This can be done just not for automobile repairs but also numerous other small things that touches life of an average Indian.

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