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Car Rental and Sales Franchise Opportunities

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Trends and Facts About Car Rental and Sales Franchises

Do you love cars and customer service? The car sales and rental sector is massive in the UK, offering a wide range of services and vehicles to the public to suit every pocket.

Like the majority of industries, the car rental industry took a hit in 2020 due to the Covid-19 pandemic but with lockdowns and restrictions lifted, the industry is set for a massive rebound over the coming years.

As the tourism industry evolves and adapts post-pandemic, staycations are now in vogue as more alternatives to international travel continue to emerge. As more and more of the population decide to holiday within the UK and explore the countryside, there will be a growing need for car rentals for those coming from the city.

The car rental and sales industry offers huge scope for impressive financial returns and returning customers.

Franchising

Franchising an existing business allows you to prosper from the influence of profitable brands. Franchising opens up entry into pre-existing and loyal markets by enabling the adoption of familiar names that customers already know and trust.

And the risks are considerably lower than starting-up from scratch.

The franchise industry is a prospering sector in the UK; and the stats are there to prove it.

Banks are more likely to lend money to franchise businesses because the business model is tried and trusted. Independent entrepreneurs have to work much harder to borrow their start-up funds. Franchises pose a significantly lower financial risk, helping you attract the funds you need to get onto the road to success. In fact, many franchises provide financial assistance to potential franchisees, whether directly or through a third-party, meaning that potential investors may only need a certain amount of capital before investing, rather than the full amount.

The UK Franchise Market

The UK franchise market is expanding while the UK economy is contracting. Franchise businesses currently contribute over £17 billion annually to the British economy and create more than 700,000 jobs each year.

There was a 20% rise in the number of franchises businesses in the UK between 2008 and 2013. And this was during a period of 2.5% contraction for the UK economy. From 2011 to the present day, there was a 25% increase in franchises. As it currently stands, there are an estimated 50,000 franchised units spanning across the country.

Based on the stats alone, franchising in the UK shows absolutely no signs of slowing down anytime soon.

The franchise model is a much safer bet than starting-up an independent business for yourself. As a result, Automotive & Car Franchises, driving franchises and car wash franchises provide a wealth of options for investors.

Car Rental and Sales Franchises

With the costs of motoring on the increase, many people are turning to rental as a viable alternative to ownership. Most car rental services not only provide short- and long-term leases for their cars, but have a considerable sideline in vans, motorcycles, trailers, trucks, and luxury cars.

Some vehicle rental businesses specialise in motorhomes for festival events, while others provide additional services such as chauffeuring and catering for events such as weddings, stag- and hen-dos, and other special occasions.

The car rental sector can be divided up into different categories: economy cars, luxury and executive cars, SUVs, and MUVs, vans, and minibuses.

The car rental and leasing market is projected to expand by 7.4% over the next five years, employing almost 38,000 people and bringing in £16.6bn annually.

Car leasing is a huge part of the rental industry, supplying long-term leases of new and used cars.

Another factor influencing the car sale and rental market is the switch to eco-friendly and ‘green’ vehicles. With more and more of the population wanting to trade in their cars for low-emission vehicles, there is huge potential in the car sales and leasing market to further lean into the growing demand for hybrid and electric models of transport.

Robust

The franchise economy has been resistant to the continued economic challenges facing British businesses over the past decade - including a global pandemic. But, while other industries have faltered, franchising remains a safer means of investing your capital.

During times of uncertainty, nothing reassures investors and entrepreneurs more than knowing an industry is primed to weather harsher economic climates.

Well-run franchises are recognised as one of the most flexible and secure ways of building your own business, with room for expansion and significant financial reward.

Franchise vs Independent

Starting a business from scratch is risky; with half of all independent companies going under within the first two years.

On the flip side, 90% of franchise businesses report profitability within the first two years of trading, proving that by going down the franchising route, the path to being a profitable and successful business owner is a lot more smoother than the independent option.

Franchise businesses are built on business models that have been proven successful in popular consumer sectors with pre-existing demand. Franchising, therefore, lowers the risks of getting started.

Unlike smaller, independent businesses, a franchise has the constant support of the parent company. They are on-hand to provide expert assistance and advice when needed. They have almost an unlimited pool of knowledge and resources to offer their franchisees.

Whether it is advice about branding or marketing, or even customer retention, a parent company will supply the tools a franchisee needs in order to succeed.

Even something as simple as training days to show new franchisees the ropes can have an astronomical impact on the mindset of a new business owner; infusing them with all the confidence they need to navigate a new franchise unit.

Progression

Franchising offers considerable scope for expansion. 29% of all franchisees in the UK run multiple units. Over the course of the last two decades, the franchise industry has proved that it is not only recession-proof, but also both Brexit-proof and pandemic-proof.

Are you ready to start your new franchise journey with us here at Franchise Direct? Explore our car rental and sales franchise opportunities. Become your own boss without the risk of starting completely from scratch.

Buy a franchise today from Franchise Direct

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