Applying FranchiseGrade.com’s proprietary Franchise Performance Index™ (FPI) to the Automotive franchise sector data provides a unique perspective and insight for a broad audience: franchisors, multi-unit franchisees, prospective franchisees, PE and financial firms, attorneys, and small business owners contemplating franchising their business.
Some key points included in the full Automotive Franchise Industry report focus on the following areas: Franchise Growth, Turnover Rate, Quartile Growth and Lending Data.
Highlights from the Report include:
System Outlet Growth
Between 2010 and 2013, 46.15% of Automotive franchise systems had positive outlet growth (66 out of 143).
Franchisee Turnover Rate
The 4-year average Franchisee Turnover Rate of 10.8% is greater than the industry average of 9.9%. We saw a gradual increase in the turnover rate between 2010 and 2012, with a reduction in 2013.
Opening To Turnover Ratio
Despite the elevated Openings to Turnovers Ratio, the automotive franchise sector has maintained positive outlet growth sector-wide (1.61%) from 2010-2013 while recovering from the devastating impact of the 2007-08 Financial Crisis.
With this representative sample, 6.65% of the funds borrowed as 7(a) loans defaulted and were charged-off. This is a significant difference from the overall franchise industry charge-off rate of 4.65%. However, only 3.47% of the funds borrowed as 504 fixed asset loans have been charged-off. This is considerably better than the 8.80% rate found in the overall franchise industry.
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