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Entrepreneur Magazine Ranks Automotive Glass Companies Ranked in Annual List

It's great for fast food restaurants, but to pay a franchise fee and royalties in the auto glass business is ridiculous.

Re: Entrepreneur Magazine Ranks Automotive Glass Companies Ranked in Annual List

xn
It's great for fast food restaurants, but to pay a franchise fee and royalties in the auto glass business is ridiculous.


There are MANY benefits to a well run Franchised System. The Glass Doctor seem to be very reputable. I am sure there are others...That being said I also know the flip side to that coin and have seen a couple of companies out there that make me shake my head.

Re: Entrepreneur Magazine Ranks Automotive Glass Companies Ranked in Annual List

It isn't necessarily an issue of "reputable", Leakpro. It is more of a matter of value.

Coughing up a substantial royalty on each and every sale right off the top is often the difference between profit and loss when you are trying to be competitive.

Re: Entrepreneur Magazine Ranks Automotive Glass Companies Ranked in Annual List

LEAKPRO
xn
It's great for fast food restaurants, but to pay a franchise fee and royalties in the auto glass business is ridiculous.


There are MANY benefits to a well run Franchised System. The Glass Doctor seem to be very reputable. I am sure there are others...That being said I also know the flip side to that coin and have seen a couple of companies out there that make me shake my head.


OK, name just ONE benefit. Please. Why don't you ask all of the failed Glass Doctor and now broke, past owners.
Ooops...

Re: Entrepreneur Magazine Ranks Automotive Glass Companies Ranked in Annual List

the average net profit margin of a small business is 10.28%. The average franchise fee is 6.8 percent, not including franchise advertising fees. Not much left, about the same as working for some else. Compound that with TPA fees (similar to a fee through price setting) and there is nothing left.

Re: Entrepreneur Magazine Ranks Automotive Glass Companies Ranked in Annual List

the branding is the only reason to pay for a franchise. Unfortunately there is no glass brand that is recognizable. Oops there is one company that has built their brand and that is Safelite. But, they are not selling franchises (in the US).

Most people would not buy a Safelite franchise. Especially ex-S' people. Or would you?

Re: Entrepreneur Magazine Ranks Automotive Glass Companies Ranked in Annual List

I think auto glass franchises can work in certain markets that are not very competitive. Its like anything else, not much competition a business can work. You have a few pro's to the system. One being the name (again, if you're not in a very competitive market, it can work). Two, you are usually giving decent to good pricing through PILK and PGW, with no price hikes involved..so they don't pay that 5% when PGW wants to rise it every 6 months it seems. Many con's tho. First off you have to pay a royalty fee every month to that brand, buy all your vehicles, pay for all your advertising, do all of your insurance billing, etc. The names on this list don't do very well here at all. Glass doctor does maybe 8 jobs a week for auto glass related stuff (prices are too high) . Ziebart doesn't do auto glass here. Novus glass mainly does windshield repairs, and maybe does 5 replacements a week. Super glass doesn't do hardly any work. Techna glass isn't here.

I worked for 2 companies in management before i started mine. My margins are between 30 to 35 percent when it's all said and done. The key is to get in good with other suppliers and not be so focused on being from one brand. I buy maybe 1 part a month from PILK.

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