How did you get into the industry?
While pursuing a business degree in 2008 from Ohio University, my older brother (Kirby) and I decided to buy and sell some cars. He had always been in and around automobiles so that is what ultimately piqued my interest. 10 years later, after graduating college and owning several successful businesses I decided to jump head first in the car business with my brother in March of 2018. I could have never imagined the success that was to come, but getting into the automotive industry was the best decision of my life.
What’s New in the Business or in the Franchise Model?
The automotive business is a very fragmented business. At One Hour Auto, we are taking the Buy Here Pay Here (BHPH) model used across the country and mixing it with what New and Certified Pre-owned dealerships have to offer. With our systematic approach and our vendor relationships, we can take anyone that wants to be successful in the automotive industry and set them up for success, for a fraction of what large dealerships have to invest.
Where do you See Opportunities or Challenges for the Franchise/Business Moving Forward?
The opportunities for this franchise arise because of the size of this industry. Everyday new dealerships are opening and a high percentage don’t have the right tools needed to be successful. This is where One Hour Auto comes in. We have a proven track record and an approach that works.
The main challenge we will face is making sure that the new franchisees really understand automotive sales and are continually following the processes that we set in place. Not staying with the procedures could cause minimal sales. The processes we have are tried and true and work. To combat this is will have continual training to make sure everyone understands what will make them successful.
What is your Goal for the Business Moving Forward?
One Hour Autos’ goal is to provide an amazing business opportunity with higher rates of return than any other franchise in the country. Over the next 5 years we want to open 50 franchises with a mixture of corporate and franchisee owned.
Talk to us About Training and Support, How Do You Deliver?
We are offering business training for every franchisee. They will have a week (more if needed) with us at our corporate location and also have us a week (more if needed) at their location. Our phones and email will be available to them 24/7 as we understand the automotive industry isn’t a 9-5 job. We are here to make our franchisees the most successful they can be.
Your most difficult moment at the Franchise Business?
The most difficult moments as a BHPH hybrid model dealership is when a customer just doesn’t have the money to continue to pay for the vehicle. Unfortunately, that is just part of this business and when a customer doesn’t pay for it, we must repossess it.
How is your Franchise Model Structured?
A. Training and Support Model?
Our trainer Gavin Harbolt has been in the industry for 14 years. He has successfully opened 8 dealerships and is the go to guy when it comes to training and operation of a dealership. He will turn all of our franchisee’s into successful operators of One Hour Auto.
We are offering business training for every franchisee. They will have a week (more if needed) with us at our corporate location and also have us a week (more if needed) at their location. Our phones and email will be available to them 24/7 as we understand the automotive industry isn’t a 9-5 job. We are here to make our franchisees the most successful they can be.
Our support will be unmatched. We understand that this industry is very secretive when it comes to information and we want to give our franchisees all of the knowledge needed to be successful. Franchisees will have unlimited access to our corporate office for any issues that may arise.
B. What is the Fee Structure?
Our Franchise fee is 35,000. There is a discount for multiple franchises which drops to 20k per franchise. Our royalty is very competitive at 3% plus a 1% marketing fee.
C. Territory Definition?
As of right now, there are no territories or fees involved in owning a territory. The automotive industry does have travel involved in purchases and we do not want to hinder franchisees from selling vehicles to clients that live outside a certain area.
D. Day in the life of a Franchisee?
A franchisee has many things they will be doing to make sure they are successful.
This list includes:
1. Buying Vehicles
2. Making sure the Vehicles are maintenance and cleaned
3. Taking payments
4. Financing deals
5. Getting Stips (Paperwork needed to fund a finance deal)
6. Branding and marketing the business
7. Posting vehicles on social media sites including Facebook marketplace
8. Working with the sales team to get vehicles sold
9. Negotiating deals
10. Wholesaling trade in vehicles (some are to be used for BHPH deals)
11. Sales and company meetings
What does Your Franchisee Do in the Business Every Day?
See above (D. Day in the life of a Franchisee?)
Who is the Ideal Franchise Candidate?
One Hour Autos’ ideal candidate is someone who already works in the automotive sales industry such as a General Manager of a larger dealership, Sales manager, or even finance managers. Most car guys want to find a place where they can be an owner and make more money. These candidates often feel that their job isn’t secure. By owning a franchise, they get all the upside and the security.
Mechanics shops are also another good candidate for a One Hour Auto franchise. Being able to diagnose a vehicle and fix it is a major part of the business. Already having this knowledge can prove to be very helpful with a when purchasing inventory.
What is so great about this opportunity is you don’t have to have a lot of automotive knowledge to be successful. We can take someone with very minimal knowledge of the industry, and create a very successful business.
Success Stories and Failures with Franchisees?
Our 1st franchisee will start in Jan. 2020 with two more opening in Feb. 2020 and March 2020.
What Goals Do you Have for the Franchise Model in the Future?
The goal is to have 50 locations in the next 5 years and 100 locations in the next 10. We also want to help successful franchisees’ own and operate new car dealerships as well. A new car dealership takes a serious amount of capital, but we believe our One Hour Auto franchisees have the ability to create enough wealth to own one.