Auto Body Franchise Denver CO

Look, above the shop, it's a franchiser ... it's a consolidator ... no, it's something in between. It's a ... what exactly is that thing?

By Mark Clark
11/1/1998

Are you having trouble keeping up with the players in the big business of collision repair? Are you wondering whether you should buy into a franchise or sell out to a consolidator? You're not alone. The industry is no longer just made up of shop owners, customers and insurance companies - as if that weren't enough. Now there are consolidators to contend with and franchisers to fret about - two entities I'm sure you've heard a lot about.

Like many others, you're probably wondering exactly what the difference is between a consolidator and a franchiser. Back in the days of 20-cent McDonald's hamburgers, that question was a lot easier to answer. Today, the lines are a bit blurred.

Typically, consolidators differ from a franchise in that they own the body shop outright. (Remember, I said typically.) Today, however, several franchisers also own body shops. Franchisers CARSTAR and ABRA Auto Body & Glass both own some shops outright in addition to their affiliation with franchised member's shops, and many other new players are also busy buying existing shops, as well as building new locations.

What's On the Agenda
It's easy to get confused. Several years ago, there were only three or four consolidators trying to run multiple locations under their own flags. Today, as many as 15 different organizatio...

Buying into a franchise could be just what you - or your competitor - needs to pump up profits and market presence. Take a look at what you could be a part of - or up against.

By Mark Clark
11/1/1998

Just who are all these people who think they can run multiple body shops. As any independent body shop owner knows, it's a struggle to run just one shop. It appears our industry is undergoing the same kind of cookie-cutter consolidation that's already swept through grocery stores, funeral homes and pizza parlors.

However, unlike the pizza business where the problems are pretty similar from one pepperoni pie to the next, collision repair is a very complicated business. Though the average collision costs around $2,000 to repair, the type of damage is never uniform. That disparity and the sophistication of the repairs are often quoted as the reasons Sears and K-Mart don't offer collision repair at their service centers - that and the third-party payer who exerts a lot of control over the price charged for collision repair.

Other outsiders, however, have decided to dabble in the repair business. In the 1980s, people tried franchising every type of business imaginable - including body repair shops. The benefits: Franchise autobody operations offer on-site consultation, uniform business systems and identity advertising to help their franchisees increase sales and revenue. They have an enviable record of success doing just that.

Today, several franchisers still see an ...