Should You Buy a Towing Franchise?

The towing industry is bound to be a good business to own as long as there are vehicles on the road.  Today, there are opportunities to expand business through networking, partnerships with parking lot owners and retail stores, expanding into impound services, and joining auto club associations.  Starting a new business from scratch can be very intimidating.  For many, purchasing a franchise may be the perfect solution.  To make it easier for you, here’s some information we’ve compiled so you can decide if you should buy a towing franchise.

What is a franchise?

A franchise is a form of business where a corporation owns the name and branding elements of the company (the franchisor), and an entrepreneur purchases the right to use the name and brand in exchange for a commitment to operate according to established procedures and a capital investment (the franchisee).

For example, many McDonald’s use a franchise form of business.  McDonald’s Corporation owns the name and brand, but anyone can purchase a franchise location and operate it.  The franchisee pays an upfront fee just to have the rights to operate under the name and brand and then agrees to follow McDonald’s rules in managing the business.  As the business operates, the franchisee usually pays a portion of the gross sales to the franchisor each month.

What are the responsibilities of a franchisee?

First of all, the franchisee is responsible for selecting and establishing the location for the business.  Unless they are fortunate enough to purchase a business already in operation, they will need to work with a commercial realtor to find an appropriate location, get permits, manage construction, etc.  The franchisee will also need to purchase all the equipment and supplies for the business.  Sometimes a franchisor requires specific suppliers to be used; other times, it is up to the franchisee.

Next, the franchisee must hire all the staff to run the business.  A small towing operation may just be one or two people, and often the franchisee becomes the manager of the company.

Then, the franchisee is responsible to operate the business according to the rules and standards of the franchisor.  Those rules likely include hours of operation, service standards, types of service provided, and often uniforms.

What does the franchisor provide?

In addition to providing the name and brand, the franchisor often provides marketing and promotional materials for the business owner.  For example, a franchisor may provide brochures, marketing templates, a website, national advertising on tv or radio, etc.  Also, franchisors often provide training materials for team members–from safety training to service expectations.

When You’re Outfitting a New Towing Business, Choose Collins.

If you haven’t checked out our Hi-Speed^Ⓡ Dolly and Carrier Dolly systems, you’re missing out on one of the best investments you can make in your towing business.  Equipping your trucks with our Hi-Speed^Ⓡ Dolly and Carrier Dolly systems will make you an employer of choice in your community.

Collins Manufacturing has been the industry leader in towing equipment for 45 years.  Our Hi-Speed^Ⓡ Dolly and Carrier Dolly systems make towing vehicles from even the most challenging situations safe and simple for your crew.  Our safety ratchet system prevents injuries to employees from slipping grips and prevents the vehicle from dropping.  When your workplace and employees’ safety matters, choose Collins.  Contact us today to learn how you can implement Collins towing equipment in your company.