#SAFranchiseFriday featuring Car Service City

BACKGROUND
Car Service City was established in 2004 as the first franchise offering in the Car City Holdings stable of business opportunities. Known for their ethical approach and proven business model, Car Service City is fast becoming one of South Africa’s leading car servicing groups. It is their ambition to become the most recognized and respected brand in the car servicing industry that drives this business model.

THE CONCEPT 
In the current tough trading environment, this franchise group has not only survived, but thrived, proving that this is, in fact, a ‘recession-proof’ business. Car Service City outlets are available in three formats identified as Basic, Intermediate and Superior.

Through its network of conveniently located workshops, Car Service City franchises provide quality car servicing at affordable prices. Working with all makes of vehicles, Car Service City outlets offer major services and repairs including brake, clutch, CV joint, exhaust, carburettor and radiator repairs. Customers benefit from their 6-month or 10,000-kilometre workmanship guarantee and as part of their customer-friendly service offering, a shuttle service is available to convey customers to their home or workplace within a 7-kilometre radius.

Car Service City’s core target market includes vehicles which no longer have a service or maintenance plan or fall outside of their warranty plans.

Suitable premises should accommodate prominent signage displays and offer sufficient off-road parking for 12 to 15 vehicles. Basic model service centres occupy between 280 and 320sqm and are unlikely to offer main street frontage, while Superior outlet workshops occupy upwards of 380sqm and are typically located in shopping centres or other high traffic locations with street frontage.

In a typical outlet the branch manager or franchise owner will be supported by a secretary, at least one qualified mechanic supported by workshop assistants, one car washer and a general cleaner.

FRANCHISOR SUPPORT
Investing in a Car Service City franchise is like buying a ‘business in a box’ — it comes with 24-hour support and whether it is an HR manual, tax advice, urgent temp staff, technical support or a t-shirt, the Car Service City head office team is there to lend a hand.

Every franchisee, branch manager and secretary is required to attend specifically designed training courses lasting two to four weeks. Further ongoing training regarding products and systems ensures that franchisees remain abreast of developments within the car service industry.

Car Service City employs both traditional and non-traditional advertising formats and promotions are rolled out to franchisees at regular intervals.

FRANCHISEE PROFILE
Applicants should possess a successful business background with particular emphasis on interpersonal skills and financial management. As the business setup provides for the employment of knowledgeable mechanics and managers, prior knowledge of the car servicing industry is not required.

SNAPSHOT

HISTORY
Founder: Grant Brady
Year founded: 2004
Area of origin: Centurion, Gauteng
CEO: Grant Brady

NETWORK
1st SA franchise opened: 2004
Number of SA outlets: 62

FRANCHISE AGREEMENT
Management fee: 5% of turnover
Marketing fee: 2.5% of turnover
Agreement term: 5 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R950 000 to R1,3 million
Franchise joining fee: None
Working capital required: Included in establishment cost
Total average set-up cost: R950 000 to R1,3 million
Average monthly turnover: Available on request
Achievable gross margins: Available on request

WANT TO KNOW MORE?
Contact Grant Brady on +27 11 883 3687 or gbrady@ccholdings.co.za
www.carservicecity.co.za