7 Steps to Opening Your Own Car Dealership Franchise
- Learn the Business Before opening your own dealership, you should become familiar with the industry by selling cars, managing a dealership, or working for an auto manufacturer. ...
- Obtain Financing ...
- Develop a Business Plan ...
- Become Certified ...
- Find a Spot to Set Up Shop ...
- Obtain the Proper Paperwork ...
- Get the A-OK From the DMV ...
Full Answer
How to open a franchise?
What is the first step in franchise ownership?
What is the final step in franchising?
Where to find financial information for a franchise?
Is franchising scary?
Franchise Dealer-Operators
Responsible for day-to-day operations of the franchise dealership and primary contact with the MVDB.
Two Types of Dealer-Operators
There are (2) types of dealer-operators, Franchise and Independent. Both Dealer-Operators are similar in job duties and functional roles. What differentiates between Franchise and Independent DO’s is the oversight and regulatory requirements.
How to Become a Franchise Dealer-Operator
The first step to becoming a Franchise Dealer-Operator is starting right here...
Where to take the franchise dealer operator test?
Franchise dealer-operators need only take the Franchise Dealer-Operator Exam at the DMVCSC. Use the MVDB-57 Application for Salesperson /Dealer-Operator Test, and check the appropriate exam. Remember, all dealer-operator’s must have a salesperson’s license.
When do dealerships have to be open?
Dealership must be open during posted business hours and those hours must be on record with the Board.
How many hours does a dealer have to be open in Virginia?
Display business hours and a sign as required by § 46.2-1533 and § 46.2-1534, Code of Virginia, respectively. A dealer must be open a minimum of 20 hours per week. 10 of these hours must be between 9am. – 5pm. Monday through Friday.
How long does it take to get a zoning authorization?
The zoning authorization must be dated within 30 days of your application submission to the MVDB.
How many vehicles can be displayed in a dealership?
Have contiguous parking space designated for the exclusive use of the dealership adequate to permit the display of at least 10 vehicles.
What is required for an office space in a car dealership?
The office space must include a desk, chairs, filing cabinet (s), a working telephone in the name of the dealership, working utilities (to include electricity), provisions for space heating, an Internet connection, and an email address.
Do you need a copy of a franchise letter to sell a car?
Franchise dealers must attach a copy of the franchise agreement or original franchise letter, which includes the manufacturer or distributor’s service agreement. The manufacturer or distributor must also be licensed by the DMV.
What is a dealership showroom?
Dealer’s showrooms are required to showcase our lines through interior and exterior branding representation. Specific dealership requirements will vary based on showroom size and product lines carried.
How many dealers does Polaris have?
Polaris is committed to our dealer network. We design the best products and right programs that will help to grow your business. Made up of nearly 3,000 dealers worldwide, our strong dealer network is one of Polaris’ strategic advantages.
Can you have multiple brand stores?
Potentially, yes. Dealer Development will conduct an analysis of the competitive environment and determine if a multiple brand store is an option in your market
Does Polaris have a design consultant?
Polaris has store design consultants to help our dealers create a premier shopping experience for their customers. If you are approved to become a dealer, we will work together to create a design that will support our brand (s) and help you grow your business.
How does a dealership's success depend on its owner?
The success of the business depends greatly on the direct focus and attention of the owner(s). Advertising and promoting the dealership’s activities and striving to constantly improve the dealership’s operations is imperative.
What do you need to own a Honda dealership?
In addition to strong market knowledge, successful business experience and financial ability, Honda dealership owners must have a strong business vision, demonstrated leadership and management skills and be capable of producing and executing a detailed business plan for the operation of the dealership.
What is Honda dealer experience?
Every Honda is designed to enhance the rider experience, helping them explore, work and connect in meaningful ways. The dealer experience is no different. We put the customer first in everything we do, developing long-term relationships based on a shared passion for riding. If this sounds good to you, maybe it’s time you became a Honda Dealer.
Who is responsible for the day to day operations of a car dealership?
The majority owner must commit, to the day-to-day on-site management of the dealership. While some dealers will hire a general manager to oversee the operations of their business, the success of a new dealership depends greatly on the direct focus and attention of the owner(s).
Is an American Honda dealership required to get approval?
Although approval is ultimately required by American Honda, the research to find the best facility / location is the responsibility of the dealer applicant. Your knowledge and understanding of the local market you are applying for will be a tremendous asset in determining where your dealership should be located.
Does American Honda accept liability for dealerships?
All awards of dealerships must be approved in writing by an officer of American Honda and must undergo a thorough evaluation process. American Honda does not assume any obligation of liability for any costs you may incur in preparing or submitting any information to American Honda.
Is American Honda a customer facing company?
In select cases, American Honda offers a unique approach to an exclusive Honda customer-facing environment. All new dealers are required to meet Honda's dedicated department size for sales, parts, service and storage areas with an exclusive customer-facing operation. Please contact Dealer Development for full details.
How much does it cost to franchise Ford?
It is the second largest U.S. company and expands on a global scale. The initial franchise fee is around $30,000. But this doesn’t include the money for building space, inventory, and other equipment costs. With all the additional requirements, it becomes over $150K to be a franchisee.
How long does it take to own a Hyundai dealership?
in 1986. Contrary to the other companies, Hyundai requires you to own a dealership for two years before partnering or franchising. To invest in the business is expensive, costing over $500K. However, with the requirement that you must own a dealership first, there is a better chance you will already have the money needed.
What are the major brands of General Motors?
Moreover, they are: Chevrolet, Buick, GMC, Cadillac, Holden, Baojun, Wuling, and Jiefang. The company has over 19,000 dealers throughout the world.
Do car dealerships have franchises?
Most people are familiar with the giant automotive manufacturers. The majority of them have a car dealership franchise system for business owners to join the company. However, a few of them stand out from the rest.
How to open a franchise?
There are two general pieces of advice that are helpful here no matter what your path to opening day looks like: 1 Be patient. You’ll likely feel like progress is slow as you get started. Don’t rush things and stick to the process that’s worked for other franchise owners. Remember, you’ll have help along the way. 2 Stay positive. Opening any business isn’t always smooth sailing. Some days will be harder than others. Have a friend or family member to lean on for support and always keep other franchise owners in your address book. Unlike starting a business from scratch, having others who have been through the process can be incredibly helpful.
What is the first step in franchise ownership?
The very first step of franchise ownership is to look inward to define what you want from business ownership and what type of franchise reflects those desires.
What is the final step in franchising?
The final big step of the decision-making process is meeting with the franchisor staff at an event called Discovery Day or something similar.
Where to find financial information for a franchise?
Here are two ideas: First, if it’s a public company, you may find financial information in SEC filings. Second, review any company press releases or stories written about it.
Is franchising scary?
Regardless of what process your franchisor lays out for you, opening your franchise will be exciting and probably a little scary. You will learn a lot in a relatively short timeframe. But if your franchisor is effective, you’ll have help at each step along the way and a phone number to call whenever you need a hand.
