Cars are more reliable these days, service intervals are spaced farther apart, and car owners are hanging onto their automobiles for longer periods of time. However, while those and other factors have changed the automotive aftermarket industry in a variety of ways, there has been no shortage of promising franchise opportunities in this area as a result.

In fact, the automotive industry hosts more individual franchise companies than any other segment of franchising except food. At the start of the current decade, automotive franchises were generating more than $13 billion in annual sales through almost 29,000 establishments, according to Economic Impact of Franchised Businesses, a 2004 study prepared by the National Economic Consulting Practice of Pricewaterhouse- Coopers for the International Franchise Association Educational Foundation.

Franchisor-owned outlets account for a small portion of that business, but more than 24,500 of those establishments are franchisee-owned and generated more than $11 billion in sales. Since the 2004 study was based on 2001 data, those numbers are surely even higher today.

Automotive franchises come in all shapes and sizes. They include everything from major transmission repairs and engine rebuilding to periodic maintenance and servicing to body work and appearance enhancement. Initial franchise fees range from less than $5,000 to more than $100,000, with startup capital requirements spanning a similar spread.

The average fee for an automotive products and services franchise is currently about $25,000, and first-time franchisees typically are looking at a total initial investment in the low $200,000 range. Both figures are subject to the type of franchise being considered, market location and other factors.

The main factor fueling the ongoing demand for products and services offered by automotive aftermarket franchises is the steady growth in the number of vehicles on the road. According to the U.S. Department of Transportation, there are now more than 241 million motor vehicles registered in the United States, and the vast majority - more than 237 million - are privately owned.

A recent survey of automotive aftermarket executives conducted by Grant Thornton reflects a predominantly optimistic outlook for the industry's future. More than 80% expected to see growth in their business, 56% were adding full-time employees, two-thirds were increasing or maintaining levels of capital expenditure on equipment, and three-quarters were boosting or maintaining spending on information technology.

As large as it is, the franchise segment of the automotive products and services sectors represents just a fraction of the overall industry. According to the Automotive Aftermarket Industry Association (AAIA), total U.S. motor vehicle aftermarket sales reached $267.6 billion in 2005, up 5% from the previous year and the largest increase since 2000.

"We are extremely pleased to see steady growth in aftermarket sales, while the new car dealerships' share continues to slide for the fifth consecutive year," said Kathleen Schmatz, AAIA president and chief executive officer. "And contrary to the frequent prediction that DIY (do it yourself) is dying, our data show that the DIY side of the industry grew by a healthy 5.6%."

Despite the industry's large size, car care businesses continue to grow at a faster rate than the overall economy, and forward-looking indicators suggest there is plenty of room for additional growth in the future.

A key driver of that growth is the massive amount of vehicle maintenance that goes unperformed each year, about $60 billion worth. Another is the increasing number of miles driven by an ever-growing vehicle population.

Some segments of the automotive industry where franchises play a leading role include transmission repair, body repair and painting, tune-ups, quick oil change, tires, brakes, exhaust systems, appearance care, and parts and accessories.

The overall motor vehicle aftermarket consists of five broad segments:

The first segment is by far the largest, accounting for almost $200 billion in annual sales. The automotive aftermarket includes DIY parts and accessories; lubricants and chemicals; service and repair; and tires.

Among the other broad segments of the U.S. motor vehicle aftermarket, heavy duty accounts for about $70 billion in sales, while paint and body equipment, tools and equipment, and trim generate less than $10 billion apiece in annual sales.

Today's automotive aftermarket is an increasingly complex and competitive business that is undergoing profound change. Rapid industry consolidation over the past decade has left fewer market players. At the same time, advances in manufacturing have resulted in higher-quality parts for new vehicles, which means that cars break down less often and have longer service intervals.

All of that means the advantages franchising offers as a means of business ownership are particularly relevant in the automotive aftermarket industry. Chief among them are a defined and proven business format, specialization, a uniform system, an advertising network, name identification, training, a franchisee network, and increased buying power and technology capabilities, according to James A. Meaney, an experienced franchise lawyer and author.

Meaney takes a closer look at some of those advantages in his book, How To Buy a Franchise:

A defined and proven business system. This is a key component of what most franchisors are selling, and it generally refers to a method of operation. The franchise systems that have risen to the top of their industries are those that have developed a proven, recognizable format that is easily duplicated by franchisees. A defined format is largely responsible for creating the positive public image and identification most successful franchises enjoy.

Specialization. Franchises cater to the specialized needs that characterize today's consumer economy. "Many American consumers no longer want a muffler installed by a service station," is how Meaney puts it. "Specialists, it seems, do it better." He adds that the ongoing trend towards specialization will keep franchising at the forefront of business distribution methods.

Uniform system. Even though most are highly specialized, automotive franchises thrive because they offer consumers a dependable source of high quality products and services in an efficient and cost-effective manner. What makes that possible is a uniform system of operation that brings with it the advantages of mass purchasing power, brand identification and customer loyalty.

Advertising network. Collective advertising funds and cooperatives give franchisees who would otherwise only be able to afford local advertising the size and strength needed to do expensive national and regional advertising. Franchisees benefit from the high-quality creative talent and resources the parent company is able to tap. Good franchise advertising plays a vital role in developing brand recognition and building customer loyalty.

Name identification. Being identified with the franchisor's name is an important benefit to franchisees. Name recognition is one of franchising's intangible benefits that becomes more valuable as it increases over time. Being able to align themselves with the franchisor's accumulated brand equity gives franchisees instant integrity and recognition.

Training. Since reproducing the franchisor's format is critical to the success of the entire network, many franchisors have strict training requirements. That training allows franchisees to successfully offer the same quality service or product in a uniform manner, regardless of their previous experience or lack of it. Franchisee network. A network of existing franchisees represents a knowledge base unlike anything else in the business world. With dozens, hundreds or thousands of individual business owners facing the same set of challenges, the array of creative solutions they come up with can be nearly limitless. Once mostly an informal support system, the franchisee network is increasingly being recognized by franchisors as the valuable strategic resource it really is.

Increased buying power and technology capabilities. Many franchise systems include cooperative buying organizations sponsored by the franchisor or a group of franchisees. Often, they are able to negotiate volume discounts and specialized services from vendors that individual franchisees would not be able to command on their own.

The same principle applies to the technology infrastructure that has developed into a de facto requirement for most businesses today. The combined clout of franchisor and franchisees puts more technological prowess within the reach of all participants in the franchise system.

While automotive franchises are benefiting from the same positive trends propelling franchising overall, growth in that sector is also getting a boost from other sources. Two important ones are the increasingly attractive value equation behind automotive repair services and robust growth in the light truck segment of the aftermarket.

Compared with other services, auto repair is a real bargain, according to the Car Care Council (CCC), an industry-supported source of information for the ÒBe Care AwareÓ consumer education campaign, which promotes the benefits of regular vehicle care, maintenance and repair to consumers.

Over the past decade, the cost of hospital services has risen more than 100%, and the cost of financial services has jumped 90%. Automotive maintenance and repair costs, in contrast, have risen less than half as much.

Automotive parts represent an even greater value equation for consumers, having risen in price less than almost any other product category over the past 10 years, according to percentage changes tracked in the Consumer Price Index. That has helped to keep the DIY market vibrant. Almost half of all U.S. households include at least one automotive DIY enthusiast.

One offshoot of changes in automotive technology and vehicle durability has been the emergence of misinformation and "myths" about what kinds of service and maintenance modern cars still require. For example, there is widespread consumer confusion about the need for a tune-up, once a central element of every car owner's regular maintenance routine.

"There is a misconception that today's modern vehicles don't need tune-ups because they never break down, but that simply is not true," said Rich White CCC's executive director. "If you're at work and your computer goes down, you can't get any more work done. It's the same thing with your vehicle. If the vehicle isn't being properly maintained, you're not going to get where you want to go."

The source of much of the confusion around tune-ups is changes in the ignition systems of modern vehicles. Historically, the tune-up was associated with the routine replacement of key ignition parts such as spark plugs and points, along with some basic adjustments to things like the carburetor's fuel-air mixture to help "tune" the engine.

Mounting pressure for increased fuel economy and lower emissions drove car manufacturers to adopt electronics and do away with ignition points in the 1970s. The carburetor was fast becoming an obsolete technology by the mid-1980s, replaced by direct injection of fuel into the engine's cylinder ports.

As the pace of technology quickened, the procedures required to perform a traditional tune-up changed dramatically. Onboard computers now control sophisticated ignition and fuel systems while monitoring and managing critical engine and transmission functions.

As a result, today's tune-up is markedly different than that of 20 or 30 years ago-but it's no less necessary, according to CCC. The organization has developed guidelines for the "21s century tune-up" that include inspection of key systems, such as battery, charging and starting; engine mechanical; powertrain control, including onboard diagnostic checks; fuel; ignition; and emissions. Another critical issue behind the success of automotive products and services franchises is the important role maintenance plays in vehicle safety. More than 5% of all vehicle accidents result from unperformed vehicle maintenance, said a CCC spokesman.

"These accidents result in 2,600 deaths, 100,000 disabling injuries and a financial cost of more than $2 billion every year," he said. "The good news is that simple and inexpensive steps such as properly inflating tires, securing gas caps and routine checkups can help increase the safety of vehicles, benefit the environment, save money and help protect the driving public's investment in their cars."

When accidents do occur, the majority of them result in body damage to the cars involved. Total collision repair industry sales grew 4.4% to $38.2 billion in 2005.

"Collision repair shop sales for the past five years have been averaging about 5.7% growth annually," said AAIA's Schmatz. "This steady growth has been driven by several factors, including increases in the number of registered vehicles, miles driven on U.S. roads, increased road congestion and the higher cost of collision repair per vehicle."

Many aftermarket businesses have changed the way they market their products and services to recognize the increasing role women play in automotive-related purchases. According to surveys conducted by AAIA, 83% of women are responsible for the maintenance of their own vehicles, and 63% of all customers taking vehicles to shops for service and repair are females.

No doubt, the automotive industry will continue to evolve over the years to come. However, no matter what direction the automotive industry of the future may take, it's a safe bet that franchised automotive aftermarket businesses will continue to play an important role in it.