🍟 5/9/2024 – Innovative Auto Franchise With $1M in Average Revenue

FRANCHISE OF THE WEEK

Alset Auto

Fast Facts

Background

  • HQ: Portland, OR
  • Founded in 2018, franchising since 2020
  • Alset Auto is a franchise that specializes in exterior auto services exclusively for tesla owners.

Franchise Fees

Financial Overview

  • The below table discloses information on 2 affiliate outlets and 1 franchised outlet from October 1, 2022 through September 30, 2023

The Wolf’s Take 🍟

Alset Auto is one of the most interesting franchise concepts out there. 

The concept was founded by 2 Tesla owners, 1 of them also a franchisee of a real estate brand.

Something didn’t add up about their tesla experience however. With a tesla, you can buy directly from them online (no need to go to a dealer). It’s a straightforward, modern buying experience. 

Yet after you buy a tesla, if you want any service done on it, such as paint protection, they found that the experience was far different.

Only half the paint protection shops were picking up their calls, none seemed to publish online pricing, and any phone calls included a ton of vague upselling i.e. you need to come in for a quote. 

They knew one thing: the type of person that buys a tesla doesn’t want to go through that crap. More than that, tesla owners care about their car more than the average joe – any many paint protection shops seemed to treat it as just another hunk of metal.

Alset Auto was born from their own experience, to serve exclusively tesla owners.

Today they have ~15 locations open and operating across the US, and have expanded to serve other brand name EV companies that have come about since Alset’s founding.

I love the niche focus of this business that differentiates them from competitors.

Additionally, the introduction of the cyber truck is undoubtedly a massive tailwind to the upside for franchisees.

Alset’s specialization of building a business for luxury EV’s has also led to deals with manufacturers that results in lead generation exclusively sent to Alset Auto franchisees.

The labor model is also not nearly as heavy as ohter concepts, as a typical location should require just 3-6 people. 

If you’re interested in a differentiated franchise building for a clear market segment, Alset Auto is a really fascinating opportunity, run by leaders who have been franchisees.

Check them out below if you’re interested!

Resources

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