Hmmmm, a grand per NIB?
It sounds cool if it was purely a cash business and you didn't want to get paid for your time. No records to keep etc... All cash businesses are great, but no distributor ever gave a franchise to a business owner who could not be traced or held to account in other ways.
Back to the $1000, Is that after deducting GST? And from that $1000 you have to cover premises, marketing, insurance, warranty work and dealing with lots of tyre kickers. Also have to run an accounting system, deal with BAS/GST/PAYG. Ok 50 pins $50k.
Allow $5k advertising and web sites, $500 insurance, and say $10k as contribution to rent, Say 10 warranties @$250 each for travel, time, parts. Spend about $5000 minimum in parts to support the agency,
Oh and don't forget, it's something like $200,000 to buy a Stern agency, if he'll let you. So if you could get 5% on your money elsewhere, that's $10,000 in lost interest, leaving... $17,000 profit for working what 20 hours per week?
That's $17 per hour you're earning, or about the same as the adult minimum wage.
It makes more sense if the franchise is a bolt on to an existing business that can be efficient with call outs, parts, advertising and rent, but still... it's not that hot. Now, $2000 each and double the quantity and you might have something, but only just, as $68,000 for a year is still just average wage for all the increased risk and inconvenience.
It was to bolt onto a existing business. Just like say Ford, they have new car sales, 2nd hand car sales, spares n poarts then servicing.
Each profitable bolt on is the answer.
Also Have never heard of this $20,000 price for a dealership. Never heard of it ever.
