Automotive service franchises in Australia: workshops, tyres and mobile mechanics

• Formats range from full-service workshops and tyre centres to glass, detailing and mobile services, with very different fit-out and equipment costs.
• Contract terms are typical of franchising: 35 of 39 automotive service profiles (89.7%) include a restraint of trade, and 27 of 39 (69.2%) restrict where you buy goods or services.
• NSW and Western Australia, for example, license both repair businesses and the people who do or supervise repair work.
• Since 1 July 2022, the Motor Vehicle Information Scheme has required car makers and other data providers to offer service and repair information to all Australian repairers at no more than fair market value.
• Work on vehicle air conditioning needs a Refrigerant Handling Licence, and businesses that buy or hold refrigerant need a Refrigerant Trading Authorisation.

The formats share a customer base but not a cost structure. Match the format to your skills, your capital and the site you can get.

• Full-service workshops: servicing, repairs and diagnostics from a leased workshop with hoists, scan tools and qualified mechanics. Fit-out and staffing costs are the highest, and so is the range of work.
• Tyre, wheel and suspension centres: tyre sales and fitting, alignments and related work, with stock on hand and specialist wheel equipment.
• Specialist services: brakes, exhausts, transmissions, auto electrical, batteries, windscreens or tinting, each with its own tools and skills.
• Mobile services: mechanics, tyre fitters or detailers working from a fitted vehicle. Rent is lower, but travel time caps the number of jobs a day.
• Car care: washing, detailing and paint protection, which depend heavily on location, visibility and volume.
• Owner-operator or manager: check whether the system expects you to be a qualified tradesperson, or to employ one to meet licensing and supervision rules in your state.

FranchiseScope analysed the Register profiles of 39 automotive service franchisors, captured on 19 August 2026: its automotive category excluding car-maker and motorcycle dealer networks and vehicle hire. The answers are self-reported by franchisors.

• Setup costs: the median low estimate was $111,200 (32 profiles) and the median high estimate was $358,475 (35 profiles), against $146,984 and $400,000 across all categories.
• System size: the median system reported 14 franchisees (39 profiles), compared with 9 across all profiles.
• Restraint of trade: 35 of 39 profiles (89.7%) include one, close to 90.5% across all categories.
• Goodwill: 1 of 31 profiles (3.2%) says franchisees have any rights to goodwill they generate, compared with 10.5% overall.
• Supply restrictions: 27 of 39 profiles (69.2%) restrict where you can buy goods or services, compared with 70.2% overall.
• One-sided changes: 11 of 39 profiles (28.2%) let the franchisor vary the agreement on its own, compared with 27.6% overall.
• Arbitration: 23 of 33 profiles (69.7%) provide for arbitration of disputes, compared with 63.8% overall.

Licensing differs by state and territory, so confirm the rules with your local fair trading or consumer affairs regulator before you sign. Two examples show how far they can go:

• NSW: you need a motor vehicle repairer licence to run a repair business, and everyone doing repair work needs a motor vehicle tradesperson certificate for that class of work. Running an unlicensed repair business can mean a $5,500 fine or prosecution with a maximum penalty of $110,000.
• NSW also requires repair businesses to display their licence details at the business, or on the vehicle for a mobile business.
• Western Australia: a motor vehicle repair business licence, issued for three years, plus repairer's certificates covering up to 23 classes of work. You need at least one certified repairer for every three uncertified repairers in each class at each premises, excluding apprentices.
• Refrigerant: anything done with a regulated refrigerant that could cause leakage, including vehicle air conditioning work, needs a Refrigerant Handling Licence, and handling it without one is an offence.
• Consumer guarantees: repair services must be carried out with due care and skill, be fit for purpose and be finished within a reasonable time.
• Awards: mechanics, automotive electricians, tyre fitters, detailers, service receptionists and apprentices in the vehicle industry are generally covered by the Vehicle Repair, Services and Retail Award.

• The Motor Vehicle Information Scheme is Australia's first right to repair law. Data providers such as car makers must offer scheme information to repairers and registered training organisations at no more than fair market value.
• It covers passenger and light goods vehicles made on or after 1 January 2002, but not motorcycles, heavy, farm or construction vehicles, motorhomes or buses.
• Scheme information includes diagnostic, service and repair information, software updates that connect a new part to a car, and codes for computerised systems.
• Safety information about hydrogen, high-voltage and electric propulsion systems is restricted: it can only be used for a repair business or training course, by a person who has passed a fit and proper person check.
• The Australian Automotive Service and Repair Authority runs the scheme day to day, including checking credentials and nominating mediators for disputes.
• EV work needs different skills and equipment from combustion engines, so ask what training, tools and high-voltage safety procedures the franchisor provides, and who pays for them.

• Premises and equipment: the workshop lease, hoists, compressors, scan tools, tyre machines and wheel aligners, plus make-good costs at the end of the lease.
• Stock and suppliers: tyres, parts and oils often come through nominated suppliers, so ask about pricing, minimum stock and the supplier rebates the disclosure document must describe.
• Labour: wages at award rates, apprentice supervision and the licensing and supervision ratios in your state.
• Revenue mix: servicing, repairs, tyres, fleet accounts and insurance work carry different margins and payment terms, so ask current franchisees for their mix.
• Fees: royalties, marketing levies, technology fees and diagnostic software subscriptions.
• Capital refresh: disclosure documents created from 1 November 2025 must describe any significant capital expenditure the franchisor expects, such as equipment upgrades or refits.

• A weak compliance record. In March 2024 Ultra Tune was fined $1.5 million for contempt of court for breaching earlier court orders, including a late disclosure document update and late marketing fund statements. The Full Federal Court dismissed its appeal in January 2025.
• Late or thin marketing fund statements. They must be prepared within 4 months of the financial year end and given to you within 30 days.
• Supplier rules that lock you into prices well above the market, with rebates the franchisor won't explain.
• Equipment upgrades or refits demanded after you sign that weren't disclosed or agreed.
• No clear plan for EV training, diagnostic tools and access to scheme information.
• Many transfers, closures or terminations in the disclosure document, or former franchisees who won't talk.
• Pressure to sign quickly. The franchisor can't sign until 14 days after you receive the disclosure document, a copy of the Code and the agreement in its final form, and must refund any payment made in that window within 14 days of your written request.

• Confirm the business and individual licences your state or territory requires, and who in the business will hold them.
• Compare the franchisor's Register profile with its disclosure document, remembering that Register answers are self-reported.
• Get a full equipment list and quotes, including diagnostic software and EV tooling.
• Read the supplier and rebate sections of the disclosure document, and compare nominated prices with the market.
• Check the last three years of marketing fund statements and when you received them.
• Read the lease and franchise agreement together, including terms, renewal and make-good obligations.
• Call current and former franchisees about workload, staffing and support.
• Get independent legal and accounting advice before you sign.