How to Apply for Franchise Hyundai Dealership?
Hyundai is a Korean car manufacturer that was established last 1967. However, it wasn’t until 1986 that they started penetrating the US market. It has been named one of the fastest-growing brands in the world in the past years. It is not surprising that several entrepreneurs planning to enter the car market are planning to apply for a Hyundai dealership franchise. Choosing to go under the agreement with Hyundai will allow you to legally sell authentic Hyundai cars and parts in exchange for certain fees. However, you will be required to meet certain requirements before you can pass their rigid process. Understand that, unlike the other car manufacturers, the process will be time-consuming.
Complete Guide to Apply as a Local Hyundai Dealership
The Hyundai dealership near me are franchises operated and owned by private individuals. It helps you become a seller of a trusted brand. We understand that it will be intricate and overwhelming. It can also be costly that start an independent dealership. Nonetheless, it promises a higher return on investment. Follow this guide to make the process a little easier.
You Should Be in This Business for at Least Two Years
We’ve mentioned above how rigorous the requirements are before you can be approved for a franchise. Unlike other dealerships, they will require at least two years of experience in the car market. Therefore, you need to open an independent dealership before applying as a franchise Hyundai dealership. You should be aware of the state requirements and the regulation of your city or county when opening a car dealership. For instance, your business site may need to be located in commercial zoning. You need to pass some minimum requirements, such as putting up a surety bond. Suppose you are planning to operate a car dealership in Virginia. In that case, you will be asked to have a surety bond that amounts to $50,000 for the first three years of being in the dealership business. Special licenses and a thorough background check are also sometimes performed.
Sales Staff
Remember that when you are opening a local Hyundai dealership, you are carrying the brand’s name. Therefore, any lapses in your business system will reflect badly on this car manufacturer. You will be required to hire sales staff with experience. It would be best if you could document each of the sales histories of your team. The recognitions and awards they received could also increase the possibility that your application for a franchise dealer will be approved. Know that employee retention will play a huge part in this process since most salespeople in the car industry will leave within their first 60 days of employment.
Registering as Minority
If you registered as a disadvantaged or woman-owned franchise or if any of the minority classifications apply to the business owner, this can expedite the process of applying for a Hyundai dealership near me. However, for you to be approved, you will still have to register on the respective organizations such as the California Unified Certification Program, Small Business Administration, Business development Certification Program, etc. Hyundai will be asking for certain certifications before your application is approved.
Complete the Application Form
Once you are ready to apply for a franchise Hyundai dealership, you will complete their online application form. Head to their website, and it will be difficult for you to miss this. Be truthful in the information you will submit, such as your car sales experience, personal references, bank references, and financial conditions. You will also need to supply your business proposal for your franchise application. As an alternative, you can submit your application through direct mail. Add all the stated requirements, such as information on the recognition and award of your employees, minority status certification, and the marketing materials that your current dealership is using.
Meeting the Requirements
Hyundai will have a list of requirements before approving your application for the Hyundai dealership. For instance, your people need to complete their training. They also have a condition on the location of your car dealer. Signage is also included in their prerequisite. The dealership that wants to carry their luxury model has an even stricter list that you must accomplish. You will need to remodel your showroom based on the specifications of Hyundai. You should be ready to shoulder this expense. Finally, you will have to pay the fee such as the advertising and franchise fee. This fee will depend upon your dealership location, dealership size, and other factors.
Other Factors you should Consider when Applying for a Hyundai Dealership
Hyundai’s modern and cutting-edge cars, combined with the recognition and awards they’ve received over the years, have made them one of the most profitable dealerships in the US. If you complete the procedure above, you can become a local Hyundai dealership.
Cost and Investment
Hyundai has never mentioned the cost of their franchise dealership and the minimum investment you need to make. They also don’t have a piece of information on the possible return on investment and the payback period. The information we will list here is based on market reports and the existing Hyundai dealership near me. Since Hyundai is one of the established car manufacturers in the market, stocking their products is imperative since sales happen fast. They will have a minimum stocking requirement for those applying for franchise dealerships. To accommodate this demand, you will need to have at least 4,000 sq ft. of the business area. The cost will depend on whether you are renting or owning the space and if you are located in a major city.
Hyundai will also have stringent requirements when it comes to its interiors. If you want to know the return on investment, this will depend upon the market’s volatility. The social scenarios that affect the necessities and finance will also affect it. Be sure that a fraction of your finance will be invested in the maintenance and salaries of your people.
ROI (Return on Investment)
Hyundai deals with sophisticated and high-quality products. You cannot compare their products on any brand, especially the different aspects of handling the business. If you expect a return on investment, it will take around 3-5 years before you realize it. Take note that there is no way to ascertain the precise percentage of your ROI since it will depend on several factors, including your promotional efforts that lead to sales, the frequency of sales, efficiency of your dealership management, location, and sales strategies. If your application for the Hyundai dealership was approved, you need to carry out the ideal promotional plan that can help you keep your business profitable.
Why Choose Hyundai Dealership
There are different benefits that a Hyundai car offers, making them one of the most desirable dealerships in the business. Consider some of the benefits you may enjoy if you choose to open a local Hyundai dealership.
Top-Notch Brand
Since you are choosing a top-notch brand, you are making sure that you are selling reliable and safe cars. You are giving your customers the value for their hard-earned money. Your customers are working hard for their money. Your customers will never have to choose between quality and comfort. It will grant you peace of mind knowing that can fully satisfy your customers with your selections. Hyundai has also won several awards in terms of the safety it offers.
Professional Training
If you are applying for a franchise Hyundai dealership, your people will need to go through a strict training process. This will be a periodic training that will enable your people to be updated on the latest strategies and use of equipment. This ensures that you can serve your customers better. They will be taught about the different aspects of the cars and the best way to sell them to your clients. Your people can focus on each car’s strengths and guarantee that you will close the deal immediately.
Marketability
If you choose to open your independent dealership, it may take at least seven years before realizing a return on investment. However, if you decide to open a Hyundai dealership, it will only take an average of 4 years. One reason is that Hyundai is a trusted brand. It will be easier for you to promote your business to your target market. You don’t have to do a lot. People understand that you are following a strict policy and feel safer in doing business with you.
Assistance
You can guarantee that you will receive the assistance when you need it. You will have access to the collection of cars of Hyundai. The professionals will also design your interiors in a manner that will reflect the branding campaign of Hyundai. Your showroom will be top-notch, and you will have support in developing a marketing and sales strategy.
The applicants wishing to open a franchise Hyundai dealership should prepare themselves for the cost that it entails. Although it offers a range of benefits, these things will not be cheap. Also, the requirements will be demanding. You will have to possess around two years of experience in the dealership. Hyundai is careful in approving its franchise application. However, once you manage to pass their application, you can ensure that you have a trusted brand by your side.