Speedemissions Inc. has signed an agreement with The Franchise Doctor of Atlanta to assist the vehicle emissions testing and safety inspections company with franchising its business model into other U.S. markets. Speedemissions currently owns locations in Atlanta, Houston, St. Louis and Salt Lake City.
Management views franchising as a means to continue the company’s growth strategy and increase the size of its retail store presence. The company is expected to begin selling franchises by the fourth quarter.
“We’ve spent a great deal of time researching and studying this strategic business initiative over the past couple of years and now feel we have refined our store model into what can become a successful franchise model as well,” explained Rich Parlontieri, president and CEO.
As you may recall, Speedemissions has been working on new initiatives to deal with increased competition following revisions in emission-testing laws in some of its markets.
In an attempt to mitigate a glut of new competitors, the company earlier this year began cutting operating expenses at both the corporate and store level — a move that is expected to involve the closure of underperforming stores. The company also has stepped up the sale of products such as windshield wipers and light bulbs, and plans to add other automotive services this year.