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Want To Open a MAACO Franchise? Here’s What It Will Cost You
With millions of vehicles in the US, it seems logical to start a business related to automobiles. However, starting your own can be exhausting, and marketing it can be a real pain. So, the best step would be franchising. If you are looking for a credible company, why don’t you check out the estimated Maaco franchise cost? We have included the information in this post too. We will also provide you with other crucial information about the company. This is so you can have an educated decision if you wish to start your own branch.
Franchise Description
The franchisor is Maaco Franchisor SPV LLC. This is a direct and wholly-owned subsidiary of Driven Systems LLC. The business offers repair for automobiles, specifically painting. It could be under the names of the following:
- Maaco
- Or, Maaco Collision Repair & Auto Painting
- Or, Maaco Auto Painting & Bodyworks
Franchisee Training
The first phase of the program is a three-week training, including operations and management. The franchisor will certainly provide its franchisees transportation along with the accommodation. There’s also a two-week on-site assistance so that the new center will operate seamlessly.
If the franchisor sees that the franchisee needs to attend supplemental meetings, the franchisee must attend these accordingly. For example, this could be sales meetings, advertising meetings, operations meetings, and conventions. The franchisor then provides the date and location of these meetings.
Territory
The franchisees will not enjoy exclusive territory. That is to say, you may face competition with other franchisees and even other outlets owned by the franchisor. However, if the franchisee is able to meet all the standards as set in the Franchise Agreement (FA), the franchisor will not grant another franchisee nor establish a company-owned center for locations servicing 50,000 people.
Franchisee Obligations
The franchisees must supervise the center. In instances where the franchisee is married, the franchisor will also require the spouse to sign the FA. Like with most business, of course, the franchisees are not allowed to sell items or provide services that do not meet the standards of the franchisor. In addition, they are not allowed to use the center for other purposes except for the operation of Maaco.
Term of Agreement
The term of the agreement is 15 years and could be renewed for another 15 years. Take note that the agreement can be renewed only if the franchisee is able to meet the requirements.
Financial Assistance
Presently, there is no available financial assistance from the franchisor.
Did You Know?
As someone looking for a company to franchise, you should not only look at the Maaco franchise cost or the numbers alone. You must also look at the company’s background, including its mission, vision, and values. Let’s see what Maaco has to offer.
Number 1 in the United States
For those who are not used to running a business, carrying a name that has already built its reputation will always be certainly a wise decision. In the case of Maaco, they are known to be the number 1 automotive retail brand across the country. So far, they face little to no competition, and are considered as the industry leader. Simply put, if you want to be the best, then work with the best.
You also have to trust their management. With four decades under its belt, they have already created the best strategies that could work for your center too.
Serviced More Than 20 Million Cars Since 1972
As they always say, experience is the best teacher. Considering that Maaco has serviced more than 20 million cars, it is safe to say that they are truly knowledgeable about what they do. It’s hard to beat 20 million car owners who have trusted the company indeed.
Works With All Insurance Companies
Many people would like to get their services from Maaco because most insurance companies work with them. For one thing, you can generate large income as well. In addition, they provide nationwide warranties, which is also an advantage as an automotive car repair center.
Driven Brands Credit Card
You may also offer Driven Brands credit cards to your customers, where they could enjoy several benefits. This includes the following:
- 6-month promotional finances for purchases of at least $199
- No annual fee
- Online account management
The card can also be used for other auto parts and service centers across the country.
Potential Annual Sales of $1.15M
With the right management and technical skillset, your Maaco center can be extremely profitable. In fact, their franchise owners have an average of $1.15M of annual sales. Without a doubt, this is a testament to the great support you can get from the franchisor.
Let’s now check your financial eligibility for running your own Maaco center.
MAACO Franchise Cost
Below is the estimated Maaco franchise cost. Presently, it’s between $297,313 to $587,860, depending on the scale of operations you wish to run.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Initial Training and Opening Fee (1 person) | $5,000 | $5,000 |
| Initial Advertising Contribution | $20,000 | $20,000 |
| Equipment, Signage and Initial Computer Hardware | $51,500 | $142,813 |
| Opening Inventory and Supplies | $12,228 | $50,632 |
| Construction, Design, Tenant Improvements and Miscellaneous Start-Up Costs | $93,585 | $254,415 |
| Additional Funds – 3 months | $75,000 | $75,000 |
| ESTIMATED TOTAL | $297,313 | $587,860 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fees | 9% of gross receipts (except that if franchisees develop the center as a new Maaco center, they will pay 4% of gross receipts of the center for the first 6 months the center is open to the public as a Maaco center). |
| Weekly Marketing Fee | $1,000, or an amount equal to the weekly advertising budget of franchisees operating in their designated market area as of the date of the FA, whichever is greater. |
| Software License Fee | $389 per month. |
| Audit Expenses | Cost of audit including the charges of any independent accountant and attorneys’ fees, and per diem fees and costs of the franchisor’s employees, related travel and lodging and other out-of-pocket costs, plus interest. |
| Sales Commission | 10% of the gross sales price of the center or $30,000, whichever is greater. |
| Transfer Fee | $2,500 |
| Renewal Fee | $2,500 |
| Interest on Late Payments | The maximum permitted by law. Or in the absence of such rate, a rate equal to 1.5% per month. |
| Insurance Reimbursement | Policy cost plus reasonable fee for franchisor’s expenses. |
| Indemnification | Will vary under circumstances. |
| Costs of Enforcement | Will vary under circumstances. |
| Premises of Center | Will vary under circumstances. |
| Technology Fee | Currently, $0. |
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