Maaco Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$276,000

-

$1,016,000

LOCATIONS

398

Adam

Updated

April 11, 2024

Is

Maaco

a franchise?

Yes,
Maaco
currently
accepts
franchise
applications

Maaco is a prominent American franchisor specializing in auto paint and collision repair centers. It operates under the ownership of Driven Brands and has its corporate headquarters situated in Charlotte, North Carolina.

Established in 1972 by Anthony A. Martino and Daniel Rhode, Maaco emerged as a pioneering force in the automotive industry. This dynamic duo embarked on their journey after selling the rights to AAMCO Transmission Inc.

Maaco franchise locations offer an extensive range of services, catering to the needs of vehicle owners and fleet operators alike. These services encompass everything from addressing dents, dings, and chips to ensuring the pristine appearance of individual vehicles and entire fleets.

Maaco's venture into franchising commenced in 1972, and since then, it has expanded significantly. Presently, Maaco boasts a thriving network, with 425 locations spanning across the United States and Canada.

How many

Maaco

franchises

are there?

In 2022, there were
398
outlets in
the United
States, of which
398
are franchises, and
0
are corporate-owned.

What are the

Maaco

franchise

fees?

Royalty fee

4% to 9%

Advertising fee

$1,000 per week

Initial Franchise Fee ($20,000)

The initial advertising contribution for a Maaco Center is $20,000, payable no later than 30 days before the Center is scheduled to open.

Maaco will use this contribution within one year after the actual opening of the Center for grand opening marketing, which may encompass traditional marketing, digital marketing, promotional and event materials, and other assets. The fee is utilized to purchase these marketing materials.

Royalty Fee (Varies between 4.8% and 8% of Gross Receipts)

The royalty fees paid by franchisees under the franchise agreement are calculated based on the cash a franchisee collects, as opposed to the sales invoices generated. Due to this, there may be differences in royalty fee rates among franchisees. Some franchisees have signed development agreements which provide for varying royalty incentives. Maaco Centers have paid royalty fees ranging between 4.8% and 8% of gross receipts.

Advertising Fee ($1,000 or based on weekly marketing budget)

Franchisees are obligated to pay a weekly marketing fee of $1,000 under the franchise agreement. However, some franchisees might pay higher weekly marketing fees based on the weekly marketing budget of the franchisees operating in their designated market area.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Maaco

franchise?

It costs between
$276,000
and
$1,016,000
to start a
Maaco
franchise.
Expenditure Type Cost Range Paid To
Initial Advertising Contribution $20,000 Lump Sum
Living Expenses During Training $2,500 to $3,500 As Incurred
Equipment, Signage, and Initial Computer Hardware $61,500 to $240,000 Lump Sum
Opening Inventory and Supplies $15,000 to $25,000 Lump Sum
Construction, Design, Tenant Improvements, and Miscellaneous Start-Up Costs $75,000 to $600,000 Lump Sum or As Incurred
Additional Funds – 3 Months $50,000 to $75,000 As Incurred
Total Estimated Initial Investment $276,000 to $1,015,500

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Maaco

provide

training

to its

franchisees?

Yes,
Maaco
provides
training

Here's an insight into the training and support they offer to their franchisees:

  • Initial Training: Maaco offers an "Orientation/Training Program" which is conducted multiple times a year. This program is a blend of classroom instruction and hands-on experience, ensuring that franchisees are familiar with the operations of their service center. The training takes place in designated locations, including Charlotte, North Carolina, and may also be offered through online virtual classrooms. While Maaco provides the training, franchisees are responsible for their transportation, accommodation, food, and other personal expenses during this period.
  • Field Training: To ensure that the knowledge gained in the classroom is effectively translated to real-world scenarios, Maaco offers "New Franchisee Orientation (Field Training)". This training is store-moderated and is divided into pre-classroom and post-classroom sessions. The pre-classroom segment is 40 hours long, and the post-classroom segment spans 160 hours.
  • Optional Training: Recognizing the diverse needs of franchisees, Maaco offers optional training sessions. These sessions cover various aspects, including financial training and software training. The duration of these sessions can vary, with financial training currently set at 20 hours.
  • Fast Track Training: For those franchisees or managers who come with prior experience, Maaco offers a "Fast Track" program. This program is tailored to cater to the needs of experienced individuals, ensuring they receive the specific training they require.

Does

Maaco

provides

territory

protection?

Franchisees of Maaco do not receive an exclusive territory under the Franchise Agreement. This means they might face competition from other franchisees, outlets owned by Maaco, or other distribution channels or competitive brands controlled by Maaco.

However, franchisees are allowed to operate the Center only at a location approved by Maaco. They are not restricted in terms of the area they can solicit business or the customers they may approach.

Furthermore, while the franchise is nonexclusive, Maaco has set certain conditions to protect franchisees. For instance, if Maaco wishes to license a third party to establish a Maaco Center in the same Core Based Statistical Area (CBSA) as an existing franchisee, they will not grant that license if it results in more than one Maaco Center for every 50,000 persons in that CBSA.

This offers a degree of protection against oversaturation in a given area. However, it's important to note that Maaco retains the right to develop and operate any business under any name in any area, regardless of its proximity to or effect on the Centers developed by the franchisee.

Can a

Maaco

franchise

be run as

a passive

investment?

The Maaco franchise model requires franchisees to be actively involved in the management and operation of their center. Specifically, the franchisee (or if the franchisee is more than one person, the person approved by Maaco as the center's principal operator) must devote their full time, energy, and efforts to the direct management and supervision of the center.

The center must always be managed and operated by the franchisee or the designated principal operator. Additionally, both the franchisee (or their majority investor) and the individual conducting the day-to-day management and operation of the center as the principal operator must attend and complete Maaco's initial training program to the company's satisfaction.

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