Maaco Franchise Startup Cost, Revenue and Profit Margin
When it comes to automotive collision repair and painting, Maaco is a trusted name.
This company has was founded in 1972 by Anthony A. Martino. It began franchising the same year it was founded and has today opened up locations beyond the United States.
So, if you’re looking to own an auto collision repair and painting franchise, this might be the right choice for you.
This article will provide the information needed to take your first step.
If you’re seeking motivation to invest, Maaco has several! This is the largest automotive retail paint franchise in the United States. What this means is that there is little or minimal national competition.
As an undisputed industry leader, prospective franchisees get the opportunity to become part of something big.
What more? Maaco has built its reputation and brand over the years. This has given it an edge which has resulted in strong brand recognition in addition to winning the trust of its clientele. As its franchisee, you get to benefit from these and more.
Maaco’s experience in automotive collision repair and painting counts a great deal. As its franchisee, you only get to use its business model to succeed. This franchisor has fine-tuned its business systems and model to guarantee success.
Maaco has many successful franchisees to show and you too can join its expanding team of successful franchisees.
Becoming a Maaco franchisee is dependent on meeting its financial requirements.
These requirements vary and include an initial investment range from $362,250 to $567,250. This amount includes several other expenses such as the initial franchise fee, the real estate or rent fee as well as the leasehold improvements.
Others include utility deposits, insurance, office equipment & supplies, training, signage, and furniture plus fixtures fee. There are also fees for initial inventory, computer software, dues/subscriptions, licensing & permits legal and accounting fees, payroll as well as operating funds.
The detail on the cost breakdown plus additional fees is available in Maaco’s franchise disclosure document (FDD). So, how can one get access to this document? It’s easy! Start the application process. More on how to start the application process will be covered shortly.
To be considered for this franchise opportunity, prospective franchisees must show proof of having net-worth not less than $300,000. The net-worth does not include liabilities. Rather, it only includes assets such as retirement accounts, stocks, and cash among others.
Maaco also has a liquid cash requirement of $140,000. There are ongoing fees too. These include an ongoing royalty fee of 9% of gross sales and a weekly ad royalty fee of $990.
Maaco has gone all out to ensure prospective franchisees get the support they need to become franchise owners. Thus, it has established third-party relationships with financing sources. These sources offer to finance covering vital areas of its operations such as the franchise fee, start-up costs, equipment, and inventory.
Veterans aren’t left out either. Maaco rewards honorably discharged vets for their service to the nation. This is through a whopping 75% discount off of the franchise fee. Plus reduced royalty fee for the first two years of operations.
The success of Maaco franchisees has been largely due to the type and quality of support provided by the franchisor. Support includes training, marketing, and ongoing support. Training commences after signing the franchise agreement.
This takes place at the franchisor’s headquarters and lasts for 120 hours.
However, this is just the initial training as continuous training is provided in the form of refresher courses as well as webinars and conferences among others. Through such training programs, franchisees are kept updated with current events and happenings.
Thus, helping them run their business operations successfully while providing top-quality automotive collision repair and painting services to clients.
Marketing support helps franchisees generate more sales leading to increased profitability. Maaco provides this in several ways such as through access to its cooperative advertising and use of its ad templates.
Other forms of marketing support include national media advertising, regional advertising, and social media advertising.
This franchisor also provides local website development services to each franchisee, SEO and email marketing. All of these combined help projects and increase your business presence.
The ongoing support provided by the Maaco franchise continues throughout the franchise ownership term.
Like its marketing support, this too covers several areas of operation such as membership of its purchasing cooperatives and newsletter publications. Meetings and conventions are organized plus toll-free lines.
Franchisees get a grand opening ceremony when opening their first and any additional franchise unit(s). There is online support, security & safety procedures, field operations, site selection use of its proprietary software, and access to its franchisee intranet platform among others.
Starting The Process
The process of owning a Maaco franchise begins with stating your intent. This can be done in multiple ways. You can either call in on (704) 644-8101 or fill its online form. You get an introductory call from Maaco’s franchise development representative.
This director or representative gives a further review of the business model as well as the overall support structure.
You also get an opportunity to ask whatever questions you have about the opportunity. All of your questions are fully answered and should clarify any grey areas regarding the opportunity.
The call is only the first step as Maaco goes more in-depth by providing a whole range of details on its franchise such as support, operations, marketing, and territory marketing planning among others.
Such details are provided through webinars specifically made for this purpose.
The next step involves a review of the franchise disclosure document (FDD). When it comes to details on its franchise operations, nothing beats the FDD. This is handed to you for a review. The FDD is a legal document that might require legal help in interpreting certain sections of it.
The franchisor is also willing to help you fully understand its terms of business.
The Discovery day is scheduled to enable you to meet with its support team. This is organized at Maaco’s corporate office in Charlotte, North Carolina. This is where you get to discuss other aspects of its operations and find all the answers to questions you seek.
Signing the franchise agreement is the final step in the application process. This is where you get to become a Maaco franchisee. Construction of your franchise outlet and training begin immediately.
There you have it! the information provided here is sufficient enough to help you get started on your quest to becoming a Maaco franchisee.