AAMCO Transmission is a franchise business with a long history, established in 1957.
It operates in the automotive maintenance and repair sector, offering various services related to vehicle care.
Despite its founder, Martino, leaving to start the MAACO franchise, AAMCO has continued to thrive and grow through its franchise program.
Before considering joining the AAMCO franchise, it is important to have a clear understanding of the costs, requirements, and responsibilities involved.
This article aims to provide comprehensive information about the AAMCO franchise opportunity.
About the AAMCO Franchise
AAMCO Transmission is an American company that provides services related to vehicle maintenance and repair.
It is considered one of the world’s leading auto repair franchises, and it became an iconic brand through more than 50 years of history and experience.
Part of the success of AAMCO is due to its winning marketing campaign.
Their TV and radio commercials, in particular, have become highly recognizable: they all end with a voice saying, “AAMCO, double A (car horn beeps twice) M-C-O.” They also made heavy use of celebrities in their advertising.
The company exposure brought AAMCO to become one of the most known brands in the car care sector, and that’s why opening a franchise with them can be a very good deal for any franchisee.
History of the AAMCO Franchise
In 1957, Anthony A. Martino founded AAMCO in Philadelphia. Before that, he was repairing cars in a small space in an ESSO shop.
The name of the company is due to the founder’s initials, but it was also chosen so that it could appear higher in the Yellow Pages, which was the main tool that people had to find the services they needed back then. The marketing strategy was key for this business since its very early days.
Martino and his partners soon started opening additional stores in Philadelphia.
In 1962, A collaboration with Robert Morgan transformed AAMCO into a national chain of transmission repair stores through a franchise program that is still active today.
In 2006, AAMCO was sold to American Capital and just kept growing.
Today, AAMCO is the world’s largest franchisor in the sector of car care specialists, with 527 active locations in North America.
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AAMCO Franchise: Business Model
AAMCO is a company that provides car care services. It is also a franchise (the biggest in the sector), meaning that you can become the owner of one or more AAMCO stores.
| Company name | AAMCO |
|---|---|
| Business Model | Franchise car care centers |
| Initial Investment | $226,300 – $330,500 |
| Franchise | YES |
| Franchise Fee | $39,500 |
| Royalty fee | 7,5% |
| Number of units | 527 |
How Much Does It Cost To Open An AAMCO Repair Center?
The initial investment required to open a new AAMCO business falls into a range between $226,300 and $330,500.
As happens for all franchises, the initial investment comprises the franchise fee and the costs for the location, equipment, construction, and inventory. The initial franchise fee amounts to $39,500.
Other than the initial franchise fee, you’ll need to pay an ongoing franchise fee: it’s the 7.5% royalty fee, which is calculated on your gross revenue.
AAMCO Franchise: Requirements
As you’ve just discovered in the previous paragraph, the AAMCO franchise is quite expensive; to apply for this franchise, you must have and demonstrate a net worth of $250,000 and available liquid cash of $65,000.
AAMCO Franchise: Training and Support
When you get your deal with the AAMCO franchise, before you set up your new unit, you can get access to training and orientation directly provided by the company.
They offer a 3-week training (called AAMCO Operator’s School) that provides you with insights about all the operations of an AAMCO franchise unit.
A 5-week Grand Opening Operations Development Training is also available: it is held in the first quarter after the franchise unit has been open.
Franchisees can also benefit from AAMCO marketing support. We’ve already mentioned how AAMCO focuses on marketing and advertising; with this program, you’ll get to learn AAMCO’s proven marketing strategies so that you can use them for your franchise business.
AAMCO Franchise: Terms of Agreement and Renewal
The franchise contract with AAMCO is 15 years long. After this time, you can renew your contract and pay a renewal fee.
AAMCO Franchise: Obligations and Restrictions
AAMCO recommends that franchisees participate as the first person in the business operations. It is not, however, mandatory.
If the franchisee can’t participate in the business operation, they must hire a manager.
There are also recommendations about the employee hiring process: candidates must demonstrate themselves to be honest and dependable.
However, these are all recommendations; no obligations are indicated in the franchise contract.
AAMCO Franchise: Financial Assistance
As you can see, the AAMCO franchise can be quite expensive.
For this reason, the company provides resources to help franchisees cover the start-up costs of their new business, both in-house and through third parties.
AAMCO VS Meineke
| Company name | AAMCO | Meineke |
|---|---|---|
| Founded | 1963 | 1972 |
| Number of Outlets | 598 | 966 |
| Franchise Fee | $39,500 | $35,000 |
| Royalty fee | 7.5% | $20,800 |
| Franchise | yes | Yes |
| Total Initial investment | $250,000 | $350,000 |
Conclusion
The AAMCO franchise is one of the most expensive, but it is also the most successful.
There are many factors that contribute to the company’s success. What matters, however, is that this is the world’s biggest franchise in the sector of the car care industry.
AAMCO Franchise: FAQs
Is AAMCO a franchise or chain?
AAMCO is a franchise. It is actually the world’s biggest franchise in the sector of the car care industry.
Who is the owner of the AAMCO franchise?
The AAMCO franchise is currently owned by Icahn Automotive Group, and Jim Gregory is the current CEO.
How many AAMCO centers are currently there?
At the moment, there are 527 AAMCO car care centers throughout North America.
Is the AAMCO franchise a good investment?
The AAMCO franchise is the best investment you can make in the car care sector.
The franchise is the biggest in this industry, and the AAMCO car care centers are very well-known and trusted.
Is the AAMCO Franchise worth it?
The AAMCO Franchise isn’t a low-cost franchise. It is, on the contrary, quite expensive both because you need to set up an entire car care center and because the initial franchise fee is quite high (almost $40,000).
Nevertheless, the investment is worth it because it can generate great profit in a quick turnaround.
The brand is so well known that it almost needs no advertising, and car care is a sector where the market demand is always high.
Reference: AAMCO Transmissions – Wikipedia; AAMCO Franchise – How To Open, Cost & Profit (startupback.com)
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.