MAACO Franchise Cost, Profit, & Failure Rate 2024

MAACO is a franchise that specializes in car paint and collision repair services in the US market.

If you are interested in entering a narrow niche in the market, it is important to consider this franchise.

Investing in a franchise always requires an initial investment. Before making a decision, it is recommended to research and fully understand the franchise opportunities that MAACO provides.

Maaco Franchise
Maaco Franchise

About The MAACO Franchise

MAACO is a well-known company in North America, and it provides collision repair and auto painting services (the company’s full name is MAACO Collision Repair & Auto Painting).

The company runs a franchise program that allows any entrepreneur that fits the requirements to launch their MAACO business.

They are currently open to new franchise applications, and applying is super easy: you just need to navigate to their website and fill out the form. 

In the form, you’ll need to provide information about your available liquid capital and net worth because these are the prerequisites to apply for this franchise.


History of the MAACO Franchise

MAACO was founded in 1972 as an auto painting center. The name of the company is due to the name of its founder, Anthony A.

Martino (MAACO, which is an acronym for Martino, Anthony, A., and Co.). Mr. Martino had previously founded AAMCO Transmission, and for his new company, he wanted to use a similar name to instill confidence in clients who already knew the AAMCO company.

The new MAACO company grew thanks quickly to a franchise program that started early on: in less than five years, they were able to open more than 200 franchise units.

In 2008, Martino sold the rights of the company to Driven Brands of Charlotte, a company that also owns Meineke Car Centers and Econo Lube.

Since then, the company has grown even further, and today, it counts 508 units in the United States.


MAACO Franchise: Business Model

MAACO is an auto paint and collision repair service provider. It is also a franchise constantly open to new franchise applications.

Applying for their franchise program is extremely simple: just navigate to their website and fill out the provided form.

Company nameMAACO Collision Repair & Auto Painting
Business ModelCollision Repair and Auto Painting franchise centers
Initial Investment$250,000 -$350,000
FranchiseYES
Franchise Fee$40,000
Royalty fee9%
Ad royalty feeInitial ad fee of $20,000 + ongoing $900 per week ad fee
Number of units360 +

How Much Does It Cost To Open A New MAACO Center?

How Much Does It Cost To Open A New MAACO Center

The total initial investment required to open a new MAACO center is estimated to be between $250,000 and $350,000.

This investment covers the start-up costs of your new auto paint and collision repair center and the several initial fees that MAACO requires.

While most franchise programs require an initial franchise fee and a couple of ongoing fees, MAACO requires more than one initial franchise fee; these are:

  • the franchise fee amounts to $40,000;
  • an initial advertising fee of $20,000;
  • a training fee of $5,000.

The estimate we made of the total initial investment (between $250,000 and $350,000) includes all initial franchises.

The fact that there are more initial franchise fees than usual doesn’t mean that the ongoing fees are less or lower. In fact, MAACO also requires the two usual ongoing franchise fees:

  • a 9% royalty fee, calculated on your gross revenue;
  • a $900/week advertising fee.

MAACO Franchise Revenue & Profit

MAACO franchise owners make revenue of $1,008,000 a year on average.

However, the revenue for MAACO franchise owners may vary depending on the location, size, managing skills, etc.

The top 50% MAACO franchise owner makes $6,791,458, and the bottom 50% makes $181,031.

And if we talk about the profit of the MAACO franchise, then you should know that MAACO franchise owners enjoy an estimated profit margin of 16%.

So based on this, a MAACO franchise owner makes $161,280 in annual profits on average.

Additionally, the profit margin of MAACO is at par with the standard profit margin of the automotive industry making it a profitable industry to invest in.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1008000.00
Rent10.50%(105840.00)
Insurance5.25%(52920.00)
Salaries21.00%(211680.00)
Franchise Royalty Fees5.25%(52920.00)
Utilities2.10%(21168.00)
Cost of Goods Sold (COGS)26.25%(264600.00)
Labor (Variable)13.65%(137592.00)
Total (Expenses)84.00%(846720.00)
Net Profit16.00%161280.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


MAACO Franchise: requirements

To apply for the MAACO franchise program, you need to have and demonstrate a net worth of $300,000 and available liquid cash of $140,000.

The MAACO franchise program also prefers candidates with prior experience in the automotive industry or in operating a business.


Payback Period Of MAACO

The investment of MAACO is $350,000, and the yearly profit of a MAACO franchise owner is $161,280.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $350,000 / $161,280= 2.17 years

Based on these figures, it will take 2-3 years to recoup the initial investment for MAACO. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of MAACO

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020459426-33
2021426411-15
2022411398-13

For the Franchised outlets:

  • In 2020, the failure rate was (33)/459×100≈7.18%
  • In 2021, the failure rate was (15)/426×100≈3.52%
  • In 2022, the failure rate was (13)/411×100≈3.16%

According to the above-mentioned data, MAACO is constantly declining every year. We can see that the franchised outlets for MAACO declined from 2020 to 2022, showing a failure rate between 7.18% and 3.16%.


MAACO Franchise: Obligations and Restrictions

When you sign with MAACO as a franchisee, you become the owner of your business, and you can manage it as you like.

However, with a franchise, you’re never 100% free: there are always some limitations dictated by the company’s quality standards.

In the case of MAACO, the obligations and restrictions are related to the dimensions of your store and the quality standards you need to meet. 

Every detail is indicated in the franchise contract, so make sure to read it well.


MAACO Franchise: Training and support

As we’ve mentioned, there is a dedicated fee for training when you sign a franchise contract with MAACO.

The $5,000 training fee includes teaching about location selection and negotiation, supply and equipment, marketing and advertising, business management, and more.


MAACO Terms of agreement and renewal

The franchise contracts that MAACO has a length of 15 years. 

After this time, if you want to keep operating under the name of MAACO, you need to pay a renewal fee that amounts to $2,500.


MAACO: Financial Assistance

MAACO doesn’t provide any kind of in-house financial assistance. However, the company collaborates with third-party sources that can offer to finance.

With this type of financial assistance, franchises are helped to cover the initial costs related to franchise fees, equipment, inventory, accounts, and more.

 Potential franchisees interested in automotive service can investigate opportunities with AutoZoneAAMCOGrease MonkeyNapa Auto Parts, and Tint World Franchise.


MAACO VS Jiffy Lube

CompanyMAACOJiffy Lube
Founded in 19721971
Franchise fee$40,000 +$17,500 – $35,000
Royalty fee9%4%
Initial Investment$250,000 -$350,000$234,000 – $372,000

Conclusion

One of the secrets of launching a successful and long-lasting business is to aim at a very specific and narrow niche. This is exactly the advantage that the MAACO franchise can provide to you.

Even if this franchise has higher franchise fees than many other franchises, it’s still a great investment that can generate huge profits in a short time.


MAACO Franchise: FAQs

Is MAACO a franchise or chain?

MAACO is a franchise. It means that, at the price of some initial and ongoing franchise fees, you can open a MAACO business and become its full owner.

Who is the owner of the MAACO franchise?

Robert Benjamin is the current President of the MAACO franchise company.

How many MAACO centers are currently there?

There are more than 360 MAACO locations operating in the United States.

Is the MAACO franchise a good investment?

The MAACO franchise provides entrepreneurs with an excellent opportunities. The initial investment is high, but the dimension of the business you are launching requires so.

The ROI can be expected to be not only high but also quickly generated because the brand is well known, and clients won’t take long to come.

Is the MAACO franchise worth it?

The MAACO franchise isn’t low-cost, and it’s also one of the franchises with the highest initial fees.

And yet it is considered worth it because it operates in a sector that is narrow and for which there is high market demand.

Where is the headquarters of MAACO?

MAACO is headquartered in Charlotte, North Carolina, United States.

Who founded MAACO?

MAACO was founded in 1972 by Anthony A. Martino and Daniel I. Rhode.

Reference: MAACO FranchiseMAACO – Wikipedia

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