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.
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.
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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 name | MAACO Collision Repair & Auto Painting |
|---|---|
| Business Model | Collision Repair and Auto Painting franchise centers |
| Initial Investment | $250,000 -$350,000 |
| Franchise | YES |
| Franchise Fee | $40,000 |
| Royalty fee | 9% |
| Ad royalty fee | Initial ad fee of $20,000 + ongoing $900 per week ad fee |
| Number of units | 360 + |
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 $178,000 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.
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.
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.
MAACO VS Jiffy Lube
| Company | MAACO | Jiffy Lube |
|---|---|---|
| Founded in | 1972 | 1971 |
| Franchise fee | $40,000 + | $17,500 – $35,000 |
| Royalty fee | 9% | 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.
Reference: MAACO Franchise; MAACO – Wikipedia
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.